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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    How has $ 1.3 billion been lost to Russia in Iraq?

    rocky
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    How has $ 1.3 billion been lost to Russia in Iraq? Empty How has $ 1.3 billion been lost to Russia in Iraq?

    Post by rocky Tue 16 Jan 2018, 3:22 am

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    How has $ 1.3 billion been lost to Russia in Iraq?





    MOSCOW (Reuters) - Russian firm Rosneft's contracts with Iraqi authorities in Baghdad and its investment agreements with Kurdish separatist authorities are at stake and billions of dollars are now at stake, a report by InterScape said.
    The report said that Moscow is facing a serious economic risk that undermines its relations with Iraq because of its actions in Kurdistan last year, which means in particular that Russian investments in the region at risk.
    He added that "all this is due to the attempt of Iraqi Kurdistan to break away from the country where Erbil, has held a referendum on independence on September 25 last, which was considered by the authorities in Baghdad is illegal and the majority of the citizens of Iraqi Kurdistan pressed, and voted for secession. On October 18, but the attempt did not work. The management of Russian company Rosneft in that period signed contracts with the Iraqi Kurdistan government to invest up to 4 billion dollars as an investment in the energy sector.
    "Turkey did not invoke these contracts as a recognition that there was a preliminary agreement between Turkey and Russia that the oil extracted in Kurdistan to be supplied to Turkey through Russia, so there were economic motives behind those contracts."
    "The Russian side has clearly tried to anticipate developments in order to establish early contacts with the Iraqi Kurds and win the advantage of the first proposal, but this would risk reaction from the Iraqi authorities in Baghdad, which also participate in energy contracts worth several billion dollars and cooperation Technical cooperation with Russia. Moreover, the Iraqi authorities say that all energy deals concluded by Erbil without the approval of Baghdad is illegal, which also includes contracts of Russian company Rosneft also.
    The report pointed out that "Meanwhile, $ 1.3 billion was transferred to the Kurdish authorities under the contract, which was supposed to be used to pay money to Arbil with foreign oil and gas companies, and later was supposed to be re-sale of oil to Turkey which Was traditionally the partner that transferred the region's black gold to the Ceyhan port by pipeline. The remaining amount was supposed to finance the construction of a pipeline from Iraqi Kurdistan to Turkey, as well as Rosneft's development of five blocks in the local fields.
    "While the United States denounced the Kurdish secession, Moscow was on the contrary, which would have a detrimental effect on relations between the Kremlin and Baghdad, which also participate in a number of oil contracts. Turkey was also angry because its leaders strongly opposed the decision to hold the referendum. "
    After the referendum, Iraqi forces recaptured the disputed areas of Kirkuk and Sinjar in October, losing 40% of their land and nearly two thirds of their oil and gas reserves. The Iraqi Kurds still control only two of the five blocks that Russia was supposed to dig. Theoretically, the company can begin to exploit these deposits. But the loss of the province of Kirkuk led to a severe crisis has decreased oil exports from the autonomous region from 600 thousand to 216 thousand barrels per day in November last year.
    Moreover, three of the five gas blocks that Rosneft was supposed to exploit are now under Iraqi control. Therefore, Iraqi government representatives have repeatedly pointed out that Russia should negotiate with them. However, the company said in November that it had "started implementing its contracts with the Kurds". So far, the agreements with Baghdad have not been renegotiated.
    From Rosneft's point of view, the difficulty is that the allocated funds were almost entirely spent by Erbil, without improving the overall poor economic situation in Iraqi Kurdistan. The Autonomous Region faced serious financial difficulties even before the provinces of Kirkuk and Sinjar were lost, Including law enforcement officials for several months.
    In other words, the political impasse. So far indicates that there is no painless solution to the problem, including for Ross denied. Three options could be identified for developments in Iraqi Kurdistan and Moscow's reactions.
    In the second scenario, the autonomous region will continue to resist Iraq's pressures due to financial assistance from abroad (for example, from its traditional American ally or Russia). Finally, the third scenario relates to the second scenario: if Arbil does not surrender , Baghdad may resort to force and hostilities spread over the territory of the Autonomous Region and, given the acute nature of regional conflicts, such armed conflict may include not only neighboring countries such as Turkey and Iran, but also the Penned.
    The report stressed that any of these options means failure of Russia, which has already spent some resources allocated to help the autonomous region in its confrontation with Baghdad. Thus, Russia will have to shoulder the burden of Iraq's Kurdistan at high cost again, with an uncertain return on investment.




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