Sunday, 15 December 2002

RUSSIA SLAMS IRAQ OVER LUKOIL CONTRACT

Published in News Digest

By empty (12/15/2002 issue of the CACI Analyst)

The Russian government expressed bewilderment on 15 December over Iraq's decision to cancel a contract with LUKoil to develop the West Qurna oil field. The Foreign Ministry issued a statement saying the decision is "a step that does not correspond to the friendly relations between our two countries." The statement also drew attention to the fact that Baghdad made the decision even as Moscow is expending considerable effort to find a peaceful solution to the Iraq situation.
The Russian government expressed bewilderment on 15 December over Iraq's decision to cancel a contract with LUKoil to develop the West Qurna oil field. The Foreign Ministry issued a statement saying the decision is "a step that does not correspond to the friendly relations between our two countries." The statement also drew attention to the fact that Baghdad made the decision even as Moscow is expending considerable effort to find a peaceful solution to the Iraq situation. LUKoil Vice President Leonid Fedun said his company does not believe the Iraqi decision is irreversible. He said the contract states that the sides must apply to an international court if the contract's terms are violated, and added that LUKoil believes the contract remains in force until a court rules otherwise. (polit.ru)
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