Lavrentyev in Türkiye to Discuss Progress in ‘Normalization’ of Ties with Syria

Turkish Deputy Foreign Minister Nuh Yilmaz held discussions with Lavrentyev at the Turkish Foreign Ministry headquarters on Saturday. (Turkish Foreign Ministry - “X”)
Turkish Deputy Foreign Minister Nuh Yilmaz held discussions with Lavrentyev at the Turkish Foreign Ministry headquarters on Saturday. (Turkish Foreign Ministry - “X”)
TT

Lavrentyev in Türkiye to Discuss Progress in ‘Normalization’ of Ties with Syria

Turkish Deputy Foreign Minister Nuh Yilmaz held discussions with Lavrentyev at the Turkish Foreign Ministry headquarters on Saturday. (Turkish Foreign Ministry - “X”)
Turkish Deputy Foreign Minister Nuh Yilmaz held discussions with Lavrentyev at the Turkish Foreign Ministry headquarters on Saturday. (Turkish Foreign Ministry - “X”)

Russia continues its endeavors as part of an initiative to facilitate rapprochement between Türkiye and Syria and to restore normal relations between the two.
Russian President Vladimir Putin's special envoy to Syria, Alexander Lavrentyev, visited Ankara to conduct consultations on the Syrian file.
According to the Ministry of Foreign Affairs, Turkish Deputy Foreign Minister Nuh Yilmaz met with Lavrenyev on Saturday at the ministry’s headquarters in Ankara, in the presence of the relevant bodies concerned with the Syrian file in the two countries.
The Russian official had previously visited Damascus on June 26, and held discussions with Syrian President Bashar al-Assad over moves aimed at restoring normal relations with Ankara.
Assad expressed his readiness to respond to the initiatives proposed in this regard within the framework of Syria’s sovereignty.
Lavrentyev’s discussions with Ankara came a day after the Russian Reconciliation Center in Syria, affiliated with the Russian Ministry of Defense, announced the completion of the construction of a new Russian-Syrian military base in Ayn al-Arab (Kobani).
On Friday, the Russian TASS news agency quoted the director of the Russian Center for Reconciliation in Syria, Navy Colonel Oleg Ignasyuk, as saying that measures are ongoing to monitor the cessation of combat operations between the warring parties. He was referring to the Sochi Understanding signed between Ankara and Moscow on Oct. 22, 2019.
According to the understanding, Turkish and Russian forces conducted joint patrols in areas controlled by the SDF in northern Syria, including Ayn al-Arab.
Turkish Political Analyst Namik Durukan considered the establishment of the Russian base in Ain al-Arab as a remarkable step before an agreement is reached to hold a meeting between the Turkish and Syrian presidents, under Russian sponsorship.



Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
TT

Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)

Iraq faces a budget crunch in 2025 due to the slump in the price of oil, the overwhelming source of government revenue, a top economic adviser to Prime Minister Mohammed Shia al-Sudani said.

"We don't anticipate major problems in 2024, but we need stricter financial discipline for 2025," Mudher Saleh told Reuters in an interview late on Monday.

Iraq, OPEC's second-largest producer, is heavily dependent on oil revenues. The hydrocarbons sector accounts for the vast majority of export earnings and some 90% of state revenue.

This huge reliance on oil makes Iraq particularly vulnerable to fluctuations in global crude prices.

Still, Iraq increased its budget in 2024 even after record spending in 2023, when more than half a million additional employees were hired into the already-bloated public sector and a capital-intensive nationwide infrastructure revamp began.

The 2024 budget rose to 211 trillion dinars ($161 billion) from 199 trillion dinars ($153 billion) in 2023, maintaining a projected deficit of 64 trillion dinars, Saleh said.

The budget assumes an oil price of $70 per barrel in 2024, around $6 less than the likely average price this year.

Saleh said that paying salaries and pensions on time remain a top priority. They account for 90 trillion dinars ($69 billion), or over 40% of the budget, and are a key factor of social stability in Iraq.

"The government will pay salaries even if it costs everything. Salaries are holy in Iraq," he said.

Infrastructure development, meanwhile, could be refocused on the most strategic projects - such as key road and bridge works in the capital Baghdad - if the state finds itself in a financial crunch, he said.

To bolster finances, Iraq is focusing on increasing non-oil revenues through improved tax collection but is not exploring any new levies, Saleh said.

He estimated that Iraq loses up to $10 billion annually due to tax evasion and customs-related problems.

Concerns for the 2025 budget reflect a challenging global oil market. Oil prices have been on a downward trend since mid-2022, with Brent crude, the international benchmark, falling from over $120 per barrel to below $75 in recent days.

This decline is largely attributed to weakening global demand, particularly from China, the world's largest oil importer, as its economic growth slows down.