Falling Oil Prices Hurt Iraqi Security Outlays

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Falling Oil Prices Hurt Iraqi Security Outlays

By Chelsea J. Carter - The Associated Press
Posted : Sunday Mar 1, 2009 13:31:04 EST

BAGHDAD — Falling oil prices will force Iraq to cut back on military spending, leaving questions about whether it can handle tasks such as protecting oil platforms in the Gulf once the American pullout is complete, a top U.S. commander said.

Iraq’s leaders now have to decide where the cuts will be deepest: arms, patrol boats or air power — all of which the country needs to create a fully functioning security force.

“It’s a matter of capability and how much risk they are willing to take to spread that capability out ... because the money is so tight,” Lt. Gen. Frank Helmick, commander of Multi-National Security Transition Command, told The Associated Press on Saturday.

Iraq’s security plans for this year have been dragged down along with the price of oil, which is now about $45 a barrel after hitting highs last summer of $150 a barrel.

Iraq’s government has been forced twice to cut planned spending — from $79 billion to $68 billion and then to $64 billion.

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http://www.armytimes.com/news/2009/03/ap_iraq_security_expenditures_030109/