U.S. move allows investments in South Sudan oil production

Special to WorldTribune.com

WASHINGTON — The United States has decided to ease sanctions on the
new republic of South Sudan.

The oil-rich Abyei area has been one point of conflict between Khartoum and the new South Sudan republic.

The U.S. measure was implemented five months after South Sudan seceded from Khartoum in July. Sudan, on the U.S. State Department list of terrorist sponsors, has been under sanctions by Washington since 1997.

Officials said the administration of President Barack Obama has eased sanctions on South Sudan. They said the measures would allow U.S. and other foreign investment to enhance South Sudan’s energy sector.

“As such, South Sudan is no longer subject to the Sudanese Sanctions Regulations,” the Treasury Department said on Dec. 8.

Officials said U.S. companies could now export equipment for the energy sector of South Sudan. They said the equipment would enhance the new republic, which produces about 375,000 barrels of crude oil per day.

Treasury’s Office of Foreign Assets Control determined that some U.S.
sanctions would remain on South Sudan, particularly on activities that help
northern Sudan. The office cited any U.S. investment in or contract with
refineries in northern Sudan, assigned to process crude oil from the south.

“While the Republic of South Sudan is no longer subject to the SSR,
certain activities in or involving the Republic of South Sudan continue to
be prohibited by the SSR, absent authorization from OFAC, given the
interdependence between certain sectors of the economies of the Republic of
South Sudan and Sudan,” Treasury said.

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