"These conditions imply the participation of Russian companies in the economic reconstruction of Iraq, the return of Russian companies to large projects in Iraq, primarily in oil and gas fields, and promises to discuss prospects for trade and economic cooperation," the unnamed official told Interfax.

Moscow believes the issue of Iraq's debts should be discussed by all the country's creditors, "but bilateral consultations with the new administration of Iraq are not excluded at the initial phase," the news agency quoted the official as saying.

US Deputy Defense Secretary Paul Wolfowitz on Thursday suggested Russia should now forget about ever winning back its debts from Iraq.

Iraq's debt to Russia stands at around eight billion dollars (7.4 billion euros) and has grown to some 16 billion dollars (15 billion euros), if interest payments are included.

The US Congress on April 4 passed a supplementary budget amendment excluding Russia, France, Germany and Syria from taking part in US-funded reconstruction bids in Iraq.

Russian oil majors also fear losing lucrative contracts in Iraq, including LUKoil, which has exclusive rights to develop Iraq's giant West Qurna-2 oilfield.

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