Specific restrictions on economic and financial relations with Iraq

 

SUMMARY OF:

Common position 2003/495/CFSP on Iraq

Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and financial relations with Iraq

WHAT ARE THE AIMS OF THE COMMON POSITION AND THE REGULATION?

The common position and regulation set out restrictive measures in accordance with United Nations Security Council (UNSC) Resolution 1483 (2003) and all subsequent relevant United Nations (UN) decisions in response to the situation in 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 attachment*, garnishment* or execution*, 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.

FROM WHEN DO THE COMMON POSITION AND THE REGULATION APPLY?

• Common Position 2003/495/CFSP has applied since 22 May 2003.
• Regulation (EC) No 1210/2003 has applied since 23 May 2003.

BACKGROUND

For further information, see:

• Delegation of the European Union to Iraq (European External Action Service)
• EU projects with Iraq (European External Action Service)
• International partnerships: Iraq (European Commission).

KEY TERMS

MAIN DOCUMENTS

Council Common Position 2003/495/CFSP of 7 July 2003 on Iraq and repealing Common Positions 96/741/CFSP and 2002/599/CFSP (OJ L 169, 8.7.2003, pp. 72–73).

Successive amendments to Common Position 2003/495/CFSP have been incorporated into the original text. This consolidated version is of documentary value only.

Council Regulation (EC) No 1210/2003 of 7 July 2003 concerning certain specific restrictions on economic and financial relations with Iraq and repealing Regulation (EC) No 2465/96 (OJ L 169, 8.7.2003, pp. 6–23).

See consolidated version.

RELATED DOCUMENTS

Consolidated version of the Treaty on European Union – Title V – General provisions on the Union’s external action and specific provisions on the common foreign and security policy – Chapter 2 – Specific provisions on the common foreign and security policy – Section 1 – Common provisions – Article 29 (ex Article 15 TEU) (OJ C 202, 7.6.2016, p. 33).

Consolidated version of the Treaty on the Functioning of the European Union – Part Five – The Union’s external action – Title IV – Restrictive measures – Article 215 (ex Article 301 TEC) (OJ C 202, 7.6.2016, p. 144).

last update 15.03.2023