Iraq and the United Nations on Monday signed an agreement extending for five months the oil-for-food humanitarian programme, which will allow Iraq to export oil until November 30, the United Nations announced.

The deal was another hurdle to surmount before Iraqi oil exports, suspended on June 4, can resume. Baghdad had cut off oil flows to protest discussions of a US-British plan to revamp sanctions.

"Letters were exchanged between Iraq and the United Nations extending the oil-for-food programme for 150 days from July 4," UN spokesman Fred Eckhard said.

Iraqi ambassador Mohammed Aldouri said the resumption of oil exports was imminent. "Oil will flow soon. Perhaps as early as tomorrow morning," he said.

The oil-for-food programme allows Iraq to sell oil, an exception to sanctions imposed in August 1990, and use the funds to purchase food, medicine and a host of other civilian goods. But the United Nations controls the oil revenues and pays the suppliers from a special escrow fund.

The 15-nation UN Security Council, after weeks of strife, voted last week to keep the oil-for-food humanitarian programme unchanged until the next phase expires on November 30.

The United States and Britain had pushed for a revamp of the sanctions that would ease restrictions on civilian goods imports and tighten them on military-related items.

But Russia threatened to veto the measure if it were put to a vote.

Iraq was exporting 2.2 million barrels per day (bpd) before the June 4 suspension.

Iraq must now submit to UN officials proposals for selling prices for the crude. Diplomats expected the prices to be submitted yesterday.

Baghdad can export crude before the official selling prices have been approved, although no money can exchange hands, the envoys said.

(China Daily 07/11/2001)