Iraq seeks to expand oil production co-operation with Russia - ambassador

NIZHNY NOVGOROD, May 6 (Itar-Tass) - Iraqi Ambassador to Russia Shafiq Muhsin, who is staying in Nizhny Novgorod, has said his country is interested in expanding co-operation with Russia in the sphere of oil production and refining. “Russia’s key companies Gazprom and Lukoil successfully work in Iraq - building strategic relations between our countries,” he said. According to the ambassador, Lukoil will soon achieve the oil production level in Iraq of 1.2 million barrels. “This is a very good occasion to invite to Iraq other Russian companies as well,” the diplomat stressed. Nizhny Novgorod governor Valery Shantsev noted for his part that although trade turnover between the Nizhny Novgorod region and Iraq has amounted to just 43.1 thousand U.S. dollars, the bilateral co-operation has vast potential. “We found out at the negotiations to day that our joint sphere of interest is the automobile industry: the manufacturing of automobiles and their components. In the future we plan to create in Iraq a joint automobile assembly enterprise,” Shantsev said, adding that the Gorky Automobile Plant (GAZ) had already had a production facility and dealership network in Iraq. The ambassador confirmed Iraq’s interest in Russian automobiles. He said, answering an Itar-Tass question: “Companies will appear in Iraq soon that will invite there also the Gorky Automobile Plant.” Once, GAZ had to deliver to Iraq 5,000 Volga cars under a 44-millon euro contract signed in September 2001, within the framework of the UN Oil for Food Programme. It had been planned that Iraq would receive the cars by the end of 2003, however the Gulf war made the supplies impossible. The first 500 cars, adjusted for desert climate that had been prepared for delivery then, remained at the enterprise’s warehouses. In July 2003 the Iraqi side confirmed the contract, and in the first quarter of 2004 the contract was fulfilled. In addition, Iraq, interested in purchasing reliable and low-maintenance Russian automobiles, received in 2004 the light GAZel trucks with the cargo carrying capacity of 1.5 tonnes that are very popular with representatives of small businesses. The country’s automobile fleet was also supplemented with more than 600 medium-duty Sadko trucks. Learn more on itar-tass.com