Home | News    Tuesday 15 July 2014

US sanctions pose serious threat to Sudan’s strategic wheat reserves

separation
increase
decrease
separation
separation

July 14, 2014 (KHARTOUM) – Sudan’s strategic reserve of wheat has declined sharply due to refusal of several banks in western countries and Gulf States to open documentary credits for importing the commodity.

JPEG - 25.3 kb
Sudanese wait in a queue to buy bread from a bakery in Khartoum on November 19, 2013 (Photo AFP/Ibrahim Hamid)

Last month, France’s largest bank, BNP Paribas, agreed to pay nearly $9 billion to resolve criminal allegations that it processed transactions for clients in Sudan and other blacklisted countries in violation of the United States trade sanctions.

After months of negotiations, BNP admitted to violating US trade sanctions by processing billions of dollars in illegal transactions on behalf of clients in Sudan, Cuba and Iran.

Washington imposed economic and trade sanctions on Sudan in 1997 in response to its alleged connection to terror networks and human rights abuses. In 2007 it strengthened the embargo, citing abuses in Darfur which it labeled as genocide.

Informed sources told Sudan Tribune that officials of a major Sudanese flour mills continued to contact the Central Bank of Sudan (CBoS) for a whole week in order to get the foreign exchange needed for wheat imports amid fears that its operations could stop.

Sudanese flour market is controlled by three major companies including Sayga flour mills which is owned by Osama Daoud, Weta flour mills which is owned by Ibrahim Malik, and the government-owned Seen flour mills.

Sudan imports more than 2 million tones of wheat annually at a cost of $1.5 billion dollars. The government plans for achieving self-sufficiency has failed since 1993 while domestic consumption have increased significantly.

The same sources said that commercial banks have been keeping large numbers of documentary credits for several months because they couldn’t find a correspondent bank to accept them amid government reticence and search for solutions.

The sources also pointed that several Sudanese importers are reluctant to use their accounts in foreign banks to provide foreign trade for exporters particularly as the US became increasingly active in pursuing banks which offers such service.

International financial institutions became increasingly cautious in dealing with Sudan as they do not want to risk being found in violation of US sanctions.

Following BNP Paribas penalties, the US federal and state authorities intensified investigations of other foreign banks over signs of similar infractions. At least six banks in Germany, France, Italy or Japan are among the institutions that could face fines or forfeitures for processing transactions linked to Sudan, Cuba, and Iran.

The sources also said that wheat crisis has surfaced since five days ago, pointing that Qatari banks which used to cooperate with Sudan started to face difficulties in opening documentary credits for its Sudanese counterparts since last month.

Last March, a number of Saudi and European banks took a decision to stop dealing with Sudanese banks and attributed it to pressure made by the United States.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.


s
Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Salva Kiir’s cunning strategy 2018-05-19 07:40:06 By Duop Chak Wuol Salva Kiir likes to preach democracy to confuse people, looks for ways to legitimize his atrocious regime, uses deception to promote his despotism, and calculatingly waits for (...)

Lessons for South Sudan and IGAD-Led peace forum 2018-05-16 23:28:16 James Okuk, PhD “The polis exists to assure the good life” – Aristotle. “For however strong a ruler may be, he will always have need of the goodwill of the inhabitants if he wishes to remain in (...)

Clarity on Malong’s SSUF status also crucial for peace and accountability 2018-05-14 22:59:18 By Roger Alfred Yoron Modi While declaring the formation of his armed movement in the name of SSUF early last month, the former SPLA chief of general staff, Gen. Paul Malong Awan announced the (...)


MORE






Latest Press Releases


The Suspension of Hurriyat Online Newspaper 2018-04-29 07:04:37 Sudan Democracy First Group 28 April 2018 The Sudanese civil and political circles and those concerned with Sudan were shocked by the news that the management of Hurriyat online newspaper has (...)

Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan 2018-04-22 10:01:20 UN Secretary-General, New York African Union Commission, Addis Ababa UN High Commissioner for Human Rights, Geneva Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan (...)

Abyei celebrates Mine Awareness Day 2018-04-05 08:52:03 4 April 2018 | Abyei - The United Nations Interim Security Force for Abyei (UNISFA) and the United Nations Mine Action Service (UNMAS) commemorated the International Day for Mine Awareness and (...)


MORE

Copyright © 2003-2018 SudanTribune - All rights reserved.