The UN humanitarian programme that provides food, medicine and other assistance to Iraqi civilians is facing a "financial crisis".
The cash crisis is due to a drop of over 30 per cent in Iraqi oil exports which fund it, the head of the programme said.
Mr Benon Sevan blamed an oil pricing policy adopted last autumn by the UN committee monitoring sanctions against Iraq.
He warns that if the committee and the Iraqi government do not find a solution the humanitarian programme would "slow down".
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"I think we are in deep trouble as far as funding of the programme is concerned," he said.
"We have no money now - additional money - for new contracts," he said, after briefing the UN Security Council. "We have a financial crisis as far as I'm concerned."
AP