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UNITED NATIONS, Friday (Reuters) The United States intends to introduce a resolution that would end 12 years of U.N. sanctions against Iraq and give Washington and its allies the power to spend Baghdad's future oil revenues for aid and reconstruction.

The eight-page draft resolution would remove all sanctions imposed on Iraq in 1990 except for an arms embargo. But the document omits any reference to U.N. inspectors returning to Iraq to check on weapons of mass destruction, as 12 years of Security Council resolutions demanded.

Russia, France and others are expected to raise questions about the dearth of international arms inspections, nominal role given to U.N. officials and U.S.-British control of the oil revenues, now supervised by the United Nations.

"The big debate will be the balance between the coalition forces and the United Nations, with several members wanting a stronger, more defined U.N. role," one council diplomat said. "And the debate will certainly be about the oil money."

The draft, obtained by Reuters and circulated to key Security Council members, would phase out the current U.N. oil-for-food humanitarian program over four months. It would allow Iraq to sell oil again without U.N. controls. The monies would be deposited in an "Iraqi Assistance Fund" for humanitarian purposes and reconstruction. This new institution would have an advisory board that would include officials from the United Nations, International Monetary Fund, World Bank and others.

But decisions on where to spend the money would be made by the United States and Britain and their allies in the war that deposed President Saddam Hussein, in consultation with an Iraqi interim authority and until a new Iraqi government is formed.

The draft does not call for the return of U.N. arms inspectors to verify that Iraq no longer has weapons of mass destruction, as specified in some 16 earlier U.N. resolutions. U.S. Ambassador John Negroponte, who was briefing council members, said the Bush administration did not see "any role for the U.N. (inspectors) for the foreseeable future."

"The coalition has taken over the process of inspecting in Iraq for weapons of mass destruction," he told reporters.

The document asks Secretary-General Kofi Annan to appoint a special coordinator to supervise U.N. humanitarian assistance and "reconstruction activities in Iraq." The coordinator would play a nominal role in establishing governing institutions, promoting human rights, legal and judicial reforms, and helping build an Iraqi police force.

The resolution would phase out the U.N. oil-for-food humanitarian program over four months but honor "priority civilian goods" in contracts already approved. It was unclear whether all approved contracts for supplies, including $1.6 billion in Russian contracts, would be fulfilled.

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