| Russia Softens Support for Iraq Jonathan Rhodes efreedomnews 21 December 2002 |
"We cannot say that that Russia is or is not satisfied with the declaration. We have simply taken it into consideration." |
In other words, Russian reticence to fully join with the US policy against Iraq has nothing to do with Iraq's WMD threat or human rights atrocities - and only to do with Russia's economic realities and their oil deals with Saddam. The Russian government still hopes to collect between $7 billion to $9 billion in Soviet-era debt, in part for arms sales. Partially State owned Russian companies have earned $4 billion per year through the UN oil-for-food program, including Russian oil company Tatneft, which has a license to drill for Iraqi oil. In addition, Russia and Iraq have been discussing a five-year $40 billion economic cooperation program.
LUKoil, which is 14 percent owned by the Russian government, has a 68 percent stake in a consortium to develop Iraq's giant West Kurna oil field, with reserves of 20 billion barrels. Some $6 billion has already been invested in the field.
Vagit Alekperov, president of LUKoil , told the Financial Times (in an interview published Friday Oct 4, 2002) "Yes, of course," when asked if he had received assurances that oil was at the top of Moscow's agenda in negotiations with the United States.
Saddam cancelled the deal with LUKoil last week
Iraqi Deputy Prime Minister Tariq Aziz said in an interview in Baghdad,
"LUKoil went to Washington to get assurances that their contract will be implemented after the removal of the Iraqi regime. This is outrageous of them because they signed a contract with us -- such conduct cannot be accepted."
Alekperov said the reason for the cancellation was that Moscow had backed UN Resolution 1441 allowing for the return of weapons inspectors.
A Russian government source was quoted as saying Baghdad’s cancellation of a contract with the LUKOIL oil company eliminated a major reason for Moscow’s opposition to a US-led war against Iraq.
"If Iraq takes such a decision, then one of the major reasons for Russia to support Iraq in the current international situation disappears."
LUKoil has been talking directly to the United States to gain guarantees according to LUKoil's vice president for production and the leading architect of the $3.7 billion Iraqi deal, Dzhevan Cheloyants. Cheloyants said Sunday that leading LUKoil executives met with U.S. senators just over a week ago to discuss the issue.
"They [the senators] said Russia's interests would be protected in Iraq. Since LUKoil is a Russian company that means LUKoil's interests."
Alekperov also met with U.S. Deputy Energy Secretary Kyle McSlarrow on Nov. 22, but LUKoil would not confirm whether guarantees for the contract were discussed at that meeting.
Today, commenting on IRaq's WMD declaration, Russia's diplomatic speech softened as Russian Foreign Minister Igor Ivanov said.
"We cannot say that that Russia is or is not satisfied with the declaration. We have simply taken it into consideration."
| Iraq Slams LUKoil The Moscow Times.com http://www.themoscowtimes.com/stories/2002/12/18/061.html |
| LUKoil Cut Out Of Iraqi Oil Field The Moscow Times.com http://www.themoscowtimes.com/stories/2002/12/16/001.html |
| Russia okays Iraq declaration http://news.ninemsn.com.au/World/story_44065.asp |
| Lukoil Gets Guarantees over Iraq The Moscow Times.com http://www.themoscowtimes.com/stories/2002/10/07/003.html |
