Russia is the top importer of Iraqi oil under the U.N. “oil-for-food” program, the Washington Post reported today.

Russian firms have signed contracts worth more than $4 billion with Iraq as part of the U.N. program, according to the Post.  In the last six months since Russia blocked U.S. plans to tighten the embargo, Russian businesses have concluded more than $1.4 billion in trade with Iraq, U.N. diplomats said (see GSN, Dec. 3, 2001).

The rise in trade with Russia is seen as Iraq’s way of rewarding countries that help in its fight against the U.N. embargo, the Post reported.  Last year, Iraq enacted billions of dollars in trade with countries that fought U.S. efforts to increase sanctions.

Proposed U.S. changes to the sanctions were “a major threat to Russian trade and economic interests,” said Russian Foreign Minister Igor Ivanov.  “We cannot allow it to pass.”

Even though Iraq, under the U.N. program, can export oil to purchase food and other essential supplies, the United States and other U.N. Security Council members can block contracts for suspected military items.  The United States has blocked $900 million in Russian contracts, according to the Post.

Last month the United States agreed to release $200 million in Russian contracts as part of an effort to obtain Russian support for tightening the sanctions, a senior U.S. official said.  The United States is also attempting to gain Russian endorsement of a list of items that will need U.N. Security Council approval before they can be sold to Iraq, the Post reported.

“The Russians will be rewarded by the Americans if they accept the goods review list,” said a council diplomat.  “But if they do, they will probably be punished by the Iraqis” (Colum Lynch, Washington Post, Jan. 16).

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