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New Delhi:
India has opposed the proposal of western countries to expand the
list of sanctioned Libyan entities by the United Nations Security
Council following concerns that such a move may adversely affect
its economic interests in the troubled North African nation.
Since February, Libya has been torn apart by a civil war between
rebels in the western region and security forces of the
long-reigning Muammar Gadaffi.
On Feb 26, the UNSC had first imposed travel bans against 16
individuals and ordered the freezing of assets of Muammar Gaddafi,
four of his sons and daughter. About a month later, another UNSC
resolution was passed, listing more individuals and for the first
time also bringing in five entities.
In the first week of April, the western countries, which include
Britain, France, Germany and the United States, circulated two
different lists for expanding the group under sanctions. The
proposals were made before the UNSC's Libya sanctions committee,
of which India is the vice-chair.
"We have put it on technical hold, while we examine how it will
affect us," a senior official of the external affairs ministry
told IANS. The expansion is also being opposed by Russia and
China, both of whom are also executing several projects in Libya.
While Libya's National Oil Corporation had already been sanctioned
in the March 17 resolution, the new list would have named more
Libyan state companies, most of them subsidiaries of Libya's
National Oil Corporation.
According to officials, India is especially concerned that the
asset freeze will affect the payment of contracts and salaries for
Indians who had been working in that country.
"We had 18,000 Indians working in Libya. How will they be paid? It
has to be made clear. There should not be any retrospective
freezing of assets," he said.
Following the breakout of hostilities, India had conducted a
massive evacuation of 16,000 nationals, most of them employed in
the oil industry, health and education sector.
For example, Punj Lloyd had around 1,800 employees working in the
country, when it was hit by violence between the rebels in the
east and Gadaffi's forces in the west. The company has projects
worth $1.8 billion in the country.
Indian state companies like ONGC Videsh, Oil India and Bharat
Heavy Electricals Limited also had significant presence in Libya
in the last five years. Oil India has three blocks in Libya with
partnership with Algerian oil company, Sonatrach.
"We are in the process of collating the total dues owed to Indian
nationals and companies in Libya," said an external affairs
ministry official.
While India had supported the Feb 26 resolution, it had abstained
from the March resolution, which had also authorised the
imposition of a no-fly zone in Libya.
In its explanation vote, India's deputy permanent representative,
Manjeev Singh Puri, had warned that "financial measures that are
proposed in the resolution could impact, directly or through
indirect routes, ongoing trade and investment activities of a
number of member-states thereby adversely affecting the economic
interests of the Libyan people and others dependent on these trade
and economic ties".
Officials said that there was no technical limit on how long India
could put a hold on the proposal.
"We will continue to put a hold on this (expansion) till our
doubts are cleared," an official said.
(Devirupa Mitra can be contacted at devirupa.m@ians.in)
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