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Iraq to forge strategic ties with India

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November 30, 2000 

NEW DELHI-- (AP) - India has agreed to explore for oil in Iraq and end a 10-year inertia in economic and political ties created by the Gulf War, the Iraqi vice president said Wednesday.

"Iraq is an economic power and its power would be unleashed after the U.N. restrictions are lifted," Taha Yassin Ramadhan told reporters at the end of his five-day visit to India.

"My visit to India is successful, as it helped in preparing a future framework for a strategic relationship with India in various fields," Ramadhan said. He didn't give details.

Ramadhan neither confirmed nor denied an Indian newspaper report that Iraq has offered to sell oil to India at cheaper prices on a long-term basis.

"We sell oil like a normal commodity. The oil price is determined according to the market and according to the size of cooperation existing between the two countries," he said.

Iraqi Oil Minister Amer Mohammed Rashid, who is accompanying Ramadhan, said Iraq does not plan to change its price mechanism, despite the U.N. rejection of its proposal to lower oil prices.

"We will defend our pricing mechanism," Rashid said.

On Monday, the U.N. Sanctions Committee decided that Iraq couldn't price its oil below fair market value, as Baghdad had proposed.

Iraq needs U.N. approved prices to export its oil each month. The U.N. oil overseers are trying to negotiate a new pricing mechanism with Iraq before the end of the week.

Ramadhan said India and Iraq enjoyed strong ties before the Gulf War in 1990: "Now we are trying to move ahead."

"Positive steps and cooperation with Iraq during its difficulties will be reflected in our position when the sanctions are lifted," Ramadhan told Indian business leaders.

Indian industry could collaborate in areas of petroleum and petrochemicals and rebuilding infrastructure in Iraq, Press Trust of India quoted Ramadhan as saying.