21:50

RUSSIAN MFA INFORMATION AND PRESS DEPARTMENT COMMENTARY REGARDING A CNN QUESTION CONCERNING PRESS REPORTS OF MAJOR RUSSIAN OIL COMPANIES' BRIBE-TAKING FROM SADDAM HUSSEIN'S REGIME

181-02-02-2004

Unofficial translation from Russian

Question: Reports have appeared in the media that nearly all of Russia's major oil companies took bribes from Saddam Hussein. What can you say in this connection?

Answer: Such allegations can only come from those who are totally unfamiliar with the mechanism for the export of Iraqi oil in the conditions of the sanctions then in force. Or it is a case of deliberate misinformation.

Anyway it will be recalled that the export of Iraqi oil was entirely under the UN "Oil for Food" Humanitarian Program. UN decisions had established the necessary mechanism of control over the implementation of those contracts, which were not approved by the Iraqis, but by independent UN controllers. And what is more, payment for oil was made not to the Iraqis, but to a UN escrow account.

That technology, approved by the UN Sanctions Committee, rendered bribe-taking from Saddam's regime meaningless. On the contrary, the Iraqi regime is widely known to have tried to demand of companies the payment of so-called commission.

On the other hand, it is striking that the appearance of such false "bribe" stories has coincided with the intensification of efforts by Russian companies to return to the Iraqi market to render assistance in the reconstruction of war-ravaged Iraq.

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