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Iraq's Kurdistan has agreed new deals to borrow $3 billion from trading houses and Russian state oil firm Rosneft that will be guaranteed by future oil sales to strengthen its fiscal position as the semiautonomous region fights Daesh (ISIS). Kurdistan's Natural Sources Minister Ashti Hawrami told Reuters the new deals had been concluded in recent weeks. The region also negotiated grace periods of between three and five years for repaying the debt.Trading houses have been pre-financing Kurdish oil exports for the past two years after the government in Irbil decided to start independent oil exports via Turkey's Mediterranean terminals. Last week, Glencore confirmed it had concluded deals for Kurdish oil. The other trading houses do not comment on their dealings with Kurdistan and Rosneft did not give any details on the size of the deal.Hawrami said the deals would serve as a hedge against an oil price slide for several years. Previous deals with trading houses have usually lasted six to 12 months.
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