Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (152)	8/18/2001 8:59:56 AM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

Russia to Earn Billions in Iraq By Anna Raff Staff Writer Russian companies plan to sign contracts with Iraq worth billions of dollars over the next few months, Russia's economic envoy to the Middle East state said Thursday. "This is where Russia can hold on to and strengthen its interests," said Yury Shafranik, a former fuel and energy minister who now acts as a liaison between Russian companies, the government and Iraq. "They have projects, and we have the opportunity to make money." Shafranik said because of Russia's refusal to support the United States and Britain in revamping sanctions against Iraq, it now carries a kind of "favored-nation status" with Iraq's government. "I have been told that Russia will be given priorities on all tenders: UN-approved and otherwise," he told journalists. Last month Russia publicly announced that it would not approve the so-called "smart sanctions" proposed by the United States and Britain at a meeting of the UN Security Council. Faced with a Russian veto, the two countries backed down, paving the way for another five months of the oil-for-food program. The oil-for-food program allows Baghdad to sell oil in order to buy a wide range of civilian supplies under United Nations control to ease the impact of the sanctions, imposed when Iraq invaded Kuwait in August 1990. The program was established in 1996. Russia will be mostly supplying equipment to Iraq, selling it at the border, Shafranik said. Many companies — including oil majors, auto manufacturers Kamaz and ZiL, Alfa Group, petrochemical holding Sibur and Stroitransgaz — have expressed interest. LUKoil signed contracts to develop the giant West Qurna deposit and other fields in southern Iraq in 1997 and, shortly after the UN vote, signed a deal with state-controlled arms exporter Rosoboronexport to help each other strike deals overseas. Oil traders say that the two companies could use such a deal to route arms to Iraq — a blatant violation of the UN-imposed sanctions. "For example, Russia could sell Iraq arms with a credit that would be guaranteed by the oil pumped from Iraqi fields operated by Russian oil companies," said one trader at a global oil company who wished to remain anonymous. Shafranik declined to discuss the subject of arms sales, adding that he didn't see the significance of the LUKoil-Rosoboronexport deal. "But, really, everyone is doing it," he said, referring to weapons sales. "I see nothing wrong with it as long as it benefits Russia." Earlier this month, Iraq Oil Minister Amir Muhammed Rasheed said Baghdad would favor Russia, Syria, Jordan and Turkey in striking oil deals because of their support of Iraq at the UN. "Russia is in the first place, then neighboring countries, and cooperation with these states will be reflected in all economic and political spheres," Rasheed told Reuters. themoscowtimes.com Official Central Bank Ruble Rate for August 17, 2001: 1$ = 29.36 (0.01) themoscowtimes.com The Moscow Times Front Page themoscowtimes.com