United
Nations
S/RES/986 (1995)
14 April 1995
RESOLUTION 986 (1995)
Adopted by the Security Council at its
3519th meeting,
on 14 April 1995
The Security
Council,Recalling its previous relevant
resolutions,Concerned by the serious nutritional and health
situation of the Iraqi population, and by the risk of a further
deterioration in this situation,Convinced of the need as a
temporary measure to provide for the humanitarian needs of the Iraqi people
until the fulfilment by Iraq of the relevant Security Council resolutions,
including notably resolution 687 (1991) of 3 April 1991, allows the Council
to take further action with regard to the prohibitions referred to in
resolution 661 (1990) of 6 August 1990, in accordance with the provisions of
those resolutions,Convinced also of the need for
equitable distribution of humanitarian relief to all segments of the Iraqi
population throughout the country,Reaffirming the commitment
of all Member States to the sovereignty and territorial integrity of
Iraq,Acting under Chapter VII of the Charter of the United
Nations,1.Authorizes States, notwithstanding the
provisions of paragraphs 3 (a), 3 (b) and 4 of resolution 661 (1990) and
subsequent relevant resolutions, to permit the import of petroleum and
petroleum products originating in Iraq, including financial and other
essential transactions directly relating thereto, sufficient to produce a
sum not exceeding a total of one billion United States dollars every 90 days
for the purposes set out in this resolution and subject to the following
conditions:(a)Approval by the Committee established by
resolution 661 (1990), in order to ensure the transparency of each
transaction and its conformity with the other provisions of this resolution,
after submission of an application by the State concerned, endorsed by the
Government of Iraq, for each proposed purchase of Iraqi petroleum and
petroleum products, including details of the purchase price at fair market
value, the export route, the opening of a letter of credit payable to the
escrow account to be established by the Secretary-General for the purposes
of this resolution, and of any other directly related financial or other
essential transaction;(b)Payment of the full amount of each
purchase of Iraqi petroleum and petroleum products directly by the purchaser
in the State concerned into the escrow account to be established by the
Secretary-General for the purposes of this
resolution;2.Authorizes Turkey, notwithstanding the
provisions of paragraphs 3 (a), 3 (b) and 4 of resolution 661 (1990) and the
provisions of paragraph 1 above, to permit the import of petroleum and
petroleum products originating in Iraq sufficient, after the deduction of
the percentage referred to in paragraph 8 (c) below for the Compensation
Fund, to meet the pipeline tariff charges, verified as reasonable by the
independent inspection agents referred to in paragraph 6 below, for the
transport of Iraqi petroleum and petroleum products through the Kirkuk-
Yumurtalik pipeline in Turkey authorized by paragraph 1
above;3.Decides that paragraphs 1 and 2 of this
resolution shall come into force at 00.01 Eastern Standard Time on the day
after the President of the Council has informed the members of the Council
that he has received the report from the Secretary-General requested in
paragraph 13 below, and shall remain in force for an initial period of 180
days unless the Council takes other relevant action with regard to the
provisions of resolution 661 (1990);4.Further decides
to conduct a thorough review of all aspects of the implementation of this
resolution 90 days after the entry into force of paragraph 1 above and again
prior to the end of the initial 180 day period, on receipt of the reports
referred to in paragraphs 11 and 12 below, and expresses its
intention, prior to the end of the 180 day period, to consider favourably
renewal of the provisions of this resolution, provided that the reports
referred to in paragraphs 11 and 12 below indicate that those provisions are
being satisfactorily implemented;5.Further decides
that the remaining paragraphs of this resolution shall come into force
forthwith;6.Directs the Committee established
by resolution 661 (1990) to monitor the sale of petroleum and petroleum
products to be exported by Iraq via the Kirkuk-Yumurtalik pipeline from Iraq
to Turkey and from the Mina al-Bakr oil terminal, with the assistance of
independent inspection agents appointed by the Secretary-General, who will
keep the Committee informed of the amount of petroleum and petroleum
products exported from Iraq after the date of entry into force of
paragraph 1 of this resolution, and will verify that the purchase price of
the petroleum and petroleum products is reasonable in the light of prevailing
market conditions, and that, for the purposes of the arrangements set out in
this resolution, the larger share of the petroleum and petroleum products is
shipped via the Kirkuk-Yumurtalik pipeline and the remainder is exported
from the Mina al-Bakr oil terminal;7.Requests the
Secretary-General to establish an escrow account for the purposes of this
resolution, to appoint independent and certified public accountants to audit
it, and to keep the Government of Iraq fully
informed;8.Decides that the funds in the escrow account
shall be used to meet the humanitarian needs of the Iraqi population and for
the following other purposes, and requests the Secretary-General to
use the funds deposited in the escrow account:
(a)To
finance the export to Iraq, in accordance with the procedures of the
Committee established by resolution 661 (1990), of medicine, health
supplies, foodstuffs, and materials and supplies for essential civilian
needs, as referred to in paragraph 20 of resolution 687 (1991) provided
that:(i)
Each export of goods is at the request of the Government of Iraq;
(ii)Iraq effectively guarantees their equitable distribution, on the
basis of a plan submitted to and approved by the Secretary-General,
including a description of the goods to be purchased;
(iii)
The Secretary-General receives authenticated confirmation that the
exported goods concerned have arrived in
Iraq;
(b)To complement, in view of the exceptional
circumstances prevailing in the three Governorates mentioned
below, the distribution by the Government of Iraq of goods
imported under this resolution, in order to ensure an equitable
distribution of humanitarian relief to all segments of the Iraqi
population throughout the country, by providing between 130
million and 150 million United States dollars every 90 days to the
United Nations Inter-Agency Humanitarian Programme operating
within the sovereign territory of Iraq in the three northern
Governorates of Dihouk, Arbil and Suleimaniyeh, except that if
less than one billion United States dollars worth of petroleum or
petroleum products is sold during any 90 day period, the
Secretary-General may provide a proportionately smaller amount for
this purpose;(c)To transfer to the
Compensation Fund the same percentage of the funds deposited in
the escrow account as that decided by the Council in paragraph 2 of
resolution 705 (1991) of 15 August 1991;(d)To meet
the costs to the United Nations of the independent inspection
agents and the certified public accountants and the activities
associated with implementation of this
resolution;(e)To meet the current operating costs of
the Special Commission, pending subsequent payment in full of the
costs of carrying out the tasks authorized by section C of
resolution 687 (1991);(f)To meet any reasonable
expenses, other than expenses payable in Iraq, which are
determined by the Committee established by resolution 661 (1990) to be
directly related to the export by Iraq of petroleum and petroleum
products permitted under paragraph 1 above or to the export to
Iraq, and activities directly necessary therefor, of the parts and
equipment permitted under paragraph 9 below;(g)To make
available up to 10 million United States dollars every 90 days
from the funds deposited in the escrow account for the payments
envisaged under paragraph 6 of resolution 778 (1992) of
2 October 1992;9.Authorizes States to permit,
notwithstanding the provisions of paragraph 3 (c) of resolution
661 (1990):(a)The export to Iraq of the parts and
equipment which are essential for the safe operation of the
Kirkuk-Yumurtalik pipeline system in Iraq, subject to the prior
approval by the Committee established by resolution 661 (1990) of each
export contract;(b)Activities directly necessary
for the exports authorized under subparagraph (a) above, including
financial transactions related
thereto;10.Decides that, since the costs of
the exports and activities authorized under paragraph 9 above are
precluded by paragraph 4 of resolution 661 (1990) and by
paragraph 11 of resolution 778 (1991) from being met from funds frozen
in accordance with those provisions, the cost of such exports and
activities may, until funds begin to be paid into the escrow
account established for the purposes of this resolution, and
following approval in each case by the Committee established by
resolution 661 (1990), exceptionally be financed by letters of
credit, drawn against future oil sales the proceeds of which are to
be deposited in the escrow
account;11.Requests the Secretary-General to
report to the Council 90 days after the date of entry into force
of paragraph 1 above, and again prior to the end of the initial
180 day period, on the basis of observation by United Nations
personnel in Iraq, and on the basis of consultations with the
Government of Iraq, on whether Iraq has ensured the equitable
distribution of medicine, health supplies, foodstuffs, and
materials and supplies for essential civilian needs, financed in
accordance with paragraph 8 (a) above, including in his reports any
observations he may have on the adequacy of the revenues to meet
Iraq's humanitarian needs, and on Iraq's capacity to export
sufficient quantities of petroleum and petroleum products to
produce the sum referred to in paragraph 1
above;12.Requests the Committee
established by resolution 661 (1990), in close coordination with
the Secretary-General, to develop expedited procedures as
necessary to implement the arrangements in paragraphs 1, 2, 6, 8,
9 and 10 of this resolution and to report to the Council 90 days
after the date of entry into force of paragraph 1 above and again
prior to the end of the initial 180 day period on the
implementation of those
arrangements;13.Requests the Secretary-
General to take the actions necessary to ensure the effective
implementation of this resolution, authorizes him to enter into
any necessary arrangements or agreements, and requests
him to report to the Council when he has done
so;14.Decides that petroleum and petroleum
products subject to this resolution shall while under Iraqi title
be immune from legal proceedings and not be subject to any form of
attachment, garnishment or execution, and that all States shall
take any steps that may be necessary under their respective
domestic legal systems to assure this protection, and to ensure
that the proceeds of the sale are not diverted from the purposes
laid down in this resolution;15.Affirms
that the escrow account established for the purposes of this
resolution enjoys the privileges and immunities of the United
Nations;16.Affirms that all persons appointed
by the Secretary-General for the purpose of implementing this
resolution enjoy privileges and immunities as experts on mission
for the United Nations in accordance with the Convention on the
Privileges and Immunities of the United Nations, and requires
the Government of Iraq to allow them full freedom of movement and
all necessary facilities for the discharge of their duties in the
implementation of this resolution;17.Affirms
that nothing in this resolution affects Iraq's duty scrupulously
to adhere to all of its obligations concerning servicing and
repayment of its foreign debt, in accordance with the appropriate
international mechanisms;18.Also affirms
that nothing in this resolution should be construed as infringing
the sovereignty or territorial integrity of
Iraq;19.Decides to remain seized of the
matter.
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