Iraqis Order Blackwater out of Iraq — But Will It Leave?

Following a Baghdad shootout yesterday that left at least nine civilians dead, security-contractor giant Blackwater will no longer be permitted to operate in Iraq, according to the Iraqi Interior Ministry.

The Interior Ministry’s decision is likely to be a source of friction between the U.S. Embassy and Iraq. Not only does Blackwater guard many important U.S. officials there, but the embassy is unlikely to want a precedent established that allows the Iraqi government to kick out U.S. contractors for excessive use of force.

Yesterday’s incident involved an insurgent attack on a State Department convoy in the Sunni neighborhood of Mansour in western Baghdad. Blackwater personnel guarding the motorcade returned fire — “to defend themselves,” according to a State Department official quoted by The Washington Post. A Post reporter on the scene in Mansour witnessed Blackwater’s Little Bird helicopters “firing into the streets.” Almost immediately, an Interior Ministry spokesman said the company’s license to operate in Iraq would be revoked.

However, it’s unclear how the Interior Ministry would expel Blackwater. Unlike other private U.S. security firms in Iraq, as of May, Blackwater hadn’t registered with the Iraqi government to operate in Iraq. The Coalition Provisional Authority — the now-defunct occupational government — issued a decree in 2004 (pdf) immunizing security contractors from Iraqi prosecution and placing their operations under the jurisdiction of U.S. authorities.

Blackwater, one of many security firms safeguarding U.S. personnel in Iraq, has an estimated 1,000 employees operating in the country, and Iraq-related contracts with the State Department worth over $100 million. Official estimates place between 20,000 and 30,000 private security contractors in Iraq — the equivalent of about six U.S. Army brigades. Their operations are controversial in and outside Iraq: in May, the company was involved in two firefights in as many days in eastern Baghdad, right on the doorstep of an incensed Interior Ministry. One of the incidents began after an Iraqi driver drove too closely to a Blackwater convoy, resulting in the contractors killing the driver after attempting, unsuccessfully, to wave him away.

In Congressional testimony last week, Ambassador Ryan Crocker praised private security firms working in Iraq. He is unlikely to allow the Interior Ministry to expel Blackwater without a fight: not only is Blackwater a contractor with the U.S. government, its personnel and those of its rival rival firms keep Crocker and many of his colleagues alive. Expect the ministry’s decision to spark a serious diplomatic row between the U.S. and the Iraqi government, which will be under public pressure to demonstrate that it’s holding the firm accountable.