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The National Team For Foreign Outreach - Yemen

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ECONOMIC SITUATION – October 2022

  1. The third UN-brokered truce in Yemen ended on 2 October 2022. After that, a new round of difficult negotiations began with the Saudi-led Coalition countries. These countries are only interested in staying in the southern governorates to loot and drain the Yemeni wealth, giving no attention to the fate of more than 24 million people who have been weighed down by the heavy burdens of life and suffering under the siege for nearly 8 years.
  2. With the end of the third truce, 1.2 million public service employees have lost their hopes of getting their salaries, since the transfer of the CBY operations management from Sana’a to Aden governorate in August 2016. As a result, human suffering has been increasing even more; poverty is widespread among people; and the collapse of basic public services has increased the unemployment rate among them.
  3. The negotiating delegation of Sana’a has issued a statement regarding the UN truce, confirming that the process of understandings had reached a dead end due to the “intransigence” of the Saudi-led Coalition of War and its repudiation of implementing the demands. These demands included calls for equality between Yemeni civil and military employees as well as retirees in their entitlement for salary payment without distinction between one province and another. Besides, salaries should be disbursed from sovereign revenues, especially the revenues of crude oil and gas. The statement of the negotiating delegation of Sana’a indicated that the Saudi-led Coalition has been targeting the livelihood of the Yemeni people by using economic warfare as a means for starving and killing them.
  4. The Economic Committee in Sana’a issued official letters to all national and international companies and the countries that own tankers carrying oil and gas derivatives, to permanently stop the operations of looting Yemeni wealth, as of Sunday evening 2 October 2022. The Economic Committee held these companies and their countries responsible for non-compliance.
  5. The Economic Committee of Sana’a also sent final warning messages and letters to all local and foreign oil companies, oil service companies and shipping companies to immediately stop all their activities related to exploration, extraction and transportation. It warned the companies of the consequences in the event of non-compliance with what was indicated in these written communications in order to preserve their interests.
  6. The Supreme Political Council in Sana’a issued directives to improve the Government’s negotiating position on the economic side to restore the rights associated with the LNG sale and purchase agreements signed in 2009 and the financial damages resulting therefrom.
  7. The Ministry of Foreign Affairs in Sana’a stressed on the need to pay the salaries of public service employees in the various governorates of the Republic of Yemen on a regular basis. It presented a proposal to disburse the accumulated salaries during the war period in stages instead of disbursing them all at once.
  8. The Ministry of Finance in Sana’a states that the total salaries of employees in all governorates amount to 94 billion Yemeni riyals. Meanwhile, the oil and gas revenues looted by the Saudi-led Coalition and its mercenaries can cover the cost of salaries and with remaining surplus of about 10%.
  9. In a clear violation of the terms of the UN-declared truce, the Saudi-led Coalition continue 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 for docking at Hodeidah port, which in turn raises the ships’ demurrage charges.
  10. Despite their assertion and vigorous follow-up of extending the UN-declared truce, the Saudi-led Coalition of War on Yemen continues 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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