Iraq to freeze oil exports

by The Associated Press

Iraq will not resume oil exports under the U.N. oil-for-food program as long as a British-U.S. proposal to overhaul U.N. sanctions is under consideration, the Iraqi trade minister said June 16.

Iraq suspended oil exports of about 2.2 million barrels per day on June 5 to protest a one-month extension of the oil-for-food program, made to give Britain and the United States time to work on their proposal.

Trade Minister Mohammed Mehdi Saleh said exports would not resume as long as the U.S.-British changes to the memorandum governing the oil-for-food program were being considered.

Under the oil-for-food program, Iraq is allowed to sell oil provided the money goes for food, medicines and other humanitarian supplies and equipment to rebuild its frayed oil infrastructure. The U.S.-British proposal involves changes to the program to ease restrictions on civilian goods entering Iraq while toughening the embargo on military-related items. Iraq says all sanctions should be lifted.

The sanctions on Iraq were imposed after its 1990 invasion of Kuwait. Iraq insists that all sanctions should be lifted.