Russia vows economic help to Iraq, oil

MOSCOW, Sept. 19 (UPI) -- Iraqi and Russian foreign ministers meeting in Moscow pledged cooperation on post-war reconstruction, including the lucrative oil sector.

Iraq has the third-largest oil reserves in the world -- possibly more -- and the Russian private energy giant Lukoil has been lobbying to sign a contract for the West Qurna oil field. Lukoil had a deal with Saddam Hussein that was canceled by Iraq in 2002. Lukoil contends the cancellation was not legitimate.

RIA Novosti reports Hoshiar al-Zibari and Sergei Lavrov, Russia’s acting foreign minister, held talks on security and economics of Iraq.

“We welcome an independent and strong Iraq, a country that can ensure its interests,” Lavrov said. Foreign ministers from Iraq, its neighbors and U.N. Security Council members are to meet in Istanbul next month to discuss the security situation in the country.

Lavrov said Russia wants to cooperate in the energy field as well.

“The oil and natural gas sector, and power engineering have been traditional areas of our cooperation. Hoshiar al-Zibari reaffirmed his country’s interest in expanding Russia’s role in Iraq’s economic rehabilitation in the post-war period,” Lavrov said.

Iraq Oil Minister Hussain al-Shahristani, in a visit to Moscow last month, said Lukoil would not be given special advantages to bidding on the West Qurna field. He said the West Qurna-2 field's reserve estimate has been raised from 4 billion to 16 billion barrels.