No major change in US sanctions with South Sudan exemption – embassy
November 10, 2007 (KHARTOUM) — US mission in Khartoum said that exemption of Southern Sudan from economic sanction on the country does not represent a major change in US sanction policy towards Sudan.
In a press statement issued on November 7, the US Embassy in Khartoum said October 31 regulations in fact implement the easing of some sanctions for southern Sudan announced since last October 2006.
“The changes have been in effect since that time, and the Treasury Department issued interpretive guidance last year explaining the impact of these changes. The new regulations merely serve as a more formal and authoritative explanation of these changes.” The embassy said.
An October 31 notice from the U.S. Office of Foreign Assets Control (OFAC) has cleared up confusion arising from a sanctions order issued last year. The new notice said most activities and money transactions, other than in the oil industry, are allowed in the south.
The rule exempts “all trade and related transactions and humanitarian assistance in specified areas of Sudan, including Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile State, Abyei, Darfur, and four official camps for internally displaced persons (Mayo, El Salaam, Wad El Bashir, and Soba) from the sanctions imposed on Sudan by Executive Order 13067 of November 3, 1997”.
The 2006 changes to the Sudan sanctions program make it easier for Southern Sudan to export certain non-oil commodities like gum Arabic and hibiscus extract to U.S. persons through such points as Kenya or Uganda. However, transactions involving banking and/or transshipment of commercial goods through Khartoum or Port Sudan still need Treasury Department Office of Foreign Assets Control (OFAC) licenses.
The new regulations make it easier for U.S. persons to provide certain goods and services in Southern Sudan. However, a variety of restrictions remain in place.
Commerce Department licensing requirements remain unchanged; any exports of sensitive technology such as a satellite phones to any part of Sudan will still need Commerce Department licenses.
The oil sector in the South remains off-limits to U.S. persons absent an OFAC license. In addition, transactions with any companies owned or controlled by the Government of Sudan (excluding the Government of Southern Sudan) that operate in the South are prohibited.
(ST)