BRIEFING BY FRED ECKHARD
SPOKESMAN

United Nations
Office of the Spokesperson
for the Secretary-General

9 April 2002

Excerpts

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**Iraq ‘Oil-for-Food’ Programme

In its weekly update, the Office of the Iraq Programme says that the implementation of the “oil-for-food” programme has been facing increasing financial difficulties due to the substantial drop in revenues received from Iraqi oil exports under the programme.  The distribution plan for the current phase, which is phase eleven, submitted by the Government of Iraq and approved by the Secretary-General, was budgeted at $4.6 billion.  As at 8 April, the total volume of oil loaded was 202.8 million barrels, with an estimated revenue of $3.9 billion, at current prices.

Until the decision taken by Iraq to suspend oil exports for a period of 30 days, effective 8 April, it was estimated that the total oil revenues received from the export of oil under the programme would be $5.5 billion during this phase.  As you know, 72 per cent of the revenues goes to the humanitarian programme, with the rest going to the compensation commission, the UN Monitoring, Verification and Inspection Commission (UNMOVIC), and others. 

It is estimated that the decision to halt exports will reduce the total revenues received by some $1.3 billion during phase eleven, which ends 29 May.  It’s now estimated that the total revenue for phase eleven will be $4.2 billion, which would provide an estimated $3 billion to the humanitarian programme.  That shortfall, which is some $1.6 billion, is compounded by leftover contracts from previous phases, valued at an additional $2 billion.  Hope you’re following this, but about $1.8 billion was still available in the United Nations Iraq Account, which, however, has been put aside for the purchase of oil spare parts and humanitarian supplies, under special allocation aimed at addressing the needs of especially vulnerable groups.  I think we’ll have to call in Hasmik Egian of the Iraq Programme Office to explain this to you.  The full report is available upstairs.

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      **Questions and Answers

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Question:  Does the Secretary-General have any response to Iraq’s announcement about an oil embargo and what impact it might possibly have on his upcoming meeting with Iraqi Foreign Minister Haji Sabri?

Spokesman:  No, he hasn’t said anything about that, to my knowledge, and I hope there would not be an impact on the political discussions that we’re expecting to resume here on 18 April.

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Question:  Has there been any check to see if Foreign Minister Sabri is still coming?

Spokesman:  We have not had any indications to the contrary.

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