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US circulates resolution to protect Iraqi assets

NEW YORK: The United States circulated a UN resolution that would protect Iraqi assets from seizure by governments, companies or individuals after the mandate for the US-led multinational force ends, UN diplomats said.

The draft resolution would extend for one year the arrangements under the UN mandate for the American-led multinational force in Iraq which expires Dec 31.

Similar legal protection under an executive order signed by President George W Bush expires in May, and Iraq is expected to seek an extension of that order as well. The UN resolution authorising the multinational force is being replaced by a new US-Iraq security pact which requires American forces to withdraw from Iraqi cities by June 30 and the entire country by Jan 1, 2012.

The draft resolution was sent to Security Council members late Thursday and is likely to be put to a vote early next week, US diplomats said.

Iraqi Foreign Minister Hoshyar Zebari said in an interview that he has spoken to council members and does not expect any opposition. He said a new resolution is "very important" to prevent Iraq's financial assets, oil shipments and property from being seized.

Revenues from Iraq's oil and natural gas exports, which account for at least 90 per cent of the country's income, are held in the Development Fund for Iraq set up in 2003. It has about USD 20 billion, from which the Iraqi government withdraws as required. The Iraqi central bank's foreign reserves, more than USD 40 billion, are in another fund.

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