Russia, Iraq May OK $40B Deal

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MOSCOW (AP) — Iraq and Russia are close to signing a $40 billion economic cooperation plan, Iraq's ambassador said Saturday, a deal that could put Moscow at odds with the United States as it considers a military attack against Baghdad.

The statement by Ambassador Abbas Khalaf came amid indications that Russia, despite its strong support for the post-Sept. 11 antiterrorism coalition, is maintaining or improving ties with Iran and North Korea, which together with Iraq are the countries President Bush has labeled the ``axis of evil.''

Washington is trying to rally support for a possible invasion of Iraq, which the United States accuses of supporting terrorism and of rebuilding its banned weapons of mass destruction program, but many U.S. allies are resisting the push. AP/INA [18K]

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German and U.S. officials confirmed Saturday that the U.S. ambassador to Berlin, Dan Coats, had questioned German officials about Chancellor Gerhard Schroeder's opposition to attacking Iraq, an indication that Schroeder has irked Washington. Russia, a longtime ally of Iraq, has forcefully warned against a possible U.S. invasion.

Many opponents argue that an invasion cannot be justified without firm proof that the regime of Iraqi leader Saddam Hussein is developing nuclear, chemical and biological weapons.

The chief United Nations weapons inspector, Hans Blix, told The Associated Press that he can't say with certainty whether Iraq has such weapons. ``If we knew — if we had real evidence that they have weapons of mass destruction — we would bring it to the Security Council,'' he said.

Blix spoke while waiting for Iraq's response to a letter from Secretary-General Kofi Annan urging the country to allow the return of weapons inspectors, who left in December 1998.

The pending Russia-Iraq economic deal is likely to be seen by Washington as another blow to its efforts to marshal backing for an attack. On Saturday, White House spokeswoman Claire Buchan said only ``We're confident that Russia understands its obligations under United Nations Security Council resolutions and that they'll abide by them.''

Sanctions imposed by the Security Council after Iraq's 1990 invasion of Kuwait cannot be lifted until U.N. inspectors certify that its biological, chemical, and nuclear weapons have been destroyed along with the long-range missiles to deliver them.

Moscow has supported lifting the U.N. sanctions, hoping that would allow Baghdad to start paying off its $7 billion Soviet-era debt and help expand trade. The Russian Foreign Ministry said Saturday it had no comment on reports of an imminent economic cooperation agreement.

The agreement, which envisions new cooperation in the fields of oil, irrigation, agriculture, transportation, railroads and electrical energy, will most likely be signed in Baghdad in the beginning of September, Khalaf told The Associated Press.

Khalaf emphasized that the new cooperation deal, which is to include new projects as well as the modernization of some Soviet-built infrastructure, would not violate the sanctions.

In the current standoff with the United States, Iraq is counting on Russia to use its leverage in the U.N. Security Council and other diplomatic channels to deprive Washington of international support for a military operation, Khalaf said.

``First of all we need moral, political and diplomatic support. Because Iraq knows how to defend itself,'' he said. ``The main thing for us is that American aggression does not go through the U.N. Security Council and that America does not receive a U.N. mandate. ... Let America act (alone) as an aggressor. It will be condemned from all sides.''

Khalaf said he saw no contradiction between Russia's friendship with Iraq and its ties with Washington, which have strengthened since the Sept. 11 attacks.

``We see friendship among various countries and civilized peoples of the world as a positive step. Any enmity brings harm to a country,'' he said.

Under Putin, Russian foreign policy has sought to create a network of alliances to counterbalance alleged U.S. domination of international affairs. Although Putin has moved Russia closer to West — including increasing contacts with NATO and not raising objections to U.S. forces in Georgia and in former Soviet Central Asia — he also has pursued relations with countries that are anathema to the United States.

Last month, Russia announced a 10-year plan for nuclear cooperation with Iran. Under the plan, Russia would build five reactors in addition to the one currently under construction at Bushehr, Iran. Washington fears such cooperation could help Iran develop nuclear weapons.

This week, the Kremlin announced that North Korean leader Kim Jong Il will visit Russia later in August for the second summer in a row.

From abcnews: Trading With the Enemy U.S. Refiners Reportedly Buying Most of Iraq's Oil

The U.S. refiners largely obtain their crude oil from Russian firms, or middlemen working through Russian firms. "Everyone makes a commission or gets a rakeoff at every step between the Iraqi oil fields and the U.S. refineries, mostly in [the] southern U.S. states," said a knowledgeable oil industry source. Iraq's preference for Russian traders is becoming evident from the region's oil tanker traffic, sources say. Of the two main ports used by Iraq to exports its "legal" oil, the one used by Russian traders has been seeing much more use.

Correct. Remember, this is an economic package. The thing Americans forget is that Russia, herself, is an enormous nation like the United States. She needs economic growth to sustain her, like the US. This means trade pacts with nations large enough to stimulate that growth.

Another thing forgotten in this quagmire is that countries tend to do the most volume with their neighbors, rather than across the world. Exceptions exist, but this is the norm rather than exception.

You naysayers come up with 10 countries that would be "OK" with you for Russia to sign co-ops with. 10 countries with large, healthy economies which would reciprocate with Russia.

Let me guess, no one is interested.

Here you go:

http://www.afpc.org/faa/faa20.htm
http://www.russianlaw.org/nyt090299.htm
http://fas.org/man/docs/fy01/ <---start here work up.

Now go get your shinebox.

( http://www.russianlaw.org/nyt090299.htm )
At the same time, the IMF is conducting a routine review of its current lending agreement, which was signed last July.

Russia is eligible for $4.5 billion in loans from the fund over the next year and a half, of which $640 million was disbursed as a first installment in July.

[...]

Federal investigators are looking into the movement of at least $4.2 billion from Russia through the Bank of New York over the past 18 months.

You have funny problems with reading comprehension. That Russian is eligible for $4.5 billion in LOANS from IMF has nothing to do with your silly claim that America GIVES Russia $25 billions a year. Same with organised crimes extracting money from Russia and moving it to West. This is not a help from America either you claimed takes place.

http://www.afpc.org/faa/faa20.htm

Controversial figures. The Clinton administration has reported to Congress that the aid funds obligated to Russia total about $4 billion. However, administration figures fail to take into account the planned $12 billion cash buyout of Russian fissile material over the next two decades, and the exposure of U.S. tax dollars totaling the country's share of support for multilateral lending through the World Bank, International Monetary Fund and other organizations (some Russian leaders are doubtful the money will ever be repaid). Overall, U.S. aid commitments far exceed $20 billion.

Overall aid far exceeds $20 billion, BUT over two decades not in one year. As A.Pole said, you can't consider loans as aid. It has to be repaid.

In any case I always thought Israel recieved the greatest amount of aid from the U.S and as far as i know that was around $2 Billion (could be wrong with the figure though). So I don't see how Russia could be getting $25 billion.

Overall aid far exceeds $20 billion, BUT over two decades not in one year. As A.Pole said, you can't consider loans as aid. It has to be repaid.

Oops... I stuffed this. Here it is again.

Overall aid far exceeds $20 billion, BUT over two decades not in one year. As A.Pole said, you can't consider loans as aid. It has to be repaid. Thus, it isn't even $20 billion.

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