Jubilee USA - Oil Prices More Than Offset G8 Debt Relief - Reuters

[hatrack]

WASHINGTON (Reuters) - High crude oil prices will more than offset the benefits of debt relief the Group of Eight rich nations gave to poor countries last year, and this year the G8 will make the situation worse by promoting more investment in fossil fuels, a new report warned on Wednesday.

The report shows that developing countries continue to pay more for oil imports than they receive in debt relief, and recommends that G8 leaders meeting this weekend in St. Petersburg, Russia, end government subsidies to their oil industries, support the development of renewable fuels and cancel debt linked to unsound loans made for finding oil.

The report was released by the Jubilee USA Network, an alliance of religious groups, environmentalists and other organizations that want debt relief for poor countries.

Sub-Saharan Africa's oil imports are expected to cost an additional $10.5 billion a year because of high crude prices, which is more than 10 times the amount that 16 African countries combined will receive this year after some of their debt is canceled under last year's G8 deal.

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