YEMEN STRIKES BACK AS PIRACY HURTS ECONOMY

C O N F I D E N T I A L SANAA 000936 SIPDIS FOR NEA/ARP AMACDONALD E.O. 12958: DECL: 05/13/2019 TAGS: EWWT PREL PTER MCAP YM SUBJECT: YEMEN STRIKES BACK AS PIRACY HURTS ECONOMY REF: A. SANAA 068 ¶B. SANAA 274 Classified By: Ambassador Stephen Seche for reasons 1.4(b) and (d). ¶1. (C) SUMMARY. As a result of piracy's negative economic impact on Yemen and its links to human and arms smuggling, the ROYG has stepped up its counter-piracy efforts in the Gulf of Aden in recent months. Yemen would like to take on a regional leadership role in combating piracy, but its efforts are limited by shortages in funding, equipment and expertise. The Yemeni Coast Guard has begun a program of providing on-board escorts for commercial ships traveling in Yemeni coastal waters, and this may offer the ROYG a constructive role to play in the short term. END SUMMARY. ¶2. (C) In early 2009, Yemen's Security Council approved a national strategy to combat piracy, led by the Ministry of Transportation (MOT) and including the Ministry of Interior (MOI),Yemeni Coast Guard (YCG),Ministry of Defense (MOD), Yemeni Navy (YNAV) and Maritime Affairs Authority (MAA). A national information-sharing center nearing completion in Sana'a will coordinate domestic counter-piracy efforts in cooperation with local offices in Hudeida, Aden and Mukullah. The YCG has implemented a "Ship Riders" program that furnishes armed escorts for commercial ships traveling through Yemeni waters. (Note: The YCG charges companies 2,000 USD per day for the escort, in addition to individual fees of 200 USD for enlisted men and 300 USD for officers. An average five-day escort mission, therefore, would generate 10,000 USD in income for the YCG and more than double individual salaries. End Note.) The ROYG currently has custody of 40 Somali pirates, who will be tried in Yemeni courts, according to the MOT's Deputy Minister for Maritime Affairs, Captain Ali Mohamed al-Subhi. ¶3. (C) Piracy's impact on Yemen's fragile economy has provoked concern in the business community. Rashad Hayel Saeed Anam, Regional Manager of the HSA Group, Aden,s largest manufacturer, told Econoff on May 12 that piracy incidents had made operating costs at his wheat mill and cement factory skyrocket. In the last two months alone, insurance prices for internationally-flagged vessels have risen from USD 2 per ton to USD 5 per ton. The list of shipping companies that refuse to dock at Aden has also grown, including French, Australian, and U.S. shipping lines. Container ship traffic was down 16 percent in March and April due to increased ship insurance costs and re-routing of shipments to avoid the Gulf of Aden, according to Abdul Galil Shaif al-Shaibi, Chairman of the Aden Free Zone. ¶4. (C) Piracy's links to illegal maritime trade are also a serious issue. The MOT's Assistant Deputy Minister of Maritime Affairs, Dr. Yasser M. Zomany, told PolOff on May 12 that the ROYG was very concerned about the links between piracy and arms smuggling. Francois-Xavier Jubi, Maritime Security Coordinator for Yemen Liquefied Natural Gas Company (YLNG),told Emboffs that he believed piracy in the Gulf of Aden is increasingly linked to Somali refugee traffic. He claimed that pirates ferried refugees to Yemen and returned to Somalia, mounting attacks on vessels in the Gulf along the way. ¶5. (U) Since international attention has become more focused on piracy in the Gulf of Aden over the past 18 months, the ROYG has attempted to portray itself, in the media at least, as a central player in anti-piracy operations. The ROYG has called publicly for the establishment of an international counter-piracy center in Sana'a. It takes the opportunity to highlight its cooperation with foreign militaries confronting piracy in and near Yemeni waters, specifically the U.S., France and Russia. When the Yemeni navy launched a successful operation to free the Qana, a Yemeni oil tanker, from pirates in April, the official media carried the story prominently for several days, lauding the navy and the ROYG's commitment to protecting Yemeni ships. (Note: Despite official media reports to the contrary, the ROYG's shortcomings were obvious in the Qana operation; several crew members drowned and the ship was seriously damaged during the exchange of fire. End Note.) ¶6. (C) In a meeting with PolOff on May 12, Subhi urged the United States to support ROYG plans to host a regional counter-piracy center in Sana'a (Ref A). "We have plans for how Yemen can play its role, but we can't do it 100 percent without more support," MAA Executive Chairman Captain Abdulla Ibrahim Abkar told PolOff on May 12. Officials said the YCG lacks the equipment ) including suitable boats ) and training to be fully effective in combating piracy (Ref B). COMMENT -------------- ¶7. (C) Due to its limited capacity, Yemen would be best-served by limiting its near-term role in counter-piracy efforts to escorting commercial vessels through Yemeni waters via its "Ship Riders" program. In addition to providing value to international vessels, such a program would also generate income which the ROYG could then re-invest in the YCG and YNAV. END COMMENT. SECHE