Up to three-billion-dollars worth of illegal oil exports have crossed the Gulf seas in 2002, making their way from the besieged Iraq to black markets in neighboring states. Members of Saddam Hussein’s regime land the spoils from these unregulated oil sales, with profit rates estimated at around $100 per ton.
Against a backdrop of massive troop buildup in the Gulf, ahead of a possible US-led military strike against Iraq, Gulf waters are policed by a 21-nation marine force. International patrols, which include the Royal Navies of Britain and Australia, as well as the US Navy and Coast Guard ships, enforce the United Nations’ 12-year sanctions regime imposed on Iraq.
Smugglers, who once used large tankers to transport the illegal consignments, have recently resorted to large fleets of small wooden boats, with the capacity to ship oil cargoes averaging 250 tons. Sailing the Persian Gulf in large numbers, the traditional dhow boats stand a better chance of circumventing international naval patrols.
The smugglers’ strategy shift is evident to the patrollers, who have managed to seize 976 boats in 2002, 750 percent more than the 115 boats intercepted in 2001. The international task force is receiving unexpected assistance from Iran, who aggressively polices smugglers on its territorial waters.
During the year 2002, it is estimated that 600,000 tons of illicit oil evaded international patrols. This figure reflects a successful year for patrollers, considering the amount dropped 60 percent compared to the 1.5 million tons that slipped through the previous year, according to Royal British Navy officials.
Under the oil-for-food program, in place since late 1996, proceeds from UN-regulated Iraq oil sales are deposited in an escrow account and used to purchase humanitarian supplies, particularly food and medicine as well as to cover Gulf War reparation payments and the cost of UN operations in Iraq. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
