These are interesting developments. Read on..


Russia, Iraq to Sign $40 Billion Deal

By SARAH KARUSH
.c The Associated Press

MOSCOW (Aug. 17) - Russia and Iraq are preparing to sign a $40 billion
economic cooperation plan, the Iraqi ambassador to Moscow said Saturday. The
pact was likely to strain Moscow's relations with Washington as the United
States considers a military attack against Baghdad.

The five-year agreement envisions new cooperation in the fields of oil,
irrigation, agriculture, railroads, other transportation sectors and
electrical energy. It will most likely be signed in Baghdad in the beginning
of September, Ambassador Abbas Khalaf told The Associated Press.

The announcement came as Washington struggles to rally international support
for a possible invasion of Iraq.

Washington is determined to topple Iraqi leader Saddam Hussein - possibly
through a military operation - because of the threat posed by his regime's
efforts to develop nuclear, chemical and biological weapons. Russia, a
longtime ally of Iraq, has forcefully warned against a U.S. invasion.

Moscow has also has supported lifting United Nations sanctions imposed after
Baghdad's 1990 invasion of Kuwait. Moscow hopes lifting sanctions would allow
Baghdad to start paying off its $7 billion Soviet-era debt and help expand
trade.

Khalaf emphasized that the new cooperation deal, which is to include new
projects as well as the modernization of some Soviet-built infrastructure,
would not violate the sanctions. Russia's Foreign Ministry said Saturday it
had no comment on the deal.

In the current standoff with the United States, Iraq is counting on Russia to
use its leverage in the U.N. Security Council and other diplomatic channels
to deprive Washington of international support for a military operation,
Khalaf said.

``First of all we need moral, political and diplomatic support. Because Iraq
knows how to defend itself,'' Khalaf said.

``The main thing for us is that American aggression does not go through the
U.N. Security Council and that America does not receive a U.N. mandate,'' he
said. ``Let America act (alone) as an aggressor. It will be condemned from
all sides.''

Khalaf dismissed the idea that Russia could yield to U.S. pressure and drop
its opposition to an invasion.

``There won't be any concessions,'' he said. ``Iraq is Russia's most
dependable partner in the East.''

At the same time, Khalaf said he saw no contradiction between Russia's
friendship with Iraq and its ties with Washington, which have strengthened
since the Sept. 11 attacks.

``We see friendship among various countries and civilized peoples of the
world as a positive step. Any enmity brings harm to a country,'' he said.

The news of the deal with Iraq followed signs that Moscow is maintaining or
even increasing its cooperation with Iran and North Korea. Along with Iraq,
those two countries make up what President Bush has labeled the ``axis of
evil'' because of their efforts to obtain weapons of mass destruction.

Last month, Russia announced a 10-year plan for nuclear cooperation with
Iran. Under the plan, Russia would build another five reactors in addition to
the one currently under construction at Bushehr. Washington fears such
cooperation could help Iran develop nuclear weapons.

This week, the Kremlin announced that North Korean leader Kim Jong Il will
visit Russia later in August for the second summer in a row.

08/17/02 08:15 EDT

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