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Moscow denies Saddam bribe claims

By CNN Moscow Bureau Chief Jill Dougherty

Fires flare off gas at Iraq's oldest oil processing plant in the northern town of Baba Gurgur.
Fires flare off gas at Iraq's oldest oil processing plant in the northern town of Baba Gurgur.

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MOSCOW, Russia (CNN) -- Russia's Foreign Ministry has denied reports alleging that oil companies, political parties and even the Orthodox Church took bribes from Saddam Hussein.

An Iraqi newspaper reported that the bribes by the former Iraqi president came in the form of cash or oil-selling rights.

But a ministry spokesperson told CNN on Tuesday that "such assertions can only be made by those who are completely ignorant of the mechanism for exporting Iraqi oil under the conditions of the sanctions in force at that time."

The Foreign Ministry believes the bribe allegations are part of an ongoing backlash for not supporting U.S.-led efforts to oust the former Iraqi regime. The spokesperson suggested that "deliberate disinformation" could be the source of the claims.

Russia and other nations -- France, Germany, China and Canada -- that opposed the U.S.-led war in Iraq were excluded from early reconstruction contracts, totaling billions of dollars.

A memo on the Pentagon Web site in December said: "It is necessary for the protection of the essential security interests of the United States to limit competition for the prime contracts of these procurements to companies from the United States, Iraq, coalition partners and force contributing nations."

The Bush administration later signaled it could be open to making Canada and other opponents of the Iraq war eligible for major reconstruction contracts. (Full story)

Russian President Vladimir Putin, center, opposed war along with leaders of France and Germany.
Russian President Vladimir Putin, center, opposed war along with leaders of France and Germany.

In making its case, a statement on the Foreign Ministry Web site said all exports of oil were carried out under the United Nations-sanctioned "Oil for Food" program. Payments for such oil also were carried out by the U.N., not Iraq, the statement noted.

"This system, approved by the U.N. Committee on Sanctions, removed any reason for taking bribes from Saddam Hussein. On the contrary, it was well known that the Iraqi regime tried to demand from these companies payment for so-called 'commission fees.'

"It is immediately apparent that these fabrications about 'bribes' coincide with the renewed efforts by Russian companies to return to the Iraqi market in order to assist in the reconstruction of Iraq which was destroyed during the war."

Officials with the Coalition Provisional Authority and the Iraqi Governing Council said they would investigate the bribe allegations.


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