Proposal for a Council Regulation amending Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and financial relations with Iraq
Date: 2004-07-15
Institutions: European Commission
Subjects: EU relations, Iraq, UN resolution, petroleum, petroleum product, trading operation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.7.2004 
COM(2004) 502 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1210/2003 concerning certain specific restrictions on 
economic and financial relations with Iraq 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

On  22  May  2003,  the  United  Nations  Security  Council  adopted  Resolution 
1483(2003),  which  provides,  inter  alia,  that  certain  immunities  should  be  granted  to 
petroleum, petroleum products and natural gas exported by Iraq, the proceeds of such 
export  sales  and  the  Development  Fund  for  Iraq.  This  point  of  the  Resolution  was 
implemented by means of Common Position 2003/495/CFSP and Council Regulation 
(EC) No 1210/2003. 

At  the  time  only  one  exception  to  these  immunities  was  made.  It  concerns  Iraq’s 
liability  for  damages  as  assessed  in  connection  with  ecological  accidents.  On  8  June 
2004, the Security Council adopted Resolution 1546(2004) which provides that these 
immunities  should  cease  to  apply  to  final  judgments  arising  out  of  contractual 
obligations entered into by Iraq after 30 June 2004. 

to  Common  Position  2004/…/CFSP  amending  Common  Position 
Pursuant 
2003/495/CFSP, the Commission proposes to amend Regulation (EC) No 1210/2003 
in order to add this exception pertaining to new contractual obligations of Iraq. As a 
result,  litigation  and  enforcement  actions  in  relation  to  such  contractual  obligations 
shall  be  subject  to  the  immunities  of  that  Regulation  only  to  the  extent  that  such 
execution or enforcement would affect funds and economic resources frozen pursuant 
to Article 4 of that Regulation. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1210/2003 concerning certain specific restrictions on 
economic and financial relations with Iraq 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
60 and 301 thereof, 

Having 
regard 
2003/495/CFSP on Iraq,2 

to  Common  Position  2004/…/CFSP1  amending  Common  Position 

Having regard to the proposal from the Commission,3 

Whereas: 

(1) 

(2) 

In line with Resolution 1483(2003) of the UN Security Council, Regulation (EC) No 
1210/20034  grants  certain  immunities  from  legal  proceedings  and  enforcement 
measures to certain Iraqi funds and commodities which will apply until 31 December 
2007. 

Resolution  1546(2004)  of  the  UN  Security  Council  provides  that  the  immunities 
applicable  to  Iraq’s  export  of  petroleum  and  to  the  Development  Fund  for  Iraq  shall 
not apply to final judgments arising out of contractual obligations entered into by Iraq 
after  30  June  2004.  It  is  implicit  that  these  immunities  should  not  prevent  legal 
proceedings to obtain such judgments. 

(3) 

Common  Position  2004/…/CFSP  amends  the  corresponding  provision  of  Common 
Position 2003/495/CFSP on Iraq to bring it in line with Resolution 1546(2004).  

(4) 

Regulation (EC) No 1210/2003 should be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

1 
2 
3 
4 

OJ L …, p. … 
OJ L 169, 8.7.2003, p. 72. 
OJ C , , p. . 
OJ L 169, 8.7.2003, p. 6. Regulation as last amended by Commission Regulation (EC) No 1086/2004 
(OJ L 207, 10.6.2004, p. 10). 

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Article 1 

The following paragraph is added to Article 10 of Regulation (EC) No 1210/2003: 

“3. 
Paragraph 1 shall not apply to legal proceedings concerning any contractual obligation 
entered into by Iraq, including in particular its Interim Government, the Central Bank of Iraq 
and the Development Fund for Iraq, after 30 June 2004.  

With  respect  to  the  execution  or  enforcement  of  a  final  judicial,  administrative  or  arbitral 
judgment  arising  out  of  a  contractual  obligation  entered  into  by  Iraq  after  the  said  date, 
paragraph  1  shall  apply  only  to  the  extent  that  such  execution  or  enforcement  would  affect 
funds and economic resources frozen pursuant to Article 4.” 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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