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Key facts: Libya sanctions

The UTA jetliner bombing killed 170 people.

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(CNN) -- The U.N. Security Council on September 12, 2003 lifted sanctions against Libya, triggering the release of up to $2.7 billion to the families of the 270 people killed in bombing of a Pan Am airline over Lockerbie, Scotland, in 1988.

On January 8, 2004, Libya also signed a $170 million compensation deal with the families of 170 people killed in the bombing of a French airliner in 1989 over the Niger desert.

Here is a short fact box on sanctions on Libya.

What are the sanctions?

U.N. sanctions

The U.N. Security Council imposed an air and arms embargo and a ban on some oil equipment on Libya in 1992 and 1993 to pressure Tripoli to hand over two Libyan suspects for trial.

Sanctions were suspended when Libya turned them over in April 1999. Britain restored diplomatic ties with Libya in 1999 when the two accused Libyans were handed over to the UK for trial. Intelligence agent Abdel Basset al-Megrahi was convicted. The second suspect was acquitted.

To have the U.N. sanctions permanently lifted, Libya had to pay compensation to the families of the victims, take responsibility for the attack, renounce terrorism and agree to cooperate in further investigations.

Britain drafted a Security Council resolution to end U.N. sanctions on Libya when Tripoli agreed to pay $2.7 billion to families of Lockerbie victims.

U.S. sanctions

The United States banned imports of Libyan oil and some exports to Libya in 1982 following a deterioration of relations.

Sanctions were expanded after the 1986 bombing of a Berlin disco to include a total ban on direct import and export trade, commercial contracts, and travel-related activities.

The Iran-Libya Sanctions Act passed in 1996 and amended in 2001 allows the U.S. president to punish non-U.S. firms investing more than $20 million annually in the energy sectors in Libya or Iran.

Lifting bilateral U.S. sanctions requires action by the U.S. government, where there are sharp divisions on the issue.

Why were sanctions imposed?

On December 21, 1988, Pan Am Flight 103 from London to New York blew up over Scotland, killing all 259 people aboard the Boeing 747 jumbo jet and 11 residents of the town of Lockerbie.

In late 1991, the United States and Britain accused Libyans Abdel Basset al-Megrahi and Al-Amin Khalifa Fahima of involvement.

In March 1992, U.N. Security Council Resolution 748 told Libya to surrender the suspects. Libya refused and sanctions were imposed on April 15.

What compensation has Libya offered?

On April 30, 2003, the Libyan government accepted responsibility for Lockerbie and set up a fund to compensate victims' families. Compensation could reach $2.7 billion, or $10 million per victim.

Under the deal an initial $4 million would be paid for each victim once U.N. sanctions ended.

That would be followed by another $4 million if the United States lifts its sanctions and by $2 million if it drops Libya from the U.S. list of state sponsors of terrorism.

Meanwhile, Libya agreed to pay $170 million in compensation to the families of 170 people killed in the 1989 bombing of a French airliner UTA.

The move to compensate families of those killed when the UTA flight was bombed over the Niger desert is now expected to clear the way for wider relations between the Libyan government of Colonel Moammar Gadhafi and France.

Victims came from 17 countries, but France, with 54 dead, had the heaviest casualties.

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