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EO 13668Executive OrderObama · D Quiet signal

Executive Order 13668

Ending Immunities Granted to the Development Fund for Iraq and Certain Other Iraqi Property and Interests in Property Pursuant to Executive Order 13303, as Amended

This executive order terminates legal immunities protecting the Development Fund for Iraq, Iraqi petroleum, and Central Bank of Iraq assets from U.S. judicial actions such as attachments, judgments, and liens. The action reflects the Obama administration's assessment that Iraq had made sufficient progress in managing debts and claims from the Saddam Hussein era. The underlying national emergency declared in 2003 remains in place, and immunities under other applicable law are unaffected.

Federal Register Open PDF 79 FR 31019

Impact dates

  1. Termination of prohibitions takes effect

Key directives

  • Terminate prohibitions in section 1 of EO 13303 as amended by EO 13364 on attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to Development Fund for Iraq and Iraqi petroleum, petroleum products, and interests therein
  • Terminate prohibitions on judicial process with respect to accounts, assets, investments, and other property of Central Bank of Iraq
  • Authorize Secretary of Treasury, in consultation with Secretary of State, to take actions including promulgation of rules and regulations to carry out order purposes
  • Direct all U.S. government agencies to take appropriate measures within statutory authority to carry out order provisions

Who is ordered

Timeline

Immediate

  • Termination of prohibitions on judicial process against protected Iraqi assets takes effect upon signing

Near term (90d)

  • Treasury Department may issue rules and regulations to implement the order

Long term

  • Potential litigation against Iraqi assets in U.S. courts
  • Ongoing national emergency from EO 13303 continues

Risks & tensions

  • Order explicitly preserves underlying national emergency, creating tension between normalization and continued emergency authorities
  • Potential surge in creditor litigation against Iraqi assets could destabilize Iraqi financial position
  • Central Bank of Iraq loses protection at sensitive time given regional instability (ISIS advance in 2014)
  • Vague scope of 'other applicable law' immunities mentioned in preamble creates uncertainty about residual protections
  • Timing relative to Iraq's debt resolution progress is asserted but not independently verified in text
Executive Order 13668: Ending Immunities Granted to the Development Fund for Iraq and Certain Other Iraqi Property and Interests in Property Pursuant to Executive Order 13303, as Amended · Executive Orders