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By Ali Abel Sadah for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

On June 18, an Iraqi military source confirmed that the air force command will receive “Alligator” combat helicopters from Russia in the coming period.

In a statement to Al-Monitor, the source, a senior Iraqi army officer, said that "the aircraft will be of the Ka-52 [pictured] and Mi-28NE models from the French Le Bourget Air Show.”

The source, who spoke on condition of anonymity, explained, “The Iraqi air force command will get a new source of strength with the acquisition of this model of helicopter.”

The source continued, saying, “The new Russian aircraft, especially the Ka-52, are distinguished by their ability to lead a squadron of helicopters and play the role of the command post, which defines and assigns the goals of the squadron’s helicopters.”

The source added that the Ka-52 “does not have less technical and combat characteristics than the US AH-64 Apache helicopters.”

This statement came one day after a Russian news agency published information on the completion of a purchase agreement between the Iraqi Ministry of Defense and the Russian government, dating back to 2011.

Iraqi Prime Minister Nouri al-Maliki had visited Moscow to hold negotiations for an arms deal. Yet, it was immediately halted after suspicions of corruption against officials close to Maliki.

By Harith al-Qarawee for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

There are two conflicting trends at the core of the sectarian dispute that is intensifying in Iraq.

The first trend is influenced by domestic political considerations pertaining to the failure of the Shiite, Sunni and Kurdish forces to develop a governance and state administration formula that would reduce the sense of marginalization or exclusion by some parties that could lead to the division of the country.

The second trend is influenced by regional dynamics, and is represented by the more sectarian Sunni and Shiite groups. These groups see the current conflict in Iraq as an integral part of the wider conflict taking place in the Levant region divided between a Sunni camp led or supported by Sunni regional powers such as Turkey, Qatar, and Saudi Arabia, and a Shiite camp led by Iran.

As a result, the greater the disagreement and difficulty to reach an internal Iraqi solution, the greater the power of radical groups, and thus the impact of their narrative, which tends to portray the situation as a Sunni-Shiite cosmic struggle that does not recognize existing borders or internal environments.

Al-Qaeda in Iraq (AQI) and Jabhat al-Nusra in Syria are the two main manifestations of the presence of such cross-border ideologies and organizational relations among groups that espouse them. The war being fought by the two groups is not one aimed at "spreading democracy," achieving "social justice" or reaching a political system based on broad participation. This war aims to achieve victory for the sake of the Salafist jihadist version of Islam against its enemies, which in this case are the Shiite-led government in Iraq and the Syrian regime dominated by Alawites (dubbed by Jabhat al-Nusra as "Nusayri" as a kind of insult and disrespect).

From Iran’s PressTV. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

"The Turkish government probably has some interests among the Sunnis and the surrounding countries like Saudi Arabia, Kuwait, also Turkey, don't like to have a government [in Iraq] which is generally a Shia government."

Press TV has conducted an interview with Dr. Jafar Hadi Hassan, a Middle East expert from London, about ongoing demonstrations in Iraq.

(Source: PressTV)

The Jakarta Post reports that Indonesia is likely to partner with Iraq to build oil refineries in Indonesia.

The director general for oil and gas at Indonesia's Energy and Mineral Resources Ministry, Edy Hermantoro, is quoted as saying:

"Both deputy energy ministers from the two countries have signed a memorandum of understanding [MoU] for cooperation in upstream and downstream sectors ...

"The door is open for both national oil and gas companies [Pertamina and the Iraq National Oil Company (INOC)] to form a business-to-business partnership."

In March this year, Deputy Energy and Mineral Resources Minister Susilo Siswoutomo joined a delegation led by the Coordinating Economic Minister Hatta Rajasa to visit Baghdad, the Post said.

Edy told the Post that both Susilo and Iraqi deputy oil minister Fayadh Hassan Nima had signed the energy cooperation’s agreements during the March visit.

(Source: Saudi Gazette, Jakarta Post)

By Abdel Hamid Zebari for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Arab states no longer look at the Kurdistan Region of Iraq with suspicion and apprehension, especially after the regional capital, Erbil, was selected as the Arab Capital of Tourism for 2014. Furthermore, economic and trade relations between these states and the Kurdistan region have evolved.

It appears that developments in economic and trade relations between Arab states and the Kurdistan region of northern Iraq have preceded the development of political ties. Statistics released by Kurdish institutions concerned with investment in the area show that Arab companies — particularly from the United Arab Emirates (UAE) and Lebanon — have invested billions of dollars in oil and construction in the region. This has led many Arab states to open consulates and representative commercial offices in Erbil.

Mufti Kamran Raqeeb, the general manager in the Kurdistan Regional Government's (KRG) investment agency, said:

"The KRG's investment law does not differentiate between national and foreign investors. They both have the same rights. This has led to the emergence of Arab and foreign investment in the region."

According to Raqeeb, the region has immense natural resources, including vast agricultural areas and numerous sources of water. This is in addition to other elements that might attract tourism investment. Raqeeb stressed:

"The region has succeeded in opening up politically and economically to the brotherly neighboring states, the Gulf states, Egypt and Lebanon. This includes many prospects for economic cooperation, given that there are many Arab businessmen who are investing their money in the region."

Raqeeb said that the Arab investments have accounted for 10% of all investments in the region, which amounts to $26 billion dollars. The regional government has worked to adopt an investment policy that focuses on three strategic sectors — industry, agriculture and trade — as priorities for the coming years. Said Raqeeb, "We are hoping to expand investment in the region, particularly Arab and foreign investment."

By John Lee.

Commenting in Oilprice.com on the newly-announced, $18-billion pipeline from Iraq to Jordan, John C.K. Daly says that while it is easy to understand the appeal of such a project in energy-starved Jordan, the geopolitical issues remain significant and seemingly unresolved.

The 1,043 mile-long dual pipeline would be capable of transporting one million barrels of oil and 258 million cubic feet of gas per day from Iraq to Jordan's Aqaba port (pictured) on the Red Sea. Iraqi officials say the pipeline, which includes extending a sub-line to Jordan’s sole refinery in Zarqa, will be operational by the end of 2017.

Daly says that this would be the world’s most expensive pipeline project, but poses the question: Why does Baghdad simply not upgrade its oil infrastructure facilities leading to Basra and its offshore oil export platforms there?

Rather than taking the shortest route between Basra and Aqaba, which would cross Saudi Arabia, the pipelines are planned to snake through the "central heart of the Sunni insurgency and western Iraq, where al Qaeda remnants supporting the Syrian rebels are active, resulting in a huge horseshoe shape, before finally descending into Aqaba".

(Source: Oilprice.com)

By John Lee.

Indonesia has signed a deal with Iraq's State Oil Marketing Organization (SOMO) to buy Basra light crude in the second half of 2013.

According to reports from Reuters and Jakarta Globe, Iraq is winning more customers in Asia as it is selling its crude cheaper than comparable grades, undercutting rival Saudi Arabia to grab a bigger slice of the Asian market.

Petral, the trading unit of state-run energy firm Pertamina, will lift 1 million barrels of the medium, high sulphur crude each month between June and December.

(Sources: Reuters, Jakarta Globe)

By John Lee.

Iraq plans to spend $130 billion on the country’s upstream sector over the next five years, according to a report from Bloomberg.

Speaking at a conference in Basra, Oil Minister Abdel-Kareem al-Luaibi [Elaibi] (pictured) said the expenditure will be necessary to help raise production capacity to 9 million barrels a day (bpd).

$18 billion will be allocated to raise natural gas output, with another $25 billion to expand refinery capacity; Iraq forecasts $600 billion in revenue from the oil expansion.

Production increased 24 percent last year, with Iraq overtaking Iran to become OPEC's biggest producer after Saudi Arabia.

(Source: Bloomberg)

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The controversial Iraqi Sunni politician Ahmed al-Alwani, who is president of the Economic Commission in the Iraqi parliament, ridiculed the notion that if Anbar province gains autonomy, its economy will be weak because the province lacks essential economic resources. He said that large Iraqi provinces can attract a lot of investment.

Alwani proudly claims to be “the godfather of the Anbar [autonomy] project.” He said that “whoever says that Anbar wishes to become an [autonomous] province in order for it to throw itself into the arms of neighboring Sunni Arab states is getting his information from [the wrong sources].”

Alwani is considered to be at the forefront of the Anbar protest movement that started more than two months ago and spread throughout Sunni-dominated areas in Iraq to oppose Prime Minister Nouri al-Maliki’s policies. The protests turned into an open-ended sit-in on the international highway that passes through Anbar and connects Iraq to both Syria and Jordan.

Alwani gained fame when he was reported to have accused Iraqi Shiites of being subservient to Iran and working to serve its interests in Iraq, but he has denied saying that.

Anbar is majority Sunni and the largest of Iraq’s provinces, covering a third of the country. It borders Syria, Jordan and Saudi Arabia and has one of the largest untapped gas fields in Iraq, the Okaz field.

Alwani said that “establishing a province does not mean secession. According to the constitution, [Anbar] should receive a portion of the state budget to manage its affairs, as happens with the Kurdistan region.” He added that “the Iraqi constitution provides for the formation of [autonomous] regions, but it also provides for the existence of federal ministries, such as finance, defense and foreign affairs. This is to ensure the success of the [autonomous] regions project.”

SRSG Martin Kobler delivered the following addresss to the Twenty-seventh session of the Governing Council/Global Ministerial Environment Forum, in Nairobi, Kenya:

I feel honoured to be here with you today at this important event.

We came here to Nairobi from many different countries to discuss how we can make a difference.

We care about the environment.

But let me say a few words about who we are.

UNAMI is a political mission.

It is mandated to advise and assist the Government and people of Iraq to advance on political dialogue and national reconciliation. UNAMI has a regional mandate to facilitate dialogue between Iraq and its neighbours. We promote the protection of human rights and judicial and legal reform.

I am also responsible for coordinating the work of the 17 UN agencies present in Iraq.

What is most important for me is that we work for the people of Iraq. We are in Iraq, to make a difference.

But how can we think about progress, prosperity and sustainable development in Iraq, if we ignore the environment?

Environmental protection is highly political- and it has to be on top of our agendas.

If we fail to recognize this, we will fail in our mission, we will fail the people of Iraq- and the entire region.

We all know that Iraq is still struggling with a difficult legacy.

Three terrible wars, decades of sanctions and years of brutal dictatorship have destroyed much of Iraq’s social fabric and economy. Iraq was left environmentally degraded.

However, Iraq is also an immensely rich country.