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LATEST UPDATES Follow Yemen Post daily updates on our Twitter page @YemenPostNews :: Houthi forces block vital goods into Taiz, HRW says :: Houthis fire ballistic missile on Anad base, destroy five military boats off Yemen :: ISIS claims second deadly car bomb in two days in Aden :: Gunmen kill Yemen Colonel amid persistent challenges in Aden :: At least 8 people killed in Aden car bomb :: Again, UN seeks international probe into Yemen violations :: Aljazeera crew released in Yemen :: 11-member family killed in Yemen airstrike :: Yemen in emergency appeal to help 1.700 facing death ::
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Last updated: 10:20:51 PM GMT(+03) Saturday, 31, January, 2015
 
 
Energy firms reopen but fears remain amid deadlock
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Oil and gas companies which shut down production operations in mid this month have resumed in Yemen. 
 
Yemen LNG also lifted the force majeure on LNG exports. 
 
Local tribes in Shabwa and Hadramout asked companies to halt their operations in protest against the kidnapping of an official by Houthi militants. The official was released last week and his release convinced tribes to request companies to resume operations, tribal sources told the Yemen Post.
 
Sources in the two provinces said companies started to resume days ago. 
 
The resumption of oil and gas projects raised hopes but may not help ease financial problems because of  the persistent political crisis. 
 
The crisis emerged after Houthi militants seized the presidential compound and brigades forcing the transition president and government to resign. 
 
People in Southern and southeastern regions have condemned Houthi violence against the legitimacy of the transition government and announced they have become now independent regions. 
 
Moreover, they said oil and gas revenues will not be collected by the powerless authorities in the capital city of Sanaa. 
 
 
Houthi violence and expansion was also behind the suspension of Saudi and UAE aid to the country. Now, Yemen is facing severe fund shortages blamed on cutting the main resource of income, oil and gas, suspended aid and constitutional vacuum. The power vacuum will affect other resources of income including taxes, observers said.   
 
Officials and economists said on Saturday the resumption of energy projects was necessary as the country has become on the edge of economic collapse. 
 
Still, Yemenis have to put an end to the political deadlock in order to ensure there will be no disruption of oil and gas supplies and then revenues are back to the budget, economists said. 
 
State employees have not received the salaries of this month and the salaries are expected to be paid later in February. 
 
Officials said Yemen is facing severe fund shortages while warning that if the political crisis continues ahead, the country will go bankrupt. 
 
"The situation is out of control and authorities can't do anything as Houthi militias continue to seize public compounds," an official from the finance ministry said. 
Oil revenues are the main resource of the state budget. 
 
In addition, Yemen has recently started to depend on donor aid as the governments stayed unable to develop non-oil sectors and improve the security situation and the investment climate. 
 
The current crisis adds to challenges that have affected key sectors including tourism since 2011 in Yemen. 
Meanwhile, economists have warned of further hanger and social unrest if economic challenges are not given priority at the moment. 
 
According to the UN, half of Yemen's population are living under the poverty line and the unemployment rate is above 50%. 
 
Mustafa Nasr, head of the studies and economic media center, said any further economic deterioration will result in more social unrest and violent conflicts. 
 
"Yemenis and foreign supporters understand that many problems in Yemen including political and social unrest are blamed on economic hurdles," he said. 
"Now, Yemen has  lost almost all resources of income. It is very alarming and must motivate all to do something to prevent a real disaster," he added. 
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Source: Yemen Post Newspaper
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