UN blocks Rigo deal with Iraq

The United Nations has blocked the sale of two rough terrain cranes by Italina manufacturer Rigo to the Kirkuk oil field in Iraq.

Export manager Daniele Rigo explained that the American delegate on the committee approving dealings with Iraq had protested that the cranes had a ôdual useö, referring to the possibility of the cranes being used for military purposes,and were therefore not allowed to be sold.

The RT 1200 and RT 1600 were to be delivered by the Italian manufacturer in November 2000 and January 2001 respectively in a deal worth $1.8m before the UN stepped in.

Rigo said that the tender had been approved a month beforehand. ôThe UN has changed the rules while the game is still being played,ö he said, ôI cannot respect that.ö.

Rigo claimed that the US embassy had told him that any sort of machinery could have a military purpose .The UN Use of Sanctions resolution 1175 states that authorised states may æexport to Iraq the necessary parts and equipment to enable Iraq to increase the export of petroleum and petroleum productsÆ. This is part of the æoil for foodÆ programme that sees Iraq sell quantities of its oil to fund the purchase of food and medical supplies.

Rigo is confident that he will be able to find buyers for the two cranes should the deal collapse completely. He has recently sold five RT 1700s to a company in Qatar and is on the verge of selling another five. Sales in Italy have also been good with the sale of three RT 1200s to a rental company in Turin and one RT 600 and three RT 603s to another small rental company in Ancona. Rigo is also on the lookout for a new agent to sell itÆs Skylift truck mounted aerial work platforms in the Middle East.