On Wednesday, July 31st, the U.S. Department of the Treasury announced the imposition of sanctions on the Houthi armed group’s procurement network, including a Chinese logistics company.
The Iran-backed Houthi armed group has been utilizing a Chinese company to procure weapons for use in their decade-long conflict against the Yemeni government. The Houthi armed group is a Shia Muslim militia organization supported by Iran.
In a statement, the U.S. Treasury Department highlighted that in addition to engaging in conflicts with the Yemeni government, the Houthi armed group also frequently “attacks U.S. troops, commercial vessels, sailors, and civilians within Israel.”
This round of sanctions targets the Houthi armed group’s “procurement agents, transport service providers, and supplier global network,” used for “procuring and transporting both military and dual-use components as well as deploying a range of advanced weapon systems.”
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) stated that this action also targets key participants from the People’s Republic of China (PRC), including those from Hong Kong and Yemen, who directly assist the Houthi armed group in procuring military materials abroad and transporting these items to areas under the Houthi armed group’s control in Yemen to continue launching attacks.
Brian E. Nelson, the Deputy Assistant Secretary for Terrorism and Financial Intelligence at the U.S. Treasury Department, stated, “The Houthi armed group seeks to leverage jurisdictions like China and Hong Kong to acquire and transport the components needed for their lethal weapon systems.”
“The Treasury Department will continue to target facilitators who help the Houthi armed group disrupt stability operations,” he added.
The Houthi armed group’s affiliated shipping company aids in the transfer of military components from Chinese suppliers to Yemen. The logistics company Al-Shahari United Limited, based in Sana’a, Yemen, facilitates the shipment of a large quantity of goods from Chinese suppliers to the Houthi armed group, including components used in Houthi missile and drone manufacturing.
Additionally, Al-Shahari maintains close communication with Houthi armed group personnel based in China and Yemen, with the latter utilizing the company’s assistance to facilitate some of their most critical procurement work.
Al-Shahari has a subsidiary in China, Guangzhou Al-Shahari, which assists in cargo transportation from China to Yemen. Guangzhou Al-Shahari is wholly owned by Hong Kong Al-Shahari. Ahmed Khaled Yahya Al-Shahare is the Director and General Manager of Guangzhou Al-Shahari.
According to the U.S. Treasury Department sanctions, the individuals and entities subject to sanctions will have their assets frozen, and entities engaging in transactions with them may also face secondary sanctions.