The prospects for development are open...an economic “account inventory”: 80 years of relations betw

POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]

[size=52]The prospects for development are open...an economic “account inventory”: 80 years of relations between Baghdad and Moscow[/size]

[size=45][You must be registered and logged in to see this image.]
2023-11-09
The “Russia Briefing” website, which is based in Moscow, reviewed the history of Iraqi-Russian relations and the challenges they face, such as American sanctions and internal unrest, but it identifies the possibilities for their development in the economic field in particular, especially in the coming years, whether With the federal government or the Kurdistan Region, it is expected that in the field of energy alone it will reach about 45 billion dollars by the year 2035.[/size]
[size=45]The Russian report, translated by Shafaq News Agency, stated that the cultural and economic relations between Mesopotamia and Russia date back to centuries before the Middle Ages, but September 1944 witnessed the establishment of Iraqi-Soviet relations.[/size]
[size=45]The most important partners of the Soviets[/size]
[size=45]The report indicated that despite the ups and downs during the year 1955 and then the restoration of relations in 1958, Baghdad became one of the most important partners of the Soviets in the region.[/size]
[size=45]The report also discussed various stages of these relations, especially with Iraq’s occupation of Kuwait in August 1990, the collapse of the Soviet Union, international sanctions, and the American invasion of Iraq in 2003, adding that Moscow cooperated with the new Iraqi government and played a role in its structural development from 2003 until Year 2011.[/size]
[size=45]Political and geopolitical relations[/size]
[size=45]Among the important stations in the process of mutual agreements in Iraqi-Russian relations, the report pointed to the signing of the Treaty of Friendship and Cooperation between the Soviet Union and Iraq in April 1972, and the Agreement on Trade, Economic, Scientific and Technical Cooperation in August 1993, in addition to the Cooperation Agreement in Building... Oil and gas facilities in April 1995, and debt settlement agreement in February 2008.[/size]
[size=45]In addition, the report stated that the Joint Economic Committee between Iraq and Russia witnessed the signing of 16 cooperation agreements between them in Baghdad in April 2019.[/size]
[size=45]He continued, saying that 14 memorandums of understanding were also signed in 2020 in the oil, gas, health and transportation sectors, and the ninth committee for trade, economic and scientific cooperation between Iraq and Russia was formed in August 2022, which contributed to expanding trade relations.[/size]
[size=45]The report particularly noted that after President Vladimir Putin's recent meeting with Iraqi Prime Minister Muhammad Shia'a al-Sudani during his official visit to Russia in October 2023, Moscow announced that it would invest about $19 billion and expand cooperation.[/size]
[size=45]After the report said that Iraq and Russia will celebrate in 2024 the 80th anniversary of their diplomatic relations, it pointed out that since February 2022, Iraq has refused to criticize Russia regarding the situation in Ukraine, which represents a continuation of Iraq’s balanced strategy by supporting the Russian-Ukrainian peace talks, adding that Iraq, through its sovereign development, takes into account its interests in its relations with Russia.[/size]
[size=45]The report stated that Russia gave special attention to developing relations with the Kurdistan Region, communicated implicitly with all parties, and emphasized the territorial integrity of Iraq.[/size]
[size=45]In the field of energy[/size]
[size=45]The report indicated that energy represents an essential part of relations, as energy contracts have become more strategic since 2017, while Iraq’s oil and gas reserves, which are untapped, are considered very attractive.[/size]
[size=45]The report continued that in light of the withdrawal of major Western companies from Iraq, support for the activities of Russian oil and gas companies, and the acquisition of shares, Russia has invested more than 14 billion dollars in Iraq, while it is looking forward to expanding its investments in Iraq to about 45 billion dollars by the end of the year. The year is 2035.[/size]
[size=45]After the report pointed out that about 96% of Iraq's revenues come from the sale of crude oil, it pointed out that Russia is considered one of the largest players in the oil and gas sector in Iraq, and that bilateral agreements between the two parties are considered vital in raising Iraqi production to reach 8 million barrels per day. .[/size]
[size=45]In addition, the report said that Iraq and Russia signed new agreements aimed at strengthening cooperation in the oil sector, including exploration and drilling projects and reducing gas flaring, noting that the Russian company “Lukoil” runs a large oil project in Qurna, located in Basra Governorate, Meanwhile, the contract for the development and production of West Qurna 2 field was recently extended until 2045, with the aim of increasing its production to 800 thousand barrels per day.[/size]
[size=45]He continued, saying that the presence of “Gazprom” in the Badra oil field in Wasit Governorate, as well as the company’s work in the Garmian administration, is also important, while other Russian energy companies, such as Zarubezhneft, Astrotranskaz, Tatneft, and Suezun Gas, are working to enhance the possibilities of opportunities available in the Iraqi oil sector. Including, for example, the contract with “Lukoil” company regarding the development of the Eridu oil field, which will increase daily production from 30,000 to 250,000 barrels, in addition to the contract signed since 2017, where “Rosneft” acquired 60% of the ownership. Kirkuk-Ceyhan pipeline with a commitment to invest US$1.8 billion.[/size]
[size=45]In addition, the report indicated that there are other proposals for Moscow regarding the Turkish-Syrian-Kirkuk oil pipeline, reviving the Iraqi-Syrian pipeline, the gas pipeline from Kirkuk to Europe, supplying Iraq’s domestic needs for electrical energy, and investing in the oil refinery in Mosul.[/size]
[size=45]He added that the “OPEC Plus” agreement provides close cooperation and greater coordination between Iraq and Syria, as they enjoy rich oil resources and common interests with the aim of maintaining stability in the global energy market.[/size]
[size=45]Military and nuclear cooperation[/size]
[size=45]The report stated that Russia was in the past the main supplier of weapons to the Iraqi army, and Iraq is considered one of the main importers of Russian military weapons.[/size]
[size=45]He also pointed to arms deals concluded in 2012, 2014 and 2017, but said that plans to expand cooperation in the field of arms and defense could strengthen mutual relations.[/size]
[size=45]The report pointed out that Iraq expressed its goal to build 8 nuclear reactors to provide 25% of its electricity needs by the year 2030, adding that after the International Atomic Energy Agency approved the construction of a radiation-free reactor in Iraq, Baghdad is considering negotiating with Russian companies in this field. .[/size]
[size=45]Industrial cooperation[/size]
[size=45]According to the report, it is important for the two countries to achieve national development goals, ensure economic security, enhance exports from outside energy resources, and unleash economic potential in relations, adding that about 50 Russian companies operate in Iraq, noting, for example, that a “consortium” A Russian is implementing a large project to renovate and modernize a factory for glass and ceramic products in Anbar Governorate.[/size]
[size=45]food security[/size]
[size=45]The report stated that Iraq imports 50% of its food needs, adding that in light of the food insecurity resulting from the conflict in Ukraine, Baghdad is increasingly looking to Russia to be a partner in achieving its annual goal of producing 4 to 5 million tons of wheat.[/size]
[size=45]The report added that, in light of the current unstable geopolitical conditions, Russia can increase its agricultural products and food sales to Iraq.[/size]
[size=45]He pointed out that trade between Iraq and Russia in 2022 was affected by the significant increase in the purchase of sunflower oil, wheat flour, and animal feed.[/size]
[size=45]Transportation and infrastructure[/size]
[size=45]The report quoted Al-Sudani as saying that Baghdad wants Moscow to participate in launching the “development road” project worth $17 billion, which will extend 1,200 kilometers from Turkey to the Iraqi port of Al-Faw in the Gulf.[/size]
[size=45]He continued that Iraq and Russia recently signed a cooperation agreement in the field of maritime transport with the aim of facilitating the passage of goods and passengers through seaports, adding that any efforts in infrastructure development, and various infrastructure projects such as modernizing airports and urban development initiatives, can help in trade and increase road capacity. Commercial.[/size]
[size=45]In addition, there are talks between Iraq and Russia related to multilateral cooperation on the North-South transport corridor, adding that an agreement on air services was recently signed between Iraq and Russia, which will enhance the prospects for cooperation in the transport sector and develop the aviation situation in the two countries.[/size]
[size=45]He also pointed out that an agreement was signed between the two countries to exempt holders of diplomatic passports, and that Russia is also studying a visa-free entry agreement with Iraq intended for tourists and businessmen.[/size]
[size=45]The report mentioned Al-Sudani’s recent statement in Moscow that Iraq is ready to join the “BRICS” group if it receives an invitation from the founding countries, adding that the possibility of Moscow supporting Iraq’s membership in the group is increasing, and indicating that Iraq, if it joins, will be able to obtain loans and services provided by the “BRICS Bank.” New development.[/size]
[size=45]Bilateral trade[/size]
[size=45]While the report said that Russia was Iraq's first trading partner before 2003, and that trade between the two sides increased by 43% in 2022, it indicated that during the year 2021, Russia exported $283 million worth of oil to Iraq, including refined oil. Wood and iron, while Iraq exported only $50,000 worth of goods to Russia, most of which was fruits.[/size]
[size=45]Vision of Iraq - Russia[/size]
[size=45]The report concluded by noting that Putin emphasized during the year 2023 the development of relations with Islamic countries, the search for new partners to enhance agricultural and industrial cooperation, the establishment of transport and logistics chains, and close commercial and humanitarian cooperation with Islamic countries such as Iraq.[/size]
[size=45]However, the report pointed out that trade and investment relations between Iraq and Russia face internal and external challenges, as the level of trade of the two countries among the main economic partners is considered relatively small.[/size]
[size=45]The report explained that the high security costs incurred by Russian companies to conduct their business in Iraq (sometimes up to 25% of their annual budget) are considered a deterrent factor.[/size]
[size=45]He added that regardless of the geopolitical tensions in the Middle East, the occasional internal political disputes and bureaucratic obstacles in Iraq are hurting trade with Russia, in addition to the sanctions imposed on Moscow, US sanctions (CAATSA), etc., representing a major trade barrier.[/size]
[size=45]The Russian report continued that while the United States refused to exempt Iraq from the restrictions targeting Russia, one of the main issues between Moscow and Baghdad in the year 2023 is related to the payment mechanism for Russian companies and the expansion of relations despite the sanctions, explaining that settling financial accounts in international banks has become more difficult, While talks are being held to address these problems with the aim of protecting economic relations between them from sanctions.[/size]
[size=45]He pointed out that research is also underway into the possibility of Iraqi banks joining the Russian MIR and SPFS financial services systems and the nature of carrying out financial transactions without the US dollar.[/size]
[size=45]The report saw that the existing commercial and economic potential has not been fully exploited and that the perspective of trade and economic relations between the two countries is linked to various bilateral and international geopolitical, political, security and economic variables, noting, however, that Iraq is looking forward to opening up to international investments, and the appropriate price of oil in 2023 and until 2024 will help. To achieve Iraq's financial and external balance, therefore, joint investments in exploring, extracting and distributing energy resources will be in the interest of both countries.[/size]
[size=45]Holding events such as the importance of Islamic finance, the establishment of Islamic banks, and interest in issues of the Islamic economy and the halal industry can also be important opportunities that should be pursued.[/size]
[size=45]He concluded by saying that negotiating the development of bilateral trade, reducing trade barriers, facilitating communications, a free trade agreement with the Eurasian Economic Union, and joint engagement in multilateral infrastructure projects and regional transport project corridors are all considered useful indicators for the development of bilateral trade between Iraq and Russia. .[/size]
[size=45][You must be registered and logged in to see this link.]