Kurdistan is suffering the worst economic crisis in recent years. It has been hit hard by the coronavirus pandemic, plunging oil prices, cash frozen in Lebanese banks and a temporary cessation of payments from Baghdad. Its finances are in a bad shape and its oil and gas industry is severely affected. Once seen as attractive for investments and M&A, IOCs and financial institutions have lost their appetite for the region. Capital expenditure is being cut hard and M&A deals are less likely as the risks of doing business are more visible. Kurdistan-focused companies are suffering from disrupted operations, stagnating production, falling revenues, project delays and late payments from the KRG. They have started taking drastic measures. Exploration is suspended, expansion projects are on hold and production is shut-in at smaller facilities. Higher oil prices may provide some respite, but this will not be enough to set the region on a more sustainable footing. Only structural reforms will.