Report Exposes Hodeidah Ports' Role in Funneling Hundreds of Millions to Houthis
A recent report by the "Recovering Stolen Assets – RgainYemen" Initiative, titled Ports of War, exposes how the Houthis exploit key Yemeni ports—particularly Hodeidah, Salif, and Ras Issa—to generate hundreds of millions of dollars. These funds are used to sustain their military activities, flouting international laws and UN Security Council resolutions.
Between May 2023 and June 2024, the Houthis collected $789.9 million in customs duties and taxes on imports through these ports. This comes at a time when millions of Yemenis are grappling with severe humanitarian crises, including skyrocketing prices and shortages of essential goods.
The report highlights that the Houthis impose exorbitant customs fees on petroleum products. Gasoline imports alone generated 332.6 million, while diesel taxes brought in 332.6 million, while diesel taxes brought in 173.9 million. Gas imports also contributed significantly, with the militias collecting $95.7 million in fees. These inflated costs have driven up transportation and energy expenses, worsening the country's economic and humanitarian situation.
Instead of using these funds to improve public services or support the local economy, the Houthis channel the money into military operations and the purchase of smuggled weapons via the Red Sea. This has led to a 40% surge in prices, the closure of numerous businesses and factories, rising unemployment, and a deepening electricity crisis.
The report calls for immediate action to curb the Houthis' exploitation of these ports. It recommends shutting down Hodeidah, Salif, and Ras Issa to imports and redirecting commercial activities to the ports of Aden and Mukalla to prevent the militias from benefiting from tax revenues.
Additionally, the report urges stricter controls on shipments entering Yemen through the Arab Coalition to block the smuggling of fuel and goods into Houthi-controlled areas. It also demands sanctions against international companies and suppliers facilitating imports through Houthi-held ports and calls on global banks to restrict financial transactions linked to these operations.
The report emphasizes the need to enforce UN Security Council resolutions and expand international sanctions against the Houthis, including measures to prevent them from using the global banking system to manage illicit revenues.
It also stresses the importance of enhanced cooperation between the United States and the Arab Coalition to monitor Red Sea shipping activities and prevent the militias from exploiting humanitarian trade for funding.
The report warns that the continued use of Hodeidah's ports to finance the Houthi war machine poses a direct threat to stability in Yemen and the broader region. It calls on the international community to act swiftly to ensure that port revenues are used to alleviate the humanitarian crisis rather than fuel the conflict.
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