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Iraq Revives Russia Oil Hope, Gets Debt Cut Pledge
Russia offered to write off 65 percent of Iraqâs $8 billion debt after Baghdad signaled that Moscow was in a good position to revive prewar oil contracts. 65% isnât bad 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 Iraqâs debt burden. James Baker just left there as well, his trip seems to have gone well. Despite Russiaâs 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. If thereâs a chance of a good deal for Russia, Putin will tell the Paris Club to take a hike. 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." Itâs all about the oil. 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, LUKOILâs experience could be of great benefit," he was quoted as saying. Could have a deal from the beginning, Vlad, if you had just played ball. Now itâs gonna cost ya. Posted by: Steve 2003-12-22 |
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