US Government Sanctions 15 South Sudanese Oil Firms as President Kiir Seeks Closer Ties with Moscow
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President Kiir and President Putin
By PaanLuel Wël Media Ltd.
Saturday, 30 September 2023 (PW) — In a move with potentially significant diplomatic and geopolitical implications, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) recently added 15 South Sudanese entities to the Entity List, citing national security and foreign policy concerns. This decision comes as South Sudanese President Salva Kiir embarks on a visit to Moscow, seeking to strengthen ties with Russia and potentially reshape the dynamics of the South Sudan conflict.
The Entity List is a crucial tool in the U.S. government’s arsenal for safeguarding national security and foreign policy interests. It identifies entities, whether corporations, government organizations, or individuals, who are believed to be involved in activities contrary to these interests. In this case, the 15 South Sudanese entities were added to the list due to their alleged contribution to the ongoing crisis in South Sudan. The U.S. government contends that these entities generate substantial revenue, which is siphoned off through public corruption to fund the purchase of weapons and other materials that undermine South Sudan’s peace, security, and stability.
The US government has sanctioned the following 15 South Sudanese entities: (1) Ascom Sudd Operating Company, (2) Dar Petroleum Operating Company, (3) DietsmannNile, (4) Greater Pioneer Operating Co. Ltd, (5) Juba Petrotech Technical Services Ltd, (6) Nile Delta Petroleum Company, (7) Nile Drilling and Services Company, (8) Nile Petroleum Corporation, (9) Nyakek and Sons, (10) Oranto Petroleum, (11) Safinat Group, (12) SIPET Engineering and Consultancy Services, (13) South Sudan Ministry of Mining, (14) South Sudan Ministry of Petroleum, and (15) Sudd Petroleum Operating Co.
Consequently, these entities now face stringent restrictions. All exports and reexports destined for them and transfers within the country are subject to a license requirement, with a presumption of denial as the licensing review policy. This extends to any transaction involving these entities, whether they act as purchasers, intermediate consignees, ultimate consignees, or end-users. Additionally, no license exceptions are available to these entities. Violating these sanctions could result in civil or criminal enforcement proceedings, including monetary penalties, export privilege denial, or even inclusion on the Entity List.
President Kiir’s visit to Moscow takes on added importance amid these U.S. sanctions. The South Sudanese leader wants to deepen diplomatic relations and explore cooperation in trade, investment opportunities, and security with Russia. The timing is noteworthy, as it coincides with the imposition of sanctions by the U.S., suggesting that President Kiir may be seeking alternatives and leveraging his diplomatic options.
During the visit, President Kiir and Russian President Vladimir Putin discussed expanding ties between their countries. President Putin reminded President Kiir of their participation in the first Russia-Africa summit in Sochi and noted the intensive development of relations since then. He emphasized the need for economic growth and many opportunities in various areas, including energy and construction.
President Kiir expressed his commitment to working with Russia and highlighted the importance of collaboration in achieving sustainable development, stating, “Our country is no exception, and we will work together – with you and with the Russian Federation because the situation in the world shows that no one can survive or succeed alone.”
Surprisingly, the two leaders inked several bilateral pacts, including a memorandum of understanding (M.O.U) allowing Russia to supply firearms to the South Sudanese government. President Putin noted that Russia intends to support South Sudan in resolving security issues and regional stability.
President Putin’s commitment to deepening ties with African countries, as expressed during the 2023 BRICS Summit, underscores Russia’s renewed focus on Africa. Despite facing economic challenges and geopolitical complexities, Russia views Africa as a pivotal pillar of the emerging multipolar world. The Kremlin seeks to expand its trade, economic ties, and partnerships, emphasizing energy, subsoil use, and agriculture while positioning itself as a reliable food supplier for the continent.
For South Sudan, a landlocked nation grappling with economic crises and political turmoil, the Russian partnership offers potential avenues for development. However, it also raises concerns about further exacerbating regional instability, as the influx of arms and military support could deepen the conflict and prolong the suffering of the South Sudanese people.
The U.S. government’s decision to sanction 15 South Sudanese entities reflects its commitment to resolving the ongoing crisis in South Sudan and ending the humanitarian suffering. Meanwhile, President Kiir’s visit to Moscow and the agreements signed with Russia can potentially reshape the dynamics of the South Sudan conflict and introduce new geopolitical considerations into the region.
As President Kiir seeks closer ties with Moscow, the international community will closely monitor the ramifications of these developments. The balance between diplomatic engagement and regional stability will determine whether these agreements lead to lasting peace or exacerbate South Sudan’s challenges.
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