Russian President Vladimir Putin said on Friday Moscow was ready to consider Washington's call for it to forgive Baghdad some $8 billion in Soviet era debt

"On the whole the proposal is understandable and legitimate. In any event, Russia has no objection to such a proposal," Putin told a news conference alongside German Chancellor Gerhard Schroeder and French President Jacques Chirac. "I believe that we could begin to discuss the principles of this issue at the G8 summit in Evian. In any case, we are ready to do so," he said, referring to a June meeting of the Group of Eight leading industrial nations in France. U.S. Deputy Defense Secretary Paul Wolfowitz said on Thursday Russia, France and Germany could contribute to rebuilding Iraq by writing off some or all of the loans they made to Iraq under President Saddam Hussein. Most estimates put Iraqi debts to Russia and France at about $8 billion each, mostly for contracts concluded in the 1980s, but some analysts say Moscow could be owed up to $12 billion. Germany's Finance Ministry said on Friday Iraq owed Berlin a sum just short of four billion euros ($4.3 billion). Germany and France, members of the Paris Club of creditor nations alongside Russia, have said it is to early to discuss debt. Putin, however, said Russia was open to the U.S. proposal.