WASHINGTON (Sputnik) — Last week, an advisor to the Iraqi Kurdistan’s prime minister told Sputnik the Kurdish economy is facing a crisis because of cuts in funding from the central government in Baghdad. The cutbacks were seen as retaliation for Kurdish oil exports that bypass the central government, the advisor said.
Iraqi Kurdistan operates its own army, known as Peshmerga, separately from Iraqi government forces.
"The vice president conveyed continued US support for a unified, federal and democratic Iraq, and encouraged close cooperation between the government of Iraq and the Kurdistan regional government as they take steps to strengthen political unity and economic stability," the statement said on Monday.
The leaders also discussed progress in the war against the Daesh, as well as plans to retake Iraq’s second largest city of Mosul from the terror group.
