21 November 2017
The Governing Council of the United Nations Compensation Commission held a special session today to consider options to ensure the resolution of the $4.6 billion that remains to be paid to the Commission’s only outstanding claim award.
In light of Iraq’s extraordinarily difficult security circumstances and the unusual budgetary challenges associated with confronting this issue, the Governing Council has postponed Iraq's obligation to deposit five per cent of the proceeds generated by the export sales of Iraqi petroleum and petroleum products into the Commission's Compensation Fund since October 2014, and as a result, no compensation payments towards the outstanding claim award have been made since that time.
The Governing Council welcomed receipt of a proposal for deposits to resume into the Compensation Fund in 2018 put forward by the Government of Iraq and accepted by the Government of Kuwait. The Council adopted decision 276 (2017) which provides for 0.5 per cent of oil proceeds to be deposited into the Compensation Fund in 2018, with yearly escalating percentages through to the end of 2021. Based on oil price and export projections, this would result in payment in full of the outstanding claim award and the conclusion of the Commission’s mandate.
Further information about the Commission can be found on the United Nations Compensation Commission website located at www.uncc.ch.
For use of the information media; not an official record