Also Russians involved in Iraqi oil scandal
A US Senate committee says almost a third of the oil allocations granted under the UN's Iraqi oil-for-food program
went to Russian parties or individuals. A report by the committee said the allocations were received by top Russian
politicians, including advisors to Russian President Vladimir Putin.
The report alleged details of misuse of the program, and also found that 76 mm barrels of crude oil were allocated to
Russian deputy parliament speaker, Vladimir Zhirinovsky, and his political party between 1997 and 2002.
"The allocations awarded to the Russian Presidential Council were part of a larger scheme to influence the policy of
the Russian government towards Iraq and UN sanctions," said a summary of the findings of the Senate subcommittee
heading the inquiry, chaired by Republican Norm Coleman.
"Massive allocations were also granted to Russian politicians, the pro-Kremlin Unity Party, and the Russian Ministry
of Foreign Affairs, to name but a few," said a summary of the 300-page reports detailing Russian involvement in the
tainted program. "Approximately 30 % of all of the oil sold under the Oil-for-Food Program was allocated to Russia,
which is an oil exporting country."
The report comes after the Senate Permanent Subcommittee on Investigations found that former French Foreign Minister
Charles Pasqua and British MP George Galloway received oil allocations. Both men have denied the charges.
Prominent former Iraqi Saddam-era regime officials, including Tariq Aziz, are cited in the report, with documents,
emails, contracts and notes scrutinised. The report has produced documents on how the transactions were made, details
on the shell companies in Switzerland, Cyprus and elsewhere, and the involvement of Bayoil.
Among names mentioned is deposed Kremlin administration chief Alexander Voloshin, who has strong ties to former
leader Boris Yeltsin. He left office in October 2003. Mr Voloshin, who was named by Mr Yeltsin to head the Russian
administration in 1999, was said to have personally benefited from allocations of 5 mm barrels of oil, as did the
Russian Presidential Council, in the same amount.
A close associate of Mr Voloshin, Sergey Issakov benefited to the tune of 80 mm barrels of oil. The report estimated
that ultra-nationalist Mr Zhirinovsky profited by around $ 9 mm.
In addition, a surcharge of between 10 and 30 cents a barrel that went to the Iraqi regime from September 2000
allowed Baghdad to recover a lucrative share of profit from oil sales.
"The purpose of these hearings is to lay out in detail... the massive volume of allocations to Russia when Russia is
an oil-exporting nation," said Senator Coleman.
The Russian allegations will make up part of a hearing which is also expected to include an appearance by Mr
Galloway.
