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The
Iraqi ambassador to Russia, Abbas Khalaf
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MOSCOW,
August 20 (IslamOnline & News Agencies) - Russia confirmed Monday,
August 19, it was close to striking a massive economic cooperation pact
with Iraq that has set off unhappiness in Washington, but denied the
deal was worth a reported 40 billion dollars.
It
was the first direct Russian confirmation that such a pact was being
discussed with Baghdad, while the Moscow press quickly warned that the
deal could hamper Russia’s blossoming relations with the West, Agence
France-Presse (AFP) reported.
A
senior Russian foreign ministry official said that work on the agreement
had gone on for over a year and did not break any international
treaties.
“As
to reports that this deal is worth between 40 and 60 billion dollars,
this agreement does not specify any figures, it is a framework
agreement,” foreign ministry spokesman Boris Malakhov said.
Malakhov
stressed that the agreement did not break any international conventions
and covered a 10-year period of cooperation.
He
further made no mention of claims from the Iraq ambassador in Moscow,
Abbas Khalaf, who disclosed the 40-billion-dollar figure, that the deal
would be sealed in Baghdad in September 2002.
The
agreement is a “long-term program for the development of trade,
business, industry, scientific and technological cooperation between
Russia and Iraq,” the Russian official said.
ITAR-TASS
news agency reported that some of the details would be discussed during
a September 1-3 visit to Moscow by Iraqi Foreign Minister Naji Sabri.
The
White House, which accuses Iraq of being part of an “axis of evil”
said to be developing weapons of mass destruction, responded to news of
the deal by stressing Russia's need to stick to international accords,
AFP said.
“We
are confident that Russia understands its obligations under U.N.
Security Council resolutions, and that they will abide by them,”
spokeswoman Claire Buchan said.
Crippling
U.N. sanctions imposed on Iraq since its 1990 invasion of Kuwait will
not be lifted until U.N. weapons inspectors certify it is not developing
weapons of mass destruction.
Although
Baghdad is allowed to sell limited supplies of oil for basic
humanitarian supplies, the humanitarian disaster in Iraq is increasing
with thousands of children dying because of the imposed sanctions.
Iraqi
ambassador to Moscow Abbas Khalaf had earlier told AFP the two sides
were discussing a five-year agreement, but on Monday directed all
reporters toward Russian officials for comment.
The
economic pact would reinforce Russia’s close ties to Baghdad even as
the United States wants its allies to join it in isolating Iraq.
Washington
is weighing the use of military force to remove Saddam from power
despite growing unease in the Arab world and among many U.S. European
allies and even within Bush’s own Republican party.
Iraq
owes Russia eight billion dollars in Soviet-era debt and Moscow wants to
tap into its lucrative oil contracts.
But
the Moscow press reacted harshly to the proposed agreement, warning it
could isolate Russia and seriously disturb its burgeoning relations with
the West.
“Saddam
is buying Moscow,” the Vremya Novostei thundered in a banner
headline.
“Even
if this agreement does not break any international conventions, it will
clearly look like Moscow is supporting a country which is viewed as a
state sponsor of terrorism by the United States.
“It
looks like the Iraqis are valuing the Russian support at 40 billion
dollars,” said the paper.
Others
suggested that Moscow may be stalling for time because a U.S. strike
that unseats Saddam could eventually lower world prices for Russia’s
main export, oil.
“The
new pro-American government, with the help of Western firms, will
quickly restore its oil business. As a result, Russia will not only be
squeezed out of this oil business, but actually face a new competitor in
Iraq,” the Kommersant business daily said.
