United Nations Security Council resolution 778, adopted on 2 October 1992, after recalling resolutions 687 (1991), 688 (1991), 692 (1991), 699 (1991), 706 (1991) and 712 (1991), the council, acting under Chapter VII, decided to authorise states holding funds from the sale of Iraqi petroleum to transfer funds to the escrow account under resolutions 706 and 712, of which 30 per cent would be transferred to the United Nations Compensation Commission.

[1] The resolution noted that the transfer of funds by a state need not exceed US$200 million, and may exclude from the operation any funds which have already been released to a claimant or supplier prior to the adoption of the current resolution.

It also decided that all states should take steps to purchase or arrange for the sale of Iraqi petroleum or petroleum products at fair market value and then transfer funds to the escrow account.

The Council then decided that states, including banks and other bodies, should provide the Secretary-General Boutros Boutros-Ghali with any information needed to ensure effective implementation of the resolution.

It also reiterated that the Compensation Commission and escrow account enjoy all privileges and rights of the United Nations, including immunity from legal proceedings.