Double Edged Sword: U.S.’s Attempts to levy Sanctions on the Houthi group of Yemen — LawMiracle

Double Edged Sword: U.S.’s Attempts to levy Sanctions on the Houthi group of Yemen

What just happened? 

 On the 26th January 2021 the Biden administration suspended some of the sanctions levied by the Trump administration on the Houthi group of Yemen. The U.S Treasury authorized almost all financial transactions with the Houthi group for the next month until 26th February 2021.1 On 19th January 2021, the U.S. Department of State had designated the Houthi rebels- also known as Ansar allah- as a Foreign Terrorist Organization under Section 219 of the Immigration and Nationality Act2, thereby prohibiting U.S. citizens and other entities from interacting financially with the group. 

 

What does this mean? 

Given the present situation of people in Yemen and the control that the Houthi group has over allocation and distribution of resources, the suspension of sanctions by the Biden administration comes as a relief. The involvement of the Houthi rebels in turning Yemen into a humanitarian catastrophe cannot be undermined3, but presently it is more important to decelerate and prevent a massive famine set to hit Yemen as it imports 90 percent of its food which enter the country through commercial channels.4 According to the UN reports, there are currently 13.5 million people in Yemen that face acute food insecurity which is projected to rise to 16 million by June 2021.5 

Although at the time of levying sanctions, the U.S. treasury had allowed transactions related to agriculture, medicines, etc., to facilitate the uninterrupted flow of humanitarian assistance. However, the volume of such food and medicines would not have been plenty to meet the basic requirements of the people in Yemen. Therefore, the need to keep the flow open through commercial channels was imminent. Moreover, since Houthi's control most of the Northern Yemen including the capital city of Sanaa, it is their prerogative to ensure the allocation of food and other resources in the aforementioned areas.  

This major decision taken previously by the Trump administration, following the alleged involvement of the Houthi group in the Aden airport attack in December 2020, was set to do more damage than good as it would have resulted in hinderances for various non-profit organizations and agencies that provide constant aid to prevent the exacerbation of the humanitarian situation in Yemen.6  

Designating the Houthi group as a terrorist organization would have complicated the urgent situation of handling famine in Yemen and suspending such sanctions is not a permanent solution to the problem either. The people of Yemen have suffered enough for more than a decade. Any prospective solution might feel like taking a step further on extremely thin ice, but they do deserve a chance to lead a better, humane and dignified life. Hopefully, as the countries come together and aid the government of Yemen in gaining strength, there shall be peace soon. 

Written by Neha Singh

Assessing firms:

#Kirkland & Ellis LLP #Latham & Watkins LLP #Hogan Lovells #DLA Piper #Baker McKenzie #Skadden, Arps, Slate, Meagher & Flom LLP #Dentons #Clifford Chance #Sidley Austin

References:

[1] Haley Ott, ‘Biden administration authorizes financial transactions with Yemen’s Houthi rebels to let aid flow’ (CBS News, 26 January 2021) <https://www.cbsnews.com/news/houthis-yemen-joe-biden-us-financial-transactions-humanitarian-aid-terrorist-designation/> 

[2]  U.S. Department of the Treasury, Issuance of Counter Terrorism General Licenses and related FAQs; Counter Terrorism Designations; Venezuela-related Designations; CAATSA - Russia-related Designations; Yemen-related Designations Updates (19 January 2021) <https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210119> 

 [3] Stanly Johny, ‘Houthis| Yemen’s rebels and revivalists’ (The Hindu, 23 January 2021) <https://www.thehindu.com/news/international/houthis-yemens-rebels-and-revivalists/article33644813.ece> 

[4] United Nations Security Council, ‘United States’ Designation of Houthi Militia as Foreign Terrorist Organization Risks Expediting Large-Scale Famine in Yemen, Speakers Warn Security Council’ (14 January 2021) <https://www.un.org/press/en/2021/sc14410.doc.htm> 

[5] Hani Mohammad, ‘Biden administration suspends some sanctions on Yemen rebels’ (NBC News,26 January 2021) <https://www.nbcnews.com/news/world/biden-administration-suspends-some-sanctions-yemen-rebels-n1255632> 

[6] UNSC (n4) 

 Disclaimer: This article (and any information accessed through links in this article) is provided for information purposes only and does not constitute legal advice.