The Honorable Antony Blinken Secretary of State 2201 C St. , NW Washington , DC 20520 Dear Secretary Blinken , Following the Iraq War , the United States advocated for a constitutional process in Iraq that was inclusive of all ethnic and religious groups in the country . However , the roles and powers of federal , regional , and governorate authorities has fueled division between the national government , the Kurdistan Regional Government ( KRG ) , and other political actors since its adoption . Particularly , articles 111 and 112 of the Iraqi Constitution state that Iraq's natural resources are the property of " all the people of Iraq in all regions and governorates , " and that " the federal government , with the producing governorates and regional governments , shall undertake the management of oil and gas extracted from present fields . " The Iraqi constitution also enshrined the authorities of a region , including clarifying that authorities not explicitly given to the central government were the responsibility of the regional , government . Articles 111 and 112 permit the KRG to develop oil and gas resources in areas subject to KRG administrative control with relative independence from Baghdad . The KRG has reached oil and gas development contracts with American and allied companies subject to a KRG law based on this interpretation , and the KRG has built and used its own oil export infrastructure . By attracting foreign investment , the Kurdistan Region's economic transformation has been remarkable , seeing its oil production grow from 0 to 450,000 barrels per day in just the last 15 years . The U.S. Development Finance Corporation has committed $ 300 million to financing American companies to help develop this energy future for the Kurdistan Region . As a result of these investments , the KRG's gas resources could be poised to help both Iraq and eventually wean Turkey and southern Europe off Russian and Iranian gas supplies , especially as we maintain sanctions against Russia for its illegal invasion of Ukraine . Iran , recognizing this threat to their foreign energy markets , earlier this year fired rockets into Erbil , destroying the home of Kurdistan's most prominent oil businessman . Furthermore , Iranian - backed sectarian militias took a Kurdish refinery offline and launched at least five separate rocket and drone attacks against Kurdish oil infrastructure . As you are aware , in February 2022 the Iraqi Federal Supreme Court ruled the KRG's oil and gas law to be unconstitutional directing the KRG to align their operations with federal directives . The KRG remains in negotiation with the Iraqi federal government .
As a result of the Iraqi Federal Supreme Court's decision , Iraq's government has unevenly enforced the court's decision , cancelling 2 American and 2 European fuel contracts with the KRG . Of note , Baghdad has not cancelled the contracts the KRG signed with Russian or Chinese firms . We are concerned that these actions risk destabilizing Iraq , raising tensions in the region , and further disrupting international oil markets . It is thus in America's national security interests to facilitate a resolution to this dispute between the Iraqi government and the KRG . Therefore , we urge the Department to engage both the Iraqi government and the KRG to help resolve this dispute , ensuring the Kurdistan Region's autonomy and economic rights , and ensuring Iraq will continue to be a multi - ethnic secular republic , free from Iranian interference . Thank you for your kind attention to this request . We look forward to hearing from you on this issue of upmost importance.