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Russia, Iraq sign $10b oil deal
NICOSIA. Feb 9: Russia and Iraq have signed a 10 billion dollars agreement to revitalize Iraq's oil industry and boost production capacity by 1 million barrels a day after UN sanctions are lifted, reports AP.
The agreement, is the first bilateral accord of its kind signed by Baghdad since the UN Security Council imposed crippling trade sanctions on Iraq for invading Kuwait in 1990.
Iraq was negotiating Thursday with the Security Council on a UN offer to allow it to sell oil worth 1 billion dollars every three months to buy food and medicine.
The accord with Russia was signed in Baghdad by Fayez Abdullah Shahin, undersecretary at Iraq's oil ministry, and Russian officials. the official Iraqi News Agency, monitored in Ni-, cosia. reported late Wednesday
Before the sanctions. Iraq was producing around 3.2 million barrels of oil a day, moot of it for export. Those sales earned Baghdad around lObillion dollars a year.
At current prices? that works out at around 700,000 barrels a day, slightly above Irak's current production
INA said the agreement with Russia provides for cooperation in all areas of the oil industry, including exploration. development and the exchange of experts.
The agreement, initialled In April 1995 and ratified by the rubber-stamp Iraqi parliament November 6, has provisions for Iraq repaying . its 7 billion dollars debt to Moscow, mainly through oil supplies
The agreement is to implement a wide range of oil projects, including development of two big southern oilfields in which the Russians were involved before August 1990
Preparation of the fields is expected to go ahead soon whether the sanctions continue or not.
For the sanctiohs to be lifted. Iraq must convince the United Nations that it destroyed its weapons of mass destruction, pay war reparations and account for hundreds of people Kuwait says disappeared during Iraq's seven-month occupation.
Russia and France. Iraq's main arms supplies before the embargo, have been pressing Baghdad to comply with all Security Council resolutions so that the sanctions can be lifted and they can resume economic links.
Baghdad has been negotiating with tiro French oil companies. Total and Elf. for some time on developing the giant Majnoon and Nahr . Umar fields, also in southern