US grants Sudan sovereign immunity over old attacks

The US recently removed Sudan from its state sponsors of terrorism blacklist less than two months after the Arab nation pledged to normalise ties with Israel.

US President Donald Trump speaks about an agreement regarding Sudan in the Oval Office at the White House in Washington, US, October 23, 2020
Reuters

US President Donald Trump speaks about an agreement regarding Sudan in the Oval Office at the White House in Washington, US, October 23, 2020

The United States has reinstated Sudan's sovereign immunity after the country was removed from the list of state sponsors of terror.

However, the legislation includes an exemption allowing lawsuits by the families of victims of the September 11, 2001, attacks on the United States already underway in US courts to move forward, although experts say Sudan is unlikely to lose those cases.

The state sponsor of terror designation, which was in place for almost three decades, had weighed on Sudan's economy and restricted its ability to receive aid.

For investors, the reinstating of sovereign immunity removes another layer of financial risk.

Sudan had been engaged in talks with the United States for months, and paid a negotiated $335 million settlement to victims of Al Qaeda attacks on US embassies in East Africa in 1998 who had been awarded much higher damages by US courts.

The process to release the settlement money and restore Sudan's sovereign immunity – protection against being sued in American courts – had been stalled in the US Congress as it had been tied to the $892 billion coronavirus aid package.

Late on Monday, the wider package was passed in the US Congress after a deal was worked out in a rare weekend session, and sent to President Donald Trump to sign into law.

READ MORE: Trump announces Israel-Sudan normalisation deal

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Freed up dosh

According to the bill, Washington will be authorising $111 million to pay off part of Sudan's bilateral debt, and $120 to help pay off its debt to the International Monetary Fund (IMF) while making another $700 million available until September 2022 for assistance to the country.

The bill also appropriates an additional $150 million for Sudan's settlement payment, in order to redistribute the funds in a way the bill's sponsors say is more equitable.

Last week, Sudan's finance minister announced a US "bridge loan" that would allow Sudan to clear $1 billion in arrears to the World Bank.

A US source familiar with the matter said the debt assistance would help kick off Sudan's debt relief on a global level, helping make it eligible for the IMF's Highly Indebted Poor Countries (HIPC) programme.

Trump's administration, which hands power to Democrat Joe Biden in January, has been pushing for a conclusion in part to show its support for Sudan's transition two years after the revolt that brought an end to Bashir's reign.

The Trump White House was also aiming to remove any issues that could put in doubt Khartoum's historic pledge to normalise relations with Israel.

READ MORE: Does normalising ties with Israel determine one’s terrorist status?

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New friends of Israel

With the reinstatement of sovereign immunity and the financial aid, Khartoum will now be "on the hook," to normalise ties with Israel, a US source familiar with the matter said, a move it has agreed to under US pressure.

In a joint statement in October, Israel and Sudan said they had agreed to normalise relations and end the state of belligerence between the two countries, but Sudan's civilian leaders have said the final decision would be in the hands of a yet-to-be-formed transitional legislature.

The normalisation would make Sudan one of the four Arab countries along with the United Arab Emirates, Bahrain and Morocco, over the past several months, to establish relations with Israel in deals brokered with US help.

The United States designated Sudan a state sponsor of terrorism in 1993 on the grounds that former President Omar al Bashir's regime was supporting militant groups including Al Qaeda, Hamas and Hezbollah.

In the 1990s, the regime became a pariah, hosting Osama bin Laden and positioning itself as a fulcrum for extremist movements, although experts still say Sudan's liability for the September 11 attacks is questionable.

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