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U.S. says future South Sudan state exempt from economic sanctions

April 12, 2011 (WASHINGTON) – The new state of South Sudan that will officially see the light in less than three months is exempt from the decade-long sanctions imposed on the entire country, the United States said today.

FILE - A girl holds a South Sudan flag during the announcement of the preliminary results of voting in Sudan, January 30, 2011 (Reuters)
FILE – A girl holds a South Sudan flag during the announcement of the preliminary results of voting in Sudan, January 30, 2011 (Reuters)
A referendum was conducted last January in which Southern Sudanese were asked to pick whether they want to have their own state or remain with the North as one nation.

The outcome was a near unanimous vote in favor of independence that is scheduled to take place at the end of the interim period on July 9.

On Tuesday, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) issued a press release explaining the sanctions policy with regard to the new state.

“When the new state is formed by Southern Sudan, it will not be included in the territorial boundaries of Sudan nor be governed by the Government of Sudan,” OFAC said in its statement.

“Following interagency consultations, OFAC has concluded that the SSR will continue to apply only to Sudan and the Government of Sudan, and that such a new state and its government will not be subject to them”.

Washington imposed economic and trade sanctions on Sudan in 1997 because of the North-South civil war and allegations that it is supporting terrorism. In 2006 and 2007 the embargo was strengthened over a separate conflict in Darfur.

OFAC said that this exemption is consistent with executive orders issued by the White House in the past which cited the need for sanctions ” to deal with the threat that the policies and actions of the Government of Sudan pose to the national security and foreign policy of the United States”.

However, certain aspects of the sanctions may still apply if it involves properties or interests related to the government of Sudan.

“For example, the [Sudan Sanctions Regulations] SSR will prohibit a U.S. company, unless authorized by OFAC, from providing services to the petroleum industry in the new state if those services would benefit the Government of Sudan or relate to the petroleum industry in Sudan, or from transporting exports of petroleum or petrochemical products through Sudan.”.

“Further, should a revenue-sharing arrangement between Sudan and the new state result in a situation where the government of the new state makes payments to the Government of Sudan from the sale of Southern Sudanese petroleum, U.S. persons generally could not engage in transactions involving the oil industry in the new state unless authorized by OFAC”.

The new directive will likely infuriate Khartoum which has sought relentlessly to have the U.S. lift the sanctions since signing the 2005 Comprehensive Peace Agreement (CPA).

Washington has insisted that what it labeled as genocide in Darfur prevented it from revoking the embargo.

However, the U.S. administration said that it has initiated the process that may result in removing Sudan’s name from the list of countries that sponsor terrorism as a reward for facilitating the South’s referendum and later recognizing its results.

Countries on the list of state sponsors of terrorism cannot receive US aid or buy US weapons and a raft of restrictions on financial and other dealings. The list currently includes Cuba, Iran, Sudan and Syria.

But U.S. officials made it clear that lifting the comprehensive sanctions is contingent upon resolving the crisis in Darfur.

Despite that, the U.S. announced in October of last year that it was easing sanctions on agriculture equipment and services.

The head of the Government of Southern Sudan (GoSS) Mission in the U.S. Ezekiel Gatkuoth suggested in an emailed statement that today’s clarification by OFAC is a result of their efforts in lobbying the Treasury department and the Congress.

“The Republic of South Sudan will not have sanctions at all comes July 9th 2011. The GOSS Mission to USA and UN has been working with the Department of the Treasury of the USA and all the friends in the U.S. Congress to spell this out clearly and we are glad this comes true. GOSS appreciates and thanks the Obama administration and the people of the USA for their support to the cause of the people of South Sudan”.

(ST)

23 Comments

  • Hero
    Hero

    U.S. says South Sudan state is exempt from economic sanctions
    Good news everybody, even though it is not a surprises, then it make sense in term of reality. And that’s why I argues that, the SPLM should not bother to engaged in debt relief talks, since it has nothing to do with it.Let them carry it or cry if they wish.

    Reply
  • Omoni jr
    Omoni jr

    U.S. says South Sudan state is exempt from economic sanctions
    we never sheltered any terrorist in south sudan,

    Reply
  • Deng E. Manyuon
    Deng E. Manyuon

    U.S. says South Sudan state is exempt from economic sanctions
    Hero,

    I agree with you that it is a good news to exempt South from the economic sanctions imposed on Sudan since 1997. May I correct you, on the other hand, that there is a differnce between economic sanctions imposed on Sudan and Sudan debts’ relief talks. Debts relief talks are about monies successive regimes in Khartoum borrowed. These monies are still owing and over due to be paid by the Sudanese NCP government. The NCP wants us to take some burden of such owing amounts ! ! ! As such, the GOSS should be talking to avoid liaiblity.

    Deng

    Reply
  • Hero
    Hero

    U.S. says South Sudan state is exempt from economic sanctions
    Dear Deng E.Manyuon

    You might be right brother! But, my argument has alway been why debt relief is taking the first seat on everyone mind? Yet there are more serious issues like Abyei,Oil sharing,Citizenship,and border demarcation and nothing has been done about them, and they seem to be so occupy on one thing, debt relief.So, to me I find it unfair and it look like the NCP is now using the “plan B” which is to fool SPLM on the issues considered to be of more concerns to them,that’s exactly is happening now.I know, not everybody will agreed with me,but if I were the SPLM, I should have tell them that we must starts with Abyei’s issue and then the debt issue would have been the last issue or second last issue in my mind to resolute.Otherwise I’m not there! But I’m happy to see how it may unfolded.

    Reply
  • Dinka Dominated SPLA
    Dinka Dominated SPLA

    U.S. says South Sudan state is exempt from economic sanctions
    That what we being working hard to hear form USA but not only USA We are now still working with other countries to recognise the south without doubt
    But this country with Riek machar a live is a living hell may something happen to wicked oaf doom nyagat gang leader so that we will live in peace,
    he will caused south to get economy sanction soon. people must take care of this corock riek death to him.
    I don’t care what people will think about what i wrote here, death to nyagateen ever where,
    by the way i don’t like those who killed their brother for food and i don’t forgive them no matter what they do good to change their wrong doing.

    Reply
  • Quol Quot
    Quol Quot

    U.S. says South Sudan state is exempt from economic sanctions
    Our own economic sanctions are our leaders who are entrenched in corruption. Corruption is our economic sanction right now.

    Reply
  • Malish JP
    Malish JP

    U.S. says South Sudan state is exempt from economic sanctions
    Great news!!!!!!! let US not forget our missile defense plant signed by former President George W Bush which is suppose to be erected in Abyei.

    Reply
  • johnny
    johnny

    U.S. says South Sudan state is exempt from economic sanctions
    it is very clear, something expected from the super power, it is time to stop going to their parliament and respond to every ill statements made by likes of Salah Gosh, Nafie Ali that we are sovereign state and any quote made towards the south should be treated accordingly. it could have been much better if the govt earlier started our own pipeline to the east africa this could have add a little much hurt to them, and we will continue to hurt you more as you people did it, how do you think about that?.

    Reply
  • Deng Bornyang
    Deng Bornyang

    U.S. says South Sudan state is exempt from economic sanctions
    DINKA DOMINTATED DRUNKARD!
    You are always deviating from what the focus is all about. Are we talking of recognition of the South or exclusion from the economic sanctions?

    Again were you physically abused when Riek Machar and his men attacked Bor? There must be a reason beacuse you are pretending to be knowing what you are writting about but immediately deviated. See a counselor because if you were physically asulted by then, you need a psychological support. But all i know is that Southern Sudanese do not have those kind of practices.

    Riek Machar is not who you think he is and the issue of corruption has nothing to do with Nuer other than the Villagers from Barh elgazal. Your harted will just cause you some ulcers nothing will come out of it.

    Hell with you stupid Dinka/

    Reply
  • Gatwech
    Gatwech

    U.S. says South Sudan state is exempt from economic sanctions
    Dear readers,

    I commend the comment posted today by Quol Quot under this article. It makes alot of sense and I encourage the rest of us to make such sensical comments and forget about those rubbish tribal ones.

    Yes, even if the Americans exempt us from economic sanctions, our real economic threat are some of our greedy leaders who occupy economic positions while corrupting our resources for their own selfish benefits.

    For the last 30 years I used to hear Nuer elders in villages describing a government as “a small group of clever people who have formed themselves to exploit the rest of the population for their own benefits.”

    That description by the Nuer, though not correct to apply to any government in the world, can really befit our current government. And may be the Nuer viewed the government in light of the previous British colonial administrators and successive northern governments that used to tax them heavily while giving them no services at all. This is repeating itself now as our government has so many corrupt officials who turn the oil revenues into their own resources.

    I felt ashamed of our officials who are corrupt when I read a report published by the Ugandan-based Monitor online newspaper revealing the between our officials and Ugandan officials in the corruption saga. Our officials look foolish and greedy in the eyes of the world.

    They are our dangerous economic sanctions!

    Reply
  • Gatwech
    Gatwech

    U.S. says future South Sudan state exempt from economic sanctions
    Dear readers,

    I commend the comment posted today by Quol Quot under this article. It makes alot of sense and I encourage the rest of us to make such sensical comments and forget about those rubbish tribal ones.

    Yes, even if the Americans exempt us from economic sanctions, our real economic threat are some of our greedy leaders who occupy economic positions while corrupting our resources for their own selfish benefits.

    For the last 30 years I used to hear Nuer elders in villages describing a government as “a small group of clever people who have formed themselves to exploit the rest of the population for their own benefits.”

    That description by the Nuer, though not correct to apply to any government in the world, can really befit our current government. And may be the Nuer viewed the government in light of the previous British colonial administrators and successive northern governments that used to tax them heavily while giving them no services at all. This is repeating itself now as our government has so many corrupt officials who turn the oil revenues into their own resources.

    I felt ashamed of our officials who are corrupt when I read a report published by the Ugandan-based Monitor online newspaper revealing the DEALS between our officials and Ugandan officials in the corruption saga.

    Our officials look foolish and greedy in the eyes of the world.

    They are our dangerous economic sanctions!!!

    Reply
  • Gatwech
    Gatwech

    U.S. says South Sudan state is exempt from economic sanctions
    CORRECTION: I felt ashamed of our officials who are corrupt when I read a report published by the Ugandan-based Monitor online newspaper revealing the DEALS between our officials and Ugandan officials in the corruption saga.

    Reply
  • HONEY
    HONEY

    U.S. says South Sudan state is exempt from economic sanctions
    Sudani Logic

    am with you on your great comments today. well done.

    is it me or has southerners changed alot recently on sudantribune? the tribal hatred is less and less everyday except for Dinka dominated SPLA. Anyways my brothers, am happy and believe that we will build this new nation from the bottom of our hearts regardless of tribe.

    Have a nice day everyone

    Reply
  • Liberator
    Liberator

    U.S. says future South Sudan state exempt from economic sanctions
    Sudan tribune

    Why is this even a “News’?

    South Sudan have never been part of economic sanctions that was imposed back in the mid ’90s by the United States.

    That was after Sudan’s involvement in assassination attempted on the life of recently deposed ex-president Hosni Mubarak and also for its sheltering of Al-Qaeda leader Osama Bin laden in the early ’90s.

    This is an attempt by the SPLM corrupt ruling cliques to take credit of never exist hostile policy against South Sudan.

    Thus, I would agree with Gatwech and Quot Quot that the real economic sanctions against South is the unabated institutionalized corruption of looting public funds by these communists clique of the SPLM along with their culprits politicians from neighboring Kenya and Uganda. The economic burden on the emerging state is incalculable at this point.

    Reply
  • Mony de Jang
    Mony de Jang

    U.S. says South Sudan state is exempt from economic sanctions
    Mmmmmmmm!Gatwech, that’s why you are always at odds throughout the history of Sudan. I guess your elders are not wise in their interptretation of what government is.
    However, educated as you are and maybe among the only few Nuer who never enjoyed forged education, I would ask you to refrain from repeated self proclaimation. Why would you like the public to belief that you are good when the irony is that there is something fishy in your bahaviors? Why do you want to impose false into people’s minds that Riek Machar/Mr.Smiling Machine is the first ever in the South who brought the issue of self-determination into CPA document? This was first echoed in 1947 by Southerners before your unfortunate leader came into being.

    Like anyone else in Sudan and beyond, I surely pity the creation of your minds and the way you would want to be recognized as leaders. You are indeed misled by your own people and shall continue misleading and misusing you if you don’t learn from your past.

    You are so drunk of self importance which has no good to you but, Southerners know how to tackle your case and transform you.

    Reply
  • kaci-banno
    kaci-banno

    U.S. says future South Sudan state exempt from economic sanctions
    Yes all of us are excited for the good news of South Sudan exemption from economic sanction but think twice about the world Bank loan. taking the loan from world Bank is an invisible way of economic sanction whereby our new nation will not progress rapidly. South Sudan leaders should watch carefully for the greedy heart of taking too much loans from the world Bank which may turn the new nation to economic devastation like other African country.

    By: Kaci-Ma-banno

    Reply
  • Lual Garang De Lual
    Lual Garang De Lual

    U.S. says South Sudan state is exempt from economic sanctions
    Hero

    You are right man, our leaders are mostly preoccupied with monephobia and that is why they rush to settle the demand of NCP rather than the demand of the people of South Sudan. During the negotiation NCP tip the balance by putting debt issue forward as a resolute to solving the rest if it is settle, b’se they know that they are not going to give in for Abyei later while agreement has already been reached for $37 billion debt. SPLM most also be keen to put Abyei issue and border demarcation as a condition to the division of debts.

    Reply
  • Gatran
    Gatran

    U.S. says South Sudan state is exempt from economic sanctions
    People who are always at odds with Gatwech are mad, they hat any things good coming from Nuer. Gatwech is absolutely rights, I personally knew what he is saying. Also remember it was a Nuer man who first shot-down British Helicopter in the history while Dinkas were hiding in holes, it was also a Nuer who first introduced Self-determination (Shrine of Southern Sudan – Dr. Riek Machar)against the dead Vision of a United New Sudan. It will also be a Nuer man/woman who shall bring USA styles of absolute democracy to the people of the Republic Of South Sudan.
    Please you Mon-de Jang and the likes shut-up and stop plagiarizing Nuer ideas, create your own or else your days are numbered

    Reply
  • Dakin
    Dakin

    U.S. says South Sudan state is exempt from economic sanctions
    This guy u talk highly of shuld hav suggested a solution against his uncles. His commen is vague. This country has been run like a cattle camp by this Dinka Government of self service( Goss) regime n 2 say the least the US govt or the international community shuld freeze their bank accounts n impose targeted sanctions on them until they face an intrntional anti graft commission whic can recover their spoil.

    Reply
  • Dakin
    Dakin

    U.S. says South Sudan state is exempt from economic sanctions
    This guy u talk highly of shuld hav suggested a solution against his uncles. His commen is vague. This country has been run like a cattle camp by this Dinka Government of self service( Goss) regime n 2 say the least the US govt or the international community shuld freeze their bank accounts n impose targeted sanctions on them until they face an intrntional anti graft commission whic can recover their spoil.

    Reply
  • Quota
    Quota

    sanctions, not too bad
    Well done,
    First of all, thanks to U.S about putting this on the table to be discussed by both of you. secondly thanks to you, whoever put out his/her comments about this good News. I’m gald to hear it, and also to see the way everybody participated at this moment; I do like that,and I give everyeach of you a credit for that. But some of you are still running around the bush,jumped from topic;and facing Government’s leaders with personality and tribalism’s identity.

    Back to the topic, I think this is acredit from being conducted referendum last January,in good way that world want it or as individul’s rights. If things come up like this all the time, I hope so people could carrying on heading the New Nation goals. because U.S know exactly what’s in NCP mind. Because, this NCP want to shared whatever they used during the war, when they buy powerful things and use them against South and now they wanted to shared the debits that they had. Neve ever ever gonig to happened to shared those debits between Northern and Southern Sudan.

    Have a wonderful day or night
    By investigator

    Reply
  • Jalinga
    Jalinga

    U.S. says future South Sudan state exempt from economic sanctions
    Those who are still wasting time in tribal accusations and insults let go on. Independence is coming and is for all people regardless of tribe. THE NUER AND THE DINKAS ARE JUST MERELY CAMPAIGNING FOR SELF INTEREST NOT FOR THE WHOLE OF THE SOUTH. So we should watch out. I,m tired of hearing Nuer and Dinka’s insult and etc . If they are created and believed that they are the only human in South Sudan, then during the independence day in July, i will appreciate if the President(a Dinka man) and his deputy (a Nuer man) present to the southern masses the CERTIFICATE OF RECOGNITION FROM GOD INDICATING THEY TWO ARE THE ONLY TRIBES IN THE SOUTH. THIS WILL ENABLE THE OTHER TRIBES ON THAT DAY TO DETERMINE THEIR DESTINY. iF NOT THEN STOP TALKING HATRED

    Reply
  • Mony de Jang
    Mony de Jang

    U.S. says South Sudan state is exempt from economic sanctions
    Gatran;

    Just as I told Getwech earlier that you guys are drunk of self-importance which in actual sense is a zero work, you are indeed not exempted from your confused ugly tribe. Therefore, don’t allow flies to enter your most desired mouth which you have for long used to bringing mess in the South. However, your claim that it was a Nuer man who first gunned down Bristish hilcopter might or might not be true for that matter. You are part of the history making process and have attempted many than that but, the awkward side of your ideas is that they aren’t implemented, no adderence, patience, perserverance and because of all these weaknesses connected with your cultures, you are eventually enticed using any available material including “yhow” to surrender your own cause to the enemy. Riek/Smiling machine is not the architect of Self-determination, he got born in 1950s while the first ever call was made in 1947 during the Juba Conference, do you get the rationale here woman?

    Reply
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