BAGHDAD, Iraq -- "The corruption in the oil sector and smuggling of oil products to neighboring countries are the most important reasons behind the loss of billions of dollars, and these two problems are the biggest threat to Iraq's economy," said the report, which was prepared by the office of the inspector general of Iraq's Oil Ministry [and] released by Assem Jihad, the spokesman for the inspector general's office.

"For example, about 20% of the oil products that Iraq imported last year, worth $4.2 billion, were smuggled to neighboring countries," the report said. "Crude oil produced in Iraq also was stolen from its pipelines."