Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.N. says U.S. blacklisting of Yemen group may hinder bid to avert oil spill

Published 15/01/2021, 20:33
Updated 15/01/2021, 20:35

By Michelle Nichols

NEW YORK (Reuters) - The United Nations is concerned that a U.S. plan to blacklist Yemen's Houthi movement on Tuesday will hinder its efforts to assess a decaying oil tanker that is threatening to spill 1.1 million barrels of crude oil off the war-torn country's coast.

The tanker Safer has been stranded off Yemen's Red Sea oil terminal of Ras Issa for more than five years, and U.N. officials have warned it could spill four times as much oil as the 1989 Exxon (NYSE:XOM) Valdez disaster off Alaska.

Houthi authorities gave long-awaited approval in November for a visit to assess the tanker. A U.N. team, which includes a private company contracted by the world body to do the work, aims to travel to the tanker early next month.

"We are continuing to prepare for the Safer tanker assessment and are broadly on track with this work," U.N. spokesman Stephane Dujarric said on Friday.

"However we have to look at potential impact of the (U.S. designation) on the Safer mission – there are questions about potential legal jeopardy for the people who are going to do the mission, which of course we all want to avoid," he said.

U.S. Secretary of State Mike Pompeo announced the move against the Iran-aligned Houthis on Sunday. It will come into effect next Tuesday, the last full day in office of Republican President Donald Trump's administration.

Democratic President-elect Joe Biden takes office next Wednesday. The designation could be revoked by Biden's administration.

The Houthis control the area where the tanker is moored and the national oil firm that owns it.

The designation freezes any U.S.-related assets of the Houthis, bans Americans from doing business with them and makes it a crime to provide support or resources to the movement. U.N. officials are worried the designation will scare private-sector companies away from any business related to Yemen.

When asked about the U.N. concerns about the tanker mission, a State Department spokesperson said: "We have expressed our readiness to work with relevant officials at the United Nations, with international and nongovernmental organizations, and other international donors to address sanction implications."

Washington has said it will issue licenses and exemptions to allow the United Nations and aid groups to continue working in Yemen, which the United Nations describes as the world's largest humanitarian crisis, with 80% of the people in need.

But top U.N. officials have said little is known about possible exemptions and warned that the U.S. move would push Yemen, which relies almost solely on imports, into a large-scale famine and chill peace efforts.

A Saudi Arabia-led military coalition intervened in Yemen in 2015, backing government forces fighting the Houthis. U.N. officials are trying to revive peace talks to end the war as the country's suffering is also worsened by an economic crisis, currency collapse and the COVID-19 pandemic.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.