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Libya is situated in north Africa between Egypt and Algeria, with the Mediterranean to the north and Chad and Niger on its southern borders. Apart from the coastal strip and the mountains in the south, it is desert or semidesert. Libya's strategic position in north Africa and its abundant oil and gas resources made it an important trading partner for European states. It has for many years been politically marginalized by the West for its links with terrorist groups, but UN sanctions were lifted in 2003, when it agreed to pay compensation for terrorist bombings in the 1980s.