http://www.news24.com/News24/Africa/News/0,,2-11-1447_2367824,00.html

Libya, Russia discuss nuke deal
31/07/2008

 Moscow - Libya is negotiating with Moscow to buy Russian weapons and for
the construction of a nuclear power station, the countries' prime ministers
said on Thursday.

"The Libyan leadership confirmed its interest in acquiring high-quality
products from the Russian defence industry," Russian Prime Minister Vladimir
Putin was quoted as saying by Interfax and ITAR-TASS after a meeting with
Libyan Prime Minister Baghdadi Mahmudi.

"We reached an agreement on concrete steps that will enable strengthening of
the Libyan armed forces thanks to bilateral co-operation," the Libyan prime
minister said.

Quoted by RIA Novosti, the Libyan premier also said: "We are working on the
project of creating a nuclear power plant, to be used for electricity
generation."

A Russian defence ministry source, quoted by Interfax, said Tripoli was
interested in buying Russian surface-to-air missiles, tanks, helicopters and
fighter jets with a total value over $2bn (about R14.7bn).

In April during a visit to Libya by Putin, Russia's president at the time,
Moscow agreed to cancel billions of dollars of Libyan Soviet-era debt in
exchange for multi-billion-dollar contracts with Russian companies.

"Special relationship"

On Thursday the two prime ministers also discussed co-operation in the oil
and gas sectors between their petroleum-rich countries.

The Libyan premier said Tripoli had established a "special relationship"
with Russian gas giant Gazprom, which has been in talks to develop gas
projects in Libya, Interfax reported.

At Thursday's meeting, Mahmudi invited Putin to Libya in August for a
ceremony marking the start of the railway's construction.

Putin also thanked Mahmudi for Tripoli's decision to release an official of
Lukoil, Russia's second-largest oil company, who had been detained in Libya
since November 2007.

Lukoil said in a statement on Thursday that Alexander Tsygankov, head of its
Libya office, had returned to Moscow after being held for eight months
without charges.
SAPA



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