Zee Beam News

Oct. 31, 2008 - Kommersant - Libyan leader Col. Muammar Gaddafi arrives today in Moscow for an official visit. He faces difficult a talk with Russian President Dmitry Medvedev. Libya did not fulfill the agreement reached in April with Prime Minster Vladimir Putin, even though Russia wrote off $4.5 billion in Libyan debt. But Kommersant has learned that Libya has a pleasant surprise for Russia as well. It is willing to host a Russian naval base. The Libyan leader’s visit is fraught with unsettled issues, not the least of which is where to erect the Bedouin tent that he travels with and spends most of his time in. Gaddafi will spend three days in Russia. The last time he was here was 23 years ago. Like his previous visit, this trip will focus to a great extent on ordering Russian arms. Libya ran up a $5.4-billion debt for arms at one time. That debt was a stumbling block in bilateral relations after the collapse of the Soviet Union. A breakthrough in relations came with Putin’s visit to Tripoli earlier this year, when he cancelled much of the Libyan debt in exchange for promises to conclude contracts with Russian heavy industry and construction companies and to buy a shipment of arms. They value of the contracts was to reach $4.5 billion, the same amount that was written off Libya’s debt. Libya has taken no action to fulfill its side of the agreement, however. Russian Railways, which has a contract worth $3.2 billion for the construction of a rail line from Sirt to Benghazi, has received only a small advance payment from Libya. Libya has also disappointed Russian hopes for the creation of a “gas OPEC.” Libya and Qatar were Russia’s original choice for partners in the undertaking, but Tripoli refused to cooperate. Qatar was unwilling to form an organization with only two members. Iran stepped in to save the plan at the last moment, even though it does not export natural gas. Gaddafi has suggested that allowing Libyan gas companies to operate in Russia would improve bilateral relations. That idea has not created enthusiasm in Russia.