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US bars French, Russian cos from Iraq contracts
Wednesday, December 10 2003 11:24 Hrs (IST)

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New York: The Pentagon has barred French, German and Russian companies from competing for the $ 18.6 billion contracts for the reconstruction of Iraq, saying it was acting to protect "the essential security interests of the United States", a media report said today (Dec 10, 2003).

The directive, issued Friday (Dec 5) by Paul D Wolfowitz, the Deputy Defence Secretary, represents the most substantive retaliation to date by the Bush administration against American allies who opposed its decision to go to war in Iraq, the 'New York Times' said.

The administration, the paper recalls, had warned before the war that countries that did not join in an American-led coalition would not have a voice in decisions about the rebuilding of Iraq.

It had, however, not previously made clear that companies in those countries would be excluded from competing for a share in the money for Iraq's reconstruction that the US approved last month.

Those funds will pay for a total of 26 lucrative contracts for rebuilding Iraq's electricity, oil and water sectors and equipping its Army.

Under the guidelines, the 'Times' said only companies from the United States, Iraq and 61 countries designated "coalition partners" will be allowed to bid on the contracts.

France, Germany and Russia are not on the list.

PTI

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