The Iraqi central government has transferred $500 million to the autonomous Kurdistan region as part of a recent agreement aimed at ending a long-running oil dispute threatening the unity of Iraq, writes Nassir Shirkhani.

The transfer will help the Kurdistan Regional Government (KRG) pay its civil servants in return for a share of Kurdish oil exports assigned to the central government.

The deal — reached earlier this month — eases tensions between the two sides at a time when they are fighting Islamic State militants who have seized large parts of northern Iraq.

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