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For Oil Contracts, Russia Will Waive Most of Iraq's $8 Billion Debt (ERIN E. ARVEDLUND, December 23, 2003, NY Times)

Russia has offered to forgive more than half of Iraq's $8 billion debt to Russia, officials of Iraq's interim government said here on Monday, after the Iraqis signaled that Russia would have the chance to revive oil contracts signed during the Saddam Hussein era.

Abdul Aziz al-Hakim, the current president of the American-backed Iraqi Governing Council, said President Vladimir V. Putin proposed in talks with the Iraqis to wipe out 65 percent of Iraq's Soviet-era debts to Russia in return for favorable treatment of Russian oil and other companies.

"We received a generous promise to write off the debt, or at least a part of it," Mr. Hakim said after meeting with Mr. Putin in the Kremlin. In return, "we will be open to all Russian companies," he added.

"Russia said it is willing to consider the write-off of the rest of the debt if it received beneficial treatment in terms of oil contracts," added Jalal Talabani, a member of the Iraqi delegation.