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Iraq says US and UK hinder oil-for-food deal

BAGHDAD: Iraq accused the United States and Britain on Sunday of frustrating a United Nations programme intended to ease human suffering under crippling sanctions.

"The United States and Britain, in committee, are still holding up and suspending contracts and have reduced this to a very tiny programme," Trade Minister Mohammed Mehdi Saleh told reporters.

Saleh said that under the oil-for-food programme, Iraq had exported $22 billion worth of crude but received commodities worth only $6 billion.

"In term of total allocation for Iraq during these three years, out of the $22 billion, $7.7 billion was taken or deducted immediately by the United Nations for its expenses or copensation," Saleh said.

Of $1.6 billion allowed oil income earmarked for medicines, only $700 million worth had been received, he said.

Iraq had assigned $1.8 billion for its war-damaged electricity system and $1.5 billion for its delapidated oil inductry but the power grid had received equipment and contracts worth only $200 million and oil only $186 million.

"This is why Iraq will not be able to maintain the same level of export. Iraq has reduced its production in oil and reduction will continue," the minister said.

The oil-for-food programme, which began in 1996, allows Iraq to use some oil revenues to buy food, medicine and other necessities to help offset the effects of the sanctions imposed for the 1990 invasion of Kuwait.

Iraq has often criticised the committee in charge of approving its contracts of blocking purchases of some materials.-Reuters