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United Nations

United Nations Security Council Approves Iraq's Oil Proceeds Deal

Strategic Insights

— 1 min read

The United Nations Security Council voted to extend the 'oil for food' program for six months, allowing Iraq to spend $525 million of its accumulated oil revenues on local projects. The deal includes a provision that will release 600 million euros to Iraq, allowing the country to repair and maintain its oil industry. The agreement also expands the list of goods that Iraq can import without prior approval from the Council sanctions committee. Despite being under continued UN monitoring and supervision, the deal provides leeway for Iraq to make decisions on how to spend the cash.

Key Takeaways:

  • The United Nations Security Council approved a six-month extension of the 'oil for food' program, allowing Iraq to spend its accumulated oil revenues on local projects.
  • A provision in the deal will release 600 million euros, or $525 million, to Iraq for repairing and maintaining its oil industry.
  • The agreement expands the list of goods that Iraq can import without prior approval from the Council sanctions committee.
  • The Council voted unanimously to expand the list of approved imports to include electrical equipment and housing supplies.
  • The deal does not include any sophisticated equipment or heavy machinery that could fall into the hands of the military.
  • Iraq has been accumulating billions of dollars in oil revenues since December 1996, with over $37 billion in oil sales.
  • $19 billion remains unspent, with $4.7 billion remaining unspent as of November 30.

Statistics:

  • $525 million released to Iraq for oil industry repairs and maintenance.
  • 600 million euros (approximately $525 million USD) to be spent locally on oil industry projects.
  • $37 billion in oil sales since December 1996.
  • $19 billion remaining unspent from oil revenues.
  • $4.7 billion remaining unspent as of November 30.

Sources:

  • The New York Times, November 09, 2000 (no date mentioned in source material).
  • various unnamed United Nations officials and Ambassadors mentioned in the text.

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