United Nations Compensation Commission

Last updated

The United Nations Compensation Commission (UNCC) was created in 1991 as a subsidiary organ of the United Nations Security Council. Its mandate is to process claims and pay compensation for losses and damage suffered as a direct result of Iraq's 1990–1991 invasion and occupation of Kuwait which started the Gulf War. These losses included claims for loss of property, deaths, loss of natural resources, damage to public health and environmental damage.

Contents

At the first meeting in August 1991, six categories of claims were set up: claims from individuals forced to flee Kuwait between the invasion and the cease fire (Category A); claims from individuals who (or whose family) suffered injuries or death as a result of the invasion (B); claims from individuals for business losses, pain and anguish, property damage etc. less than $100,000 (C); claims from individuals for business losses, pain and anguish, property damage etc. more than $100,000 (D); claims from corporations and other entities for business (including oil sector) losses (E); and governmental and international agency claims for cost of resettling and providing relief to citizens, claims for damage to government property and to the environment (F). Category E and F claims were further broken down to subcategories.

Each claim category had specific dates for initiating the claim and providing required evidence. A total of over $350 billion in claims was submitted in 2,686,131 claims. Of these claims, 1,543,619 (57%) resulted in some sort of award. The total awarded, to be paid by Iraq from oil revenues, was just over $52 billion. As of January 2021 approximately $50 billion of this total had been paid to claimants, with approximately $2.4 billion remaining to be paid. [1] The UNCC adopted a policy of paying individuals first, with the result that the remaining sum is owed entirely to a government entity, specifically the state oil company of Kuwait. [2] The UNCC is making payments at approximately $1 billion per quarter, depending on the extent of Iraq's oil revenue. In December 2021, Iraq's central bank announced that it had paid off its entire debt of $52 billion in war reparations to Kuwait. [3] [4]

Copies of all major decisions and major evidence in support of claims can be found at the UNCC website. [5]

The process of assessing and awarding claims was begun during the period of Saddam Hussein's stewardship of Iraq. However, many of the claims (especially major claims) were not settled until after a new government was in place in Iraq. Efforts by the Paris Club (an organisation set up by the world's industrialised nations during the 1950s to restructure debt from severely indebted nations) to seek debt forgiveness in order to allow Iraq to use its oil revenues for reconstruction met with some success among wealthy nations with the notable exceptions of Kuwait and Saudi Arabia. [6] Some entities have suggested the concept of odious debt, under which a country should not be held responsible for debt incurred by despotic regime for the purposes of strengthening itself and suppressing internal dissent.

Process issues

From the beginning of its operation, the UNCC system has been criticized for the lack of representation allowed to Iraq, the defendant government, in the process. In particular no money from Iraq sales of oil was allowed to be used for Iraq's legal defence. [7]

Environmental damage

Kuwait and Saudi Arabia suffered gross environmental damage as a result of the Iraqi occupation, as the retreating Iraqi forces blew up oil wells and released millions of barrels (estimated as high as 11 million barrels) of crude oil into the Persian Gulf. In Kuwait the damage to the environment was largely terrestrial in the form of tarcrete and oil lakes surrounding the damaged wells. In 2001 the UNCC awarded Kuwait $108 million (the money to be taken from the Oil-for-Food Programme) to study the effects of the environmental devastation to the desert and the coastline, and the effects of the oil fires on public health. Most of Kuwait's desert is in fact sparse shrubland and capable of sustaining sheep, goats and camels. Little damage was found to Kuwait's shoreline and fishing industry. As a result of these studies claims were prepared for several billion dollars' worth of damages to the desert ecosystem resulting from the oil fires, uncontrolled oil releases, and military maneuvers by both Iraqi forces and coalition military. [8]

In contrast, the Saudi study (funded with $109 million from the Oil-for-Food Programme via the UNCC) found damage mostly to the coastline. The anti-clockwise current pattern of the Persian Gulf forced the floating spill onto the Saudi coastline and fouled approximately 800 km (250 km as the crow flies) of almost pristine shoreline. Commercial fish stocks (shrimp and fin fish) plummeted but recovered within a few years. An extensive and very detailed study of the shoreline was conducted at 250-meter intervals for the entire affected length, from the high-water mark to low water, to determine the extent of the contamination and its effect on biota. The Saudis claimed several billion dollars to compensate for these environmental damages. [9]

Related Research Articles

<span class="mw-page-title-main">Economy of Iraq</span>

The economy of Iraq is dominated by the oil sector, which has provided about 99.7% of foreign exchange earnings during its modern history. As of 2021, the oil sector provides about 92% of foreign exchange earnings. Iraq's hitherto agrarian economy underwent rapid development following the 14 July Revolution (1958) which overthrew the Hashemite Iraqi monarchy. It had become the third-largest economy in the Middle East by 1980. This occurred in part because of the Iraqi government's successful industrialization and infrastructure development initiatives in the 1970s, which included irrigation projects, railway and highway construction, and rural electrification.

Kuwait is a sovereign state in Western Asia located at the head of the Persian Gulf. The geographical region of Kuwait has been occupied by humans since antiquity, particularly due to its strategic location at the head of the Persian Gulf. In the eighteenth and nineteenth centuries, Kuwait was a prosperous maritime port city and the most important trade port in the northern Gulf region. In the modern era, Kuwait is best known for the Persian Gulf War (1990–1991).

<span class="mw-page-title-main">Geography of Kuwait</span>

Kuwait is a country in West Asia, bordering the Persian Gulf, between Iraq and Saudi Arabia. Kuwait is located at the far northwestern corner of the Persian Gulf. Kuwait is 17,820 square kilometres in size. At its most distant points, it is about 200 km (120 mi) north to south, and 170 km (110 mi) east to west. Kuwait has 10 islands. Kuwait's area consists mostly of desert.

<span class="mw-page-title-main">Kuwaiti oil fires</span> Oil wells burned by the Iraqi military during the Gulf War

The Kuwaiti oil fires were caused by the Iraqi military setting fire to a reported 605 to 732 oil wells along with an unspecified number of oil filled low-lying areas, such as oil lakes and fire trenches, as part of a scorched earth policy while retreating from Kuwait in 1991 due to the advances of US-led coalition forces in the Gulf War. The fires were started in January and February 1991, and the first oil well fires were extinguished in early April 1991, with the last well capped on November 6, 1991.

<span class="mw-page-title-main">Geography of Saudi Arabia</span> Overview of the geography of the Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia is a country situated in West Asia, the largest country of Arabia, by the Arabian Peninsula, bordering the Persian Gulf and the Red Sea, north of Yemen. Its extensive coastlines on the Persian Gulf and Red Sea provide great leverage on shipping through the Persian Gulf and the Suez Canal. The kingdom occupies 80% of the Arabian Peninsula. Most of the country's boundaries with the United Arab Emirates (UAE), Oman, and the Republic of Yemen are undefined, so the exact size of the country remains unknown. The Saudi government estimate is at 2,217,949 square kilometres, while other reputable estimates vary between 2,149,690 and 2,240,000 sq. kilometres. Less than 7% of the total area is suitable for cultivation, and in the early 1960s, population distribution varied greatly among the towns of the eastern and western coastal areas, the densely populated interior oases, and the vast, almost empty deserts.

<span class="mw-page-title-main">Gulf War</span> 1990–1991 conflict between Iraq and a 42-country coalition

The Gulf War was an armed conflict between Iraq and a 42-country coalition led by the United States. It began with the Iraqi invasion of Kuwait in August 1990. The coalition's efforts against Iraq were carried out in two key phases: Operation Desert Shield, which marked the military buildup from August 1990 to January 1991; and Operation Desert Storm, which began with the aerial bombing campaign against Iraq on 17 January 1991 and came to a close with the American-led Liberation of Kuwait on 28 February 1991.

<span class="mw-page-title-main">Oil-for-Food Programme</span> Programme headed by the United Nations

The Oil-for-Food Programme (OIP), established by the United Nations in 1995 was established to allow Iraq to sell oil on the world market in exchange for food, medicine, and other humanitarian needs for ordinary Iraqi citizens without allowing Iraq to boost its military capabilities.

This is a list of aviation-related events from 1984.

<span class="mw-page-title-main">War reparations</span> Compensation payments made after a war by one side to the other

War reparations are compensation payments made after a war by one side to the other. They are intended to cover damage or injury inflicted during a war.

The 1990 oil price shock occurred in response to the Iraqi invasion of Kuwait on August 2, 1990, Saddam Hussein's second invasion of a fellow OPEC member. Lasting only nine months, the price spike was less extreme and of shorter duration than the previous oil crises of 1973–1974 and 1979–1980, but the spike still contributed to the recession of the early 1990s in the United States. The average monthly price of oil rose from $17 per barrel in July to $36 per barrel in October. As the U.S.-led coalition experienced military success against Iraqi forces, concerns about long-term supply shortages eased and prices began to fall.

<span class="mw-page-title-main">Gulf War oil spill</span>

The Gulf War oil spill, or the Persian Gulf oil spill, was one of the largest oil spills in history, resulting from the Gulf War in 1991. In January 1991, Iraqi forces allegedly began dumping oil into the Persian Gulf to stop a U.S. coalition-led water landing on their shores. Despite quite high initial estimates, the spill likely was about 4,000,000 US barrels. Within the following months of the spill, most clean-up was targeted at recovering oil, and very little clean-up was done on Saudi Arabia’s highly-affected beaches. An initial study in 1993 found that the spill will not have long-term environmental consequences, but many studies since 1991 have concluded the opposite, claiming that the spill is responsible for environmental damage to coastline sediments and marine species and ecosystems. Considered an act of environmental terrorism, the spill was a heated political move that had implications for the larger Gulf War and temporarily damaged Kuwait and Saudi Arabia.

<span class="mw-page-title-main">Iraqi invasion of Kuwait</span> Beginning of the 1990–1991 Gulf War

On 2 August 1990, Iraq began its invasion of Kuwait and marked the beginning of the Gulf War. After defeating the State of Kuwait on 4 August 1990, Iraq went on to militarily occupy the country for the next seven months. The invasion was condemned internationally, and the United Nations Security Council (UNSC) adopted numerous resolutions urging Iraq to withdraw from Kuwaiti territory. The Iraqi military, however, continued to occupy Kuwait and defied all orders by the UNSC. After initially establishing the "Republic of Kuwait" as a puppet state, Iraq annexed the entire country on 28 August 1990; northern Kuwait became the Saddamiyat al-Mitla' District and was merged into the existing Basra Governorate, while southern Kuwait was carved out as the all-new Kuwait Governorate. By November 1990, the adoption of UNSC Resolution 678 officially issued Iraq an ultimatum to withdraw unconditionally by 15 January 1991 or else be removed by "all necessary means" from Kuwaiti territory. In anticipation of a war with Iraq, the UNSC authorized the assembly of an American-led military coalition.

On 6 August 1990, four days after the Iraqi invasion of Kuwait, the United Nations Security Council (UNSC) placed a comprehensive embargo on Iraq. The sanctions stayed largely in force until 22 May 2003, and persisted in part, including reparations to Kuwait. The original stated purposes of the sanctions were to compel Iraq to withdraw from Kuwait, to pay reparations, and to disclose and eliminate any weapons of mass destruction (WMD).

<span class="mw-page-title-main">Jiyeh Power Station oil spill</span>

The Jiyeh Power Station oil spill is an environmental disaster caused by the release of heavy fuel oil into the eastern Mediterranean after storage tanks at the thermal power station in Jiyeh, Lebanon, 30 km (19 mi) south of Beirut, were bombed by the Israeli Air force on July 14 and July 15, 2006 during the 2006 Israel-Lebanon conflict. The plant's damaged tanks leaked up to 30,000 tonnes of oil into the eastern Mediterranean Sea, A 10 km wide oil slick covered 170 km of coastline, and threatened Turkey and Cyprus. The slick killed fish, threatened the habitat of endangered green sea turtles, and potentially increased the risk of cancer.

<span class="mw-page-title-main">United Nations Security Council Resolution 778</span> United Nations resolution adopted in 1992

United Nations Security Council resolution 778, adopted on 2 October 1992, after recalling resolutions 687 (1991), 688 (1991), 692 (1991), 699 (1991), 706 (1991) and 712 (1991), the council, acting under Chapter VII, decided to authorise states holding funds from the sale of Iraqi petroleum to transfer funds to the escrow account under resolutions 706 and 712, of which 30 per cent would be transferred to the United Nations Compensation Commission.

Reparations are broadly understood as compensation given for an abuse or injury. The colloquial meaning of reparations has changed substantively over the last century. In the early 1900s, reparations were interstate exchanges that were punitive mechanisms determined by treaty and paid by the surrendering side of conflict, such as the World War I reparations paid by Germany and its allies. Reparations are now understood as not only war damages but also compensation and other measures provided to victims of severe human rights violations by the parties responsible. The right of the victim of an injury to receive reparations and the duty of the part responsible to provide them has been secured by the United Nations.

<span class="mw-page-title-main">Iraq–Kuwait relations</span> Bilateral relations

The relations between Iraq and Kuwait are longstanding and complex, experiencing many changes throughout recent decades.

After World War II both West Germany and East Germany were obliged to pay war reparations to the Allied governments, according to the Potsdam Conference. Other Axis nations were obliged to pay war reparations according to the Paris Peace Treaties, 1947. Austria was not included in any of these treaties.

<span class="mw-page-title-main">Environmental impact of Gulf wars</span>

The 1991 Gulf War and the 2003 Iraq War brought about a significant negative impact on the environment. Indeed, Persian Gulf countries, especially Kuwait and Iraq, faced serious environmental disasters after the wars.

References

  1. ↑ "Archived copy" (PDF). Archived from the original (PDF) on October 23, 2013. Retrieved April 30, 2013.{{cite web}}: CS1 maint: archived copy as title (link)
  2. ↑ "Home | UNCC".
  3. ↑ "Iraq pays final instalment of $52bn war reparations to Kuwait". Middle East Monitor. 2021-12-23. Retrieved 2021-12-31.
  4. ↑ "Iraq completes fifty-two billion dollar reparations to Kuwait". www.rudaw.net. Retrieved 2021-12-23.
  5. ↑ "Home". uncc.ch.
  6. ↑ "Jubilee Iraq News". Archived from the original on October 13, 2007. Retrieved October 14, 2007.
  7. ↑ M.E. Schneider, "How Fair and Efficient is the UNCC System ? A Model to Emulate?", Journal of International Arbitration, Kluwer Law International, 15(1), 1998 Archived October 23, 2013, at the Wayback Machine
  8. ↑ "Follow-up Programme for Environmental Awards | UNCC".
  9. ↑ "Follow-up Programme for Environmental Awards | UNCC".
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.