Russia, Iraq Near Economic Accord

MOSCOW —  Iraq and Russia are close to signing a five-year, $40-billion economic cooperation plan, an Iraqi official said Saturday, reinforcing Moscow’s close ties to Baghdad even as the United States weighs a military attack to drive Saddam Hussein from power.

Iraq’s ambassador to Moscow, Abbas Khalaf, said the agreement envisions new cooperation in the fields of oil, irrigation, agriculture, transportation, railroads and electrical energy and will probably be signed in Baghdad in September. Soviet or Russian specialists built much of Iraq’s infrastructure, so Baghdad wants Russian expertise to help repair or upgrade it.

Despite Russia’s support for U.S. anti-terrorism efforts in the wake of the Sept. 11 attacks, Moscow has been maintaining or improving ties with Iraq as well as Iran and North Korea--countries that President Bush has labeled an “axis of evil.”

Washington is trying to rally support for a possible invasion of Iraq. The U.S. accuses Iraq of supporting terrorism and rebuilding its banned weapons of mass destruction program.

Sanctions imposed by the United Nations Security Council after Hussein’s forces invaded Kuwait in 1990 cannot be lifted until U.N. inspectors certify that Iraq’s biological, chemical and nuclear weapons have been destroyed.

Khalaf emphasized that the new cooperation deal would not violate the sanctions. The Russian Foreign Ministry said Saturday that it had no comment on reports of the deal.

President Vladimir V. Putin has sought to create a network of alliances to counterbalance perceived U.S. domination of global affairs. Although he has moved Russia closer to the West on many issues, he has also pursued ties with countries that are anathema to the U.S.

Last month, Russia announced a 10-year plan for nuclear cooperation with Iran, which Washington fears could help Tehran build nuclear weapons. And last week, the Kremlin said North Korean leader Kim Jong Il will visit Russia this month for the second summer in a row.