Sudan, South Sudan Agree To Set Up “Demilitarised Buffer Zone”

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The presidents of neighbouring Sudan and South Sudan have agreed to set up a demilitarised zone along their disputed border region “without further delay,” reported Reuters on Sunday, in a deal that may open the way for the two countries to resume oil exports since production was shut down last January.


The presidents of neighbouring Sudan and South Sudan have agreed to set up a demilitarised zone along their disputed border region “without further delay,” reported Reuters on Sunday, in a deal that may open the way for the two countries to resume oil exports since production was shut down last January.

Talks between Sudanese President Omar al-Bashir and his South Sudan counterpart Salva Kiir had occurred in the Ethiopian capital of Addis Ababa over the weekend, where the two agreed to revive a stalled oil-exportation deal that has been delayed for months over border disputes.

Former South Africa President Thabo Mbeki, who was in Ethiopia as a mediator, said that the two parties would implement the deal “unconditionally”, which included the proposed creation of a safe demilitarised buffer zone as well as a future referendum on the status of the disputed Abyei area.

“We are very, very pleased indeed with the outcome of this because it has indeed opened the way for the implementation of all of these various agreements,” said Mbeki, as cited by the Wall Street Journal.

[quote]”They have also agreed that action should be taken immediately, as soon as possible, to implement all the existing agreements unconditionally,” Mbeki added.[/quote]

Related: Oil Negotiations Break Down Between Sudan & South Sudan

Related: South Sudan Makes $3.2 Billion Peace Offer To Sudan

South Sudan, which gained independence from Sudan in July 2011, shut down its 350,000 barrel-a-day crude production last year after accusing Khartoum of stealing $815 million of its oil. Sudan insisted that it had took the crude to recoup unpaid transportation and processing fees, with the dispute almost leading to war last April.

According to IMF estimates, South Sudan’s economy may have contracted by at least 55 percent last year, as a result of the conflict. Sudan’s economy on the hand shrank by 11.2 percent following limited success in boosting non-oil related businesses. Both economies rely heavily on oil – particularly South Sudan, where oil production makes 82 percent of its GDP.

Related: Sudan Eyes New Gold Rush To Compensate For Loss of Oil

Related: South Sudan President Pleads With Officials To Return $4 Billion In “Stolen” Public Money

African Union (AU) mediators will now present officials from both sides, by January 13, with a timetable for oil exports and the withdrawal of military forces from border areas, said Mbeki.

South Sudan chief negotiator Pagan Amum also said on Friday said that in case of disagreements over the recommendation of the AU mediators, his country would be prepared to go to binding international arbitration.

The African Union, backed by western powers, though have already threatened both countries with sanctions if they missed a further deadline to resolve their dispute, having granted both sides more time after talks broke down last September.

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