June 27, 2001. Copyright 2001. Graphic News. All rights reserved.

UN Òsmart sanctionsÓ plan for Iraq likely to be voted out by Russia

LONDON, June 27, Graphic News: Russia has rejected a U.S.-backed British resolution to replace the 11-year-old UN sanctions against Iraq with so-called Òsmart sanctions.Ó The British resolution would ease restrictions on the flow of civilian goods into Iraq except for a controversial list of hundreds of items with possible Òdual-purposeÓ military use. It would also tighten military sanctions and crack down on IraqÕs increasingly lucrative oil smuggling.

RussiaÕs UN Ambassador Sergey Lavrov told the Security Council that the British resolution would Òdevastate the Iraqi economyÓ and perpetuate sanctions imposed on Baghdad after its 1990 invasion of Kuwait.

ÒWe cannot agree to this draft resolution, which can simply not go through,Ó Lavrov said in a thinly veiled threat to veto the British proposal if it is brought to a vote. Britain and the United States in turn dismissed the Russian proposal and vowed to press ahead with talks on their joint proposal.

Diplomats said that if Russia continues to oppose the U.S.-UK plan, the Security Council must hold a vote by July 3 to simply extend the oil-for-food programme with Iraq without any controversial elements attached to it.

Iraq halted oil-for-food exports in June in protest over a Security Council decision to extend the programme for just one month, instead of the usual six, to facilitate talks on the smart sanctions plan after Russia and China expressed opposition.

Russia, IraqÕs key UN ally, wants sanctions totally scrapped so it can recoup $8 billion owed by Iraq for arms. Moscow also wants a free flow of trade with Iraq to enable Russian companies to rebuild Iraqi infrastructure.

RussiaÕs Lavrov said the U.S.-UK plan Òundermines the prospect for the industrial development of IraqÓ by denying foreign investments and loans to Iraq, except those already approved for upgrading BaghdadÕs oil industry

ÒWeÕre also concerned that as a result of introducing the so-called smart sanctions, there could be damage done to the legitimate trade and economic interests of many countries, including Russia.Ó

The U.S. and Britain also want a UN panel monitoring sanctions to reduce the list of operators purchasing Iraqi oil in an attempt to stop alleged kickbacks to Baghdad. At the moment some 600 oil companies and middlemen have permission from the UN to buy Iraqi oil. Revenues are put into a special United Nations escrow account for the purchase of food, medicine and other supplies to alleviate the impact of sanctions on IraqÕs 22.6 million people.

But Baghdad is widely reported to be imposing surcharges on buyers of its crude so it can get revenue directly, in violation of trade embargoes imposed after Iraq invaded Kuwait in August 1990.

Smart sanctions would also place tighter control on oil exports to neighbouring countries, imposing UN control on a trade of an estimated $1 billion per year that goes directly to Iraq.

While most of IraqÕs daily 2.1 million barrels (bpd) of oil are exported through the closely supervised oil-for-food programme, industry sources say Baghdad has been smuggling up to 250,000 bpd to Turkey and Syria and about 100,000 bpd to Jordan.

To get all the sanctions suspended or lifted, Iraq has to cooperate with UN Special Commission (UNSCOM) weapons inspectors to make sure it no longer has programmes for weapons of mass destruction. 

Baghdad has refused to allow the inspectors to return since December 1998, after bombing raids by the United States and Britain.
/ENDS
Sources: Associated Press, Reuters, UPI