UN, Iraq reach accord to extend memorandum on oil-for-food programme

The United Nations and Iraq today extended the Memorandum of Understanding (MOU) governing the "oil-for-food" programme which allows Baghdad to sell its petroleum and use a portion of the proceeds to purchase humanitarian relief goods.

The extension was formalized, as has been the practice for each phase of the programme, through an exchange of letters between Baghdad and the UN. The latest extension covers the entire 150-day current phase of the programme, which was renewed by the Security Council last week.

Comprised of 10 sections and two annexes, the MOU aims to ensure the effective implementation of the oil-for-food programme. It obliges the Iraqi Government to guarantee the equitable distribution of humanitarian supplies throughout the country and outlines observation procedures to confirm compliance. Annex I covers the programme's implementation in the governates of Erbil, Dohouk and Suleimaniyeh. Annex II deals with the contractual procedures for the sale of Iraqi oil.

According to the Office of the Iraq Programme, which oversees the UN relief effort in the country, there have been no Iraqi oil exports since 4 June.