I dont think its NATO position. it is desperate situation for Erdogan hoping still keep some thing out of Kurdish/Russian deals since KRG lost the case. see his acceptance of rouble and further economic steps.
Turkey is potentially liable not only billions of penalties but Iraqi Kurd will become depended on Arabs instead of Turkey. i am sure Turkey is smart enough to know what that mean.
Baghdad, ever since, has been trying to bring Kurdistan's energy resources under federal control. The country's oil ministry last year said US companies are in the process of liquidating and exiting tenders and contracts in Kurdistan to comply with the federal supreme court decision. Additionally, at the end of January severed ties with the KRG, a step that will only exacerbate the Kurdistan region's challenges and complicate its ability to market its crude.