Modifying the Protection Granted to the Development Fund for Iraq and Certain Property in Which Iraq Has an Interest and Protecting the Central Bank of Iraq

This executive order modifies protections for Iraqi assets under prior orders, shielding the Development Fund for Iraq, Iraqi oil (until sold to initial purchasers), and Central Bank of Iraq assets from U.S. judicial attachment or process. It narrows prior broad protections by allowing enforcement of final judgments on Iraqi government contracts entered after June 30, 2004.

Federal Register Open PDF 69 FR 70177

Impact dates

Jun 30, 2004
Contract date threshold: protections do not apply to final judgments on contracts entered after this date

Key directives

Prohibit judicial process against Development Fund for Iraq
Protect Iraqi oil and petroleum products only until title passes to initial purchaser
Shield Central Bank of Iraq accounts and assets from attachment
Carve out exception for final judgments on Iraqi government contracts entered after June 30, 2004
Authorize Treasury Secretary to promulgate implementing rules and regulations in consultation with State Secretary

Who is ordered

Timeline

Immediate

EO takes effect upon signing; protections and limitations apply immediately

Near term (90d)

Treasury Secretary may issue implementing rules and regulations

Long term

Ongoing asset protection framework for Iraqi reconstruction; continued vulnerability of post-June 30, 2004 contracts to judgment enforcement

Risks & tensions

Narrowing of prior protections may expose Iraq to creditor claims on post-June 30, 2004 contracts, potentially affecting reconstruction financing
Vague boundary around 'initial purchaser' of oil could create legal uncertainty in complex multi-party transactions
Balance between creditor rights and Iraqi reconstruction stability may shift as security situation evolves
UN Security Council Resolution 1546 context suggests international pressure to normalize Iraq's legal status