The UN Security Council’s Libya Sanctions Committee approved a U.S. proposal to unfreeze $1.5 billion of Libyan assets to be used to provide critical humanitarian and other assistance to the Libyan people. The U.S. request to unfreeze Libyan assets is divided into three key portions:
Transfers to International Humanitarian Organizations (up to $500 million):
Transfers to suppliers for fuel and other goods for strictly civilian purposes (up to $500 million):
Transfers to the Temporary Financial Mechanism established by the Contact Group to assist the Libyan people (up to $500 million):
The United States crafted this proposal in close coordination with the Transitional National Council, as they assessed the needs of the Libyan people throughout the country. It responds to humanitarian concerns in a diversified way that prioritizes key needs. The United States will work urgently with the Transitional National Council to facilitate the release of these funds within days.
The proposal also has a number of safeguards, including a restriction that none of the funds are used for military equipment or activities. Funds given to the United Nations will be subject to existing UN safeguards. Payments for fuel costs will be confirmed by both the TNC and the vendor. Similarly, the Temporary Financing Mechanism incorporates several accounting and procedural safeguards: a Steering Board with TNC and international members (and consensus decision making); regular internal audits and external audits to be conducted by an internationally respected independent auditing firm; and an independent financial management agent (Adam Smith International) to administer the TFM account.