LIBYA

Despite having otherwise civil relations with its neighbours, Libya's decision to safe-haven a Sudanese rebel leader has raised tensions between the two countries. The Libyan government has been requested by Khartoum to extradite the Justice and Equality Movement leader in the interests of progressing peace talks in Sudan. As a compromise, leader Colonel Qadhafi has stated that the JEM leader will have his movements in Libya restricted to limit his media exposure - but made no mention of expulsion. Nonetheless, we do not expect the dispute to escalate, and maintain our relatively positive short term political risk rating.

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