Russian investments in Iraqi energy projects exceed $10 BILLION

Cooperation between Russia and Iraq in the oil sector is “very active” in spite of all the restrictions and the impact of the Covid-19 pandemic, according to Russian Deputy Prime Minister Alexander Novak.

Novak, who previously served as Russia’s energy minister, met on Wednesday with Iraqi Oil Minister Ihsan Abdul Jabbar to discuss the prospects of the two countries’ oil and gas projects, as well as the situation on the global oil market. 

He noted the fruitful cooperation between Russia and Iraq in the oil sector, saying: “Our interaction is very active, despite the current restrictions and the impact of the coronavirus pandemic.” 

While talking about the existing projects by Russian oil firms in Iraq, Novak said: “Our companies are actively implementing a number of successful projects on the territory of the republic. To date, the accumulated investments of Russian oil and gas companies in Iraqi projects have exceeded $10 billion.”

According to Russian First Deputy Chair of the Federation Council Committee on Economic Policy, Yury Fedorov, the companies plan to spend up to $20 billion on oil projects in Iraq.

In 2019, Russia and Iraq resumed cooperation in energy infrastructure, and in the electricity sector in particular. Some Russian firms could help Baghdad with the restoration and development of electric power facilities, while negotiations are underway over the construction of thermal power plants using the assistance of Russian companies.

Iraq’s proven oil reserves stand at over 145 billion barrels, while gas reserves exceed 3.7 trillion cubic meters.

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