Russian Presidential Adviser, Peaceful Settlement of Iraqi Crisis is Best for Russian Economy

A peaceful settlement of the Iraqi crisis will be the best variant for the Russian economy, Russian Presidential Economic Adviser Andrei Illarionov said at a press-conference on Wednesday.

Illarionov believes that such a scenario allows to forecast the opening of the Iraqi oil market in the following 12-18 months entailing a drop in the world's oil prices.

"In the short term it will have an adverse impact on Russia's budgetary proceeds, but in the long term the falling oil prices will be beneficial for the country's economy," Illarionov believes.

According to him, the world's falling prices will give the Russian economy a chance to diversify and break through oil dependence.

A possible war in Iraq may entail negative consequences for both the Russian and international economies, Illarionov believes.

According to him, if Iraq's oil wells are damaged by military strikes, today's high oil prices will soar further resulting in a possible price shock worldwide.