Baghdad — Iraq achieved a major legal victory on Sunday, saving the government approximately $120 million. This legal victory comes after years of litigation in the United States over a contract dispute with a US-based company.
The Ministry of Justice confirmed in a statement that the country successfully defended itself against claims filed by YOK. The company initially demanded $24 million plus late-payment interest for a previous contract with Iraq’s Ministry of Defence.
In 2019, U.S. courts issued a preliminary ruling ordering Iraq to pay $120,338,399.17, plus $10,909 for each day of delay after October 9, 2019. The Ministry of Justice promptly appealed the ruling, challenging the claims in multiple legal proceedings.
Additionally, the Ministry of Justice added that the legal victory sets a precedent for handling future international disputes. It reinforces Iraq’s ability to contest unjust claims effectively and ensures stronger safeguards for public finances. This case also signals to foreign companies that Iraq is committed to fair, transparent, and legally sound contract enforcement, further boosting investor confidence.
The case eventually reached the U.S. Attorney General’s office, where Iraqi legal teams presented evidence and arguments. Their persistent efforts led to a final ruling on September 16, 2025, which rejected all claims by YOK and annulled the previous judgment against Iraq.
Officials described the decision as a notable legal victory for Iraq. They emphasized that the ruling highlights the effectiveness of the Ministry of Justice’s international legal follow-up and its commitment to protecting public funds.
Experts noted that this outcome reinforces Iraq’s reputation for careful management of international legal disputes. It also demonstrates the country’s ability to defend its financial interests in complex cross-border cases.
The Ministry of Justice said the ruling directly prevents the government from paying nearly $120 million, marking a significant relief for Iraq’s budget. It further stressed the importance of proactive legal strategies in safeguarding state resources.
Looking ahead, the ministry intends to continue monitoring international legal matters to prevent similar financial risks. Legal experts anticipate that Iraq will leverage this victory to strengthen contract oversight and risk management in future agreements.
