The United States has warned Germany against investing
in Libya's energy sector.
U.S. officials said the Bush administration has relayed a
message that German companies that invest in Libya's oil and natural gas
sector could be liable to U.S. sanctions. In 1996, Congress has passed a law
that calls for sanctions on companies that make significant investments in
Iran and Libya.
The Iran-Libya Sanctions Act calls for sanctions on companies that
invest more than $20 million in the energy sectors of Iran or Libya. The
European Union has not recognized the U.S. legislation, Middle East Newsline reported.
The focus of U.S. concern is a project by Germany's RWE Dea AG. The
company plans to invest up to $60 million in Libya's energy sector and explore for oil and natural gas in the North African
country.
"United States policy has long been opposed to investment in the
petroleum sector of Libya," State Department deputy spokesman Philip Reeker
said. "We normally raise our concerns with appropriate parties, including
companies and governments, and we've done so in this case with the company
and with the German government. We will evaluate the facts, determine
whether sanctionable activity has taken place, and, if it has, then decide
in light of our national interests what action under the law we would take."
