Last November, Addis Ababa launched an offensive against the Tigray People's Liberation Front (TPLF). AFP
Last November, Addis Ababa launched an offensive against the Tigray People's Liberation Front (TPLF). AFP
Last November, Addis Ababa launched an offensive against the Tigray People's Liberation Front (TPLF). AFP
Last November, Addis Ababa launched an offensive against the Tigray People's Liberation Front (TPLF). AFP

US considers sanctions on Ethiopia’s military commanders and commercial entities


Joyce Karam
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Nearly a year since fighting broke out in Ethiopia's Tigray region, the US is weighing sanctions on the country’s government, warring factions and commercial entities fuelling the fighting.

Speaking exclusively to The National, a senior US official said President Joe Biden's administration is finalising an inter-agency process that would bring sanctions on people and entities responsible for the fighting.

Last November, Addis Ababa launched an offensive against the Tigray People's Liberation Front (TPLF). Since then, the conflict has spread to the Amhara region and has displaced more than two million civilians and leaving 5.2 million people in urgent need of food aid, the UN has reported.

The Ethiopian federal government, the Amhara regional government, the Tigrayan regional government and the Eritrean government are all involved in the conflict.

This week, the Ethiopian military launched a ground offensive to try to reverse recent TPLF gains, western officials told The New York Times.

The offensive throws a spanner into US, European and UN efforts to broker an immediate ceasefire, and strengthens the argument inside the Biden administration to impose sanctions.

Last month, Mr Biden signed an executive order that approved the structure of potential sanctions against perpetrators of violence in Ethiopia.

“The hope is not to have to use this tool [sanctions]. We want to prepare for negotiations for all parties to come to the table to end this conflict, to stop the human suffering and to let humanitarian assistance flow into that region where so many people are desperately in need,” the senior official said.

“But where we are now is that neither the TPLF, nor the [Ethiopian] government and their forces have stopped their offences and counter offences, and they're not coming to the table, so we are currently looking at employing this tool.”

We're holding out some sort of glimmers of hope but unfortunately it's not looking very optimistic
Senior US official

Asked about the targets of the sanctions, the US official mentioned “leaders, military forces or commercial entities who prolong the crisis, obstruct progress, or continue to hinder humanitarian access, or commit serious human rights abuses".

Such designations would first undergo a thorough process of gathering evidence and consulting across different agencies, the official said.

In an investigation last week, CNN revealed that Ethiopia's government used its state-owned commercial airline to transport weapons to and from neighbouring Eritrea during the first weeks of the conflict in Tigray.

But while readying sanctions, Washington is exhausting diplomatic avenues to reach a ceasefire.

“We don’t do this lightly. We're holding out some sort of glimmers of hope but unfortunately it's not looking very optimistic,” the senior US official added.

  • Demonstrators gather in Washington to protest Ethiopian actions in Tigray. Joshua Longmore/The National
    Demonstrators gather in Washington to protest Ethiopian actions in Tigray. Joshua Longmore/The National
  • Protesters gather at the State Department in Washington to demostrate against arrival of Ethiopian government delegation. Joshua Longmore/The National
    Protesters gather at the State Department in Washington to demostrate against arrival of Ethiopian government delegation. Joshua Longmore/The National
  • The Ethiopian government delegation was to meet the US Horn of Africa envoy, Jeffrey Feltman. Joshua Longmore/The National
    The Ethiopian government delegation was to meet the US Horn of Africa envoy, Jeffrey Feltman. Joshua Longmore/The National
  • Protesters say the Ethiopian government, Eritrean troops and allied militias are carrying out a 'genocide' in Tigray. Joshua Longmore/The National
    Protesters say the Ethiopian government, Eritrean troops and allied militias are carrying out a 'genocide' in Tigray. Joshua Longmore/The National
  • Members of the Ethiopian Orthodox Church say priests have been attacked in Tigray. Joshua Longmore/The National
    Members of the Ethiopian Orthodox Church say priests have been attacked in Tigray. Joshua Longmore/The National
  • Similar protests have taken place in New York, Colorado and Florida this week. Joshua Longmore/The National
    Similar protests have taken place in New York, Colorado and Florida this week. Joshua Longmore/The National

Ethiopian Prime Minister Abiy Ahmed, a Nobel Peace Prize winner, has described the war as a “law enforcement operation".

The UN estimates 400,000 Tigrayans are living in famine-like conditions and humanitarian organisations have documented extrajudicial killings and rape.

The US State Department has launched a legal review examining whether the Tigray humanitarian crisis amounts to genocide.

On Tuesday, US Secretary of State Antony Blinken met African Union High Representative for the Horn of Africa Olusegun Obasanjo to stress the urgency of finding a path to negotiations.

The Biden administration is also considering the expulsion of Ethiopia from the African Growth and Opportunity Act (AGOA) by the end of the month, which would further constrain its economy and cut its duty-free access to the US market for thousands of products.

“It’s required by the law of the United States, it must restrict AGOA eligibility for countries that have committed gross violations of human rights,” the official said.

William Davison, a senior analyst on Ethiopia with the International Crisis Group, saw the imposition of US sanctions as highly probable in the next few weeks.

“Given the current situation and the likelihood of continued fighting, particularly in the Amhara region, I think we are likely to see the US implement targeted sanctions soon, maybe around the end of the month,” Mr Davison told The National.

The expert said commanders from the warring sides are likely targets.

“For the next few weeks at least, the parties are locked into more conflict and that's what makes it likely that commanders on all sides will soon face sanctions.”

Asked if such penalties would change the calculus on the ground, Mr Davison said not immediately.

“The immediate reaction to the sanctions will most likely be defiance from the federal government. I do not think it will change its policy on the war. By and large, that goes for the other actors in the conflict as well when their commanders are sanctioned,” he said.

For the calculations to change, “the overall pressure has to increase, on the security, political and economic fronts, in such a way that more people in the Ethiopian government and society start to think that the trajectory that the country is on is very worrying and needs to be altered,” he argued.

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SERIES INFO

Afghanistan v Zimbabwe, Abu Dhabi Sunshine Series

All matches at the Zayed Cricket Stadium, Abu Dhabi

Test series

1st Test: Zimbabwe beat Afghanistan by 10 wickets
2nd Test: Wednesday, 10 March – Sunday, 14 March

Play starts at 9.30am

T20 series

1st T20I: Wednesday, 17 March
2nd T20I: Friday, 19 March
3rd T20I: Saturday, 20 March

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Supporters in the UAE can watch the matches on the Rabbithole channel on YouTube

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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India v Pakistan

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Bangladesh v Afghanistan

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UAE currency: the story behind the money in your pockets
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Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

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I pledge to uphold the duty of tolerance

I pledge to take a first stand against hate and injustice

I pledge to respect and accept people whose abilities, beliefs and culture are different from my own

I pledge to wish for others what I wish for myself

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I pledge to do my part to create peace for all

I pledge to exercise benevolence and choose kindness in all my dealings with my community

I pledge to always stand up for these values: Zayed's values for tolerance and human fraternity

Squad

Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas) 

Updated: October 14, 2021, 3:47 AM