The United States is easing sanctions on South Sudan to allow investment in the newly independent nation's oil sector, the Treasury Department's Office of Foreign Assets Control (OFAC) said. OFAC issued two general licenses to implement the policy change, nearly a year after the people of Southern Sudan voted in favour of independence. That was achieved on July 9, when South Sudan seceded from the North.
"As such, (South Sudan) is no longer subject to the Sudanese Sanctions Regulations," OFAC said on Thursday. The United States imposed comprehensive sanctions against Sudan in October 1997 in response to concerns over the government's support for terrorist groups.
OFAC said US companies are now free to export equipment for use in South Sudan's oil sector. Also, oil and other equipment can be transhipped through Sudan to or from South Sudan. The agency emphasised the policy change did not mean US companies can do business in Sudan's oil sector. Nor can the companies participate in the refining of Southern Sudanese crude oil in refineries located in Sudan. South Sudan pumps around 75 percent of the formerly united country's roughly 500,000 barrels per day of oil output.