Sudan must cut its business ties with North Korea if it wants to initiate talks about being removed from the US’ list of “state sponsors of terrorism”, AFP quotes a top US official as saying.

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Despite the US lifting economic sanctions in October, Sudan has remained on the terror list which includes North Korea, Syria and Iran.

Sudanese officials say their presence on the list makes international banks wary of doing business with Sudanese banks.

They also deny that the country has ties with North Korea.

“Sudan confirms it has no relations with Democratic People’s Republic of Korea at any level,” the Sudanese foreign ministry said in a statement on Sunday.

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Sudan has been grappling with rising inflation, high debt and loss of oil revenue, all of which have sparked protests.

The US is also pushing Sudan to improve its record on human rights, religious freedom and other rights issues to take its negotiations with Khartoum to the next phase.

Sudan and North Korea have had no diplomatic relations for years, but some rights and campaign groups allege that the two have military ties, AFP reports