ERBIL, Kurdistan Region - While Russia's invasion of neighboring Ukraine continues, a top Russian official told Rudaw on Monday that the country has invested up to $14 billion in Iraq and the Kurdistan Region, mainly focusing on the energy sector.
Asked about the situation in Ukraine, Russian Ambassador to Iraq Elbrus Kutrashev told Rudaw's Rebaz Ali that it was a "big drama," adding that "Ukraine is a friendly brother state for Russians." Kutrashev also said that ethnic Ukrainians and Russians are one people, with the same origins and an almost identical language.
His country’s investments are "mostly" dedicated to Russia's projects in southern Iraq, and partly in the Kurdistan Region, the ambassador said. He added that "at least $2 billion" of the total $14 billion investment has been allocated to the Kurdistan Region, mostly centered on the oil and gas sector.
Lukoil, Gazprom Neft, and Rosneft are some of the major Russian oil and gas companies operating in Iraq and the Kurdistan Region.
The Kurdistan Regional Government (KRG) signed contracts with giant Russian oil and gas firms in 2014 and 2017 to work in several oilfields across the Region, implementing geological exploration programs and exporting crude oil.
Moscow and the Kurdistan Region enjoy good relations, especially in the energy sector. In December, the Russian presidential envoy to the Middle East met with Kurdish officials in Erbil where both sides advocated for stronger ties.
Kurtashev noted that Iraq's security situation was a core deterrent to foreign investment, mentioning that potential foreign investors would have to allocate 20 to 25 percent of their budgets on providing security, should they choose to invest in the country.
Proportional to the security situation in Iraq, Kutrashev stated that the number of employees of Russian origin in Iraq is "quite big, and they are a good example of our serious will to work in this country and develop bilateral cooperation," adding that thousands of Russians used to live in Iraq during the Soviet Union era.
Enthusiasm was expressed by the ambassador as he discussed potential cooperation with all forms of Iraqi society, including the government, despite skimming over the resurfacing struggles with forming a government through every election cycle.
