Iraq Seeks to Ease Tensions ahead of PM’s Meeting with Biden 

Iraqi Kurdistan Region President Nechervan Barzani (right), Iraqi Prime Minister Mohammed Shia al-Sudani (center) and former Kurdish President Masoud Barzani. (AFP file photo) 
Iraqi Kurdistan Region President Nechervan Barzani (right), Iraqi Prime Minister Mohammed Shia al-Sudani (center) and former Kurdish President Masoud Barzani. (AFP file photo) 
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Iraq Seeks to Ease Tensions ahead of PM’s Meeting with Biden 

Iraqi Kurdistan Region President Nechervan Barzani (right), Iraqi Prime Minister Mohammed Shia al-Sudani (center) and former Kurdish President Masoud Barzani. (AFP file photo) 
Iraqi Kurdistan Region President Nechervan Barzani (right), Iraqi Prime Minister Mohammed Shia al-Sudani (center) and former Kurdish President Masoud Barzani. (AFP file photo) 

The State Administration Coalition in Iraq announced its complete support to Prime Minister Mohammed Shia al-Sudani's upcoming visit to the United States where he will meet with President Joe Biden.

Sudani sponsored the coalition’s meeting that was held at the government palace and attended by Shiite, Sunni and Kurdish political leaders. The meeting was also notably attended by a prominent leader of the armed factions, Abu Alaa al-Walae, demonstrating that the truce between the government and groups remains in place.

Sudani is set to discuss several key issues related to Iraq’s ties with the US that have been nothing short of tumultuous since the US invasion 21 years ago.

The PM is seeking to resolve internal disputes so that he can dedicate himself to facing the Americans, who are banking on these disputes to continue to maintain influence in Iraq.

An informed Iraqi source told Asharq Al-Awsat that officials at the State Administration Coalition meeting held frank discussions over the future of relations between Iraq and Washington and the US-led anti-ISIS coalition.

The meeting clearly backed Sudani’s visit to the US and focused on security and relations between Baghdad and Washington whereby the state would be allowed to impose its control over all aspects of the country.

Sudani is hoping that his visit will be more successful than those carried out by previous PMs, who had headed to the US with various agendas and goals.

His predecessor Mustafa al-Kadhimi had paid two visits to the US during his relatively short two-and-a-half-year tenure.

Separately, Kurdish forces expressed their support to the outcomes of the visit carried out by Iraqi Kurdistan Region President Nechervan Barzani to Baghdad.

Barzani met with several senior officials, including Sudani.

Iraqi President Abdullatif Rashid stressed on Monday the need for cooperation between the Baghdad and Erbil governments so that they can overcome all disputes.

He also underlined the need for parliamentary elections to be held in Kurdistan.

Barzani and his accompanying delegation met with members of the pro-Iran Shiite Coordination Framework and the State Administration Coalition.



Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.