Bush Issues Executive Order Protecting Iraqi Oil Proceeds
 
June 11, 2003
 

President Bush also signed into effect an Executive Order that makes any attachment, judgment, decree, lien, execution, garnishment or other judicial process prohibited and null or void if brought against the Development Fund for Iraq or against proceeds, obligations or financial instruments related to Iraqi oil sales.  The Order, issued on May 22, 2003, and titled “Protecting the Development Fund for Iraq and Certain Other Property in Which Iraq Has An Interest,” declares a national emergency to address an “unusual and extraordinary threat to the national security and foreign policy of the United States.”  This order is intended to remove any obstructions from the “orderly reconstruction of Iraq.”  According to the Order, such obstructions include, “the threat of attachment or other judicial process against the Development Fund for Iraq, Iraqi petroleum and petroleum products, and interests therein.” 

This Order would appear to stretch the bounds of Presidential authority. It is likely to become a controversial issue in the Washington political arena, especially as presidential hopefuls seek contentious topics to raise in their campaigns against the incumbent.  On the legal front, it will be very interesting to observe how the U.S. courts address any challenges arising from this Executive Order.