Blow for Bush as Russia agrees £27bn Iraq deal

www.telegraph.co.uk ^ | Filed: 19/08/2002 | David Rennie in Washington and Ben Aris in Moscow

[It'salmosttolate]

Blow for Bush as Russia agrees £27bn Iraq deal

By David Rennie in Washington and Ben Aris in Moscow
(Filed: 19/08/2002)

Russia has dealt a potentially serious blow to American attempts to isolate Iraq after it announced a £27 billion trade agreement with Saddam Hussein.

The agreement, which will have to be approved by the United Nations, wraps together dozens of separate deals involving oil, electrical energy, chemical products, irrigation, railroad construction and transport, over the next five years, officials in Moscow said yesterday.

Russian companies already dominate Iraq's limited oil export trade under the UN oil-for-food programme.

Oleg Buklemeshev, a senior deputy to President Putin, confirmed that "the document is being prepared", adding that it was "in line with current international agreements".

The Bush administration shied away from public criticism of Moscow. A White House spokesman said: "We're confident Russia understands its obligations under UN Security Council resolutions and will abide by them."

Previous framework agreements between Moscow and Baghdad have frequently failed to translate into hard cash for either side, but Iraqi officials hailed the deal as strongly symbolic of Russia's continued friendship.

Abbas Khalaf, the Iraqi ambassador to Moscow, told the Washington Post: "Russia was, is and will be our main partner. What we need from Moscow is moral, political and diplomatic support."

The ambassador, a close aide to Saddam, predicted that the agreement would be marked by a high-profile signing ceremony, ideally in Baghdad.

Such an event would provoke irritation and dismay in Washington, where senior figures are still locked in semi-public debate over the scale and timing of any assault on Iraq.

Since September 11, President Bush has gone out of his way to emphasise the closeness of his working relationship with Mr Putin.

The Russian leader has proved vocally supportive of the war against terror. United States officials have talked of the warm friendship between the two men, revealing that Mr Bush's nickname for the Russian president is "Pootie-Poot".

But Russia has done little to scale back Soviet-era ties with the countries in Mr Bush's "axis of evil" - Iraq, Iran and North Korea.

• Bahrain, a key ally of the United States in the Gulf, yesterday joined Iran in opposing American military action against Iraq.

"Iran and Bahrain declare their determined opposition to any unilateral military action against Iraq," said a joint statement issued at the end of a two-day visit to Teheran by Bahrain's king, Sheikh Hamad bin Isa Al Khalifa.

[Momaw Nadon]

Shame on Pootie Poot!

[evolved_rage]

Wouldn't it be funny if the day Russia collects a big bag of money from Saddam is the day we start bombing...Use their own money to fund the war...

[elfman2]

More welcome good news to the economic health of a post Saddam Iraq.

[It'salmosttolate]

What is a £ ?

[Bill Davis FR]

where are the 27 billion coming from?

[demlosers]

English pound

[It'salmosttolate]

How much is that in dollars?

[MJY1288]

Exactly, We don't want to eliminate Iraq and it's economy, We just want to 86 Saddam

[Mudboy Slim]

"Mr Bush's nickname for the Russian president is "Pootie-Poot".

I find this IMPOSSIBLE to believe...MUD

[dts32041]

Looks like Russian will be rebuilding Iraq after Saddam follows the way of Ozymendias.

[demlosers]

How much is that in dollars?

click here for exchange rates
at the moment it's $1.549 = 1 U.K pound.

[It'salmosttolate]

President Releases Complete List of Official Nicknames

[Consort]

No problem. He can continue the deal with a post-Saddam Iraq.

[demlosers]

Well might as well do the whole thing:
that's 1.549 * 2700000000 = $41,823,000,000 Billion dollars

[harpo11]

President Bush masterminds brilliant military strategery that topples paramount "evil doer" Saddam, liberates the people and Putin stands ready to implement marketing strategery. Hey, open up those market bazaars!

[section9]

I don't put too much stock in this.

Putin knows that Saddam is about to check into the Roach Motel. He's doing this now because he knows the Iraqis are desperate to strike a deal with someone, anyone, to isolate the Americans.

I don't blame Putin at all. The Russians are probably raping Saddam six ways from Sunday. I would not want to be Saddam's people going up against Russian negotiators.

Putin knows that any agreements he makes with Saddam will be honored by the successor regime. The Americans have probably assured him as much.

Russian oil interests will play a major role in the exploitation of new Iraqi fields. This agreement assures Putin a place at the economic tale when time comes to divide the spoils.

Be Seeing You,

Chris

[section9]

This agreement assures Putin a place at the economic tale when time comes to divide the spoils.

Sorry, should read "table", not "tale".

Be Seeing You,

Chris

[Cindy]

re your post #3: "Wouldn't it be funny if the day Russia collects a big bag of money from Saddam is the day we start bombing...Use their own money to fund the war..."

That's not funny....that's THE PLAN...isn't it?

[Cindy]

re your post #17: "Putin knows that Saddam is about to check into the Roach Motel..."

No doubt about it...Puti knows.