Russia rejected a US-backed British plan to overhaul sanctions on Iraq and proposed its own resolution that would speed up an end to sanctions.
Britain and the United States dismissed the Russian initiative as unacceptable. The rival drafts left the 15-member Security Council bitterly divided yesterday on how to break a 2 1/2-year stalemate on the future of sanctions imposed on Iraq after its 1990 invasion of Kuwait.
It also highlighted the vastly differing approaches the major powers are taking on Iraq 11 years after the Gulf War. Britain said it wants to continue negotiations on its draft and hopes the Council will reach agreement by a July 3 deadline. But Russia's outright rejection - indicating it would exercise its veto power if necessary - cast serious doubt on the possibility that the us-British draft could be adopted in just a week.
The British proposal was introduced may 22 in a resolution to extend the UN oil-for-food program which allows Iraq to sell unlimited quantities of oil provided the money mainly goes to the purchase of food and humanitarian supplies. When the Council couldn't agree on a sanctions overhaul by early June, members extended the oil-for-food program for 30 days, instead of the usual six months, to give negotiators extra time to reach agreement.

Iraq, in protest, stopped UN-monitored oil exports to all but its neighbours.
Bureau Report