Most U.S. sanctions against Sudan will be revoked, State Department spokeswoman Heather Nauert said in a statement Friday night.
The revocation takes effect on Oct. 12., and includes bilateral agreements to cede hostilities in key regions, collaborate to address the threat of terrorism and expand humanitarian efforts. The decision came after a 16-month, “diplomatic effort to make progress with Sudan in these key areas,” according to the statement released by Nauert.
“The United States will continue efforts to improve bilateral relations with Sudan,” she said. “Any further normalization of ties will require continued progress by the Government of Sudan.”
The U.S. sanctions for 20 years had crippled the Sudanese economy, but had been put in place as Sudan had provided safe haven to terrorists including Osama bin Laden. The U.S. slapped on additional sanctions in 2004 following news of alleged human rights abuses and violence in Darfur.
Michael Casey, a partner at Kirkland & Ellis International LLP and author of "Sanctions Enforcement and Compliance: A Practitioner’s Guide to OFAC," told The Hill the move will open up “interesting” business opportunities for Sudan.
“Sudan has significant oil and gas resources that will present interesting business opportunities to U.S. energy companies,” he said.
“The lifting of sanctions on Sudan will create new opportunities for U.S. companies, but various challenges remain as well. A number of individuals and companies within Sudan continue to be targeted by U.S. sanctions, the U.S. government still maintains restrictions on exporting U.S. products to Sudan, and Sudan suffers from endemic corruption,” he said. “It is also unclear if U.S. and European banks will be willing to process Sudan-related transactions.”
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