Russia to agree remaining Iraqi debt write-off
Tuesday, 12 February 2008
MOSCOW, Feb 11 (Reuters): Russia is expected Monday to write off its remaining debt from Iraq, estimated at around $10 billion, without resurrecting earlier demands of preferential access to Iraqi oil fields in exchange.
A Russian Finance Ministry official told the news agency the deal agreeing to write off the debt would be signed by Finance
Minister Alexei Kudrin and Iraqi Foreign Minister Hoshiyar Zebari, who is visiting Moscow.
The official declined to give more details. Russian news agency Itar-Tass quoted Zebari as saying the two countries would also sign a broad economic and scientific cooperation memorandum.
Moscow has forgiven Iraq the bulk of its debt, but about $10 billion of Soviet-era debt for supplies of military equipment are still outstanding.
The latest round of debt talks in mid-2007 produced no results after Iraqi officials said they considered Moscow's demand of preferential access to Iraqi oil unacceptable.
Moscow is hoping to revive a $4 billion Saddam Hussein-era deal by oil major LUKOIL LKOH.MM to develop Iraq's huge West Qurna field. Iraqi officials have said Russia also wants to participate in the development of another major field, Rumaila, in return for a debt write-off.
Analysts have long been sceptical about LUKOIL's chances of returning to West Qurna, one of Iraq's biggest oil deposits, given the heavy US influence on the country's government.
The deal's revival is complicated by the fact that the government of Saddam Hussein scrapped it just before being toppled in 2003, saying LUKOIL had done nothing to launch the field, which could produce 600,000 barrels per day.
The world's top oil companies have been manoeuvring to win a stake in oilfields in Iraq despite huge damage to the country's infrastructure from decades of wars and sanctions.
A Russian Finance Ministry official told the news agency the deal agreeing to write off the debt would be signed by Finance
Minister Alexei Kudrin and Iraqi Foreign Minister Hoshiyar Zebari, who is visiting Moscow.
The official declined to give more details. Russian news agency Itar-Tass quoted Zebari as saying the two countries would also sign a broad economic and scientific cooperation memorandum.
Moscow has forgiven Iraq the bulk of its debt, but about $10 billion of Soviet-era debt for supplies of military equipment are still outstanding.
The latest round of debt talks in mid-2007 produced no results after Iraqi officials said they considered Moscow's demand of preferential access to Iraqi oil unacceptable.
Moscow is hoping to revive a $4 billion Saddam Hussein-era deal by oil major LUKOIL LKOH.MM to develop Iraq's huge West Qurna field. Iraqi officials have said Russia also wants to participate in the development of another major field, Rumaila, in return for a debt write-off.
Analysts have long been sceptical about LUKOIL's chances of returning to West Qurna, one of Iraq's biggest oil deposits, given the heavy US influence on the country's government.
The deal's revival is complicated by the fact that the government of Saddam Hussein scrapped it just before being toppled in 2003, saying LUKOIL had done nothing to launch the field, which could produce 600,000 barrels per day.
The world's top oil companies have been manoeuvring to win a stake in oilfields in Iraq despite huge damage to the country's infrastructure from decades of wars and sanctions.