World Economic News in Brief: Iraq

The World & Vietnam Newspaper reviews some of the latest world economic news.

Iraq-Russia

The Iraqi government has invited Russia's Gazprom Neft to participate in developing the Nasiriyah oil field in the south of the country.

According to open sources, the reserves of the Nasiriyah field are estimated at 586 million tons. Gazprom Neft operates the field in eastern Iraq with reserves of more than 409 million tons and is the project operator with a 30% stake.

Through its subsidiary Gazprom Neft Middle East, the company is also involved in oil and gas projects in Iraqi Kurdistan including the Shakal (80% stake) and Garmian (40%) fields.

Russia-Finland

Russian Ambassador to Helsinki Pavel Kuznetsov said in an interview with RIA Novosti on February 8 that trade turnover between Russia and Finland has decreased nearly sixfold within two years.

Mr. Kuznetsov noted that until recently, Russia was one of Finland's top three trading partners, but has now dropped to 20th place. According to him, severing relations between the two countries would harm the Finnish economy.

In addition, according to Ambassador Kuznetsov, Russia considers Finland's border closure a step towards breaking relations.

IMF-Maldives

On February 7, the International Monetary Fund (IMF) warned the Maldives of a high risk of a “debt crisis” amid its growing proximity to China. In addition to issuing the above warning, the IMF also called on the Maldives to “urgently adjust its policies.”

“Without significant policy changes, the Maldives’ overall fiscal deficit and public debt are expected to continue to rise,” the fund said in a statement.

According to the World Bank, the Maldives borrowed heavily from China for construction projects during the tenure of former President Abdulla Yameen. As a result, the Maldives owed China about 42% of its total foreign debt of more than $3 billion in 2021.

Switzerland

*Swiss train manufacturer Stadler has secured a major contract in Saudi Arabia - an order from Saudi Arabia Railways (SAR) worth around 600 million francs ($689 million).

The supply contract covers 10 units with an option for 10 more units, the announcement said on February 7. The related maintenance contract includes full maintenance as well as the supply of spare parts for a period of 10 years.

Stadler has thus succeeded in the international tender. This is Stadler's first order in the Gulf. The trains to be delivered will be approximately 175 metres long and are said to be adapted to the climate conditions in the desert.

UK-Ukraine

On February 8, the UK announced that it would extend duty-free trade with most Ukrainian goods until 2029, continuing to facilitate trade with Ukraine.

The extension of duty-free trade will apply to all Ukrainian goods, except for duty-free treatment for eggs and poultry, which will be extended for only two years, the UK Department for Business and Trade said in a statement.

In addition, British businesses will also benefit from the removal of tariffs on exports to Ukraine.

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