Alassane Ouattara, the internationally recognised president of Ivory Coast locked in a power struggle with Laurent Gbagbo, has called for a month-long ban on cocoa exports from the world's top grower.

Anyone contravening the ban will be liable to sanctions, according to a statement issued on Sunday by the government nominated by Ouattara. The latter remains holed up in a hotel guarded by U.N. troops while Gbagbo has appointed his own administration and remains in power despite pressure to step down.

Given Gbagbo's control of the main institutions, including the ports and armed forces, it is not clear how the trade will be affected, but cocoa prices may rise.

New partners
Gbagbo's camp said earlier on Sunday the former French colony's new partners in Asia, Latin America and Africa would help it sidestep efforts to squeeze Gbagbo's coffers.

Kona Haque, an analyst with Macquarie Bank in London, said cocoa futures prices would likely jump in early Monday trading.

"You will get a spike up - because there could be a supply reaction," Haque said.

Cocoa market sources say exporters in Ivory Coast are increasingly nervous and would not wish to risk sanctions from the EU or to alienate Ouattara.

Sanctions
Ouattara's call for a ban on cocoa exports from Monday comes after western nations imposed sanctions on individuals and institutions backing Gbagbo, and West African leaders forced a Gbagbo ally from the regional central bank.

The statement from Ouattara said that volumes of beans for which taxes have already been paid would be excluded from the ban. However, the system for registering new arrivals for export at the port would be suspended.

Election results certified by the United Nations showed Ouattara winner of the November 28 election but a pro-Gbagbo legal body later reversed them, citing fraud, handing victory to Gbagbo who accuses foreign powers of trying to impose a stooge.

Ivory Coast produces about one third of the world's cocoa and arrivals at ports are running ahead of levels at the same time last year. Nonetheless, U.S. cocoa futures ended last week at an 8-1/2 half month high, largely on fears over the crisis.

source: Reuters