us stepping on russia

Russia accuses U.S. of stepping on its economic interests in Iraq

Satuday, March 22, 2003

MOSCOW (AP) _ Foreign Minister Igor Ivanov accused the United States of trying to step on Russia's economic interests in Iraq and said Moscow had asked for clarification on a U.S. request for countries to expel Iraqi diplomats.

Ivanov also said the casualties of the first days of the war confirmed it was ``indeed a big mistake'' and said Russia would oppose any attempts to give a U.S. occupation of Iraq international legitimacy through the United Nations.

Ivanov called the request to expel diplomats ``strange'' and suggested it was part of a U.S. strategy to trample on existing oil contracts between Iraq and non-U.S. companies.

``We will have to defend our interests so that the contracts which were signed under Saddam Hussein are not annulled as lacking legal force and to make sure the Iraqi debt owed us is respected,'' he said.

Baghdad owes Moscow at least $7 billion US in Soviet-era debt.

Ivanov said Moscow had received no answer to its request for clarification about the expulsion request and that Russian officials had no reason to take action against Iraqi Ambassador Abbas Khalaf.

``What threat could they (the diplomats) present for U.S. security?'' he said at a meeting of the Council for Foreign and Defence Policy, an association of top Russian political and military analysts, outside Moscow.

The request to expel diplomats and freeze Iraqi assets was ``not made by accident,'' Ivanov said.

``In this way, they are saying that everything before today was illegal, all contracts signed before are illegal, and legality begins with the arrival of a new administration, even a temporary one.''

Russian oil companies have been heavily involved in Iraq, though the biggest contract _ held by Lukoil for the development of the West Qurna 2 field _ was torn up by Baghdad in December. There are a multitude of smaller deals, but most are vague and considered minor in comparison.

Ivanov said there would be many in the United States ``who after bombing Iraq would like to profit from its resources'' despite Washington's statements that the country's oil riches belong to the Iraqi people.

Speaking to reporters after his speech, Ivanov said the beginning of the war confirmed it was ``indeed a big mistake.''

``Iraq does not need democracy brought on the wings of Tomahawks. The Iraqi people are wise and can determine their future themselves,'' he said, adding that the strikes had caused civilian casualties and the destruction of historical monuments.

Ivanov said Washington would likely seek to legitimize an occupation of Iraq with a resolution by the UN Security Council. Russia would oppose such efforts, he said.

© Copyright Associated Press