Turkey's Energy Plans with Iraq's Kurdish Region

Turkish Economy Minister Zafer Caglayan visited Arbil, Iraq, on June 8 to sign an agreement under which a Turkish company will build a power plant in northern Iraq's semi-autonomous Kurdish region. The deal is part of a wider Turkish effort to develop and expand energy infrastructure in northern Iraq, especially within territory controlled by the Kurdistan Regional Government (KRG).

Ankara's effort comes amid an escalating dispute on control of Iraq's energy wealth between the Iraqi central government in Baghdad and the KRG. Turkey believes that partnering with the KRG to build energy infrastructure can help it address a number of foreign policy concerns simultaneously. By increasing its economic and political leverage over the KRG, Turkey can compel Arbil to rein in Kurdish militancy in northern Iraq and in Turkey itself; use its ties with the KRG to form a stronger defense against Iranian influence in Iraq and the region; and potentially reduce Turkey's dependence on Russian or Iranian natural gas imports and become a regional energy hub. But Iran will likely use its considerable influence in Iraq to push back against Turkey's plans, and Kurdish militants could jeopardize Ankara's investment by attacking energy infrastructure.