US warns companies against breaking sanction with Iraqi on oil
Iraq-USA, Economics, 12/14/2000

The US on Tuesday told oil companies that it expects these companies to refuse Iraq's attempts to make these companies violate the UN sanctions by paying extra fees at an account outside the control of the UN.

A statement read by the representative of the foreign ministry Charles Hunter said that the companies which buys oil in the world markets realize that the interest is focussed on oil industry and the importance of making the activities in a completely legal frame. He added " We do expect companies to refuse the latest attempt made by the Iraqi side to frighten them."

The statement added that the US has concerns over the Iraqi attempts to make its clients violate UN Security Council resolution by paying the extra price, noting that this will deprive the Iraqi people the sums they receive through the oil for food program.

The statement stressed that the UN sanctions committee unanimously refused this matter, noting that Iraq's attempt to blackmail the international community have actually caused losses for the Iraqi people estimated at hundreds millions of US dollars of the missed oil sales.

The statement, however, did not indicated the measures to be taken by the US against the companies which pay the " extra fees." A matter which will weaken the sanctions.

Iraq had suspended its oil sales estimated at 2.3 million barrels every day on December 1st after the buyers refused to pay " extra fees" estimated at 40 US cents for every barrel and for its part refused prices proposed by Iraq for its oil for December which was less than the level of the market in order to compensate for the " extra fees."

Worthy mentioning that this price dispute was settled on Friday. A matter which has seemed to pave the way before resuming the Iraqi oil sales. However, the Iraqi repeated demands of the " extra fees" has postponed the resumption of exports.

Previous Stories:
  Iraq stops deliveries of crude to India   (12/13/2000)
  Iraq's suspension of oil exports continues, UN says   (12/13/2000)
  Iraq agrees to extend the oil for food agreement   (12/12/2000)

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