At a news conference Vice President Ramadan said that Iraq sells oil at prices determined by the market and the nature of the bilateral relationship with a country. The United Nations Sanctions Committee said this week Iraq could not price its oil below fair market value. Iraq has to sell its oil at UN approved prices. India will also assist Iraq in an oil exploration project. Vice President Ramadan has asked Indian industry to help rebuild the country's economy that has been shattered by UN sanctions.
Indian companies are likely to collaborate in several projects to rebuild infrastructure in Iraq.
Iraq, which has been isolated from the international community since its 1990 invasion of Kuwait is eager to revive political, trade and economic relations with India. Mr. Ramadan said his visit has helped the two countries prepare a framework for a long-term, strategic relationship. He has met senior Indian officials including Prime Minister Atal Behari Vajpayee. India in turn sees Iraq as playing a crucial role in fulfilling its oil requirement, and has extended a warm welcome to Mr. Ramadan. India imports most of its oil and has been badly hit by the recent rise in the international prices of crude oil.