Russia and Iraq plan to sign a new five-year economic cooperation agreement worth 40 billion dollars, the Washington Postreported today.
The agreement covers cooperation in various industries, including oil, electrical energy, chemical products, irrigation, railroad construction and transportation, according to Russian and Iraqi officials told the Post.
The trade pact reinforces Russia's close ties to Baghdad even as the United States encourages its allies to join it in isolating Iraq.
Washington is weighing a military option in its efforts to remove Iraqi President Saddam Hussein from power.
Soviet or Russian specialists built much of the infrastructure in Iraq, and so Baghdad wants Russian expertise to help repair or upgrade it.
Moscow has long been one of Iraq's chief benefactors in the international arena and a major trading partner and military supplier, the Post reported.
Russia has continued to strengthen ties with Iraq, Iran and North Korea - the three countries branded by US President George W. Bush as forming an "axis of evil."
AFP