Kuwait agrees to invest Gulf War reparations in Iraq’s south

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By Ali Latif

Azzaman, November 6, 2012

The Kuwaiti government will not drop claims to 1991 Gulf War reparations from Iraq but has decided to invest the money it receives in southern Iraqi provinces, particularly in Basra.

Under 1991 Gulf War U.N. resolutions, Iraq is obliged to pay reparations for countries, companies and individuals harmed by its 1990 invasion of Kuwait.

Iraq has so far paid more than $36 billion in war reparations, $25 billion of them have gone to pay for damage inflicted on Kuwait.

Many countries and companies, under U.S. pressure, dropped claims for reparations when the regime of Saddam Hussein was overthrown in 2003, when U.S. troops invaded Iraq.

But Kuwait says it will not relinquish claims to reparations and says it needs Iraq to pay it an additional sum of $18 billion.

However, it says it does not intend to keep the money but it will invest it in impoverished Iraqi provinces in the south, mainly the neighboring Province of Basra.

The move is certain to improve ties between the countries, though the government in Baghdad is still waiting for details from Kuwait on its investment plans in Iraq.