Iraqi PM, Russian leaders discuss energy deals

Friday, April 10, 2009

Iraqi Prime Minister Nouri al-Maliki made his first official visit to Russia on Friday, aiming to strengthen economic ties between the two countries, particularly in the energy sector.

Al-Maliki met in Moscow with his Russian counterpart, Vladimir Putin, as well as Russian President Dmitry Medvedev. The primary focus of the meeting was regarding the restoration of oil and gas development contracts signed before 2003, when the United States led the invasion of Iraq.

Al-Maliki was supportive of Russia's role in developing his country's energy resources, as well as helping to rebuild Iraq's energy grid by constructing power plants and pipelines. "We are seeking to attract Russian companies to the Iraqi market and involve them in various projects," he said at a news conference following negotiations.

A more controversial issue has been the reestablishment of energy agreements canceled during Saddam Hussein's regime, before Iraq was invaded. Of particular interest was the Russian oil company Lukoil, whose US$3.4 billion contract was nullified by Iraq in 2002. Saddam's government claimed the company had not fulfilled its contractual obligations in developing the West Qurna-2 oilfield.

Russian Energy Minister Sergei Shmatko said the leaders agreed "in principle" to restore these pre-war contracts, but did not mention specifics. Iraqi officials had previously maintained that the Lukoil contract was invalid, but they had invited Lukoil and other foreign companies to bid for a new contract. On Friday, al-Maliki agreed not to discriminate against Russian companies, promising not to give special preferences to other nations when considering future contracts.

The West Qurna-2 oilfield is believed to be extremely productive, with reserves of up to 7.3 billion barrels and an expected production peak of 700,000 barrels per day, according to Russian estimates. Russia agreed to forgive nearly $13 billion of Iraqi debt in February 2008, which was widely seen as an attempt to support Russian bids for Iraq's oilfields.

Putin, an opponent of the 2003 invasion, spoke positively of recent political developments in Iraq. "We take the view that the situation is becoming more and more sustainable," Putin said. "This concerns security and the domestic political situation." He and al-Maliki signed a joint communique calling for greater cooperation in issues such as terrorism, drug trafficking and arm dealing. The document also praised the agreement on the pullout of foreign forces from Iraq.

Have an opinion on this story? Share it!

Sources

"Iraq PM seeks tight Russia ties on first visit" — Agence France-Presse, April 10, 2009
Gleb Bryanski. "Russia, Iraq aim to revive pre-war deals-minister" — Reuters, April 10, 2009
"Russia, Iraq call for fair new world order" — Xinhua, April 10, 2009
"Iraqi PM talks business with Russian leaders" — Associated Press,
"Maliki: We want Russian companies in Iraq" — United Press International, April 10, 2009
"Iraq Premier To Visit Moscow" — The Moscow Times, April 9, 2009
"Russian president, Iraqi PM to discuss oil, gas, electricity projects" — Information Telegraph Agency of Russia, April 4, 2009

Share this:

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License