DUBAI: Yemen’s government and the Houthis group have reached an agreement to cease reciprocal banking sanctions amid their struggle for dominance over the country’s financial institutions, the United Nations said on Tuesday.
The conflict began in March 2015 when the Houthis seized the capital, Sanaa, and most major cities, pushing the internationally recognized government south to Aden. In December, both parties committed to a UN-led roadmap aimed at ending the war and initiating an inclusive political process.
However, recent Houthi attacks on Red Sea shipping, followed by retaliatory actions from the US and Britain, had stalled peace negotiations. On Monday, the UN envoy to Yemen, Hans Grundberg, confirmed that the warring factions had agreed to several de-escalation measures.
This development coincided with a fierce battle for control over Yemen’s banks, as both sides grappled with severe financial hardships. The latest agreement entails rescinding all recent sanctions imposed on banks by either party and committing to refrain from similar actions in the future, Grundberg’s office statement said.
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