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Iraq
Iraq Ready To Let USA Take Its Oil in Exchange for Peace
2003-02-11
From Pravda; I'd recommend the 3 lb can of Morton's best.

Iraq might allow American and British companies to work on its oil fields. This statement was released by Iraqi Trade Minister Mohammed Mahdi Saleh to Russian media outlets. The only thing that Americans and British have to do for that is to stop their bellicose actions against Iraq.
"Just be nice to us, and we'll sell you all the oil you want until we release smallpox in your major cities."
The Iraqi minister pointed out that Baghdad does not maintain any relations either with London or with Washington. There would be no obstacles to establish normal relations with the USA and Great Britain, if those countries stopped their bellicose actions against Iraq. Everything that is required for that is a little bit of good will and mutual respect. The minister said that the situation about Iraq would change fundamentally because of that.
"Show us some respect and we'll throw in all sorts of goodies and anthrax and sarin and VX and ricin."
On the other hand, is the USA interested in such a change? For the time being, it deems that the American president is completely sure of the fact that he is getting all Iraqi oil soon anyway, with the help of his missiles and marines.
I think the translator of this piece noticed.
This is, probably, the case, for which Iraq prepared very good suggestions for Russia. Mohammed Mahdi Saleh said that Iraq was ready to sign a long-term program of cooperation with Russia. As it was said, Iraq would be willing to sign the deal at any time that is good for Russia.
"That contract we tore up? Wotta mistake! We take it back for now."
The program is meant for the period of ten years, it is evaluated in 40 billion dollars. As a matter of fact, it should have been signed in 2001. However, the improvement of Russian-American relations and Russia’ support of the American struggle with international terrorism made the Iraqi government adjourn the deal.
"Honest, the deal's back on! until we help the Chechers get back at you."
In addition to that, Iraq was disappointed with the way Russia wanted to countersign such a massive cooperation. Mohammed Mahdi Saleh complained of the fact that Russia set out its readiness to sign the deal on the level of ministers for oil and gas. To all appearances, Iraq is not happy with such a low level of counteraction. The minister stated that Iraq would like to raise the significance of the program and to sign it on the level of prime ministers. The minister said that the program was prepared, waiting for signatures to be put down. The most important thing at the moment is to make Russia agree.
"Anything! We'll sign anything! until those damned F-18's go away, then you're screwed."

Indeed, after the conflict regarding the participation of the Russian company LUKOIL in the development of the Iraqi oil field Western Kurna-2, the Iraqi side resumed concluding oil contracts with Russian companies. There was a contract concluded with the Russian company Soyuzneftegaz in the middle of January (to develop Rafidain field in southern Iraq). The second contract gave a right to the Russian company Stroitransgaz to develop Block Four in Iraq's Western Desert. This company obliged to fulfil the contract completely right during the time of UN international sanctions. Experts pointed out that Block Four oil field is one of the largest oil deposits in Iraq; it is comparable to Western Kurna oil deposit.
"It's big! It's really big! You really want a piece of this, don't you? It'll seem even bigger when we set Kurna on fire."
Yet, it seems that Russia does not believe that Iraq is capable of guaranteeing the observation of Russian economic interests in the Persian Gulf. Moscow is more drawn to talk about the future of its oil companies with the USA.
"Why would you deal with the USA? We have everything they have in spades! except money, honor, technology, and reliability."
However, a lot of experts believe that Russia’s vague position on the matter does not allow it to make the USA observe its interests in Iraq anyway. The present American administration understands only the military language at the moment. Furthermore, America is in need of a considerable political and military victory despite the fact that the Iraqi oil is the major reason of the American aggression. George W. Bush needs Saddam Hussein’s head, that will do for a start while Russia backs up the peaceful plan to disarm Iraq, following the French and the German stand on the issue. This position can not but irritate Washington officials. That is why, Russia is not likely to guarantee its interests in the Persian Gulf. According to experts’ estimates, if the army operation in Iraq is successful, there will be no point for the United States to make a room for Russia in the Iraqi oil business. The Iraqi oil will allow the USA to overcome the consequences of the economic setback in the country. America will not be subjected to oil prices fluctuations in contrast to all other countries.
I think he noticed.
Needless to mention that Russia is not supposed to ignore Hussein’s generous gifts, so to speak. However, Russia does not believe that the Iraqi leader will be able to survive this crisis. Experts believe that Russia’s investments in Iraq are not that considerable. Russia’s most significant “assets” are the Iraqi debt, which is evaluated in the sum of up to eleven billion dollars. Oil projects failed to accumulate comparable sums since their implementation happened during the period of anti-Iraqi sanctions.
Yep, he noticed.
Posted by:Steve White

#2  Oh for... The US was buying oil from Iraq until fairly recently, the UN sanctions allowed for that, we don't need to invade for that. Or for the less-than-two-percent of use it amounted to.
Posted by: John Anderson   2003-02-12 00:59:18  

#1  Pravda still don't inderstand econ 101.The oil market is a global market.If you are a producer and the price rises elsewhere,you want to export more of your oil,driving the price up in your country also.The only way you can avoid that is to prevent exports by government decree,in which case you lose the profits.This "opportunity cost" is just as real as a direct subsidy,it's just less obvious.

The Left's "War for Oil" argument rests on their belief that there is a "free lunch" in the Iraq oilfields and USA is looking for it.In the real world ,there are no free lunches.
Posted by: El Id   2003-02-11 22:02:09  

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