A drop in Iraqi oil exports since the end of last year has caused revenue losses totaling over $2.2 billion for the United Nations oil-for-food programme, the UN office overseeing the effort announced today.
The Office of the Iraq Programme warned that if this trend continued, revenue generated in the current phase of the programme, which allows Baghdad to use part of its oil earnings to purchase humanitarian relief, could be around $3.5 billion.
That is over $2 billion less than the $5.7 billion which could be earned if export levels return to normal. The export of Iraqi oil picked up slightly last week, in what the Office called a "modest increase."
Baghdad exported 12.2 million barrels for earnings of €267 million (euros), compared with 10.8 million barrels of crude for €254 million (euros).
Ten new oil purchase contracts were approved by the Security Council committee monitoring the sanctions against Iraq. The total number of approved contracts now stands at 113, covering over 303 million barrels of oil.
The number of contracts for humanitarian relief supplies put on hold by the committee continued to rise over the past week.
Holds were put on 36 new contracts worth $128.1 million for different types of trucks, cranes, water tankers and excavators.
During the same period, 24 contracts worth $65.6 million were released from hold. Those contracts were for an irrigation system, water treatment supplies and spare parts for pumps.
Over $3.35 billion worth of contracts is now on hold, according to the Office of the Iraq Programme.
Contracts are generally put on hold because they lack technical specifications or because the goods in question have the potential to be used for purposes other than those stated.
© 2001 Mena Report (www.menareport.com)
