U.S. finds smuggled Iraqi oil on Russian tanker

WASHINGTON -- The United States has found Iraqi oil smuggled aboard a Russian tanker seized in the Gulf by a U.S. warship, officials said.

The officials said the oil was being smuggled from Iraq in violations of sanctions imposed by the United States. They said an Iraqi naval officer was also aboard the Russian tanker Volgoneft-147 seized on Wednesday.

"There also was an Iraqi naval officer aboard the ship," U.S. Defense Secretary William Cohen said. "So it's pretty clear."

Officials said the seized Russian tanker would be off-loaded in Oman. The oil would be sold and proceeds kept by the United Nations. The vessel would be released, the officials said.

Russia said the tanker, owned by a private company, was carrying Iranian heavy fuel oil loaded in Iranian waters. Russian officials have demanded the release of the tanker.

U.S. officials said Iraq has stepped up efforts to smuggle oil out of the country. The United Nations allows Iraq to sell $5.26 billion worth of oil every six months to buy food and medicine.