Firms Libya Controls Have Assets Frozen : Sanctions: The Treasury action affects American funds of 46 multinationals. None of them are headquartered in the United States.

After months of investigation, the U.S. Treasury Department announced Friday that it is freezing the American assets of 46 businesses it says are ultimately controlled by the Libyan government.

The 46 multinational firms include key concerns involved in international banking, investment, petroleum and commercial industries.

While none of the firms are headquartered in the United States, many are located in countries that are close allies--notably Britain and France, co-sponsors of a pending U.N. resolution that would tighten sanctions on Libya. The resolution is expected to be voted on early next week.

Five of the 46 are based in Britain, and one in France. Others are operating openly in Canada, Germany, Italy, Spain, Morocco, Tunisia, Switzerland, Monaco and Malta. The rest are in Eastern Europe and the Middle East.

The biggest firms include a subsidiary of Agip, the Italian oil company; Tamoil, which operates refineries throughout Europe; NDO Oil, operator of a pipeline that stretches through Germany; and two computer software firms specializing in oil exploration, Tekxel Ltd. in Britain and Teknica Petroleum Services Ltd. of Canada.

The move means that the firms’ access to bank accounts and other assets in the United States and in overseas branches of U.S. banks will be blocked by the Treasury.

The embargoed firms are now considered “specially designated nationals” of the Libyan government. Engaging in a business transaction with any of the 46 companies is now considered to be the same as dealing directly with Tripoli. Each violation carries a maximum criminal penalty of up to 10 years in prison and fines of up to $500,000 for corporations and $250,000 for individuals.

“Naming these companies helps expose the extent of Libyan holdings abroad and emphasizes U.S. commitment to denying Libya the benefit of normal international commercial relations with the United States,” said R. Richard Newcomb, director of Treasury’s Office of Foreign Assets Control.

“Moammar Kadafi’s continued use of terrorism as a tool of Libyan foreign policy will prove to be a costly and counterproductive venture as Libya becomes more economically isolated.”

Although the 46 companies are known to have billions of dollars in assets worldwide, the Treasury Department does not yet know how much is in the United States or in U.S. overseas banks.

“Suffice it to say, these are very large companies with very large assets, but until we get access to the accounts we can’t even estimate,” one Treasury official said.

The Ronald Reagan Administration first imposed sanctions on Libya in 1986, but the Bush Administration has moved to tighten the embargo since new evidence emerged last year linking Libya to the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland.

The Administration’s initiative, called Operation Roadblock, is intended to close loopholes created by U.S. and foreign firms that provide cover or act as intermediaries for Kadafi’s regime.

“Investigators had to get out with a pick and shovel to figure out if these companies were really controlled by Libya,” the Treasury official added.

“The people involved are not stupid. They knew how to hide things.”

Each of the firms cited either has been or is now being notified, a Treasury official said. The latest list increases the number of parties whose assets have been frozen by the Treasury Department for dealing with Libya to 106 companies and 20 individuals.

Air Routes, Arms Trade at Stake

The sanctions the U.N. Security Council is threatening to impose on Libya would require all nations to take the following steps until Libya turns over suspects in two airline bombings:

Air embargo: All nations must bar from their territory or airspace all aircraft bound to or from Libya, unless craft carries humanitarian supplies approved by a U.N. committee. All states also must prohibit the supply of aircraft or aircraft components to Libya.

Arms embargo: All states must prohibit providing weapons, ammunition and military equipment of all types to Libya. They also must not provide military technical advice or training, and withdraw any officials or agents now in Libya for those purposes.

Diplomatic personnel: All states must “significantly reduce” their diplomatic staffs at Libyan diplomatic missions and consular posts, restrict the movement of Libyan staff on their territory and shut down all Libyan Arab Airlines offices. They must also expel or deny entry to Libyan nationals who have been expelled from or denied entry to other states because of terrorist activities.

Source: Times Wire Services