Local view for "http://purl.org/linkedpolitics/eu/plenary/2012-05-23-Speech-3-371-000"
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"en.20120523.17.3-371-000"2
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"Mr President, the declaration of independence by South Sudan on 9 July last year was a moment of joy and achievement. A new era began for this country. Prospects seemed good. Major oil reserves guaranteed a decent national income. South Sudan also benefits from foreign aid – in 2011, the total foreign aid declared was USD 700 million.
However, less than a year later, the prospects for South Sudan no longer look so promising. Why? I think we need a good understanding of the background to events. There is practically no tax system in South Sudan. Taxes are collected in theory, but in practice, the system does not work, which is why income from sales of crude oil represents 97% of the state budget.
The problem is that South Sudanese oil must be transported via the only pipeline, which leads through Sudanese territory to the city of Port Sudan. Recent enemies can hardly be expected to cooperate easily. Accusations and complaints have been made by both parties. What is more, South Sudan has long preferred another solution for transporting oil – through Kenya to Mombasa. In December 2011, a preliminary agreement was signed for the construction of a new pipeline. The problem is that President Kiir shut down the northern pipeline one month later, which did not impress the Sudanese. It seems to me that this region will not be stabilised until the issues of oil and oil transport have been resolved."@en1
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