|
Iraq Agrees To Resume Crude Exports Under U.N. Oil-For-Food Deal
by Farouk Choukri
BAGHDAD (AFP) - Iraq has accepted the renewal of the U.N. oil-for-food accord for another six months, clearing the way for a resumption of crude exports suspended since December 1st, the official news agency INA announced Monday.
"Iraq agrees to the renewal of the humanitarian program for a period of six months," Foreign Minister Mohammad Said al-Sahhaf wrote in a message to U.N. Secretary General Kofi Annan, INA reported.
The program launched in December 1996 allows sanctions-hit Iraq to export crude in six monthly phases to finance imports of essential goods for its 22 million population.
The eighth phase of the program ran out last week but liftings were suspended on December 1st in a dispute over a pricing formula for Iraqi exports. The United Nations said Friday that its oil overseers had resolved the dispute after the Security Council approved a renewal on December 5th.
Sahhaf, in his message, kept up Iraq's criticism of the program.
"It is clear that the countries which exercise hegemony over the Security Council are behaving as if the oil-for-food program were an alternative to the lifting of sanctions," in force since Iraq's 1990 invasion of Kuwait, he said.
He slammed as "negative and unbalanced" the latest renewal until June 2001 under Security Council resolution 1330.
Iraq decided to go ahead with the program to "avoid any misinterpretation of its position as not being positive and to uncover the ill intentions of certain parties," the foreign minister said.
Sahhaf was referring to the United States and Britain, which are strongly opposed to Iraqi efforts to take control of its oil revenues.
In resolution 1330, the Security Council agreed in principle to release up to 600 million euros ($540 million) of the income in cash from a U.N.-controlled escrow account to train and pay maintenance workers in Iraq's oil industry.
The resolution also improved the U.N.'s vetting procedures to speed up the delivery of supplies.
In another modification, the Security Council formalized an earlier decision to reduce from 30% to 25% the proportion of oil revenues that go into a compensation fund for victims of the invasion of Kuwait.
With the agreement on the ninth phase of the program, liftings on Iraqi crude could now start immediately, said the Middle East Economic Survey (MEES), adding that five tankers were waiting at the Gulf port of Mina al-Bakr.
It also reported Monday that although the United Nations rejected Iraq's original pricing formula that allowed for a $0.50 per barrel surcharge, Baghdad would continue to benefit from unofficial payments.
Several companies discreetly started in October and November to pay at least $0.10 cents per barrel directly to Iraq, outside the escrow account, according to the industry newsletter.
"It is expected that the $0.10-$0.25 cents a barrel premium that was charged before the latest crisis will continue and this has already been factored in by the companies," said MEES.
It also said Baghdad was set to continue U.S.-bound exports through third parties, despite a threat to blacklist companies that supply Iraqi crude to its enemies under the U.N. program.
Iraqi oil exports to Syria outside the program started on November 20th, according to MEES.
|
