To: Bilow who wrote (124103 ) 2/1/2004 8:01:59 PM From: Hawkmoon Read Replies (1) | Respond to Russia has reiterated its opposition to intervention in Iraq. Foreign Minister Igor Ivanov said in Dushanbe today that any resolution which 'paves the path, either directly or indirectly, to a military action against Iraq' would be vetoed. erpic.org Iraq was a long-standing ally of the Soviet Union in the Middle East and, as a result, Russia has inherited extensive business ties there. Russian companies control the rights to sell 40% of Iraq's oil on the world market as a part of the UN oil-for-food sanctions programme. Moreover, ten Russian companies have development agreements with Baghdad in fields containing an estimated 70 billion barrels of oil, more than half of Iraq's total reserves[1]. Baghdad itself has played a more obvious carrot-and-stick game. In December 2002, it abruptly cancelled a lucrative $3.7bn LukOil contract on the slightly absurd pretext that the company had failed to start development work. Never mind that this is actually forbidden by UN sanctions. This action was widely regarded as a response to Russia’s vote for resolution N.1441 back in November. However, in January, Baghdad attempted to mend relations by awarding one major oil contract to another Russian company, Stroytransgaz and initialling two more with Soyuzneftegaz and Tatneft to develop oil fields in the Western desert. This policy may well be bearing fruit in the shape of Russia’s current intransigence over a second UN resolution.
