Russia offers trade help to Iraq

Oil is at the heart of Russia's Iraq hopes

Russia has offered to use its long-standing trade links with Iraq to help to resuscitate the country's economy.

The suggestion was made by Foreign Minister Sergei Lavrov after talks in Moscow with his Iraqi counterpart, Hoshyar Zebari.

But he continued to rule out supplying troops to the US-led coalition.

Russia has many pending deals made with pre-war Iraq, mostly in oil, but feared it might lose reconstruction contracts for not joining the US-led invasion.

Its second biggest oil producer, Lukoil, is trying to revive a deal worth nearly $4bn which was cancelled by former Iraqi leader Saddam Hussein in 2002.

Mr Zebari said the two countries were to appoint representatives to scrutinise deals signed under the previous regime.

Debt help

Mr Lavrov's comments followed reports in the Russian media that he was ready to sent troops to Iraq.

"I would like to clarify that I never made such a statement," he told reporters at a news conference. "Russia's position is well known."

Most Russian workers have pulled out of Iraq after the recent spate of kidnappings and killings of foreigners.

But despite that, economic help would be offered, Mr Lavrov promised.

"Russia is prepared to support the restoration of sovereignty of Iraq in other ways, particularly through trade," he said.

"This contribution will be no less than the contribution of the participants in the multinational forces."

Debt restructuring through the Paris Club of international lenders was high on Russia's agenda, Mr Lavrov said.

Russia is one of Iraq's main creditors.