Russia Writes Off Iraq Debt

**Ironduke** · 02-12-2008, 04:01 AM

Quote:

Russia writes off its Iraqi debt

Russia has agreed to write off $12bn (£6bn) of Iraqi debt built up by the regime of former leader Saddam Hussein to buy military supplies.

In return, Russian companies, including oil giant Lukoil, will be given access to invest up to $4bn in Iraq.

Lukoil is expected to develop oilfields including West Qurna, one of the country's largest.

Russia said the deal was meant to help rebuild Iraq's economy following the US-led invasion, which it opposed.

Outstanding debt

Russia says $12bn that Iraq owes will be written off.

The outstanding amount - some $900m dollars - will be repaid over 17 years.

The deal was signed by the Russian Finance Minister, Alexei Kudrin, and the Iraqi Foreign Minister, Hoshyar Zebari, who is visiting Moscow.

Mr Kudrin said the deal would involve Russian energy and electricity firms, which would be involved in the reconstruction of the country's infrastructure.

Lukoil previously had a deal to develop oil deposits in Iraq, but this was ended shortly before Saddam Hussein's government was removed from power in 2003.

BBC NEWS | Business | Russia writes off its Iraqi debt

omon · 02-12-2008, 20:33 PM

i bet it is a politycal move, russia knows, with the way things are going, it wont ever get the money back, at least this way, it looks like they loose it in style.

**Parihaka** · 02-12-2008, 20:57 PM

But, but, Haliburton owns all the Iraqi oil

gunnut · 02-12-2008, 21:06 PM

Quote:

Originally Posted by Parihaka

But, but, Haliburton owns all the Iraqi oil

Lukoil is just a subsidiary of Haliburton...shhhhh...

Feanor · 02-12-2008, 22:22 PM

And you guys complain that we don't cooperate on key issues.....

On a more serious note, I'd be worried. Russia signed a similar deal with Algeria, writing off their huge debt, and extending a credit line to purchase new weapons, in exchange for almost exclusive investment rights to their oil and gas fields. First Algeria, now Iraq......

02-12-2008, 20:33 PM	#2 (permalink)
omon Field mechanik *Senior Contributor* Join Date: 11-01-06 Location: bk Posts: 1,925 Country:	i bet it is a politycal move, russia knows, with the way things are going, it wont ever get the money back, at least this way, it looks like they loose it in style. __________________ "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!" B. Franklin

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02-12-2008, 20:57 PM	#3 (permalink)
Parihaka Moderator Join Date: 11-10-04 Location: Te Ika a Maui Posts: 9,465 Country:	But, but, Haliburton owns all the Iraqi oil

02-12-2008, 22:22 PM	#5 (permalink)
Feanor Banished Join Date: 06-12-07 Location: San Jose, CA Posts: 2,385 Country:	And you guys complain that we don't cooperate on key issues..... On a more serious note, I'd be worried. Russia signed a similar deal with Algeria, writing off their huge debt, and extending a credit line to purchase new weapons, in exchange for almost exclusive investment rights to their oil and gas fields. First Algeria, now Iraq......

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