Iraq, UK Agree on Trade Package Worth up to $15 Billion, Defense Deal

British Prime Minister Keir Starmer (R) and Iraq's Prime Minister Mohammed Shia al-Sudani (L) shake hands during their meeting in Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minister Keir Starmer (R) and Iraq's Prime Minister Mohammed Shia al-Sudani (L) shake hands during their meeting in Downing Street in London, Britain, 14 January 2025. (EPA)
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Iraq, UK Agree on Trade Package Worth up to $15 Billion, Defense Deal

British Prime Minister Keir Starmer (R) and Iraq's Prime Minister Mohammed Shia al-Sudani (L) shake hands during their meeting in Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minister Keir Starmer (R) and Iraq's Prime Minister Mohammed Shia al-Sudani (L) shake hands during their meeting in Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and Britain have agreed on a trade package worth up to 12.3 billion pounds ($14.98 billion) and a bilateral defense deal, the Iraqi and British prime ministers said in a joint statement on Tuesday.

The deal, envisaging more than 10 times the total of bilateral trade in 2024, was announced after a meeting between Iraqi Prime Minister Mohammed Shia al-Sudani and British counterpart Keir Starmer at the latter's Downing Street offices.

It includes a 1.2-billion-pound project in which British-made power transmission systems will be used for a grid interconnection project between Iraq and Saudi Arabia, as well as a 500-million-pound plan to upgrade the Al-Qayyarah air base in northern Iraq.

A water infrastructure project by a UK-led consortium that will help provide clean water in arid southern and western Iraq is also part of the deal, the statement said. The project would be worth up to 5.3 billion pounds in UK exports.

Sudani and Starmer also signed a defense deal that "establishes the basis for a new era in security cooperation".

Sudani said earlier that the UK-Iraqi security deal would develop bilateral military ties after last year's announcement that the US-led coalition set up to fight ISIS would end its work in Iraq in 2026.

The Iraqi premier began an official visit to the United Kingdom on Monday amid historic geopolitical shifts in the Middle East.

Iraq is trying to avoid becoming a conflict zone once again amid a period of regional upheaval that has seen Iran's allies Hamas degraded in Gaza and Hezbollah battered in Lebanon during wars with Israel, and Bashar al-Assad toppled in Syria.



Lavrov: Moscow Maintains Communication with Damascus, Will Not Withdraw from the Region

Syrian forces stop a car at a checkpoint after taking control of the port of Tartus earlier this month. (AFP)
Syrian forces stop a car at a checkpoint after taking control of the port of Tartus earlier this month. (AFP)
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Lavrov: Moscow Maintains Communication with Damascus, Will Not Withdraw from the Region

Syrian forces stop a car at a checkpoint after taking control of the port of Tartus earlier this month. (AFP)
Syrian forces stop a car at a checkpoint after taking control of the port of Tartus earlier this month. (AFP)

Russian Foreign Minister Sergei Lavrov reaffirmed Russia’s commitment to the Middle East, stating that Moscow “has not and will not withdraw from the region.” He emphasized ongoing communication with Syria’s new leadership and expressed readiness to support the political process in the country.

Speaking at a press conference in Moscow on Tuesday, Lavrov attributed Syria’s deteriorating situation to the previous regime, blaming its unwillingness to implement reforms and share power with the opposition.

“The refusal of the former Syrian regime to make any changes or share power with the opposition was one of the primary reasons for its collapse,” he said.

Lavrov noted that over the past decade, since President Bashar al-Assad requested Russian intervention in the Syrian war and the launch of the Astana peace process, Damascus had delayed advancing the political path.

“Despite support from Arab nations, Syrian authorities showed reluctance to move forward politically and sought to maintain the status quo,” he explained.

He highlighted Russia’s repeated calls for the Syrian government to engage with the Constitutional Committee, established during the 2018 Syrian National Dialogue Congress in Sochi, and to actively work on drafting a new constitution.

Lavrov also pointed to economic challenges exacerbated by sanctions, which have stifled Syria’s economy, and US control over oil-rich eastern regions. Resources were exploited to fuel separatist ambitions in northeastern Syria, he remarked.

Moreover, the FM revealed details of Moscow’s earlier discussions with Kurdish groups, reiterating his country’s position that Kurdish rights should be guaranteed within the constitutional frameworks of Syria, Iraq, Iran and Türkiye.

He argued that the previous Syrian regime’s reluctance to engage in political dialogue resulted in stalled reforms proposed by the United Nations, Moscow and Cairo platforms, and Istanbul-based opposition groups. This inaction, he said, created a vacuum that ultimately led to the collapse.

Furthermore, he dismissed claims that his country’s withdrawal from Syria would signal its departure from the Middle East.

“Russia has not and will not leave the region,” he declared. Without directly addressing the status of Russian military bases in Syria, Lavrov emphasized: “Our embassy never left Damascus, and we maintain ongoing communication with the authorities.”

He also stressed Russia’s willingness to facilitate inclusive dialogue involving all national, political and sectarian factions, as well as relevant international stakeholders. Lavrov underscored that recent discussions with Türkiye, Gulf nations, and other parties demonstrated widespread agreement that Russia and Iran must be involved in the Syrian peace process if sustainable results are to be achieved.

For his part, Mikhail Bogdanov, Russia’s Deputy Foreign Minister and Special Presidential Envoy to the Middle East and Africa, reaffirmed Russia’s focus on developments in Syria, describing relations with Damascus as a “priority of Russian foreign policy.”

Reports on Tuesday suggested that Bogdanov might soon lead a Russian delegation to Damascus. However, a Russian diplomatic source informed Asharq Al-Awsat that no date for the visit has been confirmed. The visit, which was reportedly postponed, would mark the first by a senior Russian official to Damascus since the fall of Assad’s regime in December.

Meanwhile, media reports indicated that Moscow is facing logistical challenges in withdrawing military equipment from Syria, due to restrictions imposed by Syrian authorities on the movement of Russian ships in territorial waters.

According to the English-language edition of RT, the Russian ship Sparta 2, designated to transport military equipment and weapons, was denied entry to the Port of Tartus, where Russia maintains its only overseas naval base.