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After the Gulf War, Iraq accepted United Nations Security Council Resolution 687, which declared Iraq's financial liability for damage caused in its invasion of Kuwait.[17] The United Nations Compensation Commission (UNCC) was established, and US$350 billion in claims were filed by governments, corporations, and individuals. UNCC accepted and awarded compensions claims for $52.4 billion to approximately 1.5 million successful claimants; as of July 2019, $48.7 billion has been paid and only $3.7 billion was left to be paid to Kuwait on behalf of the Kuwait Petroleum Corporation.[18] The UNCC says that its prioritization of claims by natural people, ahead of claims by governments and entities or corporations (legal persons), "marked a significant step in the evolution of international claims practice". Funds for these payments were to come from a 30% share of Iraq's oil revenues from the oil for food program.

This passage made me wonder why Iraq is going out of its way to repay Kuwait. Certainly, there must be a consequence. If there's a consequence then there must be an organization that oversees this process.

One might think it's the United Nations Compensation Commission, but it's a commission and I don't think it oversees the process, it processes the payment, but it doesn't oversee the government of Iraq paying the debt and doesn't seem to have the authority to punish Iraq for not paying what is due.

The United Nations Compensation Commission (UNCC) was created in 1991 as a subsidiary organ of the United Nations Security Council. Its mandate is to process claims and pay compensation for losses and damage suffered as a direct result of Iraq's 1990–1991 invasion and occupation of Kuwait which started the Gulf War. These losses included claims for loss of property, deaths, loss of natural resources, damage to public health and environmental damage.

https://en.wikipedia.org/wiki/United_Nations_Compensation_Commission

So what are the consequences for Iraq if it chooses to not repay the amount of war reparation owed?

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  • Does not Iraq has oil fields and selling for profit? It might face problems though.
    – r13
    Aug 19 at 1:37

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