Iraqi 'Debt for Contracts' deal appealing to Moscow...
Washington is ready to help Russian companies in the preservation of oil contracts in Iraq in exchange for writing off a major part of Iraqi debt to Moscow.
Russia is ready to write off $5.2 billion to enable its companies to develop the West Qurna-2 field. Analysts say that in this case the state will be able to pay back its expenditures in six or seven years.
US Administration is prepared to help Russia to exchange a part of the Iraqi debt for oil contracts signed by Russian companies with the regime of Saddam Hussein.
Washington is interested in such exchange as seriously as Moscow. According to BBC, US President George Bush instructed his special envoy James Baker to negotiate with the creditor countries on writing off of the major part of the Iraqi debts accumulated from financing of the wars of Saddam Hussein. This part of the debt is estimated at $20 billion. According to IMF, the aggregate debt of Iraq amounts to $120 billion including $40 billion of debt to the Paris Club.
The majority of creditors have been offered similar terms. They need to write off two-thirds of the debt and will receive the most favored nation status in projects interesting to them.
