What happened with this situation and why does it keep on happening?
Posted on 12/22/2003 9:42:59 AM PST by TexKat
Russian President Vladimir Putin says Russian companies are prepared to invest as much as $4 billion in Iraq and expect to be active in rebuilding the country. At the start of talks in Moscow Monday with the current head of Iraq's U.S.-appointed Governing Council, Abdel-Aziz al-Hakim, Mr. Putin noted that Moscow and Baghdad have historically had good relations and he expects those relations to continue.
Mr. al-Hakim leads a delegation from Iraq's Governing Council that is meeting with Mr. Putin and other top Russian officials. The discussions will include the Iraqi debt to Moscow and Iraq's existing multi-billion-dollar contracts with Russian oil companies.
Last week, Mr. Putin told a top U.S. envoy that Moscow is ready to start talks on forgiving $8 billion in Iraqi debt to Russia. But Mr. Putin said the talks must take into account the economic interests of Russia and Russian companies in Iraq.
Mr. al-Hakim said Iraq is open to Russian investment. He wants Russia to provide "real help" in the restoration of Iraq. He expects the Russians to help bolster the United Nations' role in Iraq, and to assist in the transfer of authority to the Iraqi people.
A large segment of Russia's current investment in Iraq is a 1997 multi-billion-dollar Lukoil contract to develop the West Qurna oil field. Work on that project was put on hold last year. Mr. al-Hakim is expected to meet with Lukoil executives Monday after his meeting with government officials.
The United States has barred Russia and other countries who did not join the U.S.-led military coalition to oust Saddam Hussein from bidding on more than $18 billion in reconstruction contracts.
Mon December 22, 2003 11:36 AM ET
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.
"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.
And US is not trying to control it output and that of central asia?
Why you come here?
Better question: why West bunch of Hypocrits. West help create oligarchs who then rob nation of wealth and sell off to West which in turn dictate to Russia that it have run away businessmen. So when corruptors brought to trial West scream how dare you take favored sons we create....funny it not stop US from trial of Worldcom, Enron, Martha Stewart, Microsoft, Tobacco, paint industry and soon food industry. What about Tyco?
Other thing that facinate me here on FR. Americans here never trust what West media say about America but anything it say about Russia, and worse then better, you believe totally...suck in like mother's milk, all lies, propaganda, etc without most ever even questioning source or truth. Why? What make it different then what is said in reference to America?
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