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In Reversal, Russia Agrees to Discuss Debt Relief for Iraq
EFL:Russia agreed on Thursday to negotiate debt relief for Iraq, reversing course after months of refusing to forgive any of the $8 billion in obligations run up by deposed president Saddam Husseinâs government. The shift brings Russia in line with other European powers. President Vladimir Putin told the U.S. special envoy, James A. Baker III, that he was prepared to discuss ways to restructure the Iraqi debt within the framework of the Paris Club, an international organization of creditor nations, as France and Germany agreed earlier in the week. Three for three, wonder just what was in Bakerâs briefcase. The move came a week after Putinâs defense minister rejected any discussion of debt relief for Iraq, which owes more money to Russia than to any other European nation. The results of Bakerâs European trip heartened Bush administration officials because the United States is now working together with all three major opponents of the U.S.-led invasion of Iraq on a major aspect of its reconstruction. During a 11/2-hour meeting at the Kremlin, Putin made no specific commitments about how much debt might be erased, officials said, nor was there any public agreement tying debt relief to access for Russian companies to $18.6 billion in U.S.-funded reconstruction contracts in Iraq. The Pentagon last week ruled out giving lead contracts to companies from Russia, Germany, France or other opponents of the war. But members of the U.S. delegation here suggested that countries helping to relieve Iraqâs estimated $120 billion international debt could be looked on with more favor. "If other countries are willing to join the effort in Iraq, conditions can change," said Sean McCormack, a National Security Council spokesman traveling with Baker. If you want to sit at the table, you have to ante up. Posted by: Steve 2003-12-19 |
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