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Tenth report of the Secretary-General about the United Nations Compensation Fund that Iraq is required to supply

United Nations
Security Council


Distr.: General
14 June 2016
Original: English

Tenth report of the Secretary-General pursuant to paragraph 6 of resolution 1956 (2010)

I. Introduction

1. The present report is submitted pursuant to paragraph 6 of Security Council resolution 1956 (2010), in which the Council requested me to provide written reports on an ongoing basis to the Council every six months about the United Nations Compensation Fund, with effect from 1 January 2012, evaluating the continued compliance with the provisions of paragraph 21 of resolution 1483 (2003), which requires Iraq to deposit 5 per cent of the proceeds from export sales of petroleum, petroleum products and natural gas into the Fund. The present tenth report covers the developments following the issuance of my ninth report (S/2015/937) on 7 December 2015.

II. Developments

2. The overall amount of compensation paid to date by the United Nations Compensation Commission stands at $47.8 billion, leaving approximately $4.6 billion outstanding to be paid to Kuwait to settle the last remaining claim.

3. As indicated in my previous report, at the eightieth session of the Governing Council of the Commission, held on 28 October 2015, the Council considered a request from the Government of Iraq for an additional one -year postponement of its deposit requirements. Recognizing that the extraordinarily difficult security circumstances in Iraq and the unusual budgetary challenges associated therewith had continued since its adoption of decision 272 (2014), the Council adopted decision 273 (2015), by which it granted the further one-year postponement. In adopting the decision, the Council welcomed the support of the Government of Kuwait for the Iraqi request and noted with appreciation the continued commitment of Iraq to complying with its obligations under resolution 1956 (2010). The Council also emphasized that it was important for Iraq to fulfil its obligations and complete the payment of the outstanding compensation in a timely manner, and stressed the importance of the integrity of the Commission and bringing its mandate to a conclusion.

4. Pursuant to that decision, the Government of Iraq is to resume deposits on 1 January 2017 and advise the Governing Council in writing, no later than 30 September 2016, of its proposed arrangements for the resumption. In addition, payments towards the outstanding amount are scheduled to resume in 2017 in accordance with the payment mechanism set out in Council decision 267 (2009).

5. In conclusion, I acknowledge once again the support of the Government of Kuwait for the request by Iraq and reiterate my expression of solidarity with the Government and the people of Iraq as they face extraordinarily difficult budgetary and security challenges. I also echo the sentiments of the Governing Council and emphasize that it is important for Iraq to fulfil its obligations and for the Commission's mandate to be brought to a conclusion.

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