An Indian oil official said on December 18th that an oil-for-wheat deal signed with Iraq in November would have to be approved by the U.N. under Article 50 of the U.N. charter.
The deal with India would provide 300,000 b/d of oil in exchange for services and goods, including wheat and rice, with the oil valued at $6.85 a barrel.
The oil official indicated that the trade deal would be separate from Indian purchases of 20,000 b/d of Iraqi oil currently allowed under the U.N.-administered oil-for-food program.
U.N. diplomats said that India has not yet submitted a request for a special waiver of the sanctions in place against Iraq since its 1990 invasion of Kuwait.
Article 50 of the U.N. charter allows countries that experience economic difficulties resulting from sanctions imposed by the U.N. or any other state to consult the Security Council with regard to a solution of those problems.
Jordan and Turkey are allowed to trade with Iraq under Article 50 arrangements because their industries have suffered as a result of the sanctions, but some Security Council members questioned whether India has suffered sufficient economic hardship as a result of the U.N. sanctions on Baghdad to be granted a reprieve. ]
One diplomat was quoted as saying that: “It seems ridiculous that India would make such a request.”
