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Iraq, China launch 'oil for reconstruction' agreement

Baghdad has forged a 20-year deal to supply Beijing with oil in exchange for Chinese investments in projects to repair Iraq's war-damaged infrastructure.
Chinese Premier Li Keqiang attends a signature ceremony with Iraqi Prime Minister Adil Abdul-Mahdi at the Great Hall of the People, in Beijing, China September 23, 2019. Lintao Zhang/Pool via REUTERS *** Local Caption *** Li Keqiang; Adil Abdul-Mahdi - RC1D9B99AFA0
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When Iraqi Prime Minister Adel Abdul Mahdi led a delegation to China in September, Baghdad and Beijing activated an "oil for reconstruction" and investment program. Under the arrangement, Chinese firms work in Iraq in exchange for 100,000 barrels per day.

Iraq has said it needs more than $88 billion to develop and mend its rickety infrastructure after three years of combating the Islamic State (IS).

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