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South Sudan says U.S oil sanctions will undermine peace

March 22, 2018 (JUBA) – Sanctions imposed by the United States on 15 South Sudanese oil operators will undermine efforts to restore peace and stability in war-torn nation, government said Thursday.

Former South Sudan's petroleum minister Ezekiel Gatkouth makes opening remarks at the Oil and Power conference in Juba, October 16, 2017 (APO)
Former South Sudan’s petroleum minister Ezekiel Gatkouth makes opening remarks at the Oil and Power conference in Juba, October 16, 2017 (APO)
The U.S. Department of State, in a 21 March statement, said was taking action against 15 South Sudan oil-related entities “whose revenues have contributed to the ongoing crisis in South Sudan.”

The move, it explained, now implied that US, as well as non-US companies, would need a license to export, re-export, or transfer exports of any US-origin goods or technology to the listed entities.

“By placing these entities on the U.S. Department of Commerce’s Entity List, the United States will impose a license requirement on all exports, re-exports, and transfers of any U.S.-origin items to those entities,” said US Department spokeswoman, Heather Nauert.

“We call on the region and broader international community to join us in limiting the financial flows that fuel the continuing violence in the country,” she added.

The South Sudan views the sanctions as against efforts by the coalition government to implement a peace deal with rebel groups.

“These measures are viewed by the Ministry of Petroleum as counterproductive to the shared mission of the Republic of South Sudan’s and the United States’ governments to bring peace and stability to South Sudan,” the ministry said in statement.

On Wednesday, the US Bureau of Industry and Security, Commerce added the following fifteen entities to a sanction list; Ascom Sudd Operating Company; Dar Petroleum Operating Company; DietsmannNile; Greater Pioneer Operating Co.Ltd; Juba Petrotech Technical Services Ltd; Nile Delta Petroleum Company; Nile Drilling and Services Company; Nile Petroleum Corporation; Nyakek and Sons; Oranto Petroleum; Safinat Group; SIPET Engineering and Consultancy Services; South Sudan Ministry of Minning; South Sudan Ministry of Petroleum as well as the Sudd Petroleum Operating Co.

These 15 oil entities are reasonably believed to be involved or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the US.

South Sudan vowed to work with the US Department of Commerce to remove these restrictions and resume normal relations with the US.

Early this month, The Sentry, an investigative initiative co-founded by George Clooney and John Prendergast, accused South Sudan’s elites of using the nation’s oil wealth to get rich and terrorize civilians.

The report details how revenues from oil resources, the country’s main resources of revenue, are used to fuel militias and ongoing atrocities, and how a small clique continues to get richer while the majority of South Sudanese suffer or flee their homes due to conflict.

According to The Sentry’s investigations, Nilepet has been “captured by predatory elites” and is being used to fund the civil war, including a government-aligned militia accused of human rights abuses.

Since its independence, South Sudan has relied on oil for all its incomes, a situation that has significantly compounded the ongoing political and economic instability, due to the fall in crude oil prices.

Brian Adeba, deputy director of policy at Enough Project said the move is an important step in the search for peace in South Sudan.

“As the next round of the South Sudan peace talks approaches, it is important for the United States and its partners to continue to build leverage by increasing these types of pressures to target as wide a network as possible to ensure that the parties to the conflict change their calculations in favor of peace,” he said on Wednesday.

South Sudan got the lion’s share of the oil when it split from Sudan in July 2011, but it’s only export route is through Sudan, giving Khartoum leverage and leading to ongoing pricing disputes.

Oil production in South Sudan has, however, been affected by the conflict that erupted in 2013 after a political disagreement between President Salva Kiir and his then deputy, Riek Machar, triggered war.

On Thursday, South Sudan government said it would encourage more investments in the petroleum sector, with its Petroleum minister Ezekiel Lol Gatkuoth extending an exploration and production sharing agreement with Petronas of Malaysia for six years.

The deal covers blocks 3 and 7 in Unity oilfield, which have been shut down due to the ongoing civil war. The government said it had secured a commitment from Petronas to resume operations soon.

“Bringing back production at Unity and other fields, and increasing production overall, are the priorities of this ministry,” said Gatkouth.

The war in South Sudan, which has featured the use of child soldiers, rape as a weapon of war, and mass atrocities, has resulted in tens of thousands of deaths and displaced over 2 million people.

(ST)

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