Several key changes have taken place over the last few weeks. Russian President Vladmir Putin has extended more support to Iraq, which should help in the quest against ISIS. The Ministry of Oil and Iraqi oil companies have also forged contracts with two Chinese firms and a global workforce logistics company. While the country is still facing some challenges from declining oil prices and finding new solutions to the economic challenges companies outside the energy sector face, economic activity is expected to improve in the coming year.Iraq News: Russia May Join Allies in New Offensive Against ISIS
Several changes have transpired in recent weeks, which could prove beneficial for the Iraqi people. These changes include an expansion of the national agricultural industry and stronger support from allies in the quest to overturn ISIS. However, the country also faces some other challenges, such as a worsening water shortage. All of these factors could affect the value of the Dinar in the months to come.Russia May Support Efforts Against ISIS
The Islamic State remains the single biggest threat to the Iraqi government. The Iraqi government has been strengthening ties with its allies, which is helping them gain momentum in the campaign against the militants. The United States has increased military aid and begun a series of 23 air strikes in Iraq and Syria. Russian President Vladmir Putin has expressed strong condolences for Iraq after a recent attack and suggested that Russia may provide greater military support to Iraq.
"Accept my most sincere condolences on the brutal terror act carried out near the capital of Iraq. Dozens of civilians became victims of the Islamic State terrorists that slipped in Khan Bani Saad. We reaffirm our continued support and solidarity with the Iraqi people, who have been leading a long and hard battle against extremist forces," Putin stated on the Krelmin website.Expanding Agricultural Industry
The agricultural industry is the largest source of employment. However, the industry is still undergoing significant changes to boost production to feed the Iraqi people. Iraq still imports most of its grain from other countries, but farmers have invested in new technology to increase output.
Government officials are brainstorming solutions to further increase grain production. They recently told Bloomberg that they expect Iraq to become a net exporter of wheat by 2017. If they meet their target, then social stability will improve and the national trade surplus will widen.Water Shortage
Iraq is facing a growing water shortage, which is driven largely by a growing number of people that have been displaced from fighting in the war against ISIS. The United Nations had provided several programs to supply and sanitize water for Iraq, but those programs have been tapered back due to funding shortfalls. Iraq is forced to pursue different strategies to address the problem.Oil and Energy - Air Energi to Help Strengthen Iraq Oil Firms
Recent reports from the Ministry of Oil confirm that the oil industry has increased production to record levels. These reports have increased interest among global oil producers and paving the way for new deals.Deals and Contracts
Several new firms have expressed strong interest in operating in Iraq. They have recently begun negotiating new contracts with the Iraqi government to help harvest untapped oil reserves.
Antonil is one of the most recent foreign oil companies to secure a contract with the Iraqi government. The Iraqi government confirmed the contract with the Chinese based company on July 21, stating that it would be extracting $140 million worth of oil. Discussions over the terms of the contract began in January, but some details needed to be finalized before the final contract terms could be established. Antonil is still conducting an internal approvals process and stated that extraction would begin as soon as it was completed.
Antonil isn't the only Chinese oil producer to reach an agreement this past week. Honghua also struck an agreement to assist with extracting oil for another company. Honghua officials confirmed that the terms of the contract stipulate that the services will be provided for $26 million. Zhang Mi, Chairman of Honghua Group Ltd. expressed strong optimism for the new contract.
"We will continue to expand the business layout from equipment manufacturing to engineering services by taking the drilling business as the core, and to capture the enormous opportunity rising from the recovery of the global oil market in the future."
The contracts aren't limited to foreign oil companies. Contractors in other industries have pledged support to help boost the Iraqi oil industry. Air Energi is a global workforce solutions provider, which has extended assistance to help the BP Iraq with its staffing needs. Since the oil industry is growing steadily, it needs a strong workforce to meet demands. Air Energi has an excellent track record for helping other companies meet their needs.
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