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3 Oct 2014

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GULF WAR - 10 years on
SANCTIONS
Splits in the UN Security Council over sanctions on Iraq have become increasingly evident in recent months. The US and Britain advocate a tough line, but will find it difficult to justify renewed strikes on Iraq, with Russia and France pushing for a more relaxed policy. French, Russian and Chinese oil companies have all concluded deals with Iraq that would allow the companies to exploit Iraqi oil fields once UN sanctions have been lifted.

The UN-imposed economic sanctions on Iraq in August 1990, soon after the invasion of Kuwait. In April 1995 the UN passed Resolution 986, which allowed "oil-for-food" sales, which are governed by stringent restrictions (see below). Full economic sanctions will not be lifted until the UN is satisfied that Iraq's weapons of mass destruction have been destroyed.

The UN sanctions affect nearly every sphere of economic activity. Huge increases in the costs of basic foodstuffs and the collapse of the Iraqi dinar have resulted in unrest, particularly following the decision in September 1994 to halve the basic ration issued to all Iraqis.

Oil for food
Iraq delayed approval of the oil-for-food programme until January 1996 and the programme was launched in December of that year. Under this agreement, Iraq could sell limited amounts of oil to buy food and medicine. Two thirds of the revenue raised by the sale of oil went towards buying food and medicine. The other third paid for both the United Nations weapons inspections by UNSCOM and to reparations payments to Kuwait.

Iraq could initially sell $2 billion worth of oil every six months. In February 1999 the UN Security Council approved a deal to increase oil sales to as much as $5.2 billion each six months. This would mean that $3.6bn should be set aside to buy food and medicine. This has been replaced by Security Council resolution 1284 of December 1999 which allows Iraq to sell unlimited amounts of oil to buy food and humanitarian goods. Iraq has long claimed it cannot export the amount of oil it is allowed to because its infrastructure was destroyed by the Gulf War.

The oil-for-food plan has to be re-approved every six months. In November 1999 the UN extended the oil-for-food programme for two weeks (instead of the usual 6 months). Iraq responded to the short extension by halting its oil exports - resulting in another hike in the already high oil prices around the globe. In December the UN Security Council approved a new six month extension of the programme. Iraq has now begun exporting oil again. The oil-for-food programme received its latest six month extension in June 2000.

The oil for food programme has come up against significant problems: it does not cover the needs of the Iraqi people; distribution of humanitarian supplies has been uneven; and humanitarian supplies tend to arrive late or in incorrect quantities. The UN estimates that at least one third of Iraq鈥檚 under five year olds are malnourished, leading to stunted growth.


Gulf War Report - Part 1, Gulf War 10 years On
Gulf War Report - Part 2, Iraq's Empty Promises
Gulf War Report - Part 3, Saddam still in Power
Gulf War Report - Part 5, Control of the Skies
Gulf War Report - Part 6, Arms Inspections
Gulf War Report - Part 7, Depleted Uranium - Special Report by Barbara Plett & Links




Iraqi Oil Tanker



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