The thawing of Libyan assets: where are they, how to do it, what criteria...
(BRUSSELS2) Confusion reigns somewhat over the thawing of Libyan assets. The announcements follow one another, slightly contradictory. Some states are announcing an immediate thaw (Italy, etc.). Others await a UN resolution. Others a decision of the European Union. What is it really. To find out more, B2 tried to see things clearly. Here are some answers.
In fact, there are three types of sanctions which obey different regimes: first of all the sanctions imposed by the United Nations, taken up in decisions of the European Union which has imposed in addition autonomous sanctions as well as some states. For the EU, the main objective is to help the Libyan population but to prevent the unfrozen assets from falling into the hands of pro-Gaddafiists.
Assets frozen by the United Nations
They are fixed either in the resolutions (1970 and 1973) or subsequently by an ad hoc committee. This committee is chaired (for 2011) by Portugal (through its ambassador, José Filipe Moraes Cabral) and co-chaired by India. He is assisted by a panel of experts responsible for ensuring compliance with the sanctions and examining possible exemptions (*) These sanctions are included in EU decisions which have imposed autonomous sanctions in addition. Theoretically, to be lifted, a decision of the sanctions committee is needed to lift them. As a reminder, the sanctions imposed by the UN include 6 entities (5 fixed by resolution 1973, one later): Central Bank of Libya, Libyan Investment Authority, Libyan Foreign Bank, Libyan Africa Investment Portfolio, Libyan National Oil Corporation and Zueitina Oil Company.
(*) Panel composed of Youseif Fahed Ahmed Alserhan (Jordan) for maritime, Oumar Die?ye Sidi (Niger) for customs), Giovanna Perri (Italy), for finance, Salim Raad (Lebanon) for heavy weapons and Panel coordinator, Savannah de Tessie?res (France) for small arms, Ahmed Zerhouni (Algeria) for aviation, Theodore M. Murphy (USA) for humanitarian and regional.
The frozen assets independently by the European Union
To be "unfrozen" they require a decision of the 27. Decision which can be prepared in a working group and then endorsed by the ministers 27. To go faster (if there is no political discussion necessary), a simple decision of the ambassadors of the 27 is sufficient, if necessary by written procedure. Basically, there doesn't seem to be too many problems. Although most European states have now recognized the CNT as the only legitimate representative of the Libyans, there is still some reluctance (the Czech Republic in particular).
But there remains an apparently technical but eminently political question: how to prevent Libyan assets from falling into the hands of the Gaddafi regime, as confirmed by Maja Kocijancic, the spokesperson for the EU High Representative, at a Question from B2. " We are currently reviewing all options. Consultations are ongoing, including with our UN partners.” But the EU remains cautious about a too rapid thaw. " You have to unfreeze assets but prevent it from going to Gaddafi supporters. This is the main European criterion. » It is necessary to add to this general criterion, conditions of transparency and accounting verification for the released funds do not evaporate (corruption…).
According to our information, the unfreezing of assets could therefore occur gradually, as the CNT takes control of the various institutions. Certain symbolic entities such as the Libyan radio and television or the Libyan airline could be on the top of the list. But obviously it is the ports and especially the oil entities that arouse more the interest of the CNT.
For the record: the EU has imposed autonomous sanctions on more than one quarantine of entities. These include: the airline Afriqiyah Airways; the Organization for Development of Administrative Centers (ODAC), the main Libyan ports (Tripoli, Al Khoms, Brega, Ras Lanuf, Zawia, Zuwara) and several oil companies (Al-Sharara Oil Services Company, National Petroleum Company Libyan Bank, Ras Lanuf Oil and Gas Processing Company, Sirte Oil Company, Waha Oil Company), banks (National Commercial Bank, Gumhouria Bank, Sahara Bank, Azzawia Refining), foundations (Waatassimou Foundation and Qadhafi Foundation for Charities and development), national radio (General Office of Libyan Radio and Television, as well as the “Revolutionary Guards Corps”.Additional frozen assets each state
These can be lifted immediately according to a national decision. Difficulties could arise when certain freezing orders obey indirectly a decision of the United Nations or the EU (subsidiaries, etc.).
First unlocks
A first unblocking took place at the UN on August 26. 1,5 billion $ have been released to meet urgent needs: 500 million for humanitarian aid and UN programs, 500 million for the payment of salaries and essential services of the Libyan State, 500 million for the purchase of fuel and basic necessities. This decision is not unexpected. It is based on an American project submitted in early August, which was approved by the lifting of the veto by South Africa.
Furthermore, the Italian government has decided to pay $350 million in aid to the CNT this week. A decision that does not legally mean the lifting of sanctions, nor a net subsidy. It is an advance on funds blocked in Italian banks and pledged on these frozen assets. In the absence of a collective decision, innovation is therefore permitted. It is worth pointing out that it comes from Italy, one of the countries that has dragged the longest at the EU level to sanction the Gaddafi regime.
The Netherlands recently announced the release of an envelope of €100 million for WHO projects. Read :Libyan assets released for WHO by the Netherlands
NB: The CNT had requested, last June, from 2 to 3 billion $; sum recently re-evaluated (during the meeting of the contact group in Istanbul) to 5 billion $, to get the country going again (pay salaries, imports...). An international conference of aid to Libya will meet in Paris on September 1, at the invitation of Nicolas Sarkozy.
Libyan assets: how many billions of dollars frozen ?
That's the $1 question 🙂 Officially nobody knows. B2 asked a European Union official the question; he claimed not to know the number. According to our database, made up of announcements made publicly by the various European governments, we can however estimate that the countries of the European Union + Switzerland have frozen at least $40 billion worth of Libyan assets. An equivalent sum ($37 billion) has been frozen in the United States.
According to the estimate of the president (CNT) of the Libyan Central Bank, published in the press, the assets of the Libyan state represent $ 168 billion, divided between the Central Bank, the participations of the Libyan Sovereign Fund and gold reserves. . The IMF, for its part, estimates Libyan reserves at $104 billion.
Document: UN Sanctions Committee guidelines, see B2 docs.
