Moscow against fixing predated prices for Iraqi oil

Moscow believes that the post factum fixing of oil prices after actual oil shipments should be thwarted, the information and press department of the Russian foreign ministry reported Tuesday. According to the Russian side's estimates, a critical situation can be seen today around an unprecedented drop in oil exports from Iraq in the wake of the implementation of the UN humanitarian oil-for-food program regarding Iraq.

The Russian foreign ministry believes that the reason behind this situation is the post factum price fixing for Iraqi oil /i.e. retroactive pricing policy/, which has relation to the US and Britain blocking pricing initiatives in the Iraqi Sanctions Committee.

In Moscow's opinion, representatives of these nations are seeking to minimise revenues of the Iraqi oil-exporting companies under the pretext of strengthening control over Iraq's oil supplies. This, the ministry pointed out, substantially hinders realisation of oil contracts.

The present-day situation arouses increasing concerns, above all due to its obviously negative consequences for the humanitarian oil-for-food program which is being on the edge of failure, the ministry's officials stressed.

As a result of a sharp drop in the UN special account's earnings, the implementation of contracts for civil-purpose products deliveries is being delayed, though they are meant to meet the basic needs of the Iraqi people.

Besides, Moscow does not exclude the possibility of disrupting foodstuffs' purchase. This infringes upon economic interests of the companies participating in the UN program, including Russian companies too, which are actively co-operating with Iraq in restoring its production-social infrastructure.

Russia is ready to probe for effective solutions of this problem within the UN Security Council's Committee for Iraqi Sanctions and counts on a constructive approach to this issue on behalf of all members of the UN Security Council, the foreign ministry remarked.