Iraq sanctions in balance

BAGHDAD, Iraq -- A U.N. deadline to reach agreement on introducing 'smart' sanctions against Iraq is about to expire.

The British plan would aim to ease restrictions on civilian goods, retain bans on military hardware and review a list of "dual use" supplies that can be used for both military and civilian purposes.

But ahead of a vote, due to take place on Tuesday, there is some disagreement among the U.N. Security Council on what sanctions regime should be imposed and Iraq is calling for all sanctions to be lifted.

If the vote does not take place, or the 'smart sanctions' plan is thrown out, the council is expected to extend the existing food-for-oil scheme.

VIDEO Iraq faces another United Nations deadline to resolve a standoff over sanctions. CNN's James Martone reports (June 30) Play video (QuickTime, Real or Windows Media)   MORE STORIES Iraq attacks U.S-British plan to overhaul sanctions     MESSAGE BOARD Discuss events in Iraq

But Taha Yassin Ramadan, Iraqi Vice President, told CNN's James Martone: "Any resolution that doesn't clearly mention the unconditional lifting of sanctions will not be met favourably."

Ramadan said Iraq's leadership was ''studying'' a Russian alternative proposal the British plan.

However, other officials have said that Moscow's proposal has also been rejected because it calls for the suspension of sanctions only if Iraq allows the return of U.N. weapons inspectors -- which Baghdad has previously ruled out.

Russia is the only one of the five permanent security council members opposing all aspects of the 'smart sanctions' scheme and has said it will oppose the plan if it comes to vote.

Sergey Lavrov, Russian ambassador to the U.N., has said: "It would seem that this new scheme is to be introduced without the consent of Baghdad, and this is utterly unrealistic.

"Moreover it is contrary to the decisions of the council about the need to respect the sovereignty and territorial integrity of Iraq."

China and France have agreed on the core list of goods that Iraq would not be allowed to import as they could potentially help Iraq in building weapons of mass destruction.

The 'smart sanctions' would aim to increase the amount of legal trade with Baghdad while also cutting smuggling routes.

On Sunday, Iraq's most influential newspaper attacked France for supporting the U.S.-British plan, saying French oil companies would not be allowed to invest in Iraq.

Babel newspaper, owned by President Saddam Hussein's eldest son Uday, said: "The French official who took part in the wording of the vicious 'smart sanctions' draft resolution knows very well that it does not lead to lifting the embargo but rather brings Iraq under colonial influence for a long time.

"Nobody will believe that Iraq will allow French oil firms to work in Iraq after this strange stance taken by the French government toward Iraq."

French company TotalfinaElf enjoys exclusive negotiating rights for the huge Majnoon and Bin Umar oilfields in southern Iraq and has been close to signing deals for some time.

The U.S. said on Sunday it was still working for Security Council consensus over revamping the sanctions despite Russia's objection.

Assistant Secretary of State William Burns, the new U.S. Middle East envoy, told a news conference: "I think there is the emergence of a real consensus (amongst the five permanent Security Council members) with regard to the list of items to be controlled and a clear common understanding on other elements to put this resolution into effect.

"There are still some questions that need to be resolved. We are going to continue to make every effort between now and July 3 to put together a workable resolution."