Iraq has welcomed the United Nations' decision to approve Baghdad's proposals for distributing humanitarian supplies under the food for oil agreement.

The deal increases substantially the amount of oil Iraq is allowed to sell every six months to buy food and medicine and a BBC correspondent in Baghdad says it should mean a doubling in food rations for many Iraqis.

The Iraqi trade minister, Mohamed Mehdi Saleh, said he was pleased the deal had been signed, but it did not represent a great advance for Iraq.

The situation would not really improve, he said, until UN sanctions were lifted.