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Moscow’s Iraq Strategy: Make Lots of Friends

By Ruslan Mamedov for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Moscow’s interest in the Middle East and the growing Russian presence in the region go beyond Russian involvement in the Syrian civil war. For several years Russia has been building partnerships with various regional powers, and Iraq — with parliamentary elections only days away — has been a priority.

The Soviet Union helped Iraq industrialize its economy and was the country’s largest weapons provider until the union collapsed in 1991. Iraq’s invasion of Kuwait and the subsequent Western sanctions against it interfered with the Russia-Iraq weapons relationship. Then, after the US-led coalition’s overthrow of Iraqi President Saddam Hussein in 2003, Iraq got most of its weapons from the United States.

Under President Vladimir Putin, Russia has been trying to gradually rebuild its ties with Iraq on numerous levels. Moscow sees Iraq’s May 12 parliamentary elections as an opportunity to breathe new life into relations to create a comprehensive partnership.

In 2014, as Islamic State militants neared Baghdad and the Iraqi government couldn’t immediately receive the arms it needed from the United States, Moscow jumped on the opportunity to provide “without delay” the weapons and equipment needed, including aircraft. Maxim Maximov, Russia’s ambassador in Iraq, later commented that the deliveries represented a long-term commitment.

“We have always said that we are ready to give this country various types of assistance in strengthening its army,” Maximov said in a February interview with Interfax. “The Russian military industry has already provided the Iraqi government with a massive installment of weapons that proved their efficiency in battles against [IS], including MI-35M and MI-28N helicopters, Su-25 jet aircraft, Kornet-E anti-tank guided missiles and other military products.”

Some vital 2017 contracts for T-90 tanks are now being filled. There have been reports that Iraq is going to buy Russian S-400 surface-to-air missile defense systems, but Iraq’s ambassador to Moscow, Haidar Hadi, has denied that possibility.

Russian energy companies operating in Iraq are another critical tool for Moscow. These companies had been in Iraq long before the United States invaded in 2003 and had bid on oil and gas projects. Currently, there are two companies developing such projects in Iraq: Gazprom Neft Middle East and Lukoil.

Business for Russia’s Rosneft corporation is still uncertain. The company had contracts in the Kirkuk oilfields with the Kurdistan Regional Government, but when Baghdad overtook Kirkuk last year, the Iraqi Oil Ministry renounced those deals. Negotiations are still possible according to Russian business media reports, but the company has not confirmed the news.

Iraq is important for Russia not only as an economic and trade partner, but also as a factor in influencing regional policy. Russia clearly understands that its possibilities in the country are limited, as Iran and the United States are the main foreign players with direct influence on Iraq. Saudi Arabia, which took a number of steps to reinforce its influence in the country in the past year, still lags behind.

China, Iraq’s key economic partner, keeps a rather low profile regarding Iraq’s domestic politics. What’s important for Russia is that Iran partially and cautiously supports Baghdad’s collaboration with Moscow and the United States doesn’t openly oppose it.

That said, it’s not quite accurate to think Tehran is the one inviting Moscow to Iraq, hoping to create a counterbalance to Washington. In recent years, Baghdad politicians have increased their ability to implement independent foreign policy, and relations with Russia have been important to Iraqi officials. Russia, in turn, doesn’t seek to intervene in Iraq’s internal matters and basically operates by building pragmatic relationships with any government looking for such an arrangement. This approach helps Russians forge important political and business contacts.

For its part, Baghdad supports strengthening Moscow’s positions in an exchange that creates a new point of influence in the country potentially able to balance both Iran and the United States. Iraq thus gets a broader space for maneuvering among all the interested parties.

Certain areas of cooperation that Russia and Iraq have been exploiting have tangible potential. Military sales and energy cooperation are the most obvious ones, but Moscow is also becoming what it sees as a “natural ally” of Iraq in the fight against terrorism.

Since Russia, Syria, Iran and Iraq formed an information-sharing group in 2015, Russia has sought to deepen this area of cooperation through joint operations against radical groups. Russian lawmaker Ziyad Sabsabi has coordinated activities within that group to rescue Russian children whose parents joined IS from Iraq and Syria.

The fight against IS will gradually shift from the front line to broader counterterrorist initiatives, and Russia will be there to experience new forms of engagement with Iraq.

Institutional interaction between Moscow and Baghdad is already rather comprehensive. In addition to the counterterrorism information center and the rescue group, there’s a Russian-Iraqi action group for cooperating in the power industry and a Russian-Iraqi commission on trade, economic and scientific cooperation — a key coordinating intergovernmental body.

Russia takes advantage of all of these formats to interact with Iraqi and Kurdish governments as well as with the highest-level political leaders and contacts among “unofficial players” in the region.

Based on Maximov’s recent meetings, one can see Moscow’s attempts to maintain contacts with virtually all important actors — from major politicians in Iraqi Kurdistan such as Massoud Barzani, Iraqi Secretary-General of the Council of Ministers Mahdi al-Alaq, Vice President Nouri al-Maliki and National Wisdom Movement leader Ammar al-Hakim, among many others.

Therefore, while Russia’s strategy in Iraq aims to develop of all kinds of relationships with Baghdad and stresses support of the country’s territorial integrity, it is also multifaceted, seeking to engage with virtually all players from the country’s leadership to the leaders of the Popular Mobilization Units.

This path is meant to provide the policy flexibility necessary to maintain and increase cooperation regardless of who holds power after the upcoming elections.

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US pays IOTC $40m for Iraq War Fuel

International Oil Trading Co. (IOTC) announced today that the company has reached a full settlement with the Defense Logistics Agency – Energy (DLA), resolving all issues associated with IOTC’s delivery of fuel to the Coalition troops during the Iraq War.

The $40 million payment to IOTC represents amounts due for fuel delivered and received by DLA. IOTC delivered over 332 million gallons of fuel between July 2007 and August 2009. IOTC delivered the fuel on-time and on-specification, the DLA accepted the fuel, and the fuel was used by the Coalition troops during the Iraq conflict.

IOTC received numerous accolades from DLA for its exemplary performance during the war and was a top-ten supplier of petroleum to DLA. Indeed, IOTC’s quality control was so good, that DLA authorized “Alternative Release Procedures,” whereby IOTC was authorized to deliver fuel without a DLA quality assurance representative onsite to inspect fuel quality. During contract performance, then DLA Contracting Officer John Walker determined that IOTC provided consistent, responsive and outstanding performance during a critical and complicated operation warranting a rating of “exceptional.” According to Walker, IOTC’s “operations management team [was] fully cooperative to this mission’s needs, consistently yielding excellent performance…[and] providing excellent service.”

The settlement also represents a total refutation of baseless and politically motivated allegations of fraud against IOTC leveled by Former U.S. Representative Henry Waxman (D-CA), among others. Following a comprehensive investigation, the Department of Defense ultimately concluded that “no fraud vulnerabilities were identified” relative to the IOTC fuel contracts.

As acknowledged in the settlement, “IOTC satisfactorily performed [the contracts and] DLA Energy will not consider the fraud allegations raised in these appeals associated with IOTC’s past performance…in making future contract award decisions.” Indeed, an IOTC affiliate has already begun fulfilling current DLA Energy contracts and looks forward to serving the DLA in a more robust manner moving forward.

“IOTC is pleased to have reached an amicable resolution of these issues with DLA,” said Harry Sargeant III, Chief Executive Officer of IOTC. “We can now look forward to again providing exemplary service to DLA. We are also pleased to see the end of politically charged accusations which have distracted from IOTC’s core commitment to our armed forces in mission critical operations.”

Full details of the settlement can be read here.

(Source: Press Release)

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IBBC Spring Conference a Huge Success

The Iraq Britain Business Council (IBBC) held its annual Spring Conference at the Mansion House in London and a newly formatted second day forum for Iraqi and UK SMEs to discuss business opportunities at the Royal Overseas League on the 24th and 25th of April.

The event proved to be a huge success, with record attendances and expert speaker contribution fully captivating the positive and progressive forecast for Iraq in 2018. The Conference was chaired by Rasmi Al Jabri, Deputy Chairman and Iraq representative of IBBC, who’s significant standing in Iraq was fundamental to the success of the event.

The first day of the conference, entitled ‘Iraq: Building a diversified and modern economy’ was held at the Mansion House, home of the Lord Mayor of London and featured numerous Iraqi and UK politicians, industry experts, academics, government advisers and more. The day featured the newly incorporated roundtable discussions, which facilitated greater face time with industry experts and politicians and more in-depth discussions.

The main panel sessions focused on a wide range of sectors and industries to fully address the investment opportunities, need for diversification of the economy and progress of Iraq over the last year:

SESSION 1: Finance ‘Major projects – the criteria for and process of obtaining finance for projects in Iraq’

SESSION 2: Technology ‘Developing Iraq’s digital economy’

SESSION 3: Energy and Industry ‘The need for locally available products and services – how two sectors can help diversify Iraq’s Economy’

SESSION 4: Education and Training ‘Developing human capital in Iraq’

A high-level delegation from the Government of Iraq was present, including H.E. Mohammed Shyaa Al-Sudani, Minister of Social Affairs & Acting Minister of Industry and Minerals, Mr Khadhem Al Hassani, Economic Advisor to the Prime Minister of Iraq and H.E. Dr Salih Husain Ali Al Tamimi, the Iraqi Ambassador to the UK, who were all invited to give opening addresses to IBBC Members and guests at the conference.

H.E. Dr Abdul Kariem Al Faisal, Chairman of the PM’s Advisory Commission and Mr Abbas Nasser, Legal Advisor to the Ministry of Transport and H.E. Nawzad Hadi, Governor of Erbil also attended the first day of the conference and held RoundTable discussions with IBBC Member representatives.

Several UK Government officials participated, including Baroness Nicholson of Winterbourne, The Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Kazakhstan and Turkmenistan and IBBC President, Jonathan Wilks CMG, Her Majesty’s Ambassador to the Republic of Iraq and Baroness Fairhead CBE, Minister of State for Trade and Export Promotion, Department for International Trade, which demonstrates the continuing trend of increased bilateral trade and relations over the last few years between the UK & Iraq.

(Source: IBBC)

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Positive Indicators at IBBC Conference

At a major Iraqi business event in London on Tuesday, there was a strong sense that Iraq’s perceived risk profile is improving, and that this is an excellent time to do business in the country.

Nearly 300 delegates attended the Iraq Britain Business Council (IBBC)‘s Spring Conference at the Mansion House, which focused on “building a diversified and modern economy“, with many of those flying in from Iraq specially for the occasion.

This record attendance was just one of the positive indicators in evidence at the event, with speakers pointing to improved security, better relations between the Kurdistan Regional Government (KRG) and the central government in Baghdad, and a growing trend towards up-skilling and capacity building in the local population; here at Iraq Business News, we’ve seen a positive indicator of our own, with a 15 percent increase in our website traffic over the past year.

Closing the conference’s first day, IBBC Managing Director Christophe Michels also drew attention to the growing number of companies joining his organisation, and a much more relaxed atmosphere in Iraq’s major cities.

The second day of the conference also saw a full house at the Royal Overseas League to discuss business opportunities for Iraqi and British small- and medium-sized enterprises (SMEs).

(Picture: Baroness Fairhead CBE, UK Minister of State for Trade and Export Promotion, addressing the conference.)

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Iraq: Building a Diversified and Modern Economy

IBBC Spring Conference 2018

Iraq: Building a diversified and modern economy 

Tuesday 24 April at Mansion House, London

IBBC’s Spring Conference returns on 24 April 2018, bringing to the heart of London the preeminent political and business figures involved in business and the economy of Iraq.

The theme for this years’ conference is Iraq: Building a diversified and modern economy. The conference aims to address the key challenges in building a diversified and modern economy, which will enable Iraq to build on the recent economic and social stability to progress into one of the Middle East’s major economies once again. Sessions will focus on Finance, Technology, Oil & Gas and Education.

The Government of Iraq has confirmed it is sending a high-level delegation of government representatives to the IBBC Spring Conference, which will be led by H.E. Dr Abdul Kariem Al Faisal, Chairman of the Iraq Prime Minister’s Advisory Commission (PMAC). The delegation will also include senior representatives from the Iraq Ministries of Oil and Industry.

The IBBC Spring Conference, held at the prestigious Mansion House, the home and office of the Lord Mayor of London, is traditionally IBBC’s flagship event, which attracts suppliers, investors, producers and buyers from Iraq, the UK and the wider international business community.

Prominent speakers include Baroness Nicholson of Winterbourne, President of IBBC and the Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Turkmenistan and Kazakhstan, Alderman Sir Alan Yarrow, Lord Mayor, Locum Tenens, Ambassador Jonathon Wilks, Her Majesty’s Ambassador to the Republic of Iraq and Baroness Fairhead CBE, Minister of State for Trade and Export Promotion, Department for International Trade.

IBBC expects a high attendance at the conference and the new round tables are designed for close business interaction and the facilitation of in-depth discussion, where delegates can focus on particular sectors of interest and engage with speakers and industry experts on the issues that really matter.

With representatives from all major interested parties involved in Iraq expected to attend, as well as pre- and post- networking events, the IBBC Spring Conference 2018 will provide many opportunities for networking at the highest level, as well as providing exceptionally informative and experienced panels.

Sessions on the agenda include:

Finance: ‘Criteria and process for obtaining major project finance’ Chair: Mr Gavin Wishart, IBBC

IBBC has gathered several preeminent voices in the finance industry to discuss the challenges and opportunities Iraqi and international firms face in sourcing capital for major projects. Representatives from some of the largest international finance organisations, JP Morgan and Allan & Overy LLP, as well as representatives from UK Export Finance and GE will discuss in detail the criteria and process of obtaining finance for major projects in Iraq.

  • Mr Richard S. Wilkins, Executive Director – Export Finance, JP Morgan
  • Mr Tom Longmuir, Counsel, Allen & Overy LLP
  • Mr Guto Davies, Managing Director – Global ECA CoE Leader, GE Capital
  • Mr David Craig, Deputy Head of Civil Infrastructure and Energy Business, UK Export Finance

 

Technology: ‘Developing Iraq’s digital economy’ Chair: Mr Ashley Goodall, IBBC

The IBBC Tech Panel brings together the two leaders of the UK and Iraq e-government initiatives in addition to experts in FinTech and entrepreneurial hub development. The panel will address in detail how innovative new technology and the use of information and communication technologies (ICTs) can improve the activities in the public and private sectors to help Iraq’s economy and growth.

  • Mr Ahmed Elkady, Partner, Ernst & Young
  • Mr Ali Al Dahwi, Consultant, Management Partners
  • Mr Chris Fergusson, Director at The Cabinet Office (Government Digital Service)
  • Mr Mohammed Khudairi, Managing Partner, Khudairi Group

 

Oil & Gas: ‘Need for locally available products and services – how the sector can help diversification of Iraq’s economy’ Chair: Mr Vikas Handa, IBBC

This expert panel consists of representatives from the largest IOC’s in Iraq, Governmental representatives from the Iraq Ministries of Oil and Industry and an Oil & Gas expert from the Department of International Trade. The session will cover all key aspects of Iraq’s Oil & Gas sector for 2018, delivered by the preeminent experts in the field and will include a panel discussion and Q & A chaired by Vikas Handa, the head of IBBC’s Oil & Gas Sector Table and its GCC representative.

  • Dr Mark Wharton, Development Manager, Shell Iraq
  • Mr Mike Wenham, Commercial Manager, BP Iraq
  • Mr Bob Dastmalchi, Vice President, Business Development, Chevron
  • Mr Craig Jones, Deputy Director, Oil & Gas, Department for International Trade
  • Representative from the Ministry of Oil, Government of Iraq
  • Representative from the Ministry of Industry, Government of Iraq

 

Education and Training: ‘Developing human capital in Iraq’

The panel brings together leading representatives from academia and business to address the challenges of developing Iraq’s human capital to support its transition into a diversified, vibrant economy. Members of the panel have direct experience of challenges and advantages of delivering advanced education and training in-country.

Chair & Presentation: Professor Paul Boyle, President & Vice Chancellor, Leicester University

  • Mr Alex Haynes, Senior VP Business Development AMEA & Southern Europe, Wood
  • Mr Saadi Faraj Muthanna, Business Development Manager, Al Nukhba-OFS FZCO
  • Ms Christine van den Toorn, Institute of Regional and International Studies, American University of Iraq
  • Mr Will Follett, Director, Restrata

With a dedicated and well informed agenda, IBBC are bringing the experts and practitioners best placed to answer these questions, so the international business community can work towards framing the future and contributing to a modern and outward looking Iraq. Each session will emphasise the growing business opportunities for international companies.

For more information and tickets, please visit: http://www.webuildiraq.org/ibbc-conference/spring-conference-2018/ or email london@webuildiraq.org.

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Power-sharing deal could end dispute over Kirkuk Elections

By Omar Sattar for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

For the first time since 2005, Kirkuk governorate in Iraq will hold elections Dec. 22 to select its local governing council. Parliament included the multiethnic province of the Kurds, Arabs and Turkmens in the provincial election law approved March 3.

The decision follows an agreement among the three groups’ representatives in parliament and was greatly welcomed by all segments, especially the Kurds, who for years have demanded that elections be held in Kirkuk. Khalid al-Mafraji, an Arab parliament member from Kirkuk, told Al-Monitor that negotiations took more than a year.

The agreement binds the Independent High Electoral Commission to review voters’ records in coordination with the ministries of Interior, Commerce, Planning and Health. If they aren’t able to review the records before the elections, the commission will be obliged to undertake an audit within six months after the elected council begins its work.

“The most important articles of the agreement relate to sharing power,” Mafraji said. The largest bloc in the election will appoint the governor, and the two deputy positions will go to the other two groups. Moreover, federal positions will be determined by the governorate’s residents, according to party size. The agreement also states that the constitution and the law take precedence over the governorate’s council, parliament and the federal government.

The electoral law will remain in effect for four years. Shakhawan Abdullah, who represents Kirkuk in the Kurdistan Democratic Party in parliament, told Al-Monitor, “The agreement between the three components of Kirkuk’s governorate will be effective for only one electoral round, and the elections will not be held in the same way in four years’ time.”

Abdullah believes the provincial election law presents a good opportunity to resolve conflicts in the governorate and give it more administrative powers, like other governorates. The governorate has gone without elections all these years for various reasons. Oil-rich Kirkuk is a disputed area claimed by both the central government in Baghdad and the Kurdish Regional Government (KRG) in Erbil. Its situation is also unique because of its ethnic diversity and disagreements among them.

The constitution stipulates the conflicts in the governorate must be normalized in three stages. The first stage is to allow the return of displaced Kurds and Arabs who emigrated during the regime of deposed Iraqi President Saddam Hussein.

The second stage is to carry out a population census, and the last stage is to hold a general referendum on whether Kirkuk should become a new region, like the autonomous Kurdistan Region, or be annexed to the Kurdistan Region.

All of those procedures were to be carried out before 2007, which wasn’t done. This caused political conflict, partly because of the disagreement between Baghdad and the KRG over having elected authorities with the right to control the governorate’s future.

The Kurdistan independence referendum in September, which included Kirkuk, ended in crisis, and the central government subsequently took over the governorate and cut the Kurds’ authority. The coming elections will give Baghdad and the KRG a chance to solve the current dispute over Kirkuk’s administration.

However, the most important problem that may affect holding elections in Kirkuk is the agreement on a unified record of voters, which may raise doubts about the election results. Iraq hasn’t conducted a census in decades. Ali Khalil, the Arab bloc member of the governorate council, told Al-Monitor that Arabs weren’t in favor of the agreement’s clause that allows an audit to be delayed until after the elections if records can’t be reviewed before then.

“How would we elect a new governorate council while doubting voters’ records at the same time?” Khalil asked.

The Kirkuk local elections will provide a chance to reduce tension in the governorate, a good way to determine the real size of each of the three ethnic groups and a way to form a more legitimate administration — but it could lead to negative results. If one segment is counted and found to have significantly fewer representatives than before, that segment might refuse to accept the election results.

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An Urgent Call to Action: Run. Give. Volunteer.

The Iraqi Children Foundation (ICF) has appealed for runners and doners for its annual run in Alexandria, Virginia.

“More than 4 million children have been impacted by extreme violence in several areas including in Ninewa and al-Anbar.  Last year alone, 270 children were killed.  Many were robbed of their childhood, forced to fight on the frontlines.   Some will bear the physical and psychological scars for life due to exposure to unprecedented brutality.  Over 1 million children were forced to leave their homes.”

—       January 19, 2018, Statement by UNICEF Regional Director Geert Cappelaere, after visiting Iraq

During ISIS’ occupation, UNICEF called Iraq “one of the most dangerous places in the world for children.”  Now, after Iraq has driven ISIS from its strongholds, the emotional, psychological, and physical wreckage is staggering.  For everyone who loves Iraqi children, this an urgent call to action.   We call on all to Run. Give. Volunteer. Today.

RUN.  Run – or walk – with us at the IN THEIR SHOES 5K  on May 5th.  Tell the world these kids are not forgotten.  We lift them up with our hearts and voices.

GIVE.  GIVE because we can’t hire a teacher or lawyer or social worker, or buy food, school supplies, and clothing without money.

VOLUNTEER.  VOLUNTEER because every volunteer on our team saves ICF money that can go directly to the Iraqi kids we all love.  We salute our 2017 volunteers who donated thousands of hours of loving service!

ARE YOU IN?

(Source: ICF)

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Saudi Arabia looks to Expand its Footprint in Iraq

By Ali Mamouri for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Following Iraqi Prime Minister Haider al-Abadi’s two visits to Saudi Arabia last year, Saudi Crown Prince Mohammed bin Salman is set to visit Iraq soon, according to Iraqi parliamentarian Saadoun al-Dulaimi.

Although neither Riyadh nor Baghdad have officially announced the visit, Dulaimi said in a March 12 tweet that Prince Mohammed will spend two days in Iraq, first meeting with Abadi in Baghdad to “sign agreements,” followed by a visit to Najaf to meet religious leaders.

Saudi Arabia was scheduled to reopen its consulate in the oil-rich city of Basra, which is adjacent to Iran, in March, but this was delayed for administrative reasons. Some reports say that Mohammed may open the consulates in Basra and Najaf, the Shiite religious center that is home to top Shiite clerics, during his upcoming visit to Iraq.

Meanwhile, the Saudi Embassy in Iraq is in the process of setting up the consulate office at the Sheraton Hotel in Basra. The consulate was closed in 1990 in the wake of the Gulf crisis that erupted during the regime of Saddam Hussein, and remained closed as a result of tensions in Saudi-Iraqi relations.

The Saudi kingdom opened a consulate in Erbil, the capital of the semi-autonomous Kurdistan Region of Iraq, in early 2016.

The decisions to expand Saudi Arabia’s diplomatic representation in Iraq come as part of a broader framework to strengthen the official political relations between the two governments. Saudi Arabia is seeking to establish economic and social bridges between the two countries in various fields.

Abdul Rahman al-Shahri, head of the Saudi delegation responsible for the establishment of the consulate in Basra, said that these measures are carried out to “provide services and incentives to both religious pilgrims and economic delegations between the two countries.”

Abdul Aziz al-Shammari, Saudi ambassador to Iraq, said in a statement in January, “Saudi Arabia is mostly interested in developing relations between the two countries in all areas that serve their aspirations.”

In late February, a friendly soccer game was held between Saudi Arabia and Iraq in the city of Basra, the first between the two countries in three decades. The game was attended by Saudi delegations and a large crowd of Iraqi fans.

The media office of Abadi said in a statement March 5 that the prime minister had received a phone call from Saudi King Salman bin Abdulaziz Al Saud, in which the latter pledged to build a soccer stadium in Baghdad for 100,000 spectators. It was later announced that Saudi Arabia would increase the number of seats to 135,000.

The statement said that “King Salman expressed his readiness and commitment to expand the positive relations between Iraq and Saudi Arabia at the economic, commercial, popular and cultural levels, as well as all levels of interest to both countries.”

Saudi companies, most recently the Saudi Basic Industries Corporation, one of the world’s leading petrochemicals companies, have been opening offices in Baghdad and Basra to expand economic exchange between the two countries.

Saudi Arabia is focusing its attention on Basra because it is the richest city in Iraq with the country’s largest oil fields and gateway to the Persian Gulf. It is also the most populous city after Baghdad, is adjacent to the Iranian border and home to an overwhelming majority of Shiites who share the same tribal and ethnic origins with Saudi tribes. In addition, many Saudi and Basra families are linked through marriage.

Saudi Arabia is also receiving Shiite figures who are viewed as independent of Iran. These include Sadrist movement leader Muqtada al-Sadr, who visited Saudi Arabia last year and met with King Salman and Prince Mohammed. He was warmly received amid much fanfare.

Saudi news sites, most notably Al-Arabiya, are refraining from criticizing supreme Shiite cleric Ali al-Sistani, because his views are independent from those of Tehran and has broad influence among Iraqi Shiites.

All this has been a matter of concern for Iran, which has allegedly mobilized parties to raise banners in Basra condemning the opening of the Saudi Consulate and the various economic and sporting activities.

The State of Law Coalition led by former Prime Minister Nouri al-Maliki, who is close to Iran, opposes Saudi Arabia’s opening of a consulate in Najaf.

Iraq is seemingly determined to pursue rapprochement and cooperation with Saudi Arabia, and is organizing regular visits by political, economic and media delegations. These included Abadi’s visit to Saudi Arabia last October, during which the memorandum of establishment of the Saudi-Iraqi Coordination Council was signed to develop relations between the two countries.

Interior Minister Qasim al-Araji also visited Saudi Arabia last year, and Abadi insisted on receiving Saudi delegations even if they were not high level. In February, for instance, he received the Saudi media delegation that visited Iraq at the invitation of the Iraqi Journalists Union.

In October, Saudi Arabia resumed its flights to Iraq after 27 years, and it opened in October 2017 its border crossing in southern Iraq to expand economic travel and increase tourist and religious travel between the two sides.

The first initiatives to expand relations between the two countries were directly sponsored by the United States with Secretary of State Rex Tillerson attending the meeting of the establishment of the Saudi-Iraqi Coordination Council in Riyadh in October.

The Iraqi-Saudi rapprochement appears to take place in the context of the new US policy that followed the support garnered by President Donald Trump from the US allies in the region to form a united front to counter Iran’s rise in the Middle East.

Saudi Arabia has seemingly made great progress in achieving rapprochement with Iraq and expanding its areas of influence within the last year. Such rapprochement is likely to get stronger should Abadi manage to keep his seat for another term in the elections scheduled for May.

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Obtaining Second Citizenship: Which Programmes Are Affordable?

Press Release

We live in a very uncertain world, currently fraught with geopolitical tensions, social upheaval and economic ups and downs. For these reasons – and more – people around the world, and especially in the Middle East, are increasingly looking for second citizenships to protect their assets and, more importantly, ensure a secure and prosperous future for themselves and their families.

The motivations for seeking a second citizenship are ranging from a desire to avoid difficult and often painfully long visa application processes to a desire for the peace and stability that often eludes many countries.

Jeremy Savory, founder & CEO, Savory & Partners, one of the largest companies in the Middle East that provides citizenship-by-investment programmes, commented:

“There are certain countries in the world where it’s legal to obtain citizenship, provided you meet certain criteria, one of which is the financial contribution you need to make, [through] real estate, financial products, or a one-time investment, which is non-refundable.”

“Right now, there are a lot of countries in this region where people don’t feel like they can travel freely into the Schengen zone in Europe, or to the UK or the US,” he says.

Other cases, however, are more unique. Savory & Partners has helped a Bedoon, one of the more than 100,000 officially “stateless” individuals that call the GCC home.

“This wasn’t about getting a second passport. It was actually this person’s first passport. Trying to prepare a file for someone that doesn’t have much to go on in terms of showing they exist is very tricky,” he says of the case.

For some, having a second passport is nothing more than a sound financial decision. “We’ve had royal family members come to us and say that whenever they want to buy a property, they submit their passport copy, it says “HRH” on it and the price goes up,” Mr. Savory notes. “The cost of getting the passport will save that price increase.”

Citizenship and residency programmes around the world are vastly different, each with their own requirements, benefits, timeframes and obligations.

Citizenships from St Lucia and Dominica, for example, can be obtained in a few months with investments from as little as $100,000 without any obligation to live there for any amount of time.

Permanent residency from countries such as Spain and Portugal, on the other hand, require investments of €500,000 ($623,000) and can take as long as ten years to process.

Perhaps understandably, the most in-demand citizenships are those for countries in the European Union.

“The benefits that come with it [EU citizenship] are innumerable. Having said that, it’s priced accordingly,” Savory says.

In Malta you’re looking at not less than €1m ($1,23m) worth of investments when it’s all put together of which typically 55 percent – 75 percent is non-recoverable whereas Cyprus is €2m ($2.45m) in real estate of your choice as long as the paperwork process is correct.

An individual’s chosen second citizenship is largely based on their particular needs. An ultra-high net worth individual, for example, is likely looking for more than ease of travel.

An important distinction – which consultants at Savory & Partners often find themselves explaining to potential clients – is between citizenship programmes and residency programmes.

A residency programme, for example, will only lead to citizenship if one actually resides in the country and is able to demonstrate both a tangible physical presence in the country as well as a fiscal presence. In some cases, applicants need to pass language tests. These types of programmes can often take significant amounts of time to complete.

People should be transparent in the application, and there should be nothing to hide. That’s never truer than in today’s times when the topic of sovereignty is highly sensitive.

Additionally, Savory & Partners is very straightforward with potential clients about their chances of success – even if there aren’t any – which differentiates it from the many companies operating around the world that promise what they can’t deliver.

“I think maybe sometimes clients come to our company because we can tell them ‘it’s not going to happen’, or that they need to do this and change that. There are a lot of companies that say ‘yes’ without actually knowing what the solution is or saying ‘yes’ and knowing full well that ‘no’ is the answer. Clients need to know they are getting qualified [expertise] and are aware of the situation,” Jeremy explains.

“We don’t take on all files because we are happy about the success rate we have and the high volume of files we have already. I don’t want to have a client that isn’t successful, especially if it’s something we could have avoided. We really invest our time and in-house due diligence policies to make sure the clients we take on get their citizenship. Contractually, if they don’t, we have to refund them the full amount of our fees.”

For those inclined to seek a second citizenship the timing is right. Affordability is there, although application checks are becoming more and more stringent. If you are rejected for a visa, then you are automatically ineligible for half the country programmes.

While this strong demand has led new countries – such as Montenegro, Armenia, Kazakhstan and others – to introduce or plan to introduce citizenship or residency by investment programmes, it has also brought with it problems that make finding the right citizenship by investment agent essential.

“It’s getting tougher to obtain a second passport definitely, but I think that gives me comfort. The higher levels of governance then the longer such programmes can continue to exist for those seeking second passports. I had to earn every government accreditation available, so I welcome increased industry scrutiny and regulation,” Mr. Savory concludes.

(Source: Savory & Partners)

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Iran says IS Resurgence could Hamper Iraq Oil Deal

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

The Islamic State (IS) appears to be staging a comeback in parts of Iraq, which could endanger the country’s oil deal with Iran.

Hamid Hosseini, the Iranian secretary-general of the Iran-Iraq Chamber of Commerce, warned in late February that the countries’ plan can’t be implemented fully because of security concerns. The countries signed a bilateral agreement in July 2017 to install a pipeline to transport Kirkuk’s crude oil to Iran to be refined. In the meantime, the oil is being transported by trucks, which are vulnerable to attacks.

The Kurdish military, or peshmerga forces, took control of Kirkuk in 2014 after Iraqi forces fled as IS swept through the area. But in October, Iraqi forces reclaimed the oil-rich territory from the Kurds.

IS has been blamed for numerous recent attacks in the area. On Feb. 19, IS fighters ambushed a convoy of the Baghdad government’s Shiite Popular Mobilization Units (PMU) in the Hawija district, southwest of Kirkuk, killing 27. On Feb. 27, gunmen had targeted the Turkmen Front with a rocket shell. Since Hosseini’s warning, security has deteriorated both in Kirkuk and Hawija. Local authorities have called for military enforcement.

Masrour Barzani, the head of Kurdistan security, stressed that the “IS offensive in Kirkuk province is not coming to an end anytime soon.”

These developments cast clouds of uncertainty over any investment attempts in Kirkuk city, particularly in the oil sector. Yet Rakan al Jibouri, Kirkuk’s Baghdad-appointed interim governor, doesn’t agree, though he acknowledges “there are unsecured areas.”

“This won’t obstruct the development of oil facilities and exportation projects, as the agreement signed by the [Iraqi] Ministry of Oil on Feb. 8 to construct a new refinery clearly demonstrates otherwise,” Jibouri told Al-Monitor.

Ministry spokesman Asim Jihad also told Al-Monitor the present security situation won’t affect Kirkuk oil investments. “The Iranian official’s [Hosseini’s] statement reflects his state’s point of view. The Iraqi side is committed to upholding the agreement as long as Iran is not backing down.”

Jihad said the contract provides for exporting 30,000-60,000 barrels of oil a day via trucks from Kirkuk fields to the border zone near Kermanshah, Iran.

“Work is still underway to install an oil pipeline to Iran with a capacity of over 250,000 barrels [per day],” Jihad added. “Moving forward, we are going to stop using trucks, which are more exposed, require more security measures and cost more.”

Moreover, one of the reasons behind the agreement was “Iran’s need of large amounts of Iraqi oil for refinement purposes, as well as for complementary industries in Iranian areas across [the border].” Jihad said Iraq will also benefit because it will be able to export oil abroad at lower costs.

All that said, however, Jihad noted the Oil Ministry has no authority to assess the security situation: “The ministry is only concerned with the technical end of things.”

Iskander Witwit, a member of the Iraqi parliament’s Security and Defense Committee, contradicted Hosseini’s evaluation. “We haven’t recorded any indications of oil investments in Kirkuk being too risky,” Witwit told Al-Monitor.

He said the Kurdish peshmerga wants “security anarchy so that the oil trade project between Iraq and Iran fails, because the [Kurdistan Regional Government (KRG)] wants oil to be transported through its soil.” The KRG, he said, “seeks to stop all oil and economic projects as long as Kirkuk is not under its control.”

Witwit also challenged a statement by Hosseini that security is at risk because Iran doesn’t have X-ray machines to inspect trucks coming from Iraq.

“This is an irrational reason,” Witwit said. “Truck security is both countries’ responsibility, and oil-transporting trucks are registered and take off from secured points to their designated destination. Therefore, they can’t possibly be used for any other purposes, considering the strict security measures in oil zones. Also, army and PMU troops are dispatched throughout the route used by the trucks.”

Meanwhile, it appears Iraq is moving ahead to expand its export options. Aziz Abdullah, the head of the Iraqi parliament’s Oil and Energy Committee, told Al-Monitor, “Talks between the [Iraqi] federal government and the [KRG] government on transporting oil via Ceyhan [Turkey] pipe have reached advanced stages.”

Ahmad al Askari, the head of the Energy Committee of the Kirkuk Provincial Council, believes those talks reflect Iraq’s “new direction not to solely rely on one window that could be shut on account of political disagreements.”

Speaking to Al-Monitor, Askari added, “Political and security concerns compelled Iraq to consider more than one means of exporting Kirkuk oil. Iraq started a pipeline to Turkey’s Ceyhan port that doesn’t go through the [Kurdish] region, besides the one that does go through the region. In addition, trucks have been moving to Iran since Iraqi forces took over Kirkuk.”