UN ends compensation mission after Iraq pays $52.4bn to Kuwait over 1991 invasion

1991 invasion led to Kuwait's isolation from the international community

A shopkeeper and his son watch a televised speech by then-Iraqi president Saddam Hussein in January, 1997. Reuters

A UN body established almost 31 years ago to settle $52.4 billion of claims made for damage inflicted by Iraq during the 1990 Kuwait invasion has officially closed.

Officials said on Wednesday that the UN Compensation Commission's mandate had been fulfilled. Iraq made the final payment, of $44 million, on January 13.

In August 1990, former Iraqi dictator Saddam Hussein ordered his army to invade Kuwait and seize what he described as "Iraq's 19th province", before being pushed back seven months later by a US-led coalition.

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  American airforce F-15 C fighters flying over a Kuwaiti oilfield which had been torched by retreating Iraqi troops during the Gulf War. Getty Images

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  US Air Force ground crew loading 500-pound bombs onto an aircraft during operation Desert Storm - the mission to drive Iraqi forces out of Kuwait, January to February 1991. Mark Peters / Department Of Defence

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  Gen Norman Schwarzkopf, commander-in-chief, US Central Command, presents the Legion of Merit to Maj Gen Muhammed Al Badi, chief of staff of the UAE Armed Forces, for his role in liberating Kuwait from occupying Iraqi forces during Operation Desert Storm. April 2, 1991. Corbis via Getty Images

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  British engineers from the 7th armoured brigade in action on January 7 1991 in the Saudi Arabian desert. Patrick Baz / AFP

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  An Egyptian soldier holding a bayonet takes shelter in a hole to protect himself from Iraqi artillery fire on February 25, 1991 while Allied troops launch a ground offensive to free Kuwait from Iraqi invasion. Pascal Guyot / AFP

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  Egyptian army fire missiles on February 25, 1991 on the second day of the massive ground assault of the Allied Forces into Kuwait and Iraq. Pascal Guyot / AFP

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  An Iraqi Kurdish refugee child cries on April 11, 1991, in Isikveren refugee camp situated on the Turkish border with Iraq. Nabil Ismail / AFP

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  A Kuwaiti airfield worker waves to a departing of a Kuwaiti Air Force A-4 US-made Skyhawk jet fighter pilot 24 January 1991 leaving the Al Hasra air base for a bombing mission over Iraq. Chris Wilkins / AFP

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  Iraqi President Saddam Hussein (L) is seen sitting in a tent in Najaf (Irak) in 1991 during the Gulf War. AFP

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  French special forces capture Iraqi soldiers on February 26, 1991 somewhere in Iraqi desert. Mike Nelson /AFP

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  The wreckage of a British Airways Boeing 747-136 at Kuwait City airport, after BA Flight 149 was detained in Kuwait during the Gulf War, 1991. Colin Davey / Getty Images

Retreating Iraqi forces blew up an estimated 750 oil wells, creating one of the largest environmental disasters in history and effectively destroying Kuwait's main source of income. Thousands of people were killed and Kuwait says at least 605 citizens remain unaccounted for.

The UN body was created as a subsidiary organ of the UN Security Council under Security Council resolution 687 (1991) to process claims and pay compensation for damage suffered as a direct result of Iraq's invasion.

The money was directed to compensate people, companies and governments who could prove their losses.

"With the final payment of compensation made on 13 January, 2022, all compensation awarded by the Commission has now been paid in full," the UN Compensation Commission (UNCC) said.

"The Government of Iraq has fulfilled its international obligations to compensate all claimants awarded compensation by the Commission for losses and damages suffered as a direct result of Iraq’s unlawful invasion of Kuwait," the body in Geneva said after a meeting.

The US ambassador to the UN in Geneva, Bathsheba Crocker, said: "We commend Iraq for completing payments for all UNCC claims, a historic achievement."

Mr Crocker had a meeting with Qahtan Al Janabi, Iraqi under secretary for multilateral and legal affairs, and other diplomats before Wednesday's meeting.

About 2.7 million claims, with a value of $352.5bn, were lodged but the UNCC approved payment of $52.4bn covering 1.5 million successful claims.

The largest claim approved by the UNCC was for $14.7bn in damages incurred by the Kuwait Petroleum Corporation after departing Iraqi troops set fire to oil wells.

In 2014, the payments were suspended when ISIS took over large areas of Iraq but were resumed in 2018, after the group's defeat.