A report in the United States says Russia and Iraq plan to sign a new $40 billion economic cooperation agreement.
The agreement will have ramifications for the US fight against terrorism.
Today's Washington Post says the five year deal would set up cooperation in areas like oil, irrigation and transportation.
The newspaper quotes Iraq's ambassador to Moscow saying "Russia was, is and will be our main partner and what Iraq needs from Moscow is moral political and diplomatic support."
Russia and Iraq have long-standing ties.
Despite President Putin's friendship with US President George W Bush, Russia has recently released a plan for increased nuclear cooperation with Iran and this week invited North Korean leader Kim Jong Il to visit….the other two countries along with Iraq that make up what President Bush terms the axis of evil.
New Middle East Economic Agreement - ABC Online
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