Iraq and Russia are still negotiating deals worth some $40 billion for 67 projects, including the oil and gas sectors, the Middle East Economic Survey (MEES) says in its Monday edition.

Russian Energy Minister Igor Yusufov said in March that an agreement would be signed around mid-April.

Iraqi Oil Minister Amer Rashid said Moscow and Baghdad had decided to approve a 10-year programme covering the projects, including 17 in the oil and gas sectors and 14 in transport and communications.

"However it is understood many details need to be ironed out before conclusion of the talks," the newsletter reports.

"The Russians have asked for permission to develop several known oil fields such as West Qurna, Rumailah and Luhais as well as several Western desert exploration blocks," MEES says.

"MEES soundings indicated however that the Russians are also asking to be awarded concession rights to some super giant fields that have been committed but not awarded to international oil firms.

"It is understood that the Iraqi political leadership has instructed the oil authorities to negotiate such deals with the Russians despite the reluctance of these authorities to award further contracts, especially major ones, to Russian firms who have hardly carried out any of their obligations so far (even those under the UN-authorized oil-for-food programme)."

The two allies have signed numerous oil and gas agreements in recent years but few have been implemented because of UN sanctions in force against Baghdad.

Rashid visited Moscow in March and urged Russian oil firms to step up their activities in Iraq, offering contracts worth billions of dollars.

Moscow has proposed easing sanctions against Baghdad and backs the UN dialogue underway to try to convince Iraqi President Saddam Hussein to allow the return of UN weapons inspectors rather than risk a military strike by Washington.