A high level Russian Federation mission to six Persian Gulf countries failed to obtain significant financial assistance but was more successful in improving Moscow's image in the region.
Moscow newspaper Izvestia reported that Andrei Kozyrev, Russia's minister of foreign affairs, visited Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates, and Oman during a 7 day tour. Only Oman provided economic aid, agreeing to invest $500 million to help develop Russia's oil and gas industry and another $100 million to modernize oil fields.
"The other five countries offered no new loans," Izvestia said. However, Kozyrev declared, "This wasn't a tragedy, since we made a very promising breakthrough regarding future cooperation in the Persian Gulf area.
"I didn't go in search of credits. We had to show the gulf nations that Russia remains a great power ready to make mutually beneficial deals but not looking for handouts."
Izvestia said Kozyrev avoided discussion of credits with Arab officials as much as possible because so many other nations, including the U.S. and western European countries, have been seeking loans from the region.
"The emirs are becoming irritated, and the oil sheiks didn't manifest generosity of their own volition," Izvestia reported.
"Kuwait's minister of foreign affairs told Kozyrev his own country needed large credits following the war with Iran. Discussions in Saudi Arabia and the U.A.E. were limited to repayment terms for credits already promised to the former U.S.S.R.
"The visit to Qatar was the least productive. Kozyrev spent only several hours there, and the emir felt offended."
RESULTS IN BAHRAIN, U.A.E
.Kozyrev's most fruitful discussions were in Bahrain and the U.A.E., Izvestia said. Bahrain expressed interest in establishing a jointly owned bank with Russia and suggested prompt negotiations to implement the proposal.
The U.A.E. reportedly showed interest in close military as well as economic cooperation with Russia in the future, Izvestia said.
"U.A.E. leaders didn't conceal their belief that Iran's policies are posing serious dangers. Relations have sharply deteriorated because of a dispute over several Persian Gulf islands.
"In Abu Dhabi there were fears Iran might use the territorial problem as a pretext to wage war against the U.A.E. similar to the Kuwait-Iraq conflict. Kozyrev made clear that Russia is prepared to guarantee the U.A.E.'s sovereignty and territorial integrity.
"Preparation of a bilateral security treaty will begin shortly."
Aboard his return flight to Moscow, Kozyrev said Russia hopes to make a large armament sale to Persian Gulf nations.
"In the past," he told reporters, "our country placed all its bets on several Moslem countries, especially Iraq, Iran, and Libya. This was a very poor choice.
"Now we prefer to do business with stable, moderate regimes. It is precisely with them that we are trying to develop military cooperation."
The only stumbling block regarding Russian relations with Persian Gulf nations is Russia's cooperation with Iran, Izvestia reported. It said Kozyrev tried to dispel the gulf nations' fears of Iranian aggression by assuring them Russia would not sell Tehran its newest weapons.
"Kozyrev's visit showed that Islamic extremism evokes the same concern in Moscow as it does in the moderate states of the Arabian Peninsula," Izvestia said. "He told leaders in Saudi Arabia, Kuwait, and the U.A,E. that Islam must not be used for political purposes.
"However, his words didn't reassure gulf states' officials. The problem of Russian-Iranian ties cropped up again and again, especially in such countries as Bahrain, where the Shiite population, mainly from Iran, is in the majority."
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
