Iraq Reportedly Wants Illegal Surcharge on Oil Exports
Iraq on Monday reportedly applied the brakes on the resumption of oil sales under the United Nations’ oil-for-food program by insisting on an illegal surcharge.
Baghdad told customers they would have to make a payment--40 cents a barrel above the prices agreed to with the United Nations last week--directly to an Iraqi bank account, industry sources said.
Under the U.N. humanitarian program, buyers make payments straight to a U.N. escrow account. Iraq wants to regain some direct control over the revenues.
A U.N. diplomat said such a surcharge would be a violation of sanctions imposed against Iraq when the country invaded Kuwait in 1990.
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