WASHINGTON, Aug 17: Russia and Iraq plan to sign a new five-year economic cooperation agreement worth $40 billion, the Washington Post reported on Saturday.

The agreement covers cooperation in various industries, including oil, electrical energy, chemical products, irrigation, railroad construction and transport, according to Russian and Iraqi officials quoted by the Post.

Russia was, is and will be our main partner, said Abbas Khalaf, Iraq’s ambassador in Moscow.

What we need from Moscow is moral, political and diplomatic support because Iraq has shown the whole world that it can defend itself. America’s aggressive statements against Iraq aroused negative reaction in Russia, he said.

The trade pact reinforces Russia’s close ties to Baghdad even as the United States encourages its allies to join it in isolating Iraq. Washington is weighing a military option in its efforts to remove Iraqi President Saddam Hussein from power.

Soviet or Russian specialists built much of the infrastructure in Iraq, and so Baghdad wants Russian expertise to help repair or upgrade it.

Moscow has long been one of Iraq’s chief benefactors in the international arena and a major trading partner and military supplier.

Russia has continued to strengthen ties with Iraq, Iran and North Korea the three countries branded by US President George W. Bush as forming an axis of evil.—AFP