DOHA, January 3. /TASS/. The Yemeni Southern Transitional Council (STC), which stands for establishing an independent state, has hailed the initiative of the internationally-recognized government and Saudi Arabia to hold a peace conference in Riyadh.

"The Southern Transitional Council welcomes Saudi Arabia’s proposal to act as a sponsor of dialogue between the Southern forces," the STC said in a statement. According to it, Riyadh’s initiative comes in lines with the Council’s recent statement on its intention to establish an independent state in the south of the country.

"The Council along with its partners who signed the National Charter, confirm their participation in this dialogue or in any other dialogue in the interests of the South, highly estimating this proposal and viewing it as a real opportunity," the statement said.

The situation in Yemen escalated after separatists from the Southern Transitional Council, backed by the United Arab Emirates, took control over the Hadhramaut and Al Mahrah governorates. According to STC leader Aidarus al-Zoubaidi, next-stage plans include establishing institutions of a future state in southern Yemen. On December 27, Rashad Muhammad al-Alimi, chairman of Yemen’s Presidential Leadership Council, requested military assistance from the Saudi-led coalition. Overnight to Tuesday, the Saudi-led coalition carried out an airstrike on two ships sailing from the United Arab Emirates to the Yemeni port of Mukalla without official authorization.

Later, al-Alimi signed a decree terminating a joint defense agreement with the United Arab Emirates, and demanded that Emirate forces be withdrawn from the country in 24 hours. The Saudi Foreign Ministry, in turn, accused the UAE of supporting the riot in eastern Yemen, slamming this as a threat to Saudi Arabia’s national security.

On December 30, the UAE defense ministry said that it was ending its counter-terrorist mission in Yemen and withdrew its contingent by January 2.

On Friday, Hadhramaut Governor Salem Al-Khanbashi announced the start of an operation to transfer the STC-controlled military camps to government forces. On the same day, the STC announced the beginning of a two-year transitional period that will end with the establishment of an independent state of South Arabia with a capital in Aden. According to the constitutional declaration, the new state will be formed within the borders of the People's Democratic Republic of Yemen (PDRY) that existed in 1967-1990.

Ob Saturday, al-Alimi proposed to hold a general conference in Riyadh of the forces operating in the south of the country. The Saudi foreign ministry welcomed this initiative, saying that the crisis can be settled only through dialogue.

By the evening on January 3, the governmental forces regained control over the Hadhramaut and Al Mahrah governorates.