Obama wants BP to set up spill escrow account

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Ethnic Uzbeks try to extinguish a fire in a burning residence torched by mob in Jalal-Abad, Kyrgyzstan, on Sunday. PHOTO: AP

US President Barack Obama will press BP executives this week to set up an escrow account to pay damage claims by individuals and businesses hurt by the Gulf of Mexico oil spill disaster.
The move comes as Mr Obama, who will address the nation about the spill on Tuesday night, faces questions on his handling of the disaster, which has now dragged on for 55 days. Millions of gallons of oil have poured into the Gulf since an April 20 offshore rig blast killed 11 workers and blew out the BP well.
A US official said on Sunday that Mr Obama also will call for an independent panel to administer the payments when he meets chairman Carl-Henric Svanberg and other BP officials at the White House on Wednesday. The Politico newspaper, which first reported that Mr Obama would discuss the escrow account, quoted an official as saying the president would “make clear that he expects, and that if necessary will exercise his full legal authority to ensure, that BP sets aside the funds required to pay individuals and businesses damaged by this massive spill.” On Monday, Mr Obama will make his fourth trip to the Gulf, visiting Alabama, Mississippi and Florida for the first time since the well blew out. He will return to Washington on Tuesday and address the nation at 8 pm. “He wants to lay out the steps we’re going to take from here to get through this crisis,” White House adviser David Axelrod said. “It’s a big step. We have some clarity now about the oil that’s leaking, about how we’ll approach and what this means for those communities.” The New York Times was strongly critical of Mr Obama’s leadership on the oil spill in an editorial on Sunday. “The President cannot plug the leak or magically clean up the fouled Gulf of Mexico,” the editorial said. “But he and his administration need to do a lot more to show they are on top of this mess, and not perpetually behind the curve.”
“Americans need to know that Mr Obama, whose coolness can seem like detachment, is engaged,” the Times wrote. The United States and Britain played down diplomatic tensions over the crisis. British foreign secretary William Hague said it was up to the British energy giant, under pressure in the United States to suspend its dividend to help pay for the damage, to decide on its payout to shareholders.