/ 20 April 2004

US to lift sanctions on Libya this week

The United States will this week lift economic sanctions on Libya, opening the door for US companies to bid for oil contracts, a British newspaper reported on Tuesday.

Citing US officials and diplomatic sources, the Financial Times business daily said Washington was to announce as early as Wednesday that it would end the sanctions dating from 1986, which have barred US companies from commerce with Libya.

The United States will also remove Libya from the Iran-Libya Sanctions Act, which allowed Washington to penalise foreign oil companies investing in the oil sector in either country, the newspaper added.

However, the United States will not take the final step sought by Tripoli — its removal from Washington’s list of state sponsors of terrorism. That was likely to be delayed until after the US presidential elections in November, an unnamed official told the Financial Times.

Libya opened a new page in international relations when it agreed in December following talks with the United States and Britain to abandon its quest for weapons of mass destruction.

Relations began to improve last year after Libya agreed to pay compensation worth $2,7-billion (2,3-billion euros) over the December 1988 bombing of Pan Am Flight 108 over Lockerbie, southwest Scotland, which killed 270 people.

A Libyan agent was imprisoned in Scotland after being convicted of carrying out the attack. – Sapa-AFP