Sanctions to Remain in Place for Iraq, Despite Oil Smuggling Efforts

A top State Department official has declared that United Nations sanctions against Iraq will persist due to leader Saddam Hussein's non-compliance with Security Council demands. Undersecretary of State Thomas R. Pickering expressed skepticism over Iraq's willingness to meet its obligations, stating that sanctions will remain in effect for the foreseeable future. This stance was taken despite the discovery of illegal oil sales into Turkey, Jordan, and through Iranian waters in the Persian Gulf, generating approximately $450 million annually for Saddam's regime. However, Pickering noted that these revenues are used for personal gain, as opposed to humanitarian aid, which is the intended purpose of the oil-for-food program. The United States is currently working with Turkey to prevent the purchase of Iraqi crude, while Jordan's barter system prevents the illicit earnings from reaching Saddam's coffers. Meanwhile, Iran's efforts to curb smuggling have apparently faltered, allowing Iraqi crude to continue flowing through the country.

Key Takeaways:

• UN sanctions against Iraq will remain in place due to Saddam Hussein's non-compliance with Security Council demands, according to Undersecretary of State Thomas R. Pickering.
• Iraq earns approximately $450 million annually from illegal oil sales into Turkey and Jordan or through Iranian waters in the Persian Gulf.
• The illegal oil sales revenues are used for Saddam's personal gain, rather than humanitarian aid as intended by the oil-for-food program.
• The United States is working with Turkey to prevent the purchase of Iraqi crude, while Jordan's barter system prevents the illicit earnings from reaching Saddam's coffers.
• Iran's efforts to curb smuggling have apparently faltered, allowing Iraqi crude to continue flowing through the country.
• Senator Sam Brownback (R-Kan.) expressed disappointment with the administration's decision not to impose sanctions on three non-U.S. firms investing in Iran's gas sector, citing national interest waivers provided by President Clinton.

Statistics:

• The oil-for-food revenues generated by Iraq amount to approximately $450 million annually.
• The number of countries involved in Iraq's illegal oil sales, including Turkey, Jordan, and Iran, is three.
• The amount of revenues generated from Jordan's barter system is not available.
• The number of national interest waivers granted by President Clinton to Total S.A., Gazprom, and Petronas is three.
• The potential earnings from Iran's gas sector investments, intended for the three non-U.S. firms sanctioned under the Iran-Libya Sanctions Act (ILSA), are unknown.

Sources:

• "State Dept. official: Sanctions will stay for Iraq." United Press International, 25 May 2000.
• "Text of official transcript: Senate Joint Hearing on U.N. Sanctions and Iraq." The Washington Post, 25 May 2000.