Replies to post #340672 on Zeev's Turnips Talk Politics (ZTTP)

[rbl100]

Russia sees Iraqi oil deal revival in debt write-off: From an article written 2/08

Mon Feb 11, 2008 2:37pm EST
By Darya Korsunskaya

MOSCOW (Reuters) - Russia agreed on Monday to write off most of Iraq's $12.9 billion debt in a deal that opens up Iraq for $4 billion in investment from Russian firms, including oil major LUKOIL.

Finance Minister Alexei Kudrin told reporters Russian companies would be allowed to invest up to $4 billion in Iraq under a new inter-governmental memorandum signed with visiting Iraqi Foreign Minister Hoshiyar Zebari.

"We have an agreement from the Iraqi side to pay special attention to the previously signed deals," Kudrin told reporters. He named LUKOIL, whose stock rose 3.5 percent by 7 a.m. EST, outperforming the market.

"There is a government pledge to treat us with maximum care. As to the legal subtleties, they will depend on (Iraqi) legislative changes," Kudrin said after talks with Zebari.

Moscow had already forgiven Iraq the bulk of its debt. The remaining $12.9 billion dated back to Soviet-era supplies of military equipment.

Monday's deal was expected to go through unconditionally after the latest round of debt talks in mid-2007 produced no result because Iraqi officials said they considered Moscow's demand for preferential access to Iraqi oil unacceptable.

Moscow has insisted on the revival of the Saddam Hussein-era deal by LUKOIL to develop Iraq's huge West Qurna field. Iraqi officials have said Russia also wants to participate in the development of another major field, Rumaila, in return for a debt write-off.

Analysts had long been skeptical about LUKOIL's chances of returning to West Qurna, one of Iraq's biggest oil deposits, given the heavy U.S. influence over the country's government.

The deal's revival is complicated by the fact that the government of Saddam Hussein scrapped it just before being toppled in 2003, saying LUKOIL had done nothing to launch the field, which could produce 600,000 barrels per day.

The world's top oil companies have been maneuvering to win a stake in oilfields in Iraq despite huge damage to the country's infrastructure from decades of wars and sanctions.

Kudrin said his ministry agreed to write off $11.1 billion of Iraqi debt immediately, another $900 million in the next few years and restructure another $900 million for 17 years.

[rbl100]

Iraq's reconstruction market is worth a stunning $100 billion - making it one of the biggest anywhere in the world - and is set to expand further, as yet more contracts are signed and projects drawn up. Frenzied construction activity surrounds hundreds of projects, worth billions of dollars, and spanning every single sector of Iraq's rebounding economy. Iraq's liberal, open markets - almost entirely free of restrictions - are helping fuel construction sector activity. Meanwhile, ever more leading manufacturers and suppliers from across the globe are seizing lucrative slices of Iraq's construction market, and in doing so are helping positively forge the future of the country. Benefits from Iraq's construction sector are set to increase further. The country's revenue generation potential - bolstered by abundant oil and other resources, as well as the long-term commitment of global donors to the reconstruction effort - is enormous. It can rival all other major regional economies.


The Government of Iraq, led by the Iraqi Ministry of Industry and Minerals (MIM) is currently in the process of evaluating investor proposals to enter into joint venture partnerships between many of Iraq’s lucrative State-Owned Enterprises (SOEs) and international companies. These partnerships will permit investors to acquire production output from Iraq’s productive factories in exchange for investment of expertise and capital to improve and rehabilitate these assets. This initiative is part of a larger process to transition and modernize key industries through 2012. Minister of Industry and Minerals Fawzi Hariri has publicly confirmed that companies taking up these early ventures will have the right of first refusal on eventual privatization. The government has also established an investment board to oversee foreign direct investment in Iraq and the development of SOEs.

[sortagreen]

Dude... This is gettin' bad. Ya'll real Amuhricins better hightail it while ya' kin. Them there sanniggers is a fixin t' take over. (Or is that "fittin'a take over")

Geez...