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UN Security Council to Renew Iraq Oil-for-Food Program
The United Nations Security Council has prepared to renew for another period of six months the oil-for-food program for Iraq, a UN diplomat said Tuesday, December 5.
Despite Iraq's suspension of oil exports Friday, the Security Council is expected to take action on a draft resolution which will extend the oil-for-food program, the diplomat said.
The resolution is being under negotiation and is expected to be adopted late Tuesday, the diplomat added.
The current phase of the oil-for-food program expires at midnight of December 5.
The oil-for-food program, which began in late 1996, allows Iraq to sell oil under UN supervision to buy food, medicine, oil spare parts and a host of other goods in an effort to ease the impact of the UN sanctions.
The United Nations imposed stringent sanctions on Iraq after its invasion of Kuwait in 1990. The sanctions cannot be lifted until Iraq is clarified to be free from weapons of mass destruction.
Iraq halted oil exports Friday after it failed to get an agreement on the pricing formula of oil exports for December. The United Nations sanctions committee on Iraq last week rejected Iraq 's proposed pricing formula, saying that it did not reflect a fair market value.
Iraq had proposed the lower prices to compensate buyers of its oil for a surcharge of 50 US cents a barrel and wanted the funds paid directly into its account not controlled by the United Nations.
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