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Cabinet Approves Spending Rationalization and Oil Field Management Settlement with Russian Company

Baghdad: Prime Minister Mohammed Shia al-Sudani led the seventh regular session of the Cabinet, where key national issues were reviewed, and decisions were made concerning the country's governance and economic policies.

According to National Iraqi News Agency, the session began with al-Sudani extending congratulations to the Iraqi people and the Islamic nation on the holy month of Ramadan, expressing hopes for national progress. He instructed the Ministries of Interior and Trade to monitor consumer goods' prices during Ramadan to prevent illegal price speculation.

The Cabinet focused on strategies to enhance revenue and rationalize spending across ministries, approving recommendations from a monitoring report on Cabinet decisions. Amendments were made to Decision No. 40 of 2026, allowing university service allowances for full-time employees, while withholding them from those not meeting specific requirements. A committee was set up to draft guidelines on full-time university leave.

To support healthcare services, the Cabinet authorized the Ministry of Oil to provide fuel to healthcare institutions with deferred payments, pending the 2026 budget approval. Additionally, a 20% customs duty on imported paper cups was imposed to protect local industry, effective within 120 days.

In banking, Rafidain Bank was allowed to contract with an auditing firm, part of Ernst and Young, to ensure compliance with a Cabinet resolution concerning banking operations. The National Investment Commission received authorization to finalize a housing project license for Ministry of Youth and Sports employees.

For digital transformation, the Ministries of Electricity and Communications were authorized to end contracts amicably and implement a smart meter management system. The Cabinet also approved contracts with foreign companies for the second phase of this system.

In oil field management, an amicable settlement was reached with Lukoil to transfer operations at the West Qurna/2 oil field to the Basra Oil Company, including tax revenue arrangements for foreign staff salaries. Additionally, a license for Halfaya Airport was granted, contingent on technical and economic assessments.

Lastly, the Cabinet amended preparations for hosting the 52nd session of the Organization of Islamic Cooperation's Council of Foreign Ministers in Baghdad.