WRITTEN QUESTION E-0875/00

by Lucio Manisco (GUE/NGL) to the Commission

(22 March 2000)

Subject: Embargo against Iraq and the price of oil

In the last 12 months the price of refined petroleum products in Europe has risen sharply (by 21 % in Italy) and in the last few days the price of crude oil on the New York stock exchange rose to more than USD 32 a barrel. This worrying rise in the price of fuel and petroleum by-products is solely due to reductions in the amount put onto the market by the OPEC countries.

At the same time we are witnessing the suffering caused in Iraq by an embargo which continues to penalise the weakest sections of the population (the World Health Organisation announced back in 1996 that the sanctions had directly caused the deaths of more than one million people, including half a million children).

Does the Commission not consider that an embargo which penalises only the weakest sections of the population is a violation of the most basic human rights?

Does the Commission not consider that it must take steps to persuade the United Nations to review the embargo against Iraq as a matter of urgency?

Does it not consider that if Iraq resumes marketing crude oil the OPEC countries may revise their intransigent position?

Answer given by Mr Patten on behalf of the Commission

(10 May 2000)

In order to soften the impact on ordinary Iraqi citizens of the sanction regime imposed on their country since 1990, the Community as the major donor of humanitarian assistance has provided 250 million during the 1991-1999 period. Several Member States have also provided large aid contributions within bilateral frameworks.

With the oil-for-food facility in place in 1997, humanitarian needs were expected to be met without resource to outside assistance. However, largely due to a lack of cooperation from the Iraqi authorities, the implementation of this facility has been slow. It cannot compensate for the erosion of the country's basic infrastructures and the subsequent worsening of the economic and humanitarian situation, which in particular is affecting the most vulnerable segment of the population. Up to now, only about a quarter of the funds from the facility has been effectively allocated to humanitarian assistance reaching the final beneficiaries.

The humanitarian relief provided either by donors or through the oil-for-food facility can at best only off-set for a short term some of the worst effects of the breakdown of the Iraqi economy including food production and supply. An economic recovery and long term reconstruction can only come about after an end to the embargo, but this requires the full and constructive cooperation of the Iraqi authorities with the United Nations (UN).

By UN Security Council Resolution No 1284, UN Member States have proposed to lift the sanctions, subject to reinstating a monitoring and controlling mechanism. Iraq has unfortunately so far not accepted the resolution, but neither has it officially rejected it. The Commission fully supports efforts which may engage the Iraqi government in a dialogue on the implementation of the resolution and the subsequent lifting of the sanctions.

The high oil prices during the last year have increased the revenues under the oil-for-food facility. As a consequence, the Iraqi oil income might exceed the ceiling established by the UN for oil-for-food arrangement. If the sanctions and as a result the ceiling are lifted, the level of Iraqi oil production will be determined by the capacity of its oil production infrastructure. This is in a dire state due to years of maintenance neglect and will limit any significant increase of the production output in the short-term, since rehabilitation works will take years.