The International Crisis Group has called on the UN Security Council to introduce further changes to the sanctions regime imposed on the Libyan Investment Authority (LIA) without waiting for a resolution to Libya’s prolonged political crisis.
In a recent report issued last Thursday, the non-governmental organization argued that instead of waiting for a settlement to the crisis, the Security Council should set realistic conditions to enable a broader easing of sanctions over the long term, while the Libyan Investment Authority should take steps to enhance its credibility.
The Crisis Group’s report urged the UN Security Council to implement four corrective measures to address shortcomings in the sanctions regime, including reforming additional elements that hinder the LIA’s growth — such as allowing low-risk reinvestment of non-cash assets — while maintaining the freeze on assets and any accrued interests.
It also suggested that the Security Council and the LIA consider launching a pilot project where LIA partners and a credible third party, such as the United Nations or the World Bank, would jointly manage part of the frozen assets.
The Crisis Group recommended that the LIA take vital steps to strengthen transparency, accountability, and independence — such as fully committing to the Santiago Principles on best practices for sovereign wealth funds and producing comprehensive reports on its holdings.
The report further urged the Security Council to set realistic interim targets for lifting sanctions on the LIA, given the unlikely prospect of resolving Libya’s political crisis or holding elections in the near future.
The Crisis Group stressed that these reforms would pose little risk and could provide better protection for Libya’s wealth. It concluded by stating: “Such reforms would enhance the credibility of the Security Council’s sanctions, which, if left unchanged, could be reasonably criticized as discriminatory and ill-suited to current conditions.”
The Libyan Investment Authority has been subject to UN sanctions since the uprising against Muammar Gaddafi’s regime in 2011. The Authority oversees a wide network of subsidiary funds valued at about $70 billion, at least half of which remains frozen — a situation that has constrained its growth, according to the Crisis Group.
