Russia barred from Iraq contracts


NEW YORK - Russia has been excluded from competing for $18.6bn in prime contracts for the reconstruction of Iraq. The same happened to Germany and France.

This information is contained in a directive issued by Paul Wolfowitz, the US Deputy Defense Secretary, the News York Times reports. This will allow the members of the coalition to unite their efforts in the restoration of Iraq, it is said in the document.

The US administration had warned before the war that countries that did not join in the American-led coalition would not have a voice in decisions about the rebuilding of Iraq. But it had not previously been made clear that companies in those countries would be excluded from competing for a share in the money for Iraq's reconstruction that the United States approved last month. Those funds will pay for a total of 26 lucrative contracts for rebuilding Iraq's electricity, oil and water sectors and equipping its army.

Thus, only companies from the United States, Iraq and 61 countries designated "coalition partners" will be allowed to bid on the contracts. However, the guidelines do not affect subcontractors, so companies that win contracts would be able to hire firms from any countries to work in Iraq.

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