UNCC Pays $270m to Kuwait

On Tuesday, the United Nations Compensation Commission (UNCC) made available $270 million to the Governmentof the State of Kuwait towards the Commission’s remaining claim with an outstanding award balance.

The United Nations Compensation Commission was established in 1991 in accordance with Security Council resolutions 687 (1991) and 692 (1991) to process claims and pay compensation for losses and damages incurred by individuals, corporations, Governments and international organizations as a direct result of Iraq’s invasion and occupation of Kuwait (2 August 1990 to 2 March 1991).

The Commission received approximately 2.7 million claims and concluded its review of all claims in 2005.

Approximately $52.4 billionwas awarded to over 100 Governments and international organizationsfor distribution to 1.5 million claims in all claim categories.

Successful claims are paid from the United Nations Compensation Fund which receives a percentage of the proceeds generated by the export sales of Iraqi petroleum and petroleum products.

This amount was previously set at five per cent under Security Council resolution 1483 (2003), and reaffirmed in subsequent resolutions.

Pursuant to Governing Council decision 276 adopted in November 2017, the percentage was set at0.5 per cent for2018 and increased to 1.5 per cent in 2019.

This amount will increase to 3 per cent beginning in 2020 and remain at that level until such time as the outstanding compensation has beenpaid in full. Payments are made on a quarterly basis utilizing all available funds in the Compensation Fundunder Governing Council decision 267 (2009).

With today’s payment, the Commission has paid out $48.7 billion, leaving approximately $3.7 billion to be paid to the only claim with an outstanding award balance. This category E claim was submitted by the Government of the State of Kuwait on behalf of the Kuwait Petroleum Corporation and awarded $14.7 billion in 2000 for oil production and sales losses as a result of damages to Kuwait’s oil field assets.

It represents the largest award by the Commission.

(Source: UNCC)

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