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Russia Accuses U.S., Britain of Deliberately Disrupting Iraqi Oil Exports

The U.S. and Britain “are striving to minimize the benefits of companies involved in exporting Iraqi oil,” says Russia .

MOSCOW, June 18 (IslamOnline & News Agencies) - Moscow accused Washington and London early Tuesday, June 18, of deliberately disrupting Iraqi oil exports in spite of the revised U.N. sanctions regime, thus preventing Baghdad from importing basic necessities.

A statement issued by the Russian foreign ministry said that representatives of the United States and Britain in the United Nations sanction panel prevented the panel from establishing adequate prices for Iraqi oil, Agence France-Presse (AFP) reported.

As a result, prices were artificially set after the oil was delivered, thus discouraging foreign companies that wanted to purchase Iraqi oil.

“Representatives of these countries [the United States and Britain ] ... are striving to minimize the benefits of companies involved in exporting Iraqi oil,” the statement read.

This “has impacted negatively the U.N. humanitarian program for Iraq , which has nearly been interrupted as a result,” the statement went on.

The U.N. Security Council earlier voted to adopt a goods review list (GRL) to replace the cumbersome vetting procedures of the U.N.'s five-and-a-half year old oil-for-food lifeline, which has enabled Iraq to import basic necessities despite a trade embargo.

Iraq accused the United States Sunday, June 16, of trying to sabotage its “oil-for-food” lifeline, warning that crude exports could drop below one million barrels per day due to the contested U.N. pricing mechanism.

“It's a plot by the U.S. administration and its lackey, Britain , to further harm the Iraqi people. It's a criminal plot that will lead to death,” vice president of Iraq 's parliamentary committee on oil and energy, Adnan Janabi, told AFP.

He was protesting the U.N.-imposed retroactive pricing mechanism on Iraqi crude, which Oil Minister Amr Rashid warned Saturday, June 15, could drive Iraq 's crude exports below one million barrels per day in June.

“The situation has become very serious,” Rashid said, accusing the United States of looking to sabotage “the oil-for-food” program that allows Iraq to export oil and import essential goods for the population.

The pricing system will cause a “four billion dollar drop in Iraqi revenue at the end of the current phase of the oil-for-food program," which started in June and runs for six months, the minister warned.

Last year, Britain and the United States forced a tougher pricing policy onto the Security Council's sanctions committee in response to what they said were attempts by Iraq to charge an illegal premium on its crude.

The price, which was previously determined at the start of each month by the oil overseers in consultation with the Iraqi oil ministry, is now set retroactively by the committee.

Rashid blames the retroactive system for scaring away buyers who do not know what they will pay for oil until after the fact. “It puts our oil in a non-competitive situation,” he said.

The mechanism “lays bare the hostile intentions of the U.S. administration which pretended that resolution 1409 would ease the suffering of the Iraqi people while it was trying to turn off the tap that gives life to these people,” Janabi said.

The oil expert was referring to Resolution 1409, adopted by the Security Council in mid-May, which seeks to free up the delivery of humanitarian supplies while maintaining the arms embargo and trade sanctions on Iraq .

The price fixing mechanism “is in keeping with the difference between Iraq and the United States ,” a Baghdad-based Western diplomat told AFP.

The diplomat did not rule out a “new crisis” between the two countries which would have a negative impact on Iraq 's revenues and the humanitarian program.

Iraq , under repeated threat of a U.S. military strike, expects to raise the pricing issue when a delegation headed by Foreign Minister Naji Sabri meets with U.N. Secretary General Kofi Annan in Vienna July 4-5, Rashid said.

 

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