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Russia wants U.N. to run Iraq oil
From CNN U.N. Producer Liz Neisloss
UNITED NATIONS (CNN) -- Russia is floating a proposal to give U.N. Secretary-General Kofi Annan interim control over Iraq's oil. Russia's ambassador to the U.N., Sergey Lavrov, would not give details, but said, "the Secretary-General has a role which can be expanded." The proposal -- now circulating in the form of a draft resolution -- would give the United Nations the authority to "sell oil and develop the oil sector," as well as to contract for goods under the oil-for-food program, according to a Security Council diplomat who has seen the proposal. This essentially would give the U.N. full control over the oil-for-food program and the responsibilities once held by Saddam Hussein's government. The proposal does not include a time frame. A British official called the proposal a "non-starter" and said the goal needed to be "transition to full Iraqi control." That official also said the proposal "ignores the Iraqis, and we'd be looking for something that builds local control." It is unlikely the United States would support such an open-ended extension with U.N. control over Iraq's oil. A U.S. official Wednesday simply said, "We'll be coming forward with our own ideas soon." France recently proposed a gradual phase out of the oil-for-food program. "The Russians want to enlarge the role of the Secretary-General in deciding how to use the oil and sign contracts as an interim process," another Security Council diplomat said. This diplomat added: "This might not be a job sought by the Secretary-General, but someone has to have the initial authority over the oil." Other Council diplomats questioned Russia's motives, with one saying, "Russia wants to maintain, for as long as possible, a program under which they do very well commercially. They'd hope with U.N. control they could compete on an equal basis." The Security Council on Thursday extended until June 3 the authority of the United Nations to select priority humanitarian goods from the oil-for-food contracts to speed them into Iraq. This is an extension of the U.N.'s authority over a portion of the oil-for-food program and not a rollover of the oil-for-food program itself, which already had a mandate until June 3. The U.N.'s authority is limited to this process of identifying priority contracts from the billions of dollars in contracts that were agreed to between suppliers and the government of Saddam Hussein. Left out of the U.N.'s current authority is the thorny question of who can pump and sell oil, as well as the ability to process contracts other than priority. Priority goods include food, medicine, health supplies, water and sanitation and agricultural equipment and supplies. As of this week, $450 million in priority contracts have been identified by the United Nations. Most of those goods are in transit to strategic locations in neighboring countries -- entry points and then transshipped from there into Iraq. Sanctions proposalThe U.N. oil-for-food program has just started to return international staff into Iraq by road from Turkey into the north. Distribution of oil-for-food goods is still going on in Iraq from existing stocks and convoys that have come in from the north via Turkey and from Jordan. Goods are distributed throughout Iraq by a local Iraqi staff of 3,400. Also on Thursday, the Russian government said it was willing to support France's proposal to partially suspend U.N. sanctions against Iraq. Russian Foreign Minister Igor Ivanov said Moscow would back a temporary suspension of sanctions "on goods that may be used for humanitarian problems in Iraq." "An overwhelming majority of countries share this approach, therefore it is necessary now to make appropriate decisions," he said. (Full story) France, which was the first to propose the idea, has also suggested lifting sanctions on investment and trade as well but Russia said it remained opposed to any automatic suspension of sanctions.
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