VZCZCXYZ0006
PP RUEHWEB

DE RUEHKH #1522 2701442
ZNR UUUUU ZZH
P 271442Z SEP 07
FM AMEMBASSY KHARTOUM
TO SECSTATE WASHDC PRIORITY 8658

UNCLAS KHARTOUM 001522 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR AF/SPG AND EEB/ESC/ESP 
DEPARTMENT PLEASE PASS TREASURY FOR OFAC 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL SU
SUBJECT: SUDAN SANCTIONS:  TELECOMS COMPANY AGAIN PRESSES 
FOR DELISTING 
 
REF: KHARTOUM 1333 
 
 ¶1.  This is an action request ) see para. 8. 
 
¶2.  Summary:  Executives of Sudanese telecoms company SUDATEL 
have repeated their request for information as to what action 
the company might take to be delisted as a Specially 
Designated National (SDN).  They also provided additional 
insights on how U.S. economic sanctions are affecting 
operations.  Other aspects of the meeting will be reported 
septel.  End summary. 
 
¶3.  During a September 26 meeting, top executives of Sudan 
Telecommunications Company, Ltd. (SUDATEL) restated their 
desire that the company be delisted from U.S. economic 
sanctions imposed on May 29.  SUDATEL CEO Emad Osman recalled 
Chief Commercial Officer Ihab Osman,s earlier meeting at the 
Embassy (reftel), at which Osman had pressed for delisting 
and had requested guidance on what actions the company might 
take to escape SDN status. 
 
¶4.  SUDATEL executives appear honestly bewildered at why 
their company has been included on the SDN list.  They 
emphasized that theirs is the only firm providing telecom 
services to Darfur, including for humanitarian relief 
agencies.  They also said that the GoS has no commercial or 
operational control over the company. 
 
¶5.  According to Ahmed, although the GoS is the largest 
single owner of SUDATEL stock, it has gradually but steadily 
reduced its holdings from 60 percent since privatization of 
the telecoms sector began in 1991 and currently controls 23 
percent.  Ahmed stated that the GoS plans to continue to 
gradually sell off stock over time.  The GoS seeks to 
maximize its return and decides when and how many shares to 
sell based on market conditions.  GoS sales also are 
constrained by its desire not to depress stock prices by 
selling too many shares at one time.  They insisted that 
there is no GoS level of control over SUDATEL.  Two out of 12 
corporate directors represent the GoS. 
 
¶6.  SUDATEL executives reiterated that they will take 
whatever action is required by the USG to be removed from the 
SDN list.  Econoffs offered to forward to Washington any 
specific queries from SUDATEL. 
 
¶7.  Asked about how U.S. sanctions have affected SUDATEL 
operations, they replied that SDN status impedes all of the 
company,s financial transactions.  In addition, sanctions 
impede SUDATEL,s purchase of new equipment.  Since the 
imposition of the U.S. trade embargo on Sudan in 1997, the 
company has had to restrict itself to acquiring equipment 
with no more than 10 percent U.S. content.  However, with the 
listing of SUDATEL as an SDN, even non-U.S. suppliers have 
become wary of dealing with the company. 
 
¶8.  Action requested:  Post seeks Washington guidance on how 
to respond to SUDATEL,s inquiry. 
FERNANDEZ