Russian energy major Rosneft has agreed to take control of the main oil pipeline in Iraq's Kurdistan, further boosting its role as the main international investor in the semi-autonomous region.
The move is an apparent part of a broader strategy by President Vladimir Putin to ratchet up Moscow's political and economic influence in the Middle East. It came amid the crisis in Kurdistan's relations with the central government in Baghdad, which erupted after the region held an independence referendum last month.
Rosneft said its share in the project may total as much as 60 percent, while the current pipeline operator, KAR Group, will retain 40 percent. Sources familiar with the deal said Rosneft's investment in the project will total about $1.8 billion.