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The National Team For Foreign Outreach - Yemen

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ECONOMIC SITUATION – June 2022

  1. The salaries of more than 1.2 million public sector employees have been interrupted since the transfer of the Central Bank’s operations from the Capital, Sana’a, to Aden Governorate in August 2016, including the category of schoolteachers who have been suffering from severe economic and living conditions due to the interruption of salaries, amid anticipation of the results of the current negotiations to resolve the issue of salaries which have been suspended since 2016.
  2. The President of the Supreme Political Council, Mahdi Al-Mashat, called on the United Nations – through its envoy to Yemen – to play its role in putting pressure on the other side of the conflict to deposit all revenues of the oil and gas wealth, customs and tax fees to the salary account in order to disburse the salaries of employees in all governorates, instead of looting and depositing them in special bank accounts abroad.
  3. The Governor of the Central Bank of Yemen (CBY) in Sana’a has confirmed to the United Nations envoy, Hans Grundberg, that “the initiative of the Supreme Political Council in Sana’a to open a special account for salaries at CBY branch in Hodeidah to deposit the revenues collected from oil derivatives ships to it and oblige the other party to disburse the salaries, is still in place since 2020. We are ready to arrange for any mechanisms that guarantee ending the suffering of public sector employees and retirees in all governorates, and to pay their salaries on a regular basis.”
  4. The Central Statistical Organization (CSO) in Sana’a confirms that the cumulative recession rate in the manufacturing sector in Yemen reached 55 percent at minimum, as a result of the direct impacts of the Saudi-led Coalition of War on industrial and production facilities.
  5. In continuation of the looting of Yemeni oil resources, the APOLYTARES ship arrived at the port of Ash-Shihr to load a new shipment of 2,200,000 barrels of crude oil, with a value of $270,600,000, after unloading the previous shipment, which amounted to about 2,375,000 barrels of crude oil in China. These sums are looted by the Saudi-led Coalition of War by sending them to bank accounts in Saudi Arabia and the UAE.
  6. Due to the deteriorating security situation in the southern governorates, occupied by Saudi Arabia and the UAE, the Austrian OMV company announced that it had reduced its investments in the oil business in Yemen and is in the process of selling its crude and NGL assets, including the Block S2 (Al-Uqlah) in Shabwah. The so-called Aden-based government announced selling the block to the Emirati “SPEC” company, which is a newcomer to the industry and does not have the competence and experience to manage the oil production blocks.”
  7. The Ministry of Oil in the National Salvation Government in Sana’a refuses the approval by the so-called Ministry of Oil in Aden to sell Al-Uqlah Block S2 in Shabwah, developed by the Austrian OMV company, to the UAE Company of SPEC. The Ministry notes that this is not the first deal. The Kuwait Energy company sold its share in Block (Jannah 5) to Petro Masila in 2021.
  8. The Petroleum Exploration and Production Authority (PEPA) in Sana’a notes that the so-called Aden-based government is exploiting the sales of the entire oil blocks away from the legally authorized institutions and authorities, within the extraction operations from the production fields in Shabwah, Marib and Hadramout.
  9. In violation of the UN- declared truce agreement, the Saudi-led Coalition of War on Yemen continues to detain oil derivatives ships, despite completing all the procedures of inspection through the United Nations Verification and Inspection Mechanism in Djibouti (UNVIM) and obtaining UN pass permits confirming that the cargo conforms to the stipulated standards. Consequently, these measures have led to increasing the demurrage and detention charges on ships.
  10. Protests are escalating in the occupied Yemeni cities of Aden, Lahj, Al-Dhale, and Socotra against Saudi Arabia and the UAE. The protesters continue to close the streets, denouncing the deteriorating economic conditions, the absolute absence of basic services, and the skyrocketing of fuel and electricity prices.
  11. Despite the truce declared by the United Nations, the Saudi-led Coalition of War on Yemen continue to directly target economic facilities and services with a view to achieving the maximum possible extent in increasing the human suffering of the Yemeni people.

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