Latest news with #RiekMachar
Business Insider
4 days ago
- Business
- Business Insider
Africa's poorest country faces $1 billion battle in U.S. court over war-era loan default from Qatar
Qatar National Bank (QNB) has taken legal action against South Sudan in a U.S court, seeking to enforce a $1 billion arbitration award after the country defaulted on a wartime loan. Qatar National Bank (QNB) has initiated legal action in the U.S. to enforce a $1 billion arbitration award against South Sudan South Sudan defaulted on a $700 million wartime loan from QNB, which has accrued additional debt due to penalties and interest. South Sudan's civil war severely impacted the economy, reducing GDP significantly and causing widespread challenges The petition, filed in a U.S court in Washington, D.C., follows South Sudan's failure to repay a $700 million loan obtained from Qatar during the height of its civil war, a debt that, with interest and penalties, has now ballooned to over $1 billion. The original loan was intended to stabilize South Sudan's fragile economy during a period of intense internal conflict. However, nearly a year after an international tribunal under the International Centre for Settlement of Investment Disputes (ICSID) ruled in favor of QNB, South Sudan and its central bank have reportedly neither paid the award nor challenged it. QNB's move to seek enforcement in the U.S. has revealed the growing frustrations over the lack of compliance and highlights how sovereign debt disputes are increasingly playing out on global legal stages. According to the International Monetary Fund (IMF), South Sudan had the lowest GDP per capita in 2025, making it one of the poorest countries in Africa. Thus, the $1 billion court case with Qatar National Bank (QNB) over an unpaid wartime loan reflects the severity of the country's economic crisis. If the U.S. court agrees to uphold the award, South Sudan could face asset seizures or further diplomatic pressure to meet its obligations. The South Sudan war The South Sudanese civil war, which ran from December 2013 to February 2020, began as a political clash between President Salva Kiir and former Vice President Riek Machar, but quickly turned into an ethnic conflict between the Dinka and Nuer. Coming just two years after independence in 2011, the war exposed the country's weak institutions and deep divisions. Beyond the human cost of over 400,000 deaths and millions displaced, the economy lost more than $28 billion in GDP between 2013 and 2018. Oil production which is South Sudan's main revenue source, plunged, inflation soared, and public services collapsed as the war devastated infrastructure and drove away investors. The loan dispute South Sudan's loan dispute with Qatar National Bank (QNB) began after independence in 2011, when the country secured credit to fund essential imports. Shortly after becoming a nation in 2011, South Sudan and its central bank secured loans from QNB to fund critical imports such as food, medicine, and refined oil. When the civil war erupted in late 2013 and oil revenues collapsed, QNB extended additional credit, including a $250 million top-up. By 2015, South Sudan began defaulting, prompting two debt renegotiations. The final 2018 agreement consolidated the loans into a $700 million, 15-year facility, with repayments set to begin in March 2019. After drawing down about $659.8 million, South Sudan missed its first payment, triggering a formal arbitration process. QNB filed a claim in 2020 under ICSID rules. Following hearings in London, the tribunal ruled in January 2024 that both South Sudan and its central bank had breached the loan terms. A final award issued in May ordered them to pay over $1.02 billion, including principal, interest, and legal costs. Despite the ruling, QNB says South Sudan has neither paid nor contested the award. According to court filings reviewed by SudansPost, QNB argues that under U.S. law and the ICSID Convention, the arbitration award must be enforced 'like a final court judgment. ' The bank says South Sudan waived any sovereign immunity t hrough its contract and ICSID membership.
Arab News
31-05-2025
- Business
- Arab News
Divided UN extends arms embargo on South Sudan as fears of renewed civil war grow
UNITED NATIONS: A divided UN Security Council voted Friday to extend an arms embargo on South Sudan, where escalating political tensions have led the UN to warn that the country could again plunge into civil war. A US-sponsored resolution to extend the embargo and other sanctions was approved by the narrowest margin — the minimum nine 'yes' votes required. Six countries abstained – Russia, China, Algeria, Sierra Leone, Somalia and Pakistan. The arms embargo, and travel bans and asset freezes on South Sudanese on the UN sanctions blacklist, were extended for a year until May 31, 2026. There were high hopes for peace and stability after oil-rich South Sudan gained independence from Sudan in 2011, becoming the world's newest nation. But the country slid into civil war in December 2013 when forces loyal to President Salva Kiir, who is from the largest ethnic group in the country, the Dinka, started battling those loyal to Riek Machar, who is from the second-largest ethnic group, the Nuer. A 2018 peace deal that brought Machar into the government as first vice president has been fragile, and implementation has been slow. A presidential election has been postponed until 2026. Last month, the UN envoy to South Sudan, Nicholas Haysom, warned that the escalating rivalry between Kiir and Machar had degenerated into direct military confrontation between their parties and led to Machar's arrest. A campaign of misinformation, disinformation and hate speech is 'fueling political and ethnic tensions — particularly on social media,' he warned. And 'these conditions are darkly reminiscent of the 2013 and 2016 conflicts, which took over 400,000 lives.' US Minister Counselor John Kelley thanked the council after the vote, saying the arms embargo 'remains necessary to stem the unfettered flow of weapons into a region that remains awash with guns.' 'Escalating violence in recent months has brought South Sudan to the brink of civil war,' he said, urging the country's leaders to restore peace. Russia's deputy UN ambassador Anna Evstigneeva countered by saying the easing of Security Council sanctions on South Sudan is long overdue. She said the arms embargo and other sanctions are restricting implementation of the 2018 peace agreement. She accused the resolution's supporters of 'putting a brake on a successful political process unfolding in Sudan, as well as complicating the deployment and proper equipping of the national armed forces.' South Sudan's UN ambassador, Cecilia Adeng, expressed 'deep disappointment' at the extension of the arms embargo and other sanctions. 'The lifting of the sanctions and the arms embargo is not only a matter of national security or sovereignty, but also a matter of economic opportunity and dignity,' she said. 'These measures create barriers to growth, delay development, discourage foreign investment, and leave the state vulnerable to non-state actors and outlaws.'
Associated Press
30-05-2025
- Business
- Associated Press
Divided UN extends arms embargo on South Sudan as fears of renewed civil war grow
UNITED NATIONS (AP) — A divided U.N. Security Council voted Friday to extend an arms embargo on South Sudan, where escalating political tensions have led the U.N. to warn that the country could again plunge into civil war. A U.S.-sponsored resolution to extend the embargo and other sanctions was approved by the narrowest margin — the minimum nine 'yes' votes required. Six countries abstained – Russia, China, Algeria, Sierra Leone, Somalia and Pakistan. The arms embargo, and travel bans and asset freezes on South Sudanese on the U.N. sanctions blacklist, were extended for a year until May 31, 2026. There were high hopes for peace and stability after oil-rich South Sudan gained independence from Sudan in 2011, becoming the world's newest nation. But the country slid into civil war in December 2013 when forces loyal to President Salva Kiir, who is from the largest ethnic group in the country, the Dinka, started battling those loyal to Riek Machar, who is from the second-largest ethnic group, the Nuer. A 2018 peace deal that brought Machar into the government as first vice-president has been fragile, and implementation has been slow. A presidential election has been postponed until 2026. Last month, the U.N. envoy to South Sudan, Nicholas Haysom, warned that the escalating rivalry between Kiir and Machar had degenerated into direct military confrontation between their parties and led to Machar's arrest. A campaign of misinformation, disinformation and hate speech is 'fueling political and ethnic tensions — particularly on social media,' he warned. And 'these conditions are darkly reminiscent of the 2013 and 2016 conflicts, which took over 400,000 lives.' U.S. Minister Counselor John Kelley thanked the council after the vote, saying the arms embargo 'remains necessary to stem the unfettered flow of weapons into a region that remains awash with guns.' 'Escalating violence in recent months has brought South Sudan to the brink of civil war,' he said, urging the country's leaders to restore peace. Russia's deputy U.N. ambassador Anna Evstigneeva countered by saying the easing of Security Council sanctions on South Sudan is long overdue. She said the arms embargo and other sanctions are restricting implementation of the 2018 peace agreement. She accused the resolution's supporters of 'putting a brake on a successful political process unfolding in Sudan, as well as complicating the deployment and proper equipping of the national armed forces.' South Sudan's U.N. ambassador, Cecilia Adeng, expressed 'deep disappointment' at the extension of the arms embargo and other sanctions. 'The lifting of the sanctions and the arms embargo is not only a matter of national security or sovereignty, but also a matter of economic opportunity and dignity,' she said. 'These measures create barriers to growth, delay development, discourage foreign investment, and leave the state vulnerable to non-state actors and outlaws.'
Russia Today
28-05-2025
- General
- Russia Today
Force will not resolve South Sudan crisis
Escalating violence in South Sudan cannot be solved by military force, Russian Foreign Ministry spokesperson Maria Zakharova has warned. Clashes between the East African country's government forces and opposition groups have spiralled into a humanitarian and political catastrophe. Zakharova made the statement during a briefing on Tuesday in Makhachkala, the Republic of Dagestan, which focused on regional and international security issues. 'The sharp deterioration of the situation in South Sudan in recent months is a cause for serious concern,' Zakharova said, noting that the armed confrontations have led to rising casualties, including among civilians. Fighting has intensified in Africa's youngest country since early this year, with alarming reports of ethnic-driven violence and breaches of a fragile 2018 peace deal that had once offered a path to unity. The International Committee of the Red Cross announced on Monday that its medical teams have performed over 1,000 surgeries on weapon-wounded patients in less than three months. More than 130,000 people have reportedly been displaced as airstrikes and fighter jet raids forced residents to flee towns, disrupted humanitarian access, and cut off key trade routes linking South Sudan to neighboring Ethiopia. The situation has been further complicated by political upheaval, including the arrest of First Vice President and opposition leader Riek Machar in March. The landlocked country gained independence from war-torn Sudan in 2011, and has remained unstable since the end of a five-year civil war that erupted in 2013 over a feud between its president, Salva Kiir Mayardit, and Machar. Machar's party has warned that his arrest effectively nullifies the 2018 peace agreement that brought the civil war to an end. Several Western nations, including the US and the UK, have advised their citizens to leave South Sudan amid growing fears that the country could slide back into full-scale conflict. On Tuesday, Zakharova reaffirmed Russia's support for African-led efforts to resolve the crisis in South Sudan, which she noted adds to the existing challenges in neighboring Sudan, Somalia, and the Democratic Republic of the Congo. She urged South Sudanese parties, with backing from their African partners, to 'demonstrate political wisdom' and prevent further escalation by recommitting to the framework of the 2018 peace agreement. 'We proceed from the fact that a forceful solution to this conflict is impossible,' Zakharova stated.
Al Jazeera
27-05-2025
- General
- Al Jazeera
UN Security Council must renew the arms embargo on South Sudan
In 2015, as a civil war was raging in South Sudan, the United Nations Security Council imposed the first set of sanctions on the country, including asset freezes and travel bans on various senior officials. Three years later, after a ceasefire agreement was repeatedly violated, the UNSC mustered the votes to impose a full arms embargo. Fragile peace eventually settled in, but the embargo was kept in place and was extended every year. The review of the embargo is now coming up on May 29 and there is a push from African members of the UNSC – Sierra Leone, Somalia and Algeria – to lift it. On March 18, the African Union Peace and Security Council (AUPSC) publicly called for this measure to end. But lifting the embargo on South Sudan at this moment would be a mistake. Violence has come back to plague the country, killing at least 180 people between March and mid-April, amid deepening divisions between President Salva Kiir and First Vice President Riek Machar, who has been placed under house arrest. Allowing more weapons to enter the country would only escalate the dire situation. This would not be in the interest of neighbouring countries and the African Union as a whole. Under the AU's development plan, Agenda 2063, the continent set itself an ambitious goal of 'Silencing the Guns' by 2020, later extended to 2030. With this, the AU wants to 'end all wars and violent conflicts and promote dialogue-based mechanisms for conflict prevention and resolution'. Yet, the AUPSC's call for lifting the embargo on South Sudan does not fall in line with these goals. The justification for this stance is that free access to more weapons can enable the unification of government and opposition forces and reform the security sector. But this logic ignores the growing fractures in South Sudan amid the renewed tensions between Kiir and Machar. Placing more guns in the hands of warring parties involved in serious human rights violations and crimes under international law would only make the situation worse. South Sudan's security and defence forces have attacked the very people they are tasked to protect: Civilians. The South Sudanese army, National Security Service and armed opposition forces have been implicated in war crimes and human rights violations for well more than a decade, including by the AU's Commission of Inquiry on South Sudan and the UN Commission on Human Rights in South Sudan. Indeed, around the time the AUPSC called for the lifting of the arms embargo, South Sudan's government reportedly used improvised incendiary weapons in aerial attacks, killing at least 58 people and injuring others, including children. To be sure, the existence of the arms embargo is not enough – its enforcement is key. That is already faltering after in early March, Uganda sent troops and military equipment to South Sudan without providing notification or receiving special exemption from the UNSC Sanctions Committee. This is a clear violation of the embargo. South Sudan's Mi-24 helicopters also seem to be on the move, despite the government's fleet reportedly being non-functional and grounded since the arms embargo was imposed in 2018. This suggests spare parts have been sourced in violation of the embargo. On May 4, Doctors Without Borders, known by its French initials MSF, reported that two helicopter gunships had bombed its medical facility in Old Fangak the day before and fired at the town, killing seven and injuring 20 others. Deliberate attacks on a medical facility performing its humanitarian function violate international humanitarian law and would constitute a war crime. This is yet another indication of why the UNSC must renew the arms embargo and strengthen its enforcement. If properly implemented and enforced, a renewed UNSC arms embargo would not obstruct security sector reform. Instead, it would block the disorderly and destabilising accumulation of arms in South Sudan, which is spurring the current conflict and contributing to violations against civilians. If the AU is serious about silencing the guns, it should back the strict controls prohibiting arms transfers to South Sudan, and the African states in the UNSC should vote to renew the arms embargo. The views expressed in this article are the author's own and do not necessarily reflect Al Jazeera's editorial stance.
