Al-Arab Blog - مدونة العرب

Reuters | Latest Financial News / Full News Coverage

Is it only ok for the AngloAmerican and Western people, and a big sin for Russians !

Iraq Revives Russia Oil Hope, Gets Debt Cut Pledge
Mon December 22, 2003 11:36 AM ET

(Page 1 of 2)
By Andrei Shukshin and Oliver Bullough
MOSCOW (Reuters) - Russia offered to write off 65 percent of Iraq's $8 billion debt after Baghdad signaled that Moscow was in a good position to revive prewar oil contracts.

A member of Iraqi Governing Council, Samir Sumaidy, said Russia made the proposal at a meeting between President Vladimir Putin and the head of the U.S.-backed Iraqi Governing Council Abdul Aziz al-Hakim at the Kremlin.

"Putin has made an offer of Russia exempting Iraq from 65 percent of their debts. That is a decision made by Russia to be confirmed within the Paris Club," Sumaidy told reporters after attending a meeting at the Kremlin.

Hakim met Putin after a tour of West European countries devoted to reconstruction after the removal of President Saddam Hussein and to efforts to cut Iraq's debt burden.

Despite Russia's offer, sources close to the Paris Club of creditors said nothing had been discussed concerning potential write-off levels as far as the group was concerned as a whole, and suggested no such offer would be coming any time soon.

RELATED ARTICLES
Saudi Arabia Accepts More Iraqi Haj Pilgrims




"There's never been any discussion on (write-off) figures -- the in-depth analysis of the situation still has to be completed," one source said.

Hakim told the Kremlin leader that Russia, as a permanent member of the U.N. Security Council, could help ensure the world body's role in postwar Iraq and help speed the transfer of power to Iraqis.

"It is in our interests and we would like to make use of your experience in this matter. I believe you can offer us your help," he said, referring to a transfer of power the United States wants to engineer in mid-2004.

"The third area is economic. Here there are opportunities for Russian companies to compete successfully in our country."

LONG-STANDING RELATIONSHIP

Putin said Moscow wanted to pursue long-standing relations with Baghdad regardless of the abrupt change of authority

"We have many friends. And this has nothing to do with parties or leaders but rather with people, with specialists," he said. "According to preliminary estimates, investment by Russian companies could soon reach $4 billion."

In comments to Itar-Tass news agency, Hakim had singled out oil giant LUKOIL, saying Iraq might need its experience while rebuilding its devastated oil industry.

"This is a great company, which has been working a great deal and successfully in Iraq. Today, when we must start developing our oil industry, LUKOIL's experience could be of great benefit," he was quoted as saying.

Russia is one of Iraq's biggest creditors and is owed $8 billion in principal and interest, according to the Paris Club, a group of 19 creditor nations which negotiates debt.