Iraq's Oil-for-Food Programme: Allegations of Bribes and Influence Peddling Exposed

Strategic Insights -

A US Senate committee investigating the UN administered Iraq oil-for-food programme has released findings alleging that Saddam Hussein's regime in Iraq allocated 90m barrels of cut-price oil to Russia's presidential council, in return for Moscow's support against sanctions. The permanent subcommittee on investigations estimates that almost $3m worth in commissions were paid to the RPC, a group of highly influential advisers to the Russian president, through its former head, Alexander Voloshin, or Sergei Isakov, his friend. The committee also said 75m barrels were allocated to Vladimir Zhirinovsky, an ultranationalist Russian politician with close ties to the Hussein regime, or his political party.

Key Takeaways:

  • Saddam Hussein's Iraq allocated 90m barrels of cut-price oil to Russia's presidential council in return for Moscow's support against sanctions.
  • Almost $3m worth in commissions were paid to the RPC through its former head, Alexander Voloshin, or Sergei Isakov, his friend.
  • 75m barrels were allocated to Vladimir Zhirinovsky, an ultranationalist Russian politician with close ties to the Hussein regime, or his political party.
  • Bayoil, an American oil-trading company, assisted in the trade by arranging for the actual transport and subsequent sale of the oil to the US and elsewhere.
  • Russian individuals and political parties received about 30% of all the oil allocated during the programme, with the RPC receiving a substantial allocation.
  • The actual shipment and trade of oil was done by Bayoil, which paid for the oil, plus a commission to one of several different companies that nominally contracted for the RPC's allocation.
  • The Senate committee estimates that $5.6m was kicked back to the Iraqi regime as a result of the alleged RPC transactions.
  • Both George Galloway, a British MP, and Charles Pasqua, a former French interior minister, had been granted oil allocations and have denied the charges.

Statistics:

  • 90m barrels of cut-price oil were allocated to Russia's presidential council.
  • Almost $3m worth in commissions were paid to the RPC.
  • 75m barrels were allocated to Vladimir Zhirinovsky, an ultranationalist Russian politician.
  • 30% of all the oil allocated during the programme went to Russian individuals and political parties.
  • The actual shipment and trade of oil were carried out by Bayoil, which paid a commission to one of several different companies.
  • $5.6m was allegedly kicked back to the Iraqi regime as a result of the alleged RPC transactions.

Sources:

  • US Senate committee on investigations report, "Iraq Oil-for-Food Programme: Allegations of Bribes and Influence Peddling Exposed".
  • Financial Times, "Iraq Oil-for-Food Programme: Allegations of Bribes and Influence Peddling Exposed".