Foreign Minister Tonio Borg has denied international media reports that Malta had objected to further sanctions against Libya, saying the sanctions could not have been imposed had Malta not agreed to them.
"What we have done is safeguard our national interests by ensuring that companies which have Libyan shareholding can still continue to operate," Dr Borg, who is currently in Rome, said.
"That does not mean we do not want sanctions, but it means we want to safeguard the operation of those companies and the jobs of their workers," he added.
In terms of the agreement reached in the EU, Libyan shareholding in companies in the EU will be frozen, but the companies will continue to function.
Earlier today, Malta’s permanent representative to the EU, Richard Cachia Caruana, confirmed to timesofmalta.com that Malta had raised reservations on some details of these sanctions but approved the package after it was given the right assurances.
“There had been a long discussion on which entities should be added and which should not. Malta's position, while in favour of sanctions, was cautious on some elements since these would have either impacted negatively on the Libyan people or on employees of companies in Malta and other member states,” ambassador Cachia Caruana said.
“Once assurances were received in this regard Malta lifted its reserves. Malta has no problems with defending the national interests as required. It also appreciates the support on it received from all other member states on this matter,” he said.
According to EU sources, companies based in the EU will now be expected to act like Britain's Pearson group, the publisher of the Financial Times and the Economist, which has already frozen of its own account the 3.27-per-cent share of its capital owned by the Libyan Investment Authority. This means that the companies will still be able to get on with their business without giving any dividends to their Libyan shareholders.
The list of Libyan state companies covered by the new sanctions is not yet known but includes LIA which has some $70 billion worth of investments in the EU and the US. These include some high-profile companies like Juventus FC, Unicredit and Fiat.
Malta also has many companies which will be indirectly hit by the sanctions.
These include the Corinthia Group, Medavia, Vivaldi Hotel, Milano Due Hotel and Medelec.