Under a resolution of the U.N. Security Council following the 1990 invasion of Kuwait, Kuwait has collected 5% of Iraqi oil revenues, amounting to $25 billion.
The Iraqi government has been arguing that the level of compensation was determined when the price of crude was less than $20 a barrel. Recent increases in the price of crude has meant that Kuwait has collected $5-8 on every barrel of oil sold by Iraq.
Iraq has submitted numerous requests to Kuwait and to the U.S. not to terminate the compensation but to reduce the share allocated to Kuwait. Kuwait has so far refused to entertain any such request.
Iraq has also recognized the sovereignty of Kuwait and its borders in 2004.
Kuwait’s refusal has led many Iraqi parliamentarians to view Kuwait’s position as "vengeful."
Source: Al-Hayat, London, June 14, 2009
