UN approves Iraq sanctions review

The US wants to crackdown on oil smuggling

The United Nations Security Council has adopted a resolution signalling a possible reform of the decade-old sanctions on Iraq.

A unanimous vote by the council's 15 members extended Iraq's oil-for-food programme by 30 days, rather than the usual six months.

We think there's a considerable body of support for the concept and for the substance that's contained in the resolution that we have been working on

US Ambassador James Cunningham

The move is intended to allow more discussion of a new sanctions regime proposed by the United States and United Kingdom.

They want to abolish the embargo on civilian trade, while tightening a ban on weapons and controls on smuggling.

The United States has also announced that it is releasing contracts with Iraq worth more than $800m that it had previously blocked in an attempt to help the Iraqi people.

Iraq has already rejected the month-long extension, although its ambassador to the UN said all contracts signed to date would be honoured.

The Iraqi authorities, who many believe profit from illegal oil sales, are threatening to stop selling oil altogether if the so-called "smart" sanctions are adopted.

Tariq Aziz: "Move will damage Arab partners"

Deputy Prime Minister Tariq Aziz said the US-UK proposals would "inflict damage not only on Iraq, but also on its Arab and friendly partners".

The five permanent Security Council members - the US, UK, France, China and Russia - agreed the one-month extension on Thursday, after much dispute.

The last three want more time to study the US-UK plan. All five have veto power in the council.

Sanctions' slide

The oil-for-food programme, which expires on Sunday, is an exemption for humanitarian reasons to stringent sanctions imposed after Iraq's 1990 invasion of Kuwait.

Under the programme, proceeds from Iraqi oil sales go to a UN escrow account out of which suppliers of medical goods and foodstuffs ordered by Iraq are paid.

Mr Powell admits sanctions have lost their bite

The escrow account would stay in place under the new plans, thereby denying Iraq free use of its oil revenues.

International support for the embargo has dwindled amid a growing perception that they hurt the Iraqi people more than President Saddam Hussein.

Russia, China and France have supported moves to ease the embargo.

The US and its allies are reported to be facing difficulties persuading Turkey, Syria and Jordan to give up their profits from a lucrative trade in smuggled Iraqi oil.

US Secretary of State Colin Powell said earlier in the week there was "general agreement" that the crippling sanctions had "lost some of their effectiveness".