Iraq and Russia are negotiating for Baghdad's purchase of a space-based communications system as well as a satellite, reported the Middle East News Line (MENL) on Wednesday.
The sale must be approved by the United Nations, which is examining the project, said the news service, adding that Britain and the United States are said to be concerned that the communications system and satellite would be used for military purposes.
Industry sources said Russia is prepared to sell a satellite for up to $100 million that would provide communications and broadcasting.
Both Western and Russian satellite manufacturers have been approached to join the project.
Under the proposal, Iraq would pay for the project through the sale of crude oil, said MENL.
MENL reported that both countries are also close to concluding a contract to repair and upgrade Baghdad's damaged satellite communications system.
The prospective contractors are Alfa Eko and Intersputnik.
Viktor Veshchunov, an Intersputnik executive, acknowledged that the UN is suspicious of the satellite program for Iraq. The UN is concerned that it would be used for the military – Albawaba.com
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