De facto statehood and natural resources: How oil resources affect the foreign relations of the Kurdish Regional Government of Iraq

This article examines the ways in which oil resources affect the foreign relations of the Kurdish Regional Gov-ernment of Iraq (KRG). The KRG has large amounts of oil and gas reserves and with these resources it aims to leverage political/diplomatic power as well as gain economic revenues. The influence of de facto states in the international system is affected by its' availability of natural resources, and the KRG is no exception. Thus, these resources affect the relations of the KRG with international actors such as states and international companies. This study is theoretically based on the literature of state-like entities and defines the KRG as a de facto state. This article claims that the KRG pursues an oil resources policy which may provide not only economic revenues but also political gains. The KRG presents itself as a viable entity to gain acceptance and support of those interna-tional actors. But, this policy has political and economic limits which are shaped by the main principles and priorities of the international society. It is also observed that mostly small-medium energy companies prefer investing in the KRG due to legal, economic and geopolitical conditions.