Iraqi Oil Revenues Free From Claims Through 2009

Two months after the US-led invasion that toppled Saddam in 2003, Iraq's oil and gas proceeds were put into a development fund for the country. An international board monitors the fund, now held in Baghdad.

The Security Council ruled at the time that the proceeds would be immune from seizure under legal claims. Iraq is still laden with debts and claims inherited from Saddam, notably from Kuwait, which the former Iraqi leader invaded in 1990.

Since then, the immunity has been renewed as part of an annual resolution to authorise foreign forces in Iraq. That authority lapses on Dec. 31 and is being replaced by bilateral accords between Iraq and individual countries, so this year's resolution was confined to the energy revenues issue.

"We need the assurances that Iraq's resources and financial assets are available for the country's recovery program," Foreign Minister Hoshiyar Zebari told the council.

"Without such assurances, the functioning of the Iraqi government and the current stability could be seriously endangered."

But he said Iraq, which sits on the world's third-largest oil reserves, was "fully committed to the resolution of all legitimate claims", in particular settlements stemming from the invasion of Kuwait.

US Ambassador Zalmay Khalilzad said the extension, which lasts until the end of 2009, would give the Iraqis time to work on plans for dealing with claims.

The council also decided to review its resolutions on Iraq beginning in 1990, some of them imposing sanctions on the Saddam government.

The council asked UN Secretary-General Ban Ki-moon to consult with Iraq on the issue and report back.

Author: Ksenia Kochneva