UN Grants Iraq Two-Week Extension to Meet Oil Export Targets

Strategic Insights -

The United Nations Security Council has granted Iraq a two-week extension to meet its oil export targets, allowing it to sell an additional $1 billion worth of oil by the end of the current phase. This move comes after weeks of private discussion among the five permanent members of the Security Council, including France, Britain, and the United States. Iraq's oil-for-food program, which began in late 1996, is designed to ease the humanitarian situation in the country by allowing Iraq to sell a limited amount of oil to purchase essential goods.

Key Takeaways:

  • The UN Security Council has granted Iraq a two-week extension to meet its oil export targets, expiring on November 18, rather than November 4.
  • The estimated value of oil that Iraq can sell by the end of the current phase is $7.2 billion, $1 billion short of the ceiling set by the Security Council.
  • The oil-for-food program allows Iraq to sell $5.2 billion worth of oil every six months to buy food, medicine, and other necessities for its people.
  • The program has been in place since late 1996 and is aimed at easing the humanitarian situation in Iraq.
  • The current phase of the program began on May 25 and expires on November 4, but the extension has been granted.
  • Iraq has been under UN sanctions since its invasion of Kuwait in 1990.

Statistics:

  • $8.2 billion: The total value of oil that Iraq is allowed to export in the current phase.
  • $7.2 billion: The estimated value of oil that Iraq can sell by the end of the current phase.
  • $1 billion: The amount of oil that Iraq is short of meeting its export targets.
  • $5.2 billion: The amount of oil that Iraq can sell every six months through the oil-for-food program.

Sources:

  • COMTEX (http://www.comtexnews.com)