Iraq cancels $4.2 bn Russia arms deal over graft concerns

Updated 10 November 2012
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Iraq cancels $4.2 bn Russia arms deal over graft concerns

BAGHDAD: Iraq canceled a $4.2 billion (3.3 billion euro) weapons package with Russia on Saturday citing graft concerns, torpedoing a deal that would have made Moscow Iraq’s biggest arms supplier after the US.
Cancellation of the deal, which had been announced when Prime Minister Nuri Al-Maliki led a delegation to Russia last month, is a setback for Moscow’s attempts to firm up its slipping foothold in the Middle East and also throws into doubt efforts by Iraq to equip its armed forces.
“The deal was canceled,” Maliki’s spokesman Ali Mussawi said.
“When Maliki returned from his trip to Russia, he had some suspicions of corruption, so he decided to review the whole deal... There is an investigation going on, on this.”
Mussawi declined to say who specifically was being investigated, or if Iraq would begin new negotiations with Moscow.
He also did not say exactly when the final decision was made to stop the deal.
The Russian embassy in Baghdad was not available for comment.
Had the deal been finalized and implemented, it would have made Russia Baghdad’s second-biggest arms supplier, after the United States.
Russian media said the deliveries covered 30 Mi-28 attack helicopters and 42 Pantsir-S1 surface-to-air missile systems.
Discussions were also said to be underway for Iraq’s eventual acquisition of a large batch of MiG-29 fighters and helicopters, along with heavy weaponry.
The statement announcing the deals said they were secretly discussed as early as April and revisited again in July and August during visits to Russia by Iraqi delegations that included acting Defense Minister Saadun Al-Dulaimi.
The war ripping apart Syria threatens to unseat Moscow’s sole unwavering Arab ally, Bashar Assad, and has made it all the more crucial for Russia to forge other regional alliances.
Russia also lost an estimated $4 billion in outstanding contracts in the NATO-led Libya offensive that toppled Muammar Qaddafi, a one-time friend of the Kremlin, and Moscow has been seeking to find a way to compensate for the loss ever since.
Iraq, meanwhile, has sought to re-equip an army that, while regarded as a capable counter-insurgency force, lacks the ability to defend the country’s borders, airspace or maritime territory, according to officials.
The deal with Russia was seen by diplomats in Baghdad as a way for Iraq to avoid becoming too dependent on American military equipment, and to hold more bargaining power in weapons negotiations with Washington, which remains Baghdad’s biggest arms supplier by far.
It was also a short-term measure to boost Iraq’s air defense capabilities in the years before a cadre of F-16 fighter jets are delivered by the United States.
“It is not a policy to go to Russia,” Deputy National Security Adviser Safa Hussein told AFP in an interview last month. “The backbone of our armaments is from the United States, but whenever it is required that we go with another country, we will go.”
“The American programs were a little slow,” he added. “We can’t live with this gap in our defense capabilities for a long time, and the Americans understand this.”


Palestinians protest in Ramallah over Gaza sanctions

Updated 14 min 43 sec ago
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Palestinians protest in Ramallah over Gaza sanctions

  • Hundreds of Palestinians demonstrated Saturday in the occupied West Bank to demand the Palestinian Authority lift punitive measures against the Hamas-run Gaza Strip.
  • Demonstrators in Ramallah chanted “scrap the sanctions!” during protests against the Palestinian Authority.

RAMALLAH: Hundreds of Palestinians demonstrated Saturday in the occupied West Bank to demand the Palestinian Authority lift punitive measures against the Hamas-run Gaza Strip, an AFP reporter said.
Demonstrators in Ramallah chanted “scrap the sanctions!” during protests against the Palestinian Authority, organized by civil society groups.
The Ramallah-based administration has introduced a series of measures against Gaza over the past year.
Tens of thousands of its civil servants in the coastal enclave, separated from the West Bank by a strip of Israeli territory, have gone without full pay for months.
Critics say such moves by the PA, dominated by the Fatah movement of president Mahmud Abbas, further exacerbate the split between the two parts of the Palestinian territories.
The rally passed peacefully, unlike a protest on June 13 during which Palestinian security forces fired stun grenades and tear gas to disperse demonstrators.
On Saturday, policemen were seen handing out Palestinian flags to the protesters.
Hamas has run Gaza since seizing it from the Palestinian Authority amid deadly clashes in 2007.
Since that year, Israel has maintained a crippling blockade on Gaza which it argues is necessary to isolate Hamas.
Rights groups say the siege amounts to collective punishment.
Israel and Hamas have fought three wars in the territory since 2008.
Neighbouring Egypt has also largely sealed its land border with Gaza in recent years, citing security threats.
The United Nations has said Gaza, which is home to two million people, will be uninhabitable by 2020.
Hamas and Fatah signed a reconciliation agreement last October, but it has since collapsed.