Tag Archive | "Chapter VII"

Iraq Pays Another $1bn Compensation to Kuwait

The United Nations Compensation Commission has made available $1.03 billion to the Government of 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 billion was awarded to over 100 Governments and international organizations for distribution to 1.5 million claims in all claim categories.

Successful claims are paid from the United Nations Compensation Fund which receives five per cent of the proceeds generated by the export sales of Iraqi petroleum and petroleum products in accordance with Security Council resolution 1483 (2003), and reaffirmed in a number of subsequent resolutions, most recently under Security Council resolution 1956 (2010).

Pursuant to Governing Council decision 267 (2009), payments are made on a quarterly basis utilising all available funds in the Compensation Fund.

With this payment, the Commission has paid out $44.5 billion, leaving approximately $7.8 billion remaining to be paid to the only outstanding claim. 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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Ban Ki-moon Holds Talks in Baghdad

Prime Minister Nori al Maliki on January 13, 2014 chaired the official talks between the Iraqi government and the United Nations represented by its Secretary-General, Mr. Ban Ki-moon, with the presence of Foreign Minister Hoshyar Zebari, Minister of Human Rights and the Acting Ministers of Defense.

The Prime Minister praised the role that the United Nations plays through its mission in Iraq (UNAMI), and the evolution of the relationship between Iraq and the international organization , especially after getting rid of the international resolutions’ legacy that were imposed on Iraq under Chapter VII and the normalization of relations with Kuwait .

The Prime Minister thanked the Secretary- General for his efforts with the friendly countries in the Security Council to issue a presidential statement supporting the Iraqi government in the fight against terrorism , and urging Iraq to take a firm stand against terrorism .

The two sides discussed developments in the regional situation and praised efforts of Mr. Ban Ki-Moon and the joint envoy to hold Geneva 2 peace conference, through a political solution to end the humanitarian suffering experienced by the Syrian people and the security risks of this crisis on the neighboring countries.

At the end of the meeting, the two sides held a press conference in which the briefed results of the talks.

Worth mentioning that Mr. Ban Ki-Moon held several meetings with his Excellency the Vice-President , Dr. Khodaier al Khozaie and the Iraqi Parliament Speaker Osama al Nojaifi , who praised the role of the Secretary- General supporting the political process in Iraq .

The Minister of Foreign Affairs held a dinner banquet in honor of His Excellency the Secretary General and the accompanying delegation, through which they discussed Iraq’s relations with the international organization and efforts of the UN mission in Iraq (UNAMI).

(Source: MoFA)

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Iraq in 2014 …

By Padraig O’Hannelly.

As we start another year, the focus of media attention has been, understandably, on Iraq’s increasingly difficult security situation. But as always, there is more to the story.

For example, professional services firm PwC has said its Iraqi business has grown by 30 percent over the past year; the government has just approved a $256-million deal with Dutch shipbuilder Kuipers, and; the World Bank has approved a $335-million road fund.

As Mark Bryson-Richardson, British Charge d’Affaires in Iraq, told the Press Association:

Iraq has experienced momentous change over the past 10 years … [it] has moved out of Chapter VII of the UN Charter and has one of the world’s fastest-growing economies, with a growth rate of 8.4 percent.

“On a day-to-day basis, Iraqis are seeing a more open media, have access to more goods and services, and are engaging in a public debate about the future of their country.

Baroness Nicholson, of the Iraq Britain Business Council (IBBC), said:

Iraq is not in a settled neighbourhood but it’s doing very well. There are many safe areas where you can do business, and one or two hotspots that I’d advise you not to go to. It’s a question of knowing the territory.

And knowing the territory, in every sense, is the key to success in Iraq. As the coming year will see fresh parliamentary elections, further developments in the dispute over oil exports from Iraqi Kurdistan, along with a raft of new contracts, our team at Iraq Business News will continue to keep you briefed on the lie of the land.

With another challenging but potentially rewarding year to come, we at Iraq Business News wish all Iraqis at home and abroad a happy, peaceful and prosperous 2014.

(Flag image via Shutterstock)

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Australian Bank had Talks with Iraq, Despite UN Sanctions

By John Lee.

ABC and Fairfax Media report that Note Printing Australia, which is owned by the Reserve Bank of Australia, tried to do business with the Saddam Hussein regime despite UN sanctions.

Company officials are said to have visited Iraq in 1998, during the UN sanctions, to discuss a contract to replace the country’s paper currency with polymer banknotes.

During the trip, codenamed Delta Project, they met a middleman, Hussein’s brother-in-law and bodyguard Arshad Yassin, who confirmed that Hussein had seen samples of the banknotes and was keen to adopt them. Iraq allocated $US65 million for the project.

Two RBA banknote firms, NPA and Securency, face criminal charges for allegedly paying kickbacks to win contracts overseas.

(Source: The Guardian)

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Iraqi-Kuwaiti Talks in New York

By John Lee.

Vice-President of the Republic Dr. Khudair Alkhozai and the Minister of Foreign Affairs Mr. Hoshyar Zebari met His Highness Prime Minister of the State of Kuwait the Amir Sheikh Sabah Al-Ahmad Al-Sabah and Kuwaiti Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah on the sidelines of the sixty-eighth session of the General Assembly on 24 September 2013.

During the meeting, they reviewed the brotherly relations between the two countries in the light of the withdrawal of Iraq from the provisions of Chapter VII of the Charter of the United Nations and the activation of joint committees between the two countries based on the decisions of the Joint Ministerial Committee.

The two sides expressed their willingness to develop economic and trade cooperation and investment for the common interests and overcome the obstacles that stand in the way of cooperation, and agreed that the problems suffered by the countries became part of the past and the efforts of the two countries and the two peoples and what they have of bounties and wealth should be concentrated on the present and the future for the welfare and well-being of future generations, in a form which is reflected positively on the security, stability and sustainable development in the region as a whole.

(Source: MoFA)

Posted in Industry & TradeComments (3)

Foreign Minister Discusses Chapter VII with UN

Foreign Minister Hoshyar Zebari has discussed Iraq’s relations with the United Nations and its assistance mission in Iraq (UNAMI) with Deputy Secretary-General for Political Affairs, Jeffrey Feltman.

During the meeting, the two sides discussed the UNAMI activities in Iraq and the Iraqi government’s keenness on facilitating UNAMI’s work.

The Minister expressed the government’s appreciation for the support of the UN General Secretariat’s efforts to exit Iraq from the provisions of Chapter VII and Iraq’s fulfillment of all its international obligations.

They also discussed the latest regional and international developments and the diplomatic efforts aiming at holding the Geneva 2 conference for peace in Syria and the upcoming nuclear talks between the Security Council and Germany on one hand and Iran on the other hand.

The Minister welcomed at the end of the meeting, the designation of Nikolai Meladonov as the Special Representative of the UN Secretary General on top of the UNAMI in Iraq.

(Source: MoFA)

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Dialogue on Contentious Oil Issues in Iraq

By Ahmed Mousa Jiyad.

Mr Jiyad is an independent development consultant, scholar and Associate with Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: [email protected], Skype ID: Ahmed Mousa Jiyad).

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The first independent newspaper in Kurdistan-Iraq, Hawlati, e-interviewed me on mid-July. The Q&A is in English then translated into Kurdish and the edited text was published in two parts: numbers 1104 and 1105 dated 23 and 24 July 2013, and their “Pdf” files are available upon request.

The dialogue covers nine intriguing issues mostly focusing, as expected, on the contentious oil maters between the federal and KR governments. Hawlati’ contact person and the Editor had assured me the edited translated text reflects the essence of my answers. May I take this opportunity to sincerely thank Aland Mahwi, Fazil Hawrami and the Editorial staff of Hawlati for their good work and for taking the initiative.

The following provides full text of the questions and my answers.

1: As you are aware, on 27 June, the UN Security Council removed Iraq from the Chapter 7 and now Iraq is preparing the energy strategy (2013-2030), after these important changes where is Iraq heading?

AMJ answer on Q1:

Though the two issues are not connected except in timing (both occurred in June 2013) they will likely have serious impacts on the future of Iraq if proper policies are adopted and implemented. The removal of Iraq from Chapter 7 simply restored full sovereignty to the country. This by itself will surely have significant ramifications from diplomatic, political, economic, legal and financial perspectives, among others.

By exiting Chapter 7 Iraq will be freed from the direct and indirect impacts of so many restrictions imposed by UNSC decisions and those imposed unilaterally by other countries, organizations, entities, companies, financial institutions and alike. Accordingly, international trade activities-export and imports-; international service activities; insurance premiums- on individuals, business and frights-; the country’s risk and credit ratings; financial charges-interest rates and various back charges and fees- all will be impacted by lowering the cost of such activities for Iraq.

The most immediate consequences for Iraq will be the orderly end of the requirements to despite oil export revenues in the Development Fund for Iraq-DFI account at the Federal Reserve Bank of New York- FRBNY. This matter entails reactivating and improving the Iraqi operational procedures and functioning modalities pertaining to oil export revenues that existed prior to the imposition of Chapter 7, involving the related Iraqi entities such as the federal Ministry of Oil including SOMO, the Central Bank of Iraq-CBI, the federal Ministry of Finance, and the Iraqi banks, as the case may require.

As for the second issue of the Integrated National Energy Strategy-INES, this is the first ever, most thoroughly researched and well-articulated study on Iraqi energy sector. The preparation and consultation process for INES lasted more than 18 months involve holding 40 workshops and more than 150 interviews, including several senior officials from Region of Kurdistan.

INES describes the current challenges facing and the opportunities presented by Iraq’s energy resources. Its scope includes all the major components of Iraq’s energy sector: upstream and downstream oil, natural gas, power, and linked industries, with time horizon extends to 2030.

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What will Chapter VII Mean for You?

As was widely anticipated, the United Nations Security Council unanimously agreed last week to move several outstanding issues between Iraq and Kuwait from Chapter VII to Chapter VI of the UN Charter.

This effective normalisation of relations between Iraq and Kuwait has been broadly welcomed, with statements from US Secretary of State John Kerry and UK Minister for the Middle East Alistair Burt, among others; the removal of the sanctions is seen as a major step forward for Iraq.

But what does this mean in practical terms for the business community, and to what extent will it ease trade and facilitate development? If your business will be affected by this development, directly or indirectly, please let us know in the Comments section below.

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