Turkey has tremendous financial and security influence over the Kurdistan Region of Iraq, exposing Erbil to economic and political vulnerabilities. 

Source: www.al-monitor.com

"In circumventing Baghdad, Ankara and not Erbil has assumed greater control over the KRG energy sector and related revenues. In fact, Turkey has become the KRG’s new financial patron. With unpaid monthly salaries of about $720 million, investment at a standstill, tourism undermined and financial and oil disputes with Baghdad unresolved, the KRG has borrowed billions from Ankara (and private investors) over the past six months. According to local sources, Turkey also recently paid two months of KRG civil servant salaries, manages KRG oil revenues in an account at the Turkish Halkbank and holds Kurdish crude in storage tanks in Ceyhan. Although Baghdad and the KRG have attempted to negotiate another oil export and payment deal, part of the KRG’s oil revenues remain with Ankara."

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