EU lifts sanctions against 28 Libyan firms

(BRUSSELS) - The European Union on Thursday lifted an assets freeze against 28 Libyan firms, including ports and banks, to provide funds to the rebel leadership and kickstart the economy.

"Today, the EU has lifted its asset freeze on 28 Libyan entities. Our goal is to provide resources to the interim government and the Libyan people and help to make the economy function again," said EU chief diplomat Catherine Ashton.

Ashton said Libyan ports as well as companies in the energy and banking sectors were among the firms that were removed from a blacklist of some 50 entities targeted by sanctions.

The decision coincided with an international conference of the "Friends of Libya" hosted by Paris to find ways to support the National Transitional Council (NTC).

"This is a clear sign of the EU's determination to do its utmost to support the people of Libya and the interim authorities during the transition," Ashton said, one week after rebel forces took control of Tripoli.

The names of the companies removed from the EU sanctions list will be known Friday when the 27-nation bloc publishes its Official Journal.

Diplomats say all six ports and at least three oil firms that were sanctioned will be removed from the list.

The EU must wait for a green light from the United Nations to remove all the remaining sanctions against Libya because some were linked to punitive measures imposed by the world body, European diplomats said.

The sanctions were imposed by the EU to punish the regime of Moamer Kadhafi for its brutal repression of a revolt that began in February.

But the rebels have asked the bloc to remove them since their victorious raid intro Tripoli, which effectively ended Kadhafi's 42-year iron grip on the country.

The United States and European powers have also begun to release billions of dollars in Libyan assets that were frozen worldwide.

France said Thursday that the UN Security Council authorised it to release 1.5 billion euros ($2.15 billion) in Libyan assets.

This came after the world body gave the United States permission to unfreeze $1.5 billion (1.05 billion euros) and Britain another $1.6 billion.