Libyan Investment Authority Says UN Sanctions Have Cost It $4.1 Billion To Date

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The Libyan Investment Authority (LIA) has said an independent report has shown that its portfolio could have been worth $4.1 billion more if it had not had to deal with United Nations sanctions over the past decade

The claim follows a meeting between the sovereign wealth fund, Libya’s mission to the United Nations and the UN Security Council Sanctions Committee for Libya on December 15, held to discuss the ongoing sanctions on Libyan assets.

According to the LIA, a recent report compiled by consultancy firm Deloitte concluded there had been “a significant negative impact on the value of the investments held by the LIA and its subsidiaries” as a result of the sanctions.

The fund was first targeted by an asset freeze in February 2011, via UN Security Council resolution 1970, amid the revolution which unseated Colonel Muammar Gaddafi. The restrictions remain in place on most of the assets the LIA holds outside Libya.

“If sanctions had not been imposed and our equity assets had performed in line with the market, the total value of the portfolio would have been approximately $4.1 billion higher,” the LIA said in an emailed statement, citing the Deloitte report.

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The sovereign wealth fund has been trying for some time to convince the UN to ease the burden caused by the sanctions.

LIA chairman Dr Ali Mahmoud Hassan Mohamed has repeatedly said the fund is not calling for all its overseas assets to be unfrozen, but it does want to find “feasible ways to more actively manage” its portfolio to avoid losses.

A further meeting is due to take place next year between the LIA and the UN sanctions committee where the LIA plans to present its recommendations for ways to make the management of its portfolio easier.