http://www.upstreamonline.com/live/article127005.ece

Turkey refuses to deal with Iraqi Kurds


By Upstream staff

Turkey today rejected demands from the Iraqi national oil company Somo 
that its companies should deal in future with Kurdish authorities in 
northern Iraq when doing business there.

Ankara is worried about Kurdish moves towards greater autonomy in 
northern Iraq, fearing they could spark separatism among its own Kurdish 
population in south-east Turkey.

It insists on dealing only with the central Baghdad government and 
halted transport of refined oil products to Iraq over the weekend via 
its Habur border crossing in protest at a letter from Somo to Turkish 
exporters.

"Our counterpart is the Iraqi central government. We expect the central 
government to honour its contracts. Nobody should test us," Foreign 
Trade Minister Kursad Tuzmen told a news conference.

"We have never seen such an irregularity in Iraq," he said, adding that 
Turkey would review its petroleum trade policy with Iraq if Baghdad did 
not comply with existing deals.

Iraq accused Turkish politicians last week of fomenting division in its 
northern areas and said it might bring some form of economic pressure to 
bear on Ankara.

Turkey has accused Iraqi Kurds of systematically settling the city of 
Kirkuk, at the expense of resident Arabs and Turkish-speaking Turkmen, 
with the aim of incorporating its oil wealth into an independant Kurdish 
state. That, Ankara fears, could in turn fan Kurdish separatism on its 
own territory.

Turkey has almost no crude reserves of its own and imports most of its 
needs, but re-exports refined oil products to neighbouring Iraq.

Turkish territory also provides crucial land routes for Iraq's oil 
exports to the West. Convoys of trucks from Turkey brave dangerous roads 
to supply Baghdad and other cities as well as US troops based in Iraq.

Witnesses say a 40-kilometre queue of trucks has built up at Habur 
border gate since the weekend decision.

Kartet, the only Turkish energy company selling electricity to Iraq, 
said it had no plans to cut electricity exports to the country.

"Our electricity exports are continuing with no interruption," company 
co-ordinator Nuray Atacik told Reuters.
29 January 2007 19:31 GMT  | last updated: 29 January 2007 19:31 GMT

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