US seeks to undo Zim-Russia platinum deal

05 Oct, 2014 - 09:10 0 Views
US seeks to undo Zim-Russia platinum deal

The Sunday Mail

The United States government has threatened to sabotage Zimbabwe’s historic US$3 billion platinum deal with Russia as part of its sanctions on Harare and Moscow.

Washington recently sanctioned Russia for the latter’s alleged support for Ukranian pro-Moscow insurgents fighting the American and EU-backed government in Kiev.

In 2003, the United States slapped economic sanctions on Zimbabwe over its revolutionary fast track land reform programme.

Sources told The Sunday Mail that the US government — via its Harare embassy — dispatched official communication to the Foreign Affairs Ministry over a week ago expressing reservations on Russo-Zimbabwean relations.

Diplomatic sources said the communication spells out the American sanctions on Moscow and tacitly warns Zimbabwe to sever ties with any embargoed Russian companies and individuals.

Foreign Affairs officials confirmed the communication but declined to divulge further details.

An official said: “The communication on the subject was, indeed, received at the end of last week. There was a thinly veiled threat to the effect that, ‘You will also be putting yourselves under sanctions if you deal with Russia and its companies’.

“The Americans list the Russian companies on sanctions and also say these sanctions will only be lifted if Russia ‘co-operates’ on Ukraine.”

US embassy spokesperson Ms Karen Kelley did not respond to written questions e-mailed to her yesterday.

Though Moscow denies supporting any insurgents in Ukraine, the Americans and the EU have taken punitive action targeting key Russian figures, and the defence, energy and financial sectors.

The sanctions prohibit offering financing to Rostec, which deals in industrial technology products, and takes aim at major financial institution Sberbank.

Debt-financing restrictions were also reviewed from 90 to 30 days for other sanctioned banks such as Bank of Moscow, Gazprombank OAO, Russian Agricultural Bank, VEB, and VTB Bank.

Further, restrictions were placed on the exportation of goods, services and technology for oil drilling.

Five energy companies – Gazprom, Gazprom Neft, Lukoil, Surgutneftegas, and Rosneft – were particularly targeted.

Zimbabwe, to stave off the sanctions’ effects, is partnering friendly nations such as China and Russia.

Last month, Beijing committed to infrastructure projects aimed at stimulating economic growth and wealth-creation.

Russian investors are also financing platinum exploration and mining in Darwendale.

The US$3 billion platinum deal – the first such agreement between Harare and Moscow – is expected to create over 5 000 jobs.

In New York last month, Russian Foreign Minister Mr Sergey Lavrov said Moscow “wants to work with whoever is ready for it on the basis of equality and mutual respect for interests”.

“They (the US) are trying to send signals to us: let’s agree some criteria for you to comply with, and then we will gradually start lifting the sanctions. This is not a serious approach,” Mr Lavrov was quoted as saying.

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