Signs and opportunities for expanding investment and trade cooperation with Russia

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[size=52]Signs and opportunities for expanding investment and trade cooperation with Russia[/size]

[size=45]Translated by / Hamed Ahmed[/size]
[size=45]A report by the Russian website, Racha Breving, for economic and investment consulting, discussed the horizon of economic, investment and trade cooperation between Iraq and Russia in various sectors, especially the energy sector, and the opportunities for strengthening and expanding it in the future, along with the challenges facing it and ways to overcome them, with the value of Russian investments in Iraq reaching more than 19 billion dollars.[/size]
[size=45]The report stated that the economic relations between Iraq and Russia go back for many decades since the establishment of official diplomatic relations between the two countries on September 9, 1944 in the era of the former Soviet Union, which were further strengthened after that era, especially in the year 2008 when Russia, under the administration of its president, Vladimir Putin, extinguished a large part of From Iraq's debts to the former Soviet Union era, which paved the way for an oil deal with Russia worth $4 billion. This initiative was the starting point for deeper economic cooperation, which was further strengthened in 2012 with the signing of important agreements with the Russian company Lukoil in the Iraqi energy sector.[/size]
[size=45]In recent years, this relationship has expanded beyond the energy sector, driven by common geopolitical and economic interests, which has established a launching pad for many other investments. Therefore, the value of Russian investments in Iraq is currently estimated at more than 19 billion dollars, and while the dominance of these investments is focused on the oil industry sector, they symbolize the depth of the two countries’ economic ties and their future prospects.[/size]
[size=45]The report states that the energy sector constitutes the cornerstone of the Iraqi-Russian bilateral relationship, and several giant Russian companies in the Iraqi oil industry sector are involved in this cooperation, including Rosneft, Lukoil, Bashneft, and Gazprom Neft.[/size]
[size=45]Recent visits between the two countries have strengthened Russia's further involvement in the Iraqi oil sector. The Russian Foreign Minister, Sergei Lavrov, visited Iraq in February of this year, which is an indication of the depth of the relationship and common interests between the two countries, which finally culminated in the visit of the Iraqi Prime Minister, Muhammad Shiaa Al-Sudani, this week to the Kremlin, his meeting with President Vladimir Putin, and his participation in the Russian Energy Week Forum. At its sixth session held in Moscow, he stressed in his speech the necessity of joint cooperation between the two countries in the field of energy and facing challenges in the field of electricity, oil, petrochemical and gas industries, which constitute steps towards prosperity and progress.[/size]
[size=45]On the other hand, the transportation and infrastructure sector is considered one of the important elements of Iraqi-Russian bilateral relations, which is considered the backbone for strengthening mutual trade ties, economic cooperation, and regional communication. An Iraqi delegation from the Ministry of Transport recently visited Russia to discuss cooperation in the transport sector to facilitate the transport of passengers and goods between the two countries. By investing in the construction of a railway line, Russia and Iraq are paving the way for a network of large logistical lines that not only serve trade exchange between the two countries but also create a positive impact on regional trade movement. Other development projects were discussed in the field of infrastructure to enhance trade exchange and transportation as well. These projects included the construction of roads, modernization of airports, and initiatives to develop urban facilities.[/size]
[size=45]The agricultural sector also bears its share of signs of investment and cooperation in this field between the two countries, especially in modernizing agricultural technologies, improving food security, and maintaining sustainable agricultural development. The report indicated that cooperation in this sector may lead to achieving abundant agricultural production that contributes to the development of rural areas in Iraq.[/size]
[size=45]As for investments in technology and the innovative sector, they are essential for modernizing the economy, improving management, and promoting a fruitful business environment. Joint initiatives in the field of digital infrastructure, smart city projects, and technological innovations can contribute significantly to achieving these goals.[/size]
[size=45]Despite this, the report indicates that the path to strengthening trade and investment ties between the two countries is punctuated by challenges at the internal and external levels. As geopolitical tensions in the Middle East, accompanied by international sanctions, pose major challenges to Iraqi-Russian economic relations. Avoiding these obstacles requires engaging in ongoing dialogues at the bilateral and regional levels to discuss geopolitical matters and promote a stable environment for economic cooperation.[/size]
[size=45]Financial obstacles, which include restrictions imposed by international sanctions and the lack of a robust financial infrastructure, all hinder the smooth flow of investments and trade. Searching for financial alternatives and strengthening financial infrastructure can facilitate the flow of trade and investment and reduce the burden of these financial restrictions.[/size]
[size=45]Other challenges that hinder ideal productivity and economic growth in Iraq are technological differences and gaps, especially in the country's energy and infrastructure sectors. Transferring Russia's technological capabilities and expertise by strengthening cooperation in this field with Iraq will contribute greatly to filling these gaps and working to improve production.[/size]
[size=45]The report indicates that the focus of cooperation on the energy sector highlights the necessity of diversifying this cooperation into other areas to achieve a balanced, ongoing economic relationship. Research into other areas of economic cooperation across various agricultural, technological, manufacturing, and skills development sectors would enhance a multifaceted economic relationship and thus contribute to enriching the economic relationship between Iraq and Russia.[/size]
[size=45]• About Rasha Preving[/size]
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