Specific restrictions on economic and financial relations with Iraq

KEY POINTS

All proceeds from all export sales of petroleum, petroleum products and natural gas from Iraq must be deposited into the Development Fund for Iraq under conditions set out in UNSC Resolution 1483 (2003).

Iraqi cultural artefacts

Importing, exporting and dealing in Iraqi cultural property and other items of archaeological, historical, cultural, rare scientific and religious importance are prohibited if the items have been illegally removed (including items listed in Annex II to the regulation). In particular, if:

• the items are integral to public collections listed in the inventories of Iraqi museums, archives, libraries’ conservation collections or religious institutions; or
• there is reasonable suspicion that the goods have been removed from Iraq without the consent of their legitimate owner or by breaching Iraqi law.

These prohibitions do not apply if the items were exported prior to 6 August 1990 or are being returned to Iraqi institutions in accordance with the safe return objectives in UNSC Resolution 1483 (2003).

All appropriate steps will be taken for the safe return of such items to Iraqi institutions.

Economic resources frozen

• All funds and economic resources of the previous government of Iraq are frozen if they were located outside Iraq on 22 May 2003. This includes public bodies, established under private law, or government agencies identified by the United Nations Sanctions Committee and listed in Annex III to the regulation.
• All funds and economic resources belonging to, or owned or held by, former President Saddam Hussein, his senior officials, immediate family or individuals, bodies or entities owned or controlled directly or indirectly by these individuals are also frozen.
• No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of individuals, bodies or entities identified by the United Nations Sanctions Committee and listed in Annex IV to the regulation.

Exemptions

European Union (EU) Member States can authorise certain frozen funds to be released, including for:

• basic needs including food, rent or mortgage, medicines and medical treatment, taxes, insurance premiums and public utility charges;
• reasonable professional fees and expenses incurred for legal services;
• fees or charges for holding frozen funds or economic resources; or
• certain other extraordinary expenses.

Petroleum products

Petroleum, petroleum products and natural gas originating in Iraq will be immune from legal proceedings, and not be subject to any form of attachment¹, garnishment² or execution³, until ownership passes to a purchaser.

Privileges and immunities equivalent to those enjoyed by the UN will apply to:

• proceeds and obligations arising from the sale of petroleum products;
• the Development Fund for Iraq;
• funds, other financial assets or economic resources to be transferred from the Saddam Hussein regime to the Development Fund for Iraq.

Arms embargo

The sale, supply, transfer or export of arms and related material (including weapons and ammunition, military vehicles and equipment, paramilitary equipment and spare parts) to Iraq by EU nationals are prohibited.

The embargo does not apply to arms required by the government of Iraq or the multinational force established under UNSC Resolution 1511 (2003) where authorised by Member States.

Humanitarian exemptions

Following UNSC Resolution 2664 (2022), Council Regulation (EU) 2023/331 and Council Decision (CFSP) 2023/338 introduce into EU law an exemption to the sanctions in the form of asset freezes for humanitarian assistance and other activities that support basic human needs, applicable to certain actors.