Yemen: PLC Open to Economic Talks, Houthis Reject UN Envoy’s Call for Dialogue

A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)
A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)
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Yemen: PLC Open to Economic Talks, Houthis Reject UN Envoy’s Call for Dialogue

A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)
A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)

The Yemeni Presidential Leadership Council (PLC) has shown flexibility in response to a request from UN envoy Hans Grundberg to stop the Central Bank in Aden from taking action against Houthi-controlled banks and to start an economic dialogue.

This has caused widespread anger among government supporters.

The Houthis, however, rejected the UN envoy’s call for dialogue on economic issues, especially concerning banks whose licenses were revoked. Grundberg defended his request by highlighting the humanitarian impact and the fear of renewed conflict.

Mayy El Sheikh, Chief of the Strategic Communications and Public Information Office at the UN envoy’s office in Yemen, told Asharq Al-Awsat that Grundberg has renewed his call for the Yemeni government and the Houthis to meet under UN supervision to discuss economic issues, including the banking sector.

El Sheikh noted that Grundberg informed the UN Security Council in June about his efforts to facilitate direct talks between the Yemeni government and the Houthis.

She added that Grundberg’s office “remains committed to pushing for dialogue, believing that sincere, unconditional talks are the best way to address economic issues and prioritize the interests of Yemenis.”

Grundberg recently sent a letter to PLC head Rashad al-Alimi urgently requesting a halt or delay until the end of August on the Central Bank of Yemen’s decision to revoke the licenses of six banks in Houthi-controlled areas and suspend their access to the SWIFT system.

In his letter, Grundberg acknowledged the long-standing economic hardships faced by the Yemeni government, especially the halt in crude oil exports. He warned that the Central Bank's recent actions against the banks would harm Yemen's economy, worsen living conditions for ordinary Yemenis, and risk escalating military tensions.

Meanwhile, the Houthis rejected the call for dialogue. Hussein al-Ezzi, their Deputy Foreign Minister, stated on X that his group had informed Grundberg of their “outright rejection” of the proposed talks.

“There will be no negotiations except on the agreed-upon roadmap,” al-Ezzi added.

Despite the PLC’s support for economic reforms and the Central Bank’s actions in Aden, it has shown flexibility towards the UN request, demanding a clear agenda for any economic dialogue.

This includes resuming oil exports, unifying the national currency, and ending arbitrary measures against the banking sector.

In response to Houthi threats of military escalation, the PLC warned the Iran-aligned group against full-scale war and confirmed the readiness of all military units to counter any aggression.



Iraq and Syria Open ‘New Chapter’ in Ties to Confront ‘Common Challenges’

Iraqi Prime Minister Mohammed Shia al-Sudani and Syrian Foreign Minister Asaad al-Shaibani meet in Baghdad on March 14, 2025. (Iraq government media)
Iraqi Prime Minister Mohammed Shia al-Sudani and Syrian Foreign Minister Asaad al-Shaibani meet in Baghdad on March 14, 2025. (Iraq government media)
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Iraq and Syria Open ‘New Chapter’ in Ties to Confront ‘Common Challenges’

Iraqi Prime Minister Mohammed Shia al-Sudani and Syrian Foreign Minister Asaad al-Shaibani meet in Baghdad on March 14, 2025. (Iraq government media)
Iraqi Prime Minister Mohammed Shia al-Sudani and Syrian Foreign Minister Asaad al-Shaibani meet in Baghdad on March 14, 2025. (Iraq government media)

Iraqi Prime Minister Mohammed Shia al-Sudani stressed on Tuesday his country’s support to Syria’s sovereignty and territorial integrity, condemning the Israeli incursion into its land.

Sudani held telephone talks with Syrian interim President Ahmed al-Sharaa, the first between the two leaders since the latter assumed his post in January.

Sudani’s office said he underlined “Iraq’s firm stance in supporting the Syrian people’s choices and the importance that all of Syria’s segments join its political process.”

The process should “ensure peaceful coexistence and security to achieve a secure and stable future for Syria and the whole region,” he added.

He also emphasized the importance of “mutual cooperation in confronting the threat of ISIS,” as well as cooperation in economic fields.

Since the collapse of the Assad regime in Syria in December, Iraqi authorities have imposed strict measures along the border with Syria to bar the infiltration of gunmen and ISIS members.

The Syrian presidency said Sudani and Sharaa discussed bilateral relations between their countries and means to bolster them in various fields. They also underscored the “depth of relations between their people and economy.”

They stressed the importance of opening a new chapter in bilateral ties based on joint cooperation to confront regional challenges and prevent tensions in the region.

They discussed border security and cooperation in combating drug smuggling.

Sharaa said Syria is “committed to developing bilateral relations and respecting Iraq’s sovereignty.” He expressed “keenness on refraining in meddling in its internal affairs, stressing the need for cooperation to confront common challenges and consolidating political ties” between their countries.

Sudani also welcomed the formation of the new Syrian government, which was announced on Saturday.

Forces within Iraq’s ruling pro-Iran Coordination Framework were opposed to establishing relations with the new Syrian authorities, led by Sharaa, that ousted the Assad regime.

An Iraqi source said the talks between Sudani and Sharaa helped “break the ice and tensions after a series of positive measures taken by the Syrian authorities to ease Iraqi concerns.”

Baghdad has been wary of the new authorities and has been hesitant in approaching them due to security concerns and the fears of the possible re-emergence of the ISIS terrorist group in the region.

However, Syrian Foreign Minister Asaad al-Shaibani's visit to Baghdad in March where he met with Sudani helped break the ice.

During the visit, Baghdad urged the new Syrian rulers to “take into consideration Syria’s religious and ethnic diversity and to exert efforts in protecting religious freedoms and fighting terrorism,” revealed a source close to the Iraqi government.

The source told Asharq Al-Awsat that Sudani and Sharaa stressed during their call keenness on developing ties between their countries after Syria’s assurances that it would respect diversity and forge ahead with serious dialogue with various segments.

Prominent Sunni Iraqi politician Khamis al-Khanjar criticized the “voices that have been skeptical and opposed to rapprochement between Iraq and Syria.”

In a statement on Tuesday, he said Sudani and Sharaa’s telephone call should be praised, underlining his support for steps taken by the Iraqi government to be open to the Arab world and reclaim its sovereign voice.