Iraq Agrees to Extend Oil-for-Food Program with the United Nations

Iraq has officially agreed to extend the United Nations' oil-for-food program for another six months, according to UN officials. The Iraqi government has accepted this agreement in light of new economic sanctions against Iraq that were approved by the UN Security Council earlier this month. The new sanctions allow Iraq to export a greater amount of non-military goods, while permitting Security Council members to block the export of items that could have military applications. The oil-for-food program allows Iraq to sell its oil in exchange for food, medicine, and other humanitarian supplies. The UN oversees this program and deposits the relevant funds into an escrow account. Benon Sevan, a UN official responsible for the oil-for-food program, warned on Wednesday that the funds related to this program currently have a shortfall of $2 billion. He cited two reasons for the revenue shortfall: first, Iraq's decision to halt oil exports for a month in April, and second, a disagreement between Iraq, the United States, and Britain regarding oil pricing policy. Mr. Sevan stated that the pricing dispute led Iraq to export 500 million barrels less oil per day. Iraq halted its oil exports last April in protest against Israel's aggression in the Palestinian-controlled territories of the West Bank.