report on programme manipulation - Independent Inquiry Committee

INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME
REPORT ON PROGRAMME MANIPULATION
CHAPTER TWO
OIL TRANSACTIONS AND ILLICIT PAYMENTS
“did not receive a single cent from Iraq.” Mr. Zhirinovsky has not responded to repeated
communications from the Committee. 45
3. Party of Peace and Unity
Iraqi Ministry of Oil records show that a total of 55.5 million barrels was allocated in the name of
the Party of Peace and Unity (“PPU”) between Phases IV and XIII. According to Ministry of Oil
records, about 46.4 million barrels allocated to PPU were lifted by a number of companies,
including Rossbulneft, Lukoil Petroleum (a subsidiary of Lukoil), Zerich GmbH, and Emercom.
PPU, founded in late 1996, is currently one of the 37 parties officially registered by the Russian
Ministry of Justice. Since its inception, PPU has not had any seats in the State Duma. Iraqi
Ministry of Oil records show that Sazhi Umalatova, Chairperson of PPU, actively solicited and
obtained Iraqi oil allocations. In a letter dated March 25, 2000, Ms. Umalatova requested SOMO
to execute a contract for oil allocated to PPU through Zerich GmbH rather than Lukoil, because
of “unreasonable delay in selling this quantity by the company Lukoil as well as due to the
change in circumstances.” 46
45 Russia officials #3, 6-7 interview (Mar. 1, 2005); CBC-TV, “Bribes from Baghdad” (Mar. 28, 2005)
(stating that he “did not get a single barrel [of Iraqi oil]” and did not gain any profit); NTV Voskresnii
Vecher, Interview of Vladimir Zhirinovsky (May 22, 2005) (translated from Russian) (containing Mr.
Zhirinovsky’s statement that “in Iraq no one ever gave me a single cent”); Vesti TV Russia news program,
Interview of Vladimir Zhirinovsky (May 17, 2005) (translated from Russian); Steve Gutterman,
“Zhirinovsky denies wrongdoing under Iraq oil-for-food program; Moscow criticized U.S. <strong>report</strong>,”
Associated Press, May 16, 2005 (quoting Mr. Zhirinovsky as stating that he “got no (money) from either
side”); Committee letters to Vladimir Zhirinovsky (June 20, July 20, Aug. 14, and Oct. 13, 2005).
46 Committee oil beneficiary and company tables, contract nos. M/04/25 (contracting with Rossbulneft);
M/05/65 (unexecuted) (contracting with Rossbulneft); M/05/23, M/06/71 (contracting with Lukoil
Petroleum); M/07/71, M/08/102, M/09/86, M/10/75 (contracting with Zerich GmbH); M/11/123
(unexecuted) (contracting with Zerich GmbH); M/12/53 (contracting with Emercom); M/13/87 (unexecuted
contract with Impexoil); Sazhi Umalatova interview (Aug. 23, 2005); Central Election Committee of the
Russian Federation, “Information on registered political parties as of September 12, 2005,”
http://www.cikrf.ru (translated from Russian); PPU, “Charter of the Russian Political Party of Peace and
Unity,” http://www.patriotparty.ru/ustav.htm (translated from Russian); “Congress of Party of Peace and
Unity to convene today,” RIA Oreanda, Dec. 18, 2004; Ministry of Oil record, Sazhi Umalatova letter to
SOMO (Mar. 25, 2000).
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