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  • Libya: High taxes do not seem to matter


    Gordon Feller

    Libya is a member of the New Partnership for Africa’s Development and African Union. Italy, its main trading partner, is cementing political co-operation and boosting investment. The prospect of lucrative contracts and investments, especially in the hydrocarbons sector, has also encouraged companies in countries such as Australia, Canada, Russia, the US and China to develop or strengthen their ties with Libya. Gazprom wants to buy all the exportable gas that Libya can produce and some of the country’s oil. In 2006, Gazprom, which now supplies about a quarter of Europe’s gas, signed a cooperation agreement with Algeria, heightening fears that the two biggest suppliers to Europe could act as a sort of gas-supply OPEC. Gazprom is also planning a joint venture with Libya’s National Oil Corp. (NOC) for refineries, as well as to build pipelines.

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