By the OGJ Online Staff
WASHINGTON, DC, Nov. 28 -- US officials Wednesday are expected to endorse a United Nations' Security Council proposal to maintain the Iraq oil-for-aid program for another 6 months.
Sources said the US still wants changes in the humanitarian program, but it could be several months before agreement can be reached on an alternative (OGJ Online, Nov. 7, 2001.)
First proposed last summer, the US plan would have relaxed some economic embargos against Iraq only if the UN were allowed to perform more rigorous weapons inspections and restrict military equipment imports.
The current aid plan will likely be extended on Nov. 30, with US diplomats expected to agree to roll over the aid package for another 6 months as negotiations continue. Earlier in the week the US sought to extend the aid program for only a few months but did not win enough support from other council members to pursue that option formally.
Last July, the UN extended the aid program for 5 months following a month-long impasse with Iraq and Russia over the US sanction plan. During that time Iraq refused to sell its 2 million b/d export quota until the US withdrew the sanctions proposal. About 1 million b/d reaches US markets. But given today's depressed oil market, Iraq leverage is questionable if it chooses to again suspend exports. Iraq officials say they will not accept any attempt to revise the current sanctions program.
Meanwhile the US continues to actively seek Russia's support for its new sanction policy, but it remains unclear when or if Moscow will change its mind. The lobbying campaign is expected to continue, despite the US relying on Russia's support for its military campaign against the Taliban in Afghanistan. US officials say they do not plan any major changes to the sanctions reform deal first offered in July, but analysts said some technical revisions may still be in the works.
Another policy alternative being contemplated by the White House is to consider escalating military action. US warplanes struck an air defense target in southern Iraq Tuesday, the first bombing in the region in a month.
