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Sudan said on Friday it will no longer seek international arbitration to resolve an oil dispute with South Sudan. Khartoum had demanded 1.3 billion euros in compensation from the south for taking over key oil assets when Juba won its independence in 2011.

But on Friday, Sudan’s president reversed the move in what he described as “as a show of good faith”. South Sudan has agreed to support Sudan’s push to have its external debt cancelled by the IMF in return for dropping the case.

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