PRESS RELEASE

Boris Malakhov, Deputy Official Spokesman of Russia's Ministry of Foreign Affairs Answers a Question from a Number of News Agencies About Russian-Iraqi Trade and Economic Cooperation

August 20, 2002

Question: In the last few days Russian and foreign media have been actively discussing the question of a Russian-Iraqi long-term economic cooperation program being prepared for signing, the total value of which some publications say is between 40-60 billion dollars. How will you comment on these reports?

Answer: Such a document does exist, which the Russian side publicly announced even more than a year ago. It is called the Long-Term Program for the Development of Trade, Economic, Industrial and Scientific-Technical Cooperation Between the Russian Federation and the Republic of Iraq, and its period is to be ten years. The main parameters of the Long-Term Program were agreed upon by the Russian and Iraqi sides. At the present time final touches are being put on this agreement.

The program has now been developed for an extended time, and the Russian Ministry of Foreign Affairs was regularly briefing on the work being done, meant to ensure the development of business cooperation between the two countries. The Long-Term Program absolutely does not contradict the requirements of the sanction regime on Baghdad. It really cannot be otherwise because Russia as a permanent member of the UN Security Council strictly abides by the international obligations which it has assumed. In full measure this applies, of course, to Iraq as well.

As to the 40 or 60 billion dollars mentioned in the media, the draft agreement specifies no figures at all, it is a framework agreement by its content.