Russia sees oil snub hitting pro-Iraq stand

A Russian government source was quoted today as saying that Baghdad's cancellation of a contract with oil company LUKOIL deprived…

A Russian government source was quoted today as saying that Baghdad's cancellation of a contract with oil company LUKOIL deprived Moscow of a major reason for its opposition to a US-led war against Iraq.

"If Iraq takes such a decision, then one of the major reasons for Russia to support Iraq in the current international situation disappears," Interfax news agency quoted the unnamed government source as saying.

Yesterday, Iraq scrapped a $3.7-billion deal for the Russian company to develop the huge West Qurna field, saying LUKOIL had not done any work since it signed the deal.

Anxious about its economic interests, Russia has strongly opposed any unilateral US strike on Iraq, which Washington accuses of developing weapons of mass destruction. Russian oil majors have worried they could lose the right to develop West Qurna to US firms if Washington ousts Iraqi President Saddam Hussein.