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Georgia, Kyrgyzstan, Tajikistan See Boosts In US Aid – Analysis

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ByJoshua Kucera

Georgia would see a big boost in its U.S. military and economic aid under the White House’s new proposed budget, while aid to most of the rest of the region would decline.

Under the budget proposed on February 2, Georgia would get $20 million in Foreign Military Financing aid (which allows the country to buy equipment from the U.S.) in Fiscal Year 2016. That’s double the amount proposed last year (it’s not yet clear how much of that was actually disbursed). From the State Department document explaining the proposal:

Funds will be used to advance Georgia’s development of forces capable of enhancing security, countering Russian aggression, and contributing to coalition operations. This will include support for such things as upgrades to Georgia’s rotary wing air transport capabilities, advisory and defense reform, and modernization of Georgia’s military institutions.

“Countering Russia” is a priority for the U.S. across the region. Georgian economic aid (up from $38 million to $50 million) would be aimed at supporting “Euro-Atlantic integration and resistance to Russian pressure.” Moldova’s economic aid would support “European integration and mitigate vulnerabilities to Russian trade bans and other forms of pressure.” Ukraine’s will “support new initiatives to counter Russian pressure and aggressive action.” Regional economic aid to Central Asia is intended to”foster resilience to economic pressures owing to Russian political influence and overreliance on remittances.”

The budget documents described a variety of programs for the U.S. under Georgia’s economic aid:

FY 2016 resources will continue to support Georgia’s democratization, economic development, Euro-Atlantic integration, and resistance to Russian pressure. U.S. programs will help strengthen institutional checks and balances and the rule of law; develop a more vibrant civil society; promote political pluralism; increase energy security and clean energy; promote reforms necessary to foster economic development; expand private-sector competitiveness; and attract foreign investment. U.S. programs will have a focus on Science, Technology, Innovation, and Partnerships (STIP). Increased funding will expand support to displaced persons within communities along the Administrative Boundary Lines with South Ossetia and Abkhazia, for example, through small scale infrastructure and income generation projects for vulnerable households. U.S. assistance also will improve access to independent, reliable, and balanced media to those living within the occupied territories.

The other two countries in the region which saw their total aid packages increase were Kyrgyzstan and Tajikistan. While security assistance to each country remained about the same as from last year’s request, economic aid to each would be increased under this budget: from $36.3 to $45.6 million for Kyrgyzstan, and $21.1 to $28.4 million for Tajikistan.

For Kyrgyzstan:

U.S. assistance will support democratic institutions, helping the Kyrgyz Republic to consolidate its progress toward accountable, inclusive governance, and working towards increased economic opportunities and increased resilience to external shocks. Programs will also aim to address chronic instability by bolstering civil society, support the rule of law and human rights, empower the private sector as a means to foster economic growth, and address key social issues such as education. Assistance will also support domestic energy policy reform to increase energy efficiency.

For Tajikistan:

U.S. assistance will enhance Tajikistan’s stability, particularly along its long and porous border with Afghanistan. Programs will help build economic resiliency so that Tajikistan is less reliant on remittances, which make up fifty percent of its GDP, and less vulnerable to external pressures. Assistance will strengthen local governance and provide training opportunities to secure skilled employment. Programs will address systemic problems that contribute to food shortages such as inequitable access to water, inadequate supplies of seeds and fertilizer, a lack of modern technologies, and poor farm practices. [Economic Support Funds] will also help increase literacy rates, help young people find employment, and support domestic energy policy reform to increase energy efficiency.

Central Asia regional economic aid programs would get $21.7 million (up from $16.9 million last year):

U.S. assistance will continue to support regional cross-border activities under the New Silk Road initiative, which aims to further Afghanistan’s economic integration into the broader region and increase Central Asia’s access to diverse markets. Specifically, these resources will fund projects that increase economic growth and trade, including improving the transit of legal goods and services across borders, increase regional cooperation on the use of energy resources, increase cooperation and rational use of water and other natural resources, and improve governance along trade and transit corridors.

Interestingly, none of the Central Asian countries has been given Foreign Military Financing aid for FY2016, but the amount devoted to “Central Asia Regional” programs was $3.2 million, roughly the same as the region was promised last year.

The aggregate figures:

  • Armenia: $22.4 million, down from the FY2015 request of $24.7 million;
  • Azerbaijan: $11.1 million, down from the FY2015 request of $12.7 million;
  • Georgia: $76.2 million, up from the FY2015 request of $54 million;
  • Kazakhstan: $7.5 million, down from the FY2015 request of $8.3 million;
  • Kyrgyzstan: $45.6 million, up from the FY2015 request of $36.3 million;
  • Tajikistan: $28.4 million, up from the FY2015 request of $21.1 million;
  • Turkmenistan: $4.5 million, down from the FY2015 request of $4.9 million;
  • Uzbekistan: $6.2 million, down from the FY2015 request of $6.8 million.

It should be noted that in terms of military aid, the above figures are only part of the picture, an increasing portion of aid to the region is funded by the Department of Defense, rather than through the traditional State Department programs like FMF.

The post Georgia, Kyrgyzstan, Tajikistan See Boosts In US Aid – Analysis appeared first on Eurasia Review.


Saudi Arabia: Top Executive Removed As Gas Crisis Deepens

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By Nadim Al-Hamid

As gas shortages across Saudi Arabia continued, the National Gas and Industrialization Company (GASCO) on Tuesday removed a top executive from his position and appointed a new chief executive officer.

Iyas bin Samir Al-Hajari is the new man at the helm, with Salman bin Mohammed Al-Jeshi, Gasco’s chairman, no longer managing director.

The gas crisis started three weeks ago after the company retrenched many distribution employees without replacing them, according to reports.

This resulted in an acute shortage of gas across the Kingdom including Jeddah and Makkah, with the price of a cylinder shooting up from SR15 to SR100. Many restaurants in the Kingdom closed down because they were not able to get gas at a reasonable price.

Al-Hajari said on Tuesday that the shortage was caused by a lack of supply from the Aramco plants in Yanbu and Qatif. “Production at the Yanbu plant dropped over the past two weeks, which in turn affected the supply in Jeddah.”

He said there had been attempts to get additional supplies from Qatif to meet the demand in Jeddah. Poor weather conditions on the roads from Qatif to Jeddah delayed the arrival of trucks carrying cooking gas. The shortage has already been solved partially with the arrival of 50,000 cylinders of various sizes from Qatif on Sunday, he said.

He denied that the shortage was triggered by the industrial action started by Saudi workers who demanded the payment of an annual bonus. He said the company would not agree to any employee stopping working under any circumstances.

Arab News, however, discovered that three major gas-pumping stations were not operating because of the strike by workers.

Some workers told Arab News that they refused to work because they did not get their annual bonus, and also because some of their colleagues were sacked after asking for their “rightful payments.”

Jeddah residents have called for a quick resolution of the problem.
Many said they cannot believe that Saudi Arabia, which is one of the world’s largest producers of oil and natural gas, is facing such a problem.

Fawaz Al-Ghamdi said he had not been able to get a gas cylinder for the past two weeks because shops in most parts of the city were closed.

He was forced to borrow one from a neighbor who lives in his building.

Maher Al-Zahrani said a black market for gas cylinders have now appeared because of the shortage. He bought four small gas cylinders for SR100 each.

The post Saudi Arabia: Top Executive Removed As Gas Crisis Deepens appeared first on Eurasia Review.

Zimbabwe At Crossroads As Controversial Indigenization Law Stands In Way Of Growth – OpEd

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Leading Zimbabwean securities trading company Inter-Horizon Securities in its recently released 2015 equity strategy report said that the Zimbabwean economy is at a crossroads.

“The Zimbabwean economy is coming under increasing stress characterised by depressed aggregate demand, high unemployment, pervasive structural issues linked to poor funding and weak commodity prices in Zimbabwe’s key sectors, mining and agriculture, and a persistent current account deficit. It is now imperative that government implements productive and proactive policy reforms to attract the much-needed FDI and restore the country’s external position as a prerequisite for accessing external financing,” the report said.

The Zimbabwean government has of late been extending its begging bowl to just about anyone who will indulge them, with the Chinese being Harare’s preferred investment partner. Last year, President Mugabe went on a state visit to China, with the hopes of securing significant funding. The Zanu PF led government however, has little to show for that and its other efforts to attract FDI into the country.

For instance, in the ten months from January to October last year, Zimbabwe received FDI flows of only $146.6mn compared to $311.3mn during the same period in 2013, an amount far below the medium term policy (Monetary policy) target of $1bn for the year.

Compared to its sub-Saharan Africa peers, Zimbabwe has fared poorly in terms of attracting FDI in the recent past, after impressing in the years immediately after dollarization, albeit coming off a low base. The country`s eastern neighbor Mozambique, recorded FDI flows of $7 billion in 2013, a record for the country according to data supplied by the United Nations Conference on Trade and Development (UNCTAD). Nigel Chanakira chairman of the Zimbabwe Investment Authority, in an interview with Bloomberg Business last year conceded that Zimbabwe’s FDI remains “embarrassingly low” when compared to its neighboring countries.

Indigenization, the elephant in the room

“The main deterrent to FDI at the moment is the lack of clarity around indigenization policies and the inconsistency around implementation. Until we provide clarity and build a consistent track record in implementation we will continue to see subdued FDI inflows into the country,” the report said. Pursuant to this, Inter-Horizon Securities suggest that policy clarity, transparency and key structural reforms must be made in order to enhance the business climate to attract FDI, boost productivity and competitiveness, and build confidence. Overall, they see policy inertia and the lack of a compromise solution to the country’s indigenization policy as the largest impediments to Zimbabwe’s growth.

Despite recently amending the indigenization law to include the role of line ministries in approving compliance plans, Mines and Mining Development minister Walter Chidhakwa recently asserted the Zimbabwean government`s hard-line stance towards indigenization, by announcing that there would be no change in the application of the 51-49% threshold for indigenization of mines. “We are still studying the system but what’s clear is that we will take a simple approach. The 51-49% threshold is a requirement enacted by Zimbabwean legislators as such it will stick. It`s not negotiable. We can only be flexible on the period that companies will be able on the period that companies will be able to achieve this,” minister Chidhakwa said last month.

However, the financial services boutique firm offering brokerage and advisory services forecasts that, 2015 will see Zimbabwe`s government become compelled to take a more moderate approach to indigenization and continue to take proactive measures to normalize relations with creditors and the foreign community. “

The economy is forecast to grow 3.2% in 2015 according to the Ministry of Finance, although this forecast is fraught with downside risks emanating from depressed commodity prices, stagnant domestic demand, adverse weather conditions and pervading liquidity shortages. In our view, GDP growth in the year will likely be closer to 2.0%. We expect deflation to persist in 2015 on subdued demand, a softening rand and bearish oil prices; corporates that are highly leveraged will be hardest-hit by the pervading deflationary pressures,” the report further mentioned.

Increased pressure on fiscal and external accounts

Zimbabwe has had to contend with a myriad of problems that have led to persistent current account deficits. Chief among these challenges is a burgeoning government wage bill accounting for over 80% of the government’s total expenditure. Last year, Zimbabwe`s employment costs amounted to $2.51 billion. The World Bank recommends that a country’s wage bill should not exceed 25% of its total expenditure. Clearly, the Zimbabwean government missed that memo and crucial investment projects continue to be crowded out.

“Reversing the budget focus from consumptive to developmental has become a key priority for the government and this can only be done by managing the wage bill. The external position remains unsustainable with a large current account deficit, low international reserves and an overvalued real exchange rate. The current account deficit constitutes about 24% of GDP while our SADC peers have current account deficit under 9% of GDP,” noted Inter-Horizon Securities.

“We re-iterate the urgent need for government to take proactive measures to attract FDI to restore the country’s external position as a prerequisite for accessing external financing. Encouragingly the IMF re-opened its Zimbabwean office in July 2014 and the EU proceeded to formally lift sanctions in November 2014 on the Zimbabwean Government, both of which bode well for the restoration of constructive foreign relations,” highlighted the report.

Bearish stock market

The Zimbabwe Stock Exchange was among one of the worst performing exchange in Africa, plunging by close to 20% in 2014. Market capitalization declined to $4.3 billion from $5.2 billion in 2013, and $876 million in shareholder value was eroded in what was a disastrous year for the bourse. “The general poor performance was driven by below par GDP growth, a continued lack of FDI, downward earning revisions, as well as poor sentiment exacerbated by political events particularly in the last quarter of 2014. There appeared to be little discernible trend between sectors as regards performance reflecting the generally poor economic environment, although retail counters were hardest hit with seven of the top ten losers on the ZSE being exposed to the Zimbabwean consumer,” added the report.

It’s tough times for the Southern African country, and the government appears bereft of any strategies to put the brakes on Zimbabwe`s apparent terminal decline. To the sober minded observer, not only have the wheels fallen off, but the axles and transmission too for Zimbabwe’s coach. And 2015 will most likely be another bumpy ride for Zimbabwe.

The post Zimbabwe At Crossroads As Controversial Indigenization Law Stands In Way Of Growth – OpEd appeared first on Eurasia Review.

Singapore’s Transboundary Haze Pollution Act: Silver Bullet Or Silver Lining? – Analysis

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Singapore’s Transboundary Haze Pollution Act came into effect on 25 September 2014. The impending dry season in the coming months will be the first test of its effectiveness in curbing transboundary haze pollution.

By Raman Letchumanan*

2014 was a year of unprecedented weather conditions in the region. Whether there will be a repeat of the prolonged dry season in the coming months is on everyone’s mind. On 26 January 2015, the 24-hour Singapore Pollution Standards Index (PSI) hit 76, crossing the half-way mark of the moderate air quality zone of 50-100. Beyond that the air quality becomes unhealthy. Satellite pictures showed very few scattered hotspots in neighbouring countries. The deterioration in air quality is therefore purely from local sources.

In 2014, Indonesia finally ratified the ASEAN Agreement on Transboundary Haze Pollution after a delay of more than a decade while Singapore enacted its Transboundary Haze Pollution Act. How significantly will these two legal instruments impact on the region’s haze pollution problem?

Moving regional cooperation on haze a notch up

When the Haze Pollution Act was enacted by the Singapore parliament, there was wariness among neighbouring governments, apprehension from targeted entities, debates in the legal fraternity, and hopes tinged with scepticism among the long-suffering public.

The Act is, in fact, in line with and complements the provisions of the region-wide ASEAN Agreement which calls upon all States to take legislative, administrative and/or other measures to implement their obligations to prevent and monitor transboundary haze pollution. Furthermore, the Agreement obliges the State where transboundary haze pollution originates to respond promptly to a request for relevant information or consultation sought by an affected State.

The Singapore Act makes it an offence to engage in or condone a conduct which causes or contributes to any haze pollution in Singapore, which is distinct though related, from an offence of open burning which is illegal in most ASEAN countries. Therefore if a prosecution has commenced under the Act, the concerned government is obliged under the ASEAN Agreement to share relevant information, and most importantly to act correspondingly through their national laws against the open burning that is causing transboundary haze in Singapore.

Indonesia, for example, claims foreign entities are the cause of open burning, and other governments have told Indonesia to act on these entities through the full force of their national laws. The Agreement and Act should now put such rhetoric in the past to joint legal action. Indonesia has recently dealt severely with foreign illegal fishing, and such vigour should be pursued also for transboundary violations in another country.

In fact, regional cooperation will certainly alleviate the need to rely on the tenuous provisions on presumptions, and collection of evidence under the Act if Singapore were to act unilaterally.

Casting a wider net on violators

The Act presumes that there is haze in Singapore, if about the same time there is a fire in a land outside Singapore, and the smoke from that fire is moving in the direction of Singapore. It also presumes ownership or occupation of a land causing the fire from maps furnished by appropriate persons, governments or departments.

This presumption of causal link has caused some concern among entities. Generators of satellite hotspot information claim about 80% accuracy (actual fires vs number of hotspots). Entities dispute that it is, at best, only up to 30% based on ground monitoring. Such satellite information should be validated by near surface aerial surveillance and ground investigation by authorities.

Determining the direction of smoke movement can pose similar difficulties. In Indonesia, entities contest concession land boundaries and actual ownership, which the government is trying to address through its OneMap initiative.

Major companies have taken upon themselves to publish their own concession maps overlaid with hotspot information through the Roundtable for Sustainable Palm Oil (RSPO) Secretariat. This is a proactive trend among these companies to ensure they are not unfairly targeted, much less to be charged under the Act.

Entities cannot now “outsource” their offending conduct, because that entity is also liable if it participates in the management including operational affairs, exercises decision-making or control, in another entity that commits the offence. In addition, the Act covers both owners and occupiers of land and those having the authority or right to operate on the land.

Deterrence and prevention

The Act tilts towards deterrence and prevention than punitive action, and closing the loopholes that violators have been frequently using so far.

The Act provides for preventive measures in advance by entities concerned if there is air pollution in Singapore caused by fire that is likely to move in the direction of Singapore. A notice in writing to prevent, mitigate or control the fire will be issued, and failure to comply attracts a fine of up to SGD50,000 per day to a maximum SGD2 million.

More than the criminal (maximum fine of SGD2 million) and civil liability (no cap on damages), entities will be greatly concerned of the reputational risks to their core business and image, which arises the moment they are charged under the Act.

The Singapore Act induces entities to be more truthful upfront in their claims of sound environmental management practices and challenges if they are to rely on the defence of a grave natural disaster or phenomenon causing haze. It also tightens the defence of shifting blame to other persons.

However, the Act would not be an appropriate tool to use against small holders and farmers, who can collectively cause transboundary haze. They need to be assisted with locally adapted small farm equipment, on a cooperative or community basis, to prepare their land without fire. Such equipment can also assist the community as the front line of attack to better control initial fires in their surroundings, than to expect them to swat fires by hand.

Governments should be better prepared with pre-mobilised necessary resources and appropriate equipment to put out fires in remote, inaccessible and difficult terrains as soon as the dry season starts. Urban fire-fighting equipment and methods does not work in these areas.

Silver Lining?

Dr. Vivian Balakrishnan, Singapore’s minister responsible for the environment has reiterated the Act is “no silver bullet”. He further added that there will be challenges faced. Certainly he is being very frank and realistic in order to manage public expectations expecting immediate or even short-term relief.

Sustained and enhanced coordinated preventive action among governments and entities will certainly address many of the challenges faced, including of course in tackling the root causes focusing on sustainable management of fire-prone peatlands.

Singapore’s Act has taken on a novel and bold legal approach on the transboundary haze issue. It could well pave the way for governments to act decisively on the greater global threat of climate change.

*Raman Letchumanan is a Senior Fellow with the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University. The views expressed here are strictly his own. Dr Raman was the person-in-charge of fire and haze issues at the ASEAN Secretariat for 14 years, and prior to that in the Malaysian Government. This is part of a series on the ASEAN haze issue.

The post Singapore’s Transboundary Haze Pollution Act: Silver Bullet Or Silver Lining? – Analysis appeared first on Eurasia Review.

How The L.A. Times Decides The News – OpEd

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On January 17, a crowd of 15,000, many of them young people, took to the streets of Los Angeles to participate in the first “One Life” march, a demonstration in support of the rights of unborn children.

On February 1, 10 people demonstrated outside the Cathedral of Our Lady of the Angels to protest the proposed canonization of Father Junipero Serra, the priest who broug ht Christianity to California.

Guess which event the Los Angeles Times ignored and which one it covered?

Across the nation, the Washington Post covered the Los Angeles pro-life march, and the newswire in Times Square highlighted it. But the L.A. Times effectively censored it, even though the demonstration was held one block from its headquarters. Its omission of this huge event, and its flagging of the tiny protest, are a reflection of its politics: the Times is pro-abortion and not exactly Catholic-friendly.

The non-event protest was the work of the ill-named Mexica Movement. In fact, there is no movement: there is just a handful of Christian-bashing, European-hating activists. In 2000, a Canadian newspaper, The Globe and Mail, counted a “few dozen members” who showed up to protest Elton Johns’ appearance at Tower Records in Los Angeles (he allegedly sang a “racist song” on the soundtrack of the film, “The Road to El Dorado”). In other words, 15 years ago this rag-tag group marshaled more activists than it did last Sunday. Some “movement.”

The few who protested Father Serra showed how low-class they are when they compared the priest to the devil and Los A ngeles Archbishop José Gomez to Hitler. For good reasons, Gomez is well-liked by minorities, though his few detractors garner the news. Shame on the L.A. Times for profiling them.

Contact L.A. Times editor Davan Maharaj: davan.maharaj@latimes.com

The post How The L.A. Times Decides The News – OpEd appeared first on Eurasia Review.

UK: Let Sanity Prevail – OpEd

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By Neil Berry

For British Muslims, it seemed an epoch-making moment when, in 2010, the Conservative lawyer, Sayeeda Warsi, became Britain’s first female Muslim Cabinet minister in the Conservative-Liberal Democrat government of Prime Minister David Cameron.

Five years on, “Baroness Warsi” is an ex-minister, having resigned from government last year over Britain’s “morally indefensible” position on Gaza. Though still dedicated to the Conservative Party, she alienated many fellow Conservatives when, in 2011, she alleged that hostility to Muslims had passed the “dinner party test,” meaning that it had become acceptable in polite British society to denigrate Muslims.

It has been a source of dismay to Warsi, as to many others, that the British government’s engagement with the UK’s more than 3 million Muslims appears confined to haranguing them to demonstrate that they are law-abiding patriots. Now she has issued a furious protest at a government letter, sent to more than 1,000 British mosques in the wake of January’s Paris attacks and urging them to do more to tackle extremism.

The letter — which was signed by the UK Communities Secretary Eric Pickles and his colleague Lord Ahmad — has ignited outrage among Muslims, with the Muslim Council of Great Britain deploring its picture of British Muslims as “inherently apart from British society.”

Reflecting this outrage in an article for the Observer, Warsi remarked that the letter was never likely to evoke a positive response, since it was not preceded by any significant effort by government to build friendship and trust. It seemed to her especially ill-considered because it went to mosques linked to organizations blacklisted by the British government. The letter, she believes, will simply add to the bitterness among Muslims provoked, for example, by obsessive official checks on the backgrounds of guest lists to Eid events and the pointed refusal of ministers to attend events that might be addressed by speakers deemed to hold unpalatable opinions.

Warsi is warning the British government that its conception of engagement with the Muslim community is “dangerously narrow,” with the potential to incite rather than pre-empt radicalism. Certainly, many Muslims are liable to conclude that David Cameron’s government is constitutionally incapable of viewing them as anything except a threat. This after all is a point at which, in the aftermath of the Paris attacks, there is endemic alarm about the prospect of a pan-European backlash against Muslims. Yet though Muslims have manifest cause to feel threatened themselves, their fears — in stark contrast to the fears of British Jews — have scarcely been addressed at all.

Muslims are bound to contrast how they are treated with the British government’s routine readiness to engage with Jewish groups.

David Cameron presides over an annual formal meeting with British Jewish leaders to discuss their concerns — though he has declined to accede to requests to hold such a meeting with leaders of Muslim and other faith groups. Since the Paris attacks, moreover, his government has gone to great lengths to show solidarity with Britain’s Jewish community and re-affirm its abhorrence of anti-Semitism — even as it has left Muslims with the sense that it regards them as fundamentally a national security problem.

The intervention of Warsi, herself the quintessential “moderate” Muslim, is a measure of how high feeling is running among British Muslim community over the government’s letter. The chances of a fresh radical attack in Britain are hardly to be minimized; the security services maintain that a major attack is inevitable. Yet it is precisely because of the combustibility of the situation following events in France that it is more than usually desirable that the British government be seen to be acting toward all communities with unimpeachable even-handedness. Indeed, one might argue that it is an abrogation of common sense, not to mention democracy, for elected politicians to display conspicuous solicitude toward one embattled community while giving another such community to understand that it is an object of chronic official suspicion.

The British Council has for years dispatched its officers round the world to instruct developing countries in the art of “good governance.” When it comes to dealing with its own Muslim citizens, it is the British government itself that often seems to require such instruction.

The post UK: Let Sanity Prevail – OpEd appeared first on Eurasia Review.

The Democrats’ Israel Problem – OpEd

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By Mike Kuhlenbeck*

Palestine has been granted membership into the International Criminal Court. After the first of April, this monumental step will allow Palestinian officials to bring charges against Israel for its numerous crimes, including the “Operation Protective Edge” bombing campaign launched on July 7, 2014 against the Gaza strip, slaughtering more than 2,300 Palestinians and destroying the lives of thousands more.

United Nations officials Navi Pillay and Richard Falk have labeled Israel’s actions as war crimes and crimes against humanity. By the standards of the Universal Declaration of Human Rights (adopted by the UN General Assembly on December 10, 1948), Israel is in violation of Amendments 1, 5 and 25, which state:

  • “All human beings are born free and equal in dignity and rights”
  • “No one shall be subjected to torture or to cruel, inhuman or degrading treatment or punishment”
  • “Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care…”

Describing the horrific conditions of Gaza, largely hidden from outsiders, journalist Chris Hedges writes, “[Gaza] has disturbing echoes of the Nazi ghettos of Lodz and Warsaw.” The 1.8 million residents of “the world’s largest open-air prison” live in crowded conditions and are often denied adequate water, food and medical supplies.

The director of the New Internationalism Project at the Institute for Policy Studies, Phyllis Bennis, dispels the false notions put forth by Israel’s guardians in media that it only uses military force for self-defense purposes:

“Violence is central to maintaining Israel’s military occupation. It is carried out primarily by Israeli military forces and Israeli settlers in the occupied territories who are themselves armed by the Israeli military, and its victims include some Palestinian militants and a large majority of Palestinian civilians, including many children.” (Understanding the Palestinian-Israeli Conflict, 2002)

Last year, Secretary of State John Kerry experienced a political Freudian slip by saying Israel risked becoming an “apartheid state” if US-sponsored efforts for an Israeli-Palestinian peace settlement failed, a statement for which he quickly apologized. Kerry knows very well that Israel is already an apartheid state.

The Republican Party treats Israel as if it was the 51st state of the Union. Given the more than $3 billion in aid the US gives to Israel annually, one can see why they make this assumption. The party’s current presidential hopefuls are all ardent supporters of the regime, including Jeb Bush, Rand Paul and Chris Christie. Paul has gone so far to say that the US should cut off all aid to the Palestinians. While the GOP’s rhetoric is more thuggish and righteous, voters must keep in mind that maintaining the US’s relationship with Israel is a bipartisan effort.

The US Senate unanimously passed resolution S.498 on July 17, 2014 in order to support “the State of Israel as it defends itself against unprovoked rocket attacks from the Hamas terrorist organization.”

The Democratic Party’s 2012 platform reads, in part, “President Obama and the Democratic Party maintain an unshakable commitment to Israel’s security. A strong and secure Israel is vital to the United States not simply because we share strategic interests, but also because we share common values…The administration has also worked to ensure Israel’s qualitative military edge in the region.”

Democratic Party insiders have said that it is a foregone conclusion that Former Secretary of State Hillary Clinton will announce her presidential candidacy for the 2016 election. It is well known that Clinton supports the Israeli occupation and its military policies against Palestinians. Clinton, like the rightwing critics who profess their hatred of her, has repeatedly claimed that Israel is a “democracy.” This Israeli “democracy” she speaks of is sheer fantasy on the same level as Narnia and the Land of Oz.

This myth provides the US the necessary cannon fodder to arm its ally in the Middle East against its neighboring (aka Muslim) enemies.Clinton uses the same clichéd and tiresome arguments that one has to be an anti-Semite if they are anti-Zionist, which is a typical ad hominem attack against critics of Israel’s conduct. In an interview with The Atlantic, she employed the typical fear-mongering typical to the Imperialist foreign policy she would champion as president:

“You can’t ever discount anti-Semitism, especially with what’s going on in Europe today. There are more demonstrations against Israel by an exponential amount than there are against Russia seizing part of Ukraine and shooting down a civilian airliner. So there’s something else at work here than what you see on TV.”

However, Clinton’s outrage over such protests does not extend to the anti-Muslim rallies that have drawn tens of thousands of supporters in Germany and France. Responding to the tragic shootings at the Paris offices of the satirical newspaper Charlie Hebdo, the French government has outlawed Pro-Palestinian demonstrations, rendering the term “freedom of speech” into a hollow political phrase to revamp the public’s fear of Islam. She did not condemn this flagrant violation of civil liberties, an act that is attempting to silence the call for human rights in Gaza at a time when it is most needed.

One of Clinton’s more controversial comments was made on the TV program Good Morning America in 2008. Her apocalyptic words on the subject of Iran are parallel to the kind of blood-thirsty rhetoric that would have been used against the former Soviet Union during the height of the Cold War:“I want the Iranians to know that if I’m the president, we will attack Iran (If it attacks Israel).”

There are progressive and moderate elements that do not want Clinton to be the so-called “liberal” alternative to the GOP. Last year, The Hill obtained numerous emails from liberal and progressive activists that show Clinton does not have the support she thought she once had. This publication summarized the main findings of these exchanges with the following: “Clinton’s too much of a hawk, too cozy with Wall Street, hasn’t spoken out enough on climate change, and will be subject to personal questions and criticisms.”

The only serious competition Clinton has (so far) is US Senator Elizabeth Warren of Massachusetts (D). To supporters, Warren is seen as a populist candidate for her anti-Wall Street rhetoric. Progressive and Center-Left publications such as In These Times and The Atlantic have encouraged Warren to run against Clinton for these reasons. But the editorial writers of these journals might be disappointed with Warren as they would with Clinton on the Palestinian-Israeli conflict.

On her US Senate website, the following seems to have been lifted nearly verbatim from her party’s platform: “The U.S.-Israel relationship is rooted in shared values and common interests, based on a commitment to liberty, pluralism, and the rule of law. These values transcend time, and they are the basis of our unbreakable bond.”

As the 2014 bombings commenced in Gaza, journalist Glenn Greenwald of The Intercept noticed that Warren’s position on the issue mirrored that of Benjamin Netanyahu, even using some of the same justifications. Warren voted to authorize an additional $225 million to Israel for its “Iron Dome” system. Quoting Cape Cod Times reporter C. Ryan Barber, Warren said:

“I think the vote was right, and I’ll tell you why I think the vote was right. America has a very special relationship with Israel. Israel lives in a very dangerous part of the world, and a part of the world where there aren’t many liberal democracies and democracies that are controlled by the rule of law. And we very much need an ally in that part of the world.”

A little further to the left of the spectrum is US Senator Bernie Sanders of Vermont (I), a self-described “democratic-socialist.” He has long been lauded by social democrats who have urged him run for president, preferably within the Democratic Party to avoid being a so-called “spoiler” à la Ralph Nader. Like Warren, Sanders supported objectives of the Israeli government as strongly as his conservative counterparts. He was, after all, one of the 100 Senators who voted for Senate resolution S.498.

Sanders had to confront his critics when attendants of a town hall meeting heckled him in August 2014. Usually he wins the crowd over in situations like this, but in this case he was met with a hostile audience. Members of this congregation started yelling expletives and denunciations of Israel’s actions. He tried to regain control, going as far as resorting to the possibility of calling the police to restore order.

Those who vote according to the notion of “the lesser of two evils” will not have any luck finding a presidential candidate within the Democratic or Republican parties that will challenge the neo-colonialism of the Benjamin Netanyahu regime or his Likud party. Even a war of words condemning Israel’s conduct would not be enough to make an impact. Israeli Defense Minister Moshe Dayan once quipped, “Our American friends offer us money, weapons, and advice. We take the money, we take the weapons, and we decline the advice.”

The Israeli government’s crimes have been ignored for decades. Only in recent years the citizens of the free world, including nations allied with Israel, have taken notice and expressed outrage at these offenses. As observed by Israeli-born journalist Uri Averny:

“The persecuted has become the persecutor; David has turned into Goliath.”

*Mike Kuhlenbeck is a journalist and researcher whose work has appeared in The Humanist, Z Magazine and The Des Moines Register. He is a member of the National Writers Union and Investigative Reporters and Editors He contributed this article to PalestineChronicle.com.

The post The Democrats’ Israel Problem – OpEd appeared first on Eurasia Review.

Iraq Energy Profile: Has Fifth Largest Proved Crude Oil Reserves In World – Analysis

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Iraq was the second-largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC) in 2014, and it holds the world’s fifth largest proved crude oil reserves after Venezuela, Saudi Arabia, Canada, and Iran. Most of Iraq’s major known fields are producing or in development, though much of its known hydrocarbon resources have not been fully exploited. All of Iraq’s known oil fields are onshore and the largest fields in the south have relatively low extraction costs owing to uncomplicated geology, multiple supergiant fields, fields that are typically located in relatively unpopulated areas with flat terrain, and the close proximity to coastal ports.1

Iraq is re-developing its oil and natural gas reserves after years of sanctions and wars. Iraq’s crude oil production grew by 950,000 barrels per day (bbl/d) over the past five years, increasing from almost 2.4 million bbl/d in 2010 to almost 3.4 million bbl/d in 2014. These production estimates include oil produced in the Iraqi Kurdistan Region, the semiautonomous northeast region in Iraq governed by the Kurdistan Regional Government (KRG). Despite this growth, Iraq’s production has actually grown at a slower rate than Iraq had expected because of infrastructure bottlenecks in the south, supply disruptions in the north, and delays in awarding contracts.

iraq_mapThe Iraqi government has set ambitious oil production targets. The government is currently renegotiating field production targets set in Technical Service Contracts (TSCs) previously signed with international oil companies (IOCs). Based on some of the target revisions that have already been announced, the Energy Intelligence Group estimates that Iraq is now aiming for crude oil output of 9.0 million bbl/d by 2020.2 Key challenges the Iraqi government faces to achieve this target include expanding southern export infrastructure and storage capacity, building a large common water supply and re-injection system in the south, passing a hydrocarbon law, a slow administrative process of doing business, and less favorable contract terms to attract IOCs to invest in new projects. Also, political instability, sectarian violence, and the threat of the Islamic State of Iraq and the Levant (ISIL) spreading to other areas of Iraq pose significant uncertainty for Iraq’s future.

Petroleum and other liquids

Iraq holds about 18% of proved crude oil reserves in the Middle East and almost 9% of total global reserves. Despite having large reserves, increases in oil production have fallen behind ambitious targets because of infrastructure constraints and political disputes.

Reserves

According to the Oil & Gas Journal, Iraq held 144 billion barrels of proved crude oil reserves as of January 1, 2015, representing almost 18% of proved reserves in the Middle East and almost 9% of global reserves, ranking fifth in the world.3 Iraq’s resources are not evenly divided across sectarian-demographic lines. Most known oil and natural gas resources are concentrated in the Shiite areas of the south and the ethnically Kurdish region in the north, with few known resources in control of the Sunni minority in central/western Iraq.

Iraq has five super-giant fields (defined as holding more than 5 billion barrels of oil reserves) in the south that account for about 60% of the country’s total proved oil reserves.4 An estimated 17% of oil reserves are in the north of Iraq, near Kirkuk, Mosul, and Khanaqin.5 Control over rights to reserves is a source of controversy between the ethnic Kurds and other groups in the area. The International Energy Agency (IEA) estimated that the Iraqi Kurdistan Region contained 4 billion barrels of proved reserves.6 KRG’s estimate is much higher because it is a resource estimate that includes unproved resources. The KRG recently increased its oil resource estimate from 45 billion barrels to 60 billion barrels,7 although this has not been independently verified and this number likely includes at least some resources in disputed areas—especially Kirkuk.

Sector management

The Ministry of Oil in Baghdad oversees oil and natural gas development and production in all but the Kurdish territory through its operating entities, the North Oil Company (NOC) and the Midland Oil Company (MDOC) in the north and central regions, and the South Oil Company (SOC) and the Missan Oil Company (MOC) in southern regions. In the Iraqi Kurdistan Region, the KRG, with its Ministry of Natural Resources, oversees oil and gas development and production. International oil companies (IOCs) are very active in Iraq, including the Iraqi Kurdistan Region. IOCs operate under technical service contracts (TSCs) in Iraq, which are signed with the Ministry of Oil in Baghdad, and under production-sharing agreements (PSAs) in the Iraqi Kurdistan Region signed with the KRG. Over the years, KRG’s push to sign PSAs with IOCs has escalated tensions with Baghdad, making the situation uncomfortable for some IOCs who have been pressured on different occasions to reduce their investments in Kurdistan.8

Production

petroleum_production_consumptionIraq’s crude oil production increased by more than 300,000 bbl/d in 2014, compared with the previous year, averaging almost 3.4 million bbl/d in 2014. Supply disruptions in the north escalated in 2014 after the Iraq-Turkey (IT) pipeline flows were completely halted in March. The ISIL offensive caused more northern production to shut down in June. However, increased output at fields in southern Iraq and in the Iraqi Kurdistan Region more than offset disrupted volumes. Iraq also produces about 30,000 bbl/d of non-crude liquids. The production growth in 2014 was a significant improvement from 2013 when year-over-year production grew by only 70,000 bbl/d. Poor oil production growth in 2013 is attributed to infrastructure bottlenecks in the south and an increase in supply disruptions to northern fields because of frequent attacks on the IT pipeline.

Production in the northern region controlled by the KRG in the past has tended to fluctuate because of disputes with the central Iraqi government, but recently it has steadily increased. The U.S. Energy Information Administration (EIA) estimates KRG’s crude oil production averaged 350,000 bbl/d during the second half of 2014. Increased pipeline capacity has allowed the KRG to increase output at its fields, while exporting it through the Turkish port of Ceyhan. KRG’s Ministry of Natural Resources reported that oil flows through the Kurdish crude pipeline to Turkey, which started in May 2014, reached as high as 300,000 bbl/d in November 2014,9 but pipeline flows fluctuated in 2014 typically averaging below that level. The KRG also trucks between 50,000 and 100,000 bbl/d of crude and condensate to the Turkish ports of Mersin, Dortyol, and Toros, and to Iran.10

Table 1. Iraq’s oil fields, ports, pipelines, and refineries1
Location Main oil fields Lead foreign partner Production
capacity (000 bbl/d)2
Export outlet Refinery effective
capacity (000 bbl/d)
Southern fields Rumaila BP, CNPC 1,430 Basrah port (including 3 single point mooring systems) and Khor al-Amaya port Basra (135), smaller refineries
West Qurna-1 ExxonMobil, Petrochina, Shell 550
West Qurna-2 Lukoil 220
Zubair Eni, Occidental 360
Majnoon Shell, Petronas 200
Garraf Petronas, Japex 100
Missan fields (Fakka, Abu Gharb, Bazergan) CNOOC 135
Halfaya CNPC, Total, Petronas 110
Other fields 215
Total southern capacity 3,320
Central fields Ahdab CNPC 140 Connected to southern export infrastructure Daura (140), smaller refineries
Badra Gazprom Neft, Kogas, Petronas 15
Other fields 25
Total central capacity 180
Northern fields Kirkuk (Avana & Baba) N/A 220 Iraq (Kirkuk) to Turkey (Ceyhan) pipeline (Flows stopped in March 2014 and the pipeline is currently unusable.) Baiji (230), Daura (140), Kirkuk refinery (30), smaller refineries
Bai Hasan N/A 185
Jambur N/A 40
Khabbaz N/A 30
Other fields N/A 50
Total northern capacity 525
Northern fields (Kurdistan Regional Government – KRG) Khurmala Dome (northern tip of Kirkuk) 110 KRG pipelines that connect to Turkey (Ceyhan) pipeline; some oil trucked to ports in Turkey (Mersin, Dortyol, & Toros) and to Iran Kalak, Bazian, and small refineries (total 150)
Tawke DNO, Genel Energy 130
Taq Taq Genel Energy, Sinopec 130
Shaikan Gulf Keystone 21
Other fields 36
Total KRG capacity 427
Total Iraq (Baghdad) capacity 4,025
Total Iraq capacity 4,452
1 This is the latest information available prior to the June 2014 attack by the Islamic State of Iraq and the Levant.
2 Iraq’s actual production level is much lower than capacity as most oil fields are producing below capacity because of infrastructure constraints. Also, a portion of northern production is not being produced commercially and is considered a supply disruption. CNPC is China National Petroleum Corporation; CNOOC is China National Offshore Oil Corporation; Sinopec is China Petroleum & Chemical Corporation.
Sources: U.S. Energy Information Administration based on information from the Energy Intelligence Group, Iraq Oil Report, and Middle East Economic Survey.

Impact of ISIL on Iraq’s oil sector in 2014

The Islamic State of Iraq and the Levant (ISIL) launched an attack in Iraq in early June 2014, taking over Mosul, one of the largest cities in the north, and subsequently other nearby towns. ISIL affected northern Iraqi (not including the Iraqi Kurdistan Region) production and refinery operations, but it did not affect southern production and exports, which accounted for about 95% of Iraq’s total crude oil exports in 2014.11 ISIL did not significantly affect current production in the Iraqi Kurdistan Region in northern Iraq, although fighting came very close to fields produced under the KRG—the Khurmala Dome and Shaikan. Some oil companies were forced to abandon exploration projects, which could delay future development.

ISIL initially took over some smaller northern Iraqi oil fields, including Ajeel, Hamrin, Qayara, Balad, Ain Zalah, Batma, and Najma, but ISIL later lost control of some of those fields following the U.S.-led air strikes that began in early August 2014.12 The Ajeel field, with a capacity of 28,000 bbl/d, was one of ISIL’s main sources of Iraq’s production, but it was bombed in August 2014, causing significant damage to the field’s control room.13 After the bombing, an Iraqi official reported that ISIL’s production in Iraq was not more than 15,000 bbl/d.14 ISIL continues to sell oil on the black market, most of which is making its way to small refineries in northern Iraq and some to Turkey. As a result, the KRG and Turkey have both pursued measures to restrict oil smuggling. ISIL has also stolen oil from storage tanks, pipelines, and pumping stations, estimated to be as high as 3.0 million barrels.15

During the second half of June, ISIL attacked Baiji, Iraq’s largest oil refinery, causing the refinery to halt operations. At the time this report was published, the Iraqi government regained control of Baiji, though the refinery is still not operational. The closure of the Baiji refinery caused a near halt to commercial production in northern Iraq (not including the Iraqi Kurdistan Region). The Iraq portion of the Iraq (Kirkuk) to Turkey (Ceyhan) pipeline (IT pipeline) had already been severely damaged after being sabotaged by militants, and it has not operated since March 2014 (see Table 2). Therefore, with the closure of both the Baiji refinery and the Iraq portion of the IT pipeline, northern Iraqi oil production (the Kirkuk and Bai Hassan fields) lacked a significant commercial outlet for several months.

After skirmishes between ISIL and KRG forces around the Kirkuk and Bai Hassan fields, the KRG took over operations at the Avana Dome, a part of the Kirkuk field, and Bai Hassan in July 2014. Shortly after, KRG restarted commercial production at those fields, which allowed the KRG to increase oil flows through its newly built pipeline that connects to Ceyhan (see Table 2). Meanwhile, Iraq’s Northern Oil Company continued to produce about 120,000 bbl/d from the Kirkuk’s Baba Dome, of which 30,000 bbl/d was sent to the Kirkuk refinery.16 The remainder of the oil production was reinjected into oil fields associated with natural gas to keep natural gas production flowing for power generation.

A December 2014 deal reached between Baghdad and the KRG has allowed Kirkuk crude to be transported via the KRG pipeline to Ceyhan, providing Baghdad with a commercial outlet for its northern production (see section on Issues between the Kurdistan Regional Government and Baghdad). Fighting around Kirkuk city continues to take place, making nearby fields vulnerable to supply disruptions.

Field development plans

Iraq is undertaking an ambitious program to develop its oil fields and to increase its oil production. The Iraqi Ministry of Oil signed a dozen long-term technical service contracts after two licensing rounds between 2008 and 2009 with IOCs to develop or re-develop several giant oil fields, most of which were already producing.

Iraq and the IOCs had set ambitious initial production plateau targets for the dozen oil fields, totaling more than 12 million bbl/d to be completed by 2017. However, these contracts are being re-negotiated to more modest levels. Based on some of the target revisions that have already been announced, the Energy Intelligence Group estimates that Iraq is now aiming for crude oil output of 9.0 million bbl/d by 2020.17 However, even these revised targets may be overly optimistic, given the ongoing delays to develop Iraq’s energy infrastructure.

From 2010-12, Iraq held a third bidding round for natural gas fields and a fourth round (with few bids submitted) for fields that contain predominantly crude oil. The Iraqi government plans to launch a licensing round for the Nasiriya oil field in Thi-Qar province, together with the construction and operation of a new 300,000-bbl/d refinery.18

In northern Iraq, the Kirkuk field has experienced precipitous capacity declines over the past decade. Kirkuk’s current capacity is about 220,000 bbl/d, which is much lower than its peak production rate of more than 800,000 bbl/d.19 In 2013, Iraq’s Ministry of Oil and BP signed a $100 million contract for BP to provide consulting services on Kirkuk’s reservoirs, and the two resumed talks over the development of the Kirkuk field in late 2014. Militant activity and the poor security environment near Kirkuk in recent years has impeded the field’s revival.

In the Iraqi Kurdistan Region, the KRG has also set ambitious production targets, with plans to produce 1.0 million bbl/d by the end of 2015 or early 2016.20 The KRG will have to expand its pipeline capacity to accomplish its production goals because its current pipeline capacity cannot support production at this level. Project delays caused by the ISIL offensive and past non-payment of IOCs for work performed also make it unlikely this goal will be achieved.

Infrastructure constraints

Southern exports

Iraq faces many challenges in meeting the planned timetable for oil production. One of the major obstacles is the inadequate storage, pumping, and pipeline capacity (or midstream infrastructure) in the south to facilitate larger export volumes. Iraq has expanded the capacity of southern export facilities in recent years by adding on three single point moorings (SPMs) near the Basra and Khor al-Amaya ports. However, export capacity has expanded at a faster rate than midstream infrastructure capacity, which has severely constrained Iraq’s southern export capabilities and the ability of oil companies to meet their production goals.

Iraq does not have more than seven days of storage capacity.21 As a result, when poor weather conditions hit the Persian Gulf or if any event causes Iraq’s exports to halt, production at the oil fields would also have to be halted soon after because of the insufficient storage capacity. Hence, the lack of midstream infrastructure makes Iraq more vulnerable to potential production disruptions because it lacks the ability to mitigate them.

Iraq also plans to continue to increase its export capacity to meet ambitious production targets. Three SPMs buoyed off the Basra port are currently operational, and two more are planned to come online. The SPMs have a nameplate (design) capacity of 900,000 bbl/d each but have been operating below that amount. The SPMs have added much needed shipping capacity to the south, as the Basra and Khor al-Amaya ports are operating well below capacity after enduring three wars and poor maintenance.22

Common seawater supply project

Production increases of the scale planned will also require substantial increases in natural gas and/or water injection to increase recovery rates, maintain oil reservoir pressure, and boost oil production. Iraq has associated natural gas that could be used for reinjection, but much of it is currently being flared. According to a report issued by the U.S. National Oceanic and Atmospheric Administration (NOAA), Iraq was the fourth-largest natural gas-flaring country in 2011.23 Iraq is working with its international partners to reduce gas flaring. The gas will be prioritized first for electricity generation.

Iraq plans to rely on water injection to reach future production plateau targets. The country plans to use seawater, as opposed to freshwater, which is scarcer in the Middle East. For this reason, Iraq’s South Oil Company is undertaking the Common Seawater Supply Project (CSSP), which entails treating seawater from the Persian Gulf and then transporting it via pipelines to oil production facilities. The companies hope the CSSP will supply between 10 million bbl/d and 12 million bbl/d of water by 2020 to at least five southern Basra fields and one in the Missan province, but the amount may change depending on the renegotiated production targets. The project will come online in at least two phases, with the first phase bringing online around half of the total water supply. Trade press reports indicate that the project will not come online before 2018 at the earliest.24 The anticipated project start date has been pushed back a few times. The initial project lead was ExxonMobil, but the company dropped out of that position in late 2011 after announcing investments in the KRG, which contributed to schedule delays. The engineering company CH2M Hill was subsequently awarded the position as project consultant in December 2012.

Electricity

Iraq’s oil and gas industry is the largest industrial customer of electricity in Iraq. Large-scale increases in oil production would also require large increases in electric power generation. However, Iraq has struggled to keep up with the demand for electricity, with shortages common across the country. Significant upgrades to the electricity sector would be needed to supply additional power. Although more than 20 gigawatts (GW) of new generating capacity is planned by 2017, delays in meeting projected targets may mean insufficient power supply to meet the projected demands of the oil sector.

Northern exports

Most of Iraq’s major crude oil pipelines are located in the north and are currently not operable. They have suffered substantial damage because of conflict and war, and rehabilitation would take years and a large investment. The Iraq portion of the Iraq to Turkey (IT) pipeline stopped operating in March 2014 after suffering several attacks by militants in the area. At the time this report was published, a significant portion of the pipeline was in ISIL-controlled territory. Given the extreme unstable environment along the pipeline and the extent of the pipeline’s damage, it is unlikely that it will resume operations in the foreseeable future.

Currently, the only working major pipelines in northern Iraq are two pipelines built by the KRG and its international partners: KRG’s main pipeline and the DNO/Tawke pipeline, which both link to the Turkey pipeline to the Ceyhan port. There are also several smaller pipelines that carry crude oil from other fields to KRG’s main pipeline. The KRG is working to expand pipeline capacity to support its ambitious plan to increase production to 1.0 million bbl/d in 2015 or early 2016. The KRG and Iraq (Baghdad) agreed in December 2014 to cooperate on northern exports, allowing Kirkuk crude that was formerly transported through the IT pipeline to now go through KRG’s independent pipeline (see section on Issues between the Kurdistan Regional Government and Baghdad).

Table 2. Status of main pipelines used to export crude oil produced in Iraq (including KRG area)
Name/description Pipeline direction Location Nameplate capacity (000′ bbl/d) Status Notes
Turkey (Ceyhan) pipeline Fishkhabur (Iraqi-Turkey border) to Ceyhan port (Turkey) Southern Turkey 1,500 40-inch line is operating Two parallel lines (a 40-inch and 46-inch) that transport oil produced in northern Iraq to the Ceyhan port. The 46-inch line is operational, but it was not operating, as of late 2014. The 40-inch line has a usable capacity of 500,000 bbl/d and is connected to the two KRG pipelines (see below). The pipeline’s flow is likely to expand as infrastructure in Iraq is completed.
KRG’s main pipeline that connects to Turkey pipeline Khurmala Dome to Fishkhabur Northern Iraq 300 operating It carries crude produced at the Khurmala Dome and also crude sent there from nearby fields, including Taq Taq. The KRG is working to increase the pipeline capacity.
DNO-KRG connection to Turkey pipeline Tawke field to Fishkhabur Northern Iraq 100 operating The pipeline transports oil produced at the Tawke field, operated by DNO, to Fishkhabur. From there it connects to the Turkey pipeline for export at the Ceyhan port. DNO and its partners are expanding the pipeline’s capacity.
Iraq (Baghdad) section of Iraq to Turkey pipeline Kirkuk to Fishkhabur Northern Iraq 600 not operating The pipeline was the target of militant attacks and stopped operating in March 2014. The pipeline’s effective capacity was significantly lower than its nameplate capacity prior to its closure. Crude exports from the pipeline averaged 260,000 bbl/d in 2013.
Kirkuk-Banias/Tripoli pipeline Kirkuk to Banias (Syria) and to Tripoli (Lebanon) Northern Iraq 700 not operating One section of the pipeline links to Syria, and a branch goes to Lebanon. The pipeline was closed in the 1980s to 2000. It was closed again in 2003 after it was damaged.
Strategic pipeline Kirkuk to Persian Gulf North to south (Iraq) 800 not operating This is a reversible pipeline meant to transport northern Kirkuk crude to the southern Basra Port and vice versa. The pipeline section from Basra to Karbala is operating and sending crude to Baghdad refineries.
Iraq pipeline to Saudi Arabia (IPSA) Southern Iraq to port of Mu’ajjiz in Saudi Arabia Southern Iraq & Saudi Arabia 1,650 Iraq portion is not operating The portion that runs through Saudi Arabia was converted to transport natural gas to power plants (see Saudi Arabia CAB).
Sources: U.S. Energy Information Administration, Arab Oil & Gas Directory, DNO, Genel Energy, BOTAS (Petroleum Pipeline Corporation)

Oil consumption and refining

 

In 2014, Iraq consumed 760,000 bbl/d of petroleum and other liquids. Iraq’s oil consumption, which has increased by two-thirds since 2003, slightly declined in 2014 mostly because of the attacks in Iraq by ISIL that led to the shutdown of Iraq’s largest refinery and fuel shortages in northern Iraq. Most of Iraq’s petroleum consumption derives from its domestic oil refineries, which are fueled by domestically produced oil. Iraq also imported roughly 100,000 bbl/d of petroleum products in 2013 and 2014. Iraq burns crude oil for power generation, averaging about 70,000 bbl/d in 2013 and 2014.25

Total nameplate refinery capacity in Iraq is estimated at almost 1.1 million bbl/d, although estimates vary because effective capacity (what is actually available to use) has fallen below nameplate capacity in many cases. Before the June 2014 ISIL attack on the Baiji refinery, effective refining capacity in Iraq (including the Iraqi Kurdistan Region) was almost 800,000 bbl/d. But with the Baiji refinery not being operational, Iraq’s total effective capacity is now estimated below 600,000 bbl/d.

Iraqi refineries produce more heavy fuel oil than is needed domestically and not enough of other refined products, such as gasoline. Iraq plans to build four new refineries and expand capacity at some existing refineries to alleviate domestic product shortages and to eventually export refined products. The planned new refineries and capacity expansions would add 800,000 bbl/d of refining capacity.26 Most of these projects will probably come online sometime after 2018. The KAR Group, a private company that operates the largest refinery in the Iraqi Kurdistan Region, is planning to build a new refinery in the Ninewa province with a planned design capacity of 60,000 bbl/d.27

Iraqi refineries produce too much heavy fuel oil relative to domestic needs, and not enough other refined products such as gasoline. To alleviate product shortages, Iraq set a goal of increasing refining capacity to 1.5 million bbl/d. Iraq has plans for four new refineries as well as plans for expanding the existing Daura and Basrah refineries.

Table 3. Existing oil refineries in Iraq (2014)
Refinery Nameplate capacity (‘000 bbl/d) Notes
North Refineries Company
Baiji 310 effective capacity is 230,000 bbl/d1
Kirkuk 30
Sininya 30
Hadeetha 16
Qayara 16
Kasak 10
Total north 412
Midland Refineries Company
Daura 210 effective capacity is 140,000 bbl/d
Najaf 30
Samawah 30
Diwanya 20
Total midland 290
South Refineries Company
Basrah 210 effective capacity is 135,000 bbl/d
Missan 30
Nassiriya 30
Total south 270
KAR Group (Iraq Kurdistan)
Kalak (near Erbil) 80 effective capacity is 80,000 bbl/d; plans to add 95,000 bbl/d of processing capacity by 2018
Qaiwan Group (Iraq Kurdistan)
Bazian (near Sulaimanya) 34 effective capacity is 20,000 bbl/d; plans to add 66,000 bbl/d of processing capacity by 2018
Total Iraqi Kurdistan 114
Total Iraq 1,086
1This is Baiji’s effective capacity prior to the June 2014 attack on the refinery by the Islamic State of Iraq and the Levant.
Source: U.S. Energy Information Administration based on information from the Arab Oil & Gas Directory, Northern and South Refineries Companies, Iraq Oil Report, and Energy Intelligence Group.

Issues between the Kurdistan Regional Government and Baghdad

The Kurdistan Regional Government (KRG), the official ruling body of the semiautonomous region in northern Iraq that is predominantly Kurdish, has been involved in disputes with national authorities related to sovereignty. The plan by Iraq’s North Oil Company to boost production at the Kirkuk field in northern Iraq at the edge of the KRG region has been met with objections by the KRG, which insists that development plans at this field require KRG cooperation and approval.

More generally, the Iraqi Ministry of Oil insists that all hydrocarbon contracts must be signed with the national government, and that all oil produced in the KRG region be marketed and shipped via State Oil Marketing Organization (SOMO), Iraq’s oil exporting arm. However, the KRG passed its own hydrocarbons law in 2007 in the absence of a national Iraqi law governing investment in hydrocarbons. In late 2011, the KRG challenged the authority of the national government when it signed oil production-sharing agreements with ExxonMobil to develop blocks in northern Iraq, some of which are in disputed border areas. The KRG has since signed additional contracts with majors such as Chevron, Gazprom, and Total. ExxonMobil withdrew from some of its projects in Iraq, notably the Common Seawater Supply Project, and the company had been asked by the Iraqi government to choose between its involvement in the West Qurna 1 oilfield and its projects in the KRG. Turkish Petroleum Corporation (TPAO) had also been asked to withdraw from its involvement in the Block 9 concession that was awarded during the fourth bidding round because of disputes regarding Turkey’s involvement in KRG energy projects.

Past agreements to export oil independently and via Iraqi state owned infrastructure from Iraqi Kurdistan have fallen apart due to payment disagreements, security problems, and delays building infrastructure required to transport the amounts of oil promised.

Oil exports directly from the KRG have been another contentious issue. The KRG has been exporting crude oil and condensate to Turkey and Iran by truck. In May 2014, the KRG started exporting crude oil via a newly built independent pipeline to Turkey’s Ceyhan port.

Recent developments

In December 2014, Iraq (Baghdad) and the KRG reached a preliminary deal on oil exports and revenues. The two sides agreed that: (1) the KRG would give 250,000 bbl/d of the crude oil produced in its territory to Iraq’s State Oil Marketing Organization (SOMO) at the Ceyhan terminal to market the crude, (2) Iraq (Baghdad) would export 300,000 bbl/d of Kirkuk crude through KRG’s pipeline to Ceyhan, and (3) Iraq (Baghdad) will resume federal payments to the KRG that will amount to a 17% share of Iraq’s federal budget and pay KRG’s Peshmerga military forces $1 billion. The deal allows SOMO to reclaim marketing control over much of Iraq’s northern crude exports. The deal is not entirely clear whether the KRG will be able to market crude oil in the event that it sends more than 250,000 bbl/d of its own crude through its pipeline. Although the deal is a pivotal step forward that could lead to a significant increase in Iraq’s northern production and exports, several issues between Iraq (Baghdad) and KRG remain unresolved. The KRG infrastructure is probably not yet capable of transporting the promised volumes, and it is not clear how the two sides are accounting the oil produced by the Avana Dome section of Kirkuk and the Bai Hassan field now operated by the KRG.

Crude oil exports

crude_oil_exportsChina was the largest importer of Iraq’s crude oil, followed by India and the United States in 2014. About 95% of Iraq’s crude oil exports came from the country’s southern export terminals along the Persian Gulf in 2014, which export Iraq’s Basra crude grade.

Total Iraqi crude oil exports averaged 2.6 million bbl/d in 2014, 0.2 million bbl/d higher than the previous year, based on Lloyd’s List Intelligence (APEX tanker data). Asia (led by China, India, and South Korea) is the main destination for Iraq’s crude oil, importing 58% of the total in 2014. The United States is the third-largest importer of Iraq’s crude, although the volume has fallen over the past decade. The United States imported an average of 355,000 bbl/d of crude from Iraq in 2014, 30% lower than the volume received 10 years before in 2005. The growth in U.S. oil production has resulted in a sizable decline in U.S. imports of crude grades of similar quality.

crude_oil_monthly_exportsIn 2014, about 95% of Iraq’s exports came from its southern export terminals in the Persian Gulf, which exports the Basra crude grade. The share of southern exports increased in 2014 compared with 2013 when it was slightly below 90%. Northern exports in Iraq fell substantially after the Iraq-Turkey pipeline went out of service in March 2014. Northern seaborne exports from the Turkish Ceyhan port via the Iraq-Turkey pipeline averaged 260,000 bbl/d in 2013.

The KRG started to export crude via its independent pipeline for the first time in May 2014 (see Table 2). The pipeline flows have reached more than 300,000 bbl/d, but this flow level has not been maintained on a sustained basis.28 Tanker liftings of crude that had been transported through the Iraqi Kurdistan Region pipeline to the Ceyhan port averaged more than 200,000 bbl/d in fourth quarter 2014, based on Lloyd’s List Intelligence (APEX tanker data).

The crude export estimates in the charts only include oil transported via pipeline to a seaport. The estimates do not include crude oil transported by truck. Iraq previously exported about 10,000 bbl/d of crude to Jordan by truck, but due to insecurity in the Anbar province, those exports were halted in early 2014.29 The KRG trucks about 50,000 to 100,000 bbl/d of crude and condensate to the Turkish ports of Mersin, Dortyol, and Toros, and to Iran.30

Natural gas

More than half of Iraq’s gross natural gas production is vented and flared, and Iraq was ranked the fourth-largest natural gas-flaring country in the world in 2011. Iraq is taking steps to reduce flaring and instead use its natural gas resources more for power generation and for reinjection into wells to increase oil recovery.

Reserves

Iraq’s proved natural gas reserves as of January 1, 2015 were the 12th largest in the world at almost 112 trillion cubic feet (Tcf), according to the Oil & Gas Journal.31 About three-fourths of Iraq’s natural gas reserves are associated with oil, most of which lie in the supergiant fields in the south.32

Production and consumption

Iraqi gross natural gas production was 724 billion cubic feet (Bcf) in 2012, of which 423 Bcf (58%) was vented and flared. In 2011, Iraq was ranked as the fourth-largest natural gas-flaring country in the world.33 Natural gas is flared because of a lack of sufficient pipelines and other infrastructure to transport it for consumption and export. Natural gas that is not flared is mostly used for reinjection into oil wells to increase oil recovery rates. Iraq commercially consumed 23 Bcf of dry natural gas in 2012, which was used primarily in the electricity sector.

To reduce flaring, Iraq’s state-owned South Gas Company signed an agreement with Royal Dutch Shell and Mitsubishi to create a new joint venture, Basrah Gas Company, to capture flared gas at three large southern oil fields—Rumaila, West Qurna 1 and Zubair. The 25-year venture, which is estimated to cost $17 billion, entails upgrading current facilities and building new facilities and processing plants to increase gas processing capacity to 2 Bcf per day.34 The joint venture is considering the construction of a liquefied natural gas (LNG) exporting facility, the Basra Gas LNG Project. Under the agreement, processed gas would go first to the South Gas Company for power generation. Any gas not bought for use by Iraqi power plants could be exported via the LNG plant. The implementation of this agreement is also necessary for the new oil development projects, which would use some of the natural gas for reinjection.

Iraq held its third bidding round in late 2010, for three nonassociated natural gas fields (Akkas, al-Mansuriyah, and Siba), with combined gas resources of more than 11 Tcf.35 The Akkas field is located in the volatile western part of the country, and operations have been disrupted in the past because of attacks. In June 2014, the ISIL offensive in northern Iraq disrupted operations at both the Akkas and al-Mansuriyah fields.

Export/pipeline ambitions

Plans to export natural gas remain controversial because natural gas is needed as fuel for Iraq’s electric power plants. The current shortage of adequate gas has resulted in idle and suboptimal electricity generation in Iraq.

Prior to the 1990-91 Gulf War, Iraq exported natural gas to Kuwait. The gas came from the Rumaila field through a 105-mile, 400 million cubic feet per day pipeline to Kuwait’s central processing center at Ahmadi.36 The Ministry of Oil has discussed reviving the mothballed pipeline, but no firm plans have been made to do this. The Iraqi government has also considered proposals to build a transcontinental pipeline to export natural gas to Europe via nearby countries, but there are no firm plans.

Electricity

After years of power shortages, Iraqi efforts to increase generating capacity are moving forward. Iraq plans to more than double its generating capacity by 2017.

Iraq’s electricity supply totaled 66 billion kilowatt hours (kWh) in 2012, of which 58 billion kWh was generated from domestic power plants and 8 billion kWh was imported from Iran and Turkey. Electricity net generation in Iraq grew by an annual average of 13% from 2008 to 2012, recovering from the 2003 dip in electricity generation with the start of the Iraq war. Although generation in Iraq has increased, distribution losses have also increased. From 2005 to 2012, distribution losses averaged 36% of total electricity supply. Iraq’s distribution system, outside the Iraqi Kurdistan Region, has deteriorated because of poor design, lack of maintenance, and electricity theft, resulting in large distribution losses, low voltage levels, and frequent disconnections.37

Iraq has struggled to meet its power needs during the Iraq war and for the postwar period. Like many developing countries in the Middle East and North Africa, Iraq faces a sharply rising demand for power. From 2003 to 2011, power outages lasting 16 to 22 hours per day were common. Although many parts of Iraq, outside the Iraqi Kurdistan Region, still suffer from power blackouts and load shedding particularly during the summer, the problem has been reduced somewhat as both on-grid and off-grid generation capacity has increased, along with electricity imports from Iran and from Turkish electricity barges (floating power plants) in the Persian Gulf.38

Peak summer demand has typically exceeded actual generation by almost 50%, causing power shortages that have sparked protests, particularly in southern Iraq.39 Iraqi households and businesses must rely on expensive off-grid, private diesel-fueled generators to rectify the shortfall, with those in Baghdad alone providing an additional 1 gigawatt (GW) of capacity.40 A study of Iraq’s electricity sector shows that about $40 billion in revenue is lost each year because the country lacks the electricity supply needed to stimulate more business activity from various economic sectors, including agriculture, commerce, and tourism.41

Iraq has made significant strides to increase its generation capacity over the past few years. At the end of 2013, the Middle East Economic Survey estimated that Iraq’s (Baghdad) electricity generation capacity reached 9.77 GW,42 an increase from 7 GW in 2012.43 Most recent electricity projects in Iraq have focused on installing turbines that were purchased in 2008 but sat in storage for a few years. In 2008, Iraq purchased 74 turbines, with a total capacity of 10.2 GW, but no progress in installation was made until recently because of budgetary, contracting, and political difficulties. Iraq’s Ministry of Electricity has also allowed foreign oil companies to construct small electricity plants to power their oil and natural gas operations.

Electricity generation in the Iraqi Kurdistan Region has typically been much more reliable, and power outages there have not been a problem. KRG is also embarking on an ambitious electricity expansion plan, aiming to double it power generation capacity from its current 4 GW to 8.6 GW by the end of 2016.44

Development plans

electricity_generation_importsIraq’s Ministry of Electricity’s master plan set a target to install 24.4 GW of new generating capacity between 2012 and 2017. The plan is similar to Iraq’s Integrated National Energy Strategy (INES), released in 2013. INES proposes to increase generation capacity in Iraq (outside of the Iraqi Kurdistan Region) by 22 GW in 2016 from 7 GW in 2012 by adding steam and gas turbines that are also capable of running on fuel oil in case of natural gas shortages. The additional 22 GW in 2016 is the estimated amount needed to meet summer peak demand while allowing for a 15% reserve margin.45 Iraq plans to spend at least $27 billion by 2017 on developing its electricity sector, with about half of the money to be spent on upgrading the transmission and distribution systems. Iraq hopes to stop importing electricity by the end of 2016 if these expansions are made.

One major bottleneck that Iraq faces in achieving its goals is the delayed enhancements to the natural gas infrastructure that are needed to support the electricity expansion. The electricity expansion plan is expected to be fueled primarily by natural gas-powered turbines. Most current Iraqi natural gas production is flared, and pipelines will need to be built to bring natural gas, which would otherwise be flared, to future power plants. The delayed start-up of the Basrah Gas Company project and delayed development of oil fields have contributed to electricity expansion plans falling behind schedule.

INES aims to increase Iraq’s generation capacity to 42 GW by 2030, of which 80% will be fueled by natural gas, an increase from 25% in 2012. In the short term, Iraq plans to use only renewable energy, such as wind and solar, at remote off-grid locations. But in the medium and long term, renewable energy is projected to reach more than 2 GW, making up more than 4% of total planned generation capacity. Iraq does not plan to bring online additional hydropower plants because of water shortages. The country’s hydropower generation capacity was 2.5 GW in 2012, which has been unchanged since 2008, according to EIA estimates.

Iraq will need to enact regulatory and tariff reforms and to re-examine its current heavy electricity subsidies in order to prevent future demand growth from out-stripping the expansion in generating capacity. New laws for the electric sector have been proposed, but they are waiting for cabinet approval.

Notes:

  • Data presented in the text are the most recent available as of January 30, 2015.
  • Data are EIA estimates unless otherwise noted.

Endnotes:

1International Energy Agency, World Energy Outlook Special Report: Iraq Energy Outlook, (October 2012), page 54.
2Energy Intelligence Group, ”Iraq: Constraints to Production Growth,” (June 28, 2013).
3Oil & Gas Journal, Worldwide Look at Reserves and Production, (January 1, 2015).
4International Energy Agency, World Energy Outlook Special Report: Iraq Energy Outlook, (October 2012), page 52.
5Ibid.
6Ibid, page 53.
7Middle East Economic Survey, ”Iraq Achieves 2013 Oil Output Target but Exports Still Constrained,” (January 3, 2014), volume 57, issue 1.
8Arab Oil & Gas Directory, www.stratener.com, Iraq, (2013), page 157-159.
9Ministry of Natural Resources, Kurdistan Regional Government, “Update on oil export from the Kurdistan Region of Iraq,” (November 7, 2014).
10Ibid, and Iraq Oil Report, ”Iran reopens Border to KRG oil,” (August 1, 2014) and ”Oil fields remain beyond the reach of frontline fight,” (August 11, 2014).
11Lloyd’s List Intelligence (APEX tanker data).
12International Energy Agency, Oil Market Report, (August 12, 2014), page 19 and ”Oil Market Report,” (October 14, 2014), page 20.
13Energy Intelligence Group, ”Fight for Northern Iraq Oil Assets Intensifies,” (August 14, 2014).
14Ibid.
15International Energy Agency, Oil Market Report, (October 14, 2014), page 20.
16Middle East Economic Survey, ”Iraq Hikes 2015 Export Projections, Includes Kirkuk, KRG Oil,” (November 28, 2014), volume 57, issue 48.
17Energy Intelligence Group, ”Iraq: Constraints to Production Growth,” (June 28, 2013).
18Arab Oil & Gas Directory, www.stratener.com, Iraq, (2013), page 164.
19Ibid, page 163.
20Ministry of Natural Resources, Kurdistan Regional Government, ”Update on oil export from the Kurdistan Region of Iraq,” (November 7, 2014).
21Middle East Economic Survey, “BP still hopeful of Kirkuk deal,” (November 14, 2014), volume 57, issue 46.
22Iraq Oil Report, ”Despite March exports drop, record output for new buoys,” (April 11, 2014).
23National Oceanic and Atmospheric Administration, Estimated Flared Volumes from Satellite Data.
24Foreign Reports Bulletin, ”After June 10: Iraq’s Southern Production,” (August 4, 2014).
25Facts Global Energy, Middle East Petroleum Databook, (Fall 2014), page 80.
26Energy Intelligence Group, ”Iraq Sees Three Big Downstream Projects by 2021,” (May 14, 2014).
27Iraq Oil Report, ”Kurdistan rushes to expand refineries,” (October 20, 2014).
28Energy Intelligence Group, ”KRG-Baghdad Oil Deal Lays Foundation for 2015 Supply Surge,” (December 4, 2014).
29Jordan Times, ”Oil imports from Iraq suspended,” (February 5, 2014).
30Ibid, and Iraq Oil Report, ”Iran reopens border to KRG oil,” (August 1, 2014) and ”Oil fields remain beyond the reach of frontline fight,” (August 11, 2014).
31Oil & Gas Journal, Worldwide Look at Reserves and Production, (January 1, 2015).
32International Energy Agency, World Energy Outlook Special Report: Iraq Energy Outlook, (October 2012), page 70.
33National Oceanic and Atmospheric Administration, Estimated Flared Volumes from Satellite Data.
34Royal Dutch Shell, News and Media Releases, ”Iraq launches a major step in energy supply and the world’s largest flare reduction project,” (May 1, 2013).
35Arab Oil & Gas Directory, www.stratener.com, Iraq, (2013), page 174.
36Middle East Economic Survey, ”Iraqi Gas Pipeline Starts Operations,” (November 21, 1988), volume 32, issue 07 and ”Tender to Renovate Iraq-Kuwait Gas Pipeline Awaited,” (December 19, 2005), volume 48, issue 51.
37International Energy Agency, World Energy Outlook Special Report: Iraq Energy Outlook, (October 2012), page 92.
38Middle East Economic Survey, ”Iraq Wakes up from Power Shortage Nightmare,” (October 26, 2012), volume 55, issue 44.
39Iraq Oil Report, ”Heading off summer power protests,” (May 27, 2011) and Middle East Economic Survey, ”Iraq Faces Summer Power Crunch Despite Progress on $75Bn Mega-Plan,” (June 28, 2013), volume 56, issue 26.
40Middle East Economic Survey, ”Iraq Wakes up from Power Shortage Nightmare,” (October 26, 2012), volume 55, issue 44.
41Iraq Oil Report, ”Analysis: Iraq’s electricity plans,” (March 10, 2011).
42Middle East Economic Survey, ”Iraq Targets 6 IPPs in 21GW Capacity Surge,” (March 7, 2014), volume 57, issue 10.
43Integrated National Energy Strategy for Iraq, (June 15, 2013), page 14-15.
44Middle East Economic Survey, ”KRG Lays out Plans to Double Power Capacity by end-2016,” (September 12, 2014), volume 57, issue 37.
45Integrated National Energy Strategy for Iraq, (June 15, 2013), page 14-15.

 

Figures and table sources:
Table 1. Iraq’s oil fields, ports, pipelines, and refineries. Field production capacity and refinery capacity: Energy Intelligence Group, various articles. Refinery capacity, export outlet, and field production capacity: Iraq Oil Report, various articles. Field production capacity: Middle East Economic Survey, various articles.

Table 2. Status of major crude oil pipelines in Iraq. Pipeline capacity, location, and notes: Arab Oil & Gas Directory, www.stratener.com, Iraq, (2013). Information on Iraqi Kurdistan to Turkey pipeline: DNO, Third Quarter, Interim Report, (2014); Genel Energy, Operations Overview: Kurdistan Region of Iraq, accessed January 2015; and Genel Energy, ”Capital Markets Day,” (November 13, 2014). Capacity of Turkey (Ceyhan pipeline) and pipeline flows: Botas, Petroleum Pipeline Corporation, accessed January 2015.

Table 3. Existing oil refineries in Iraq. Nameplate capacity: Northern refinery capacity: Arab Oil & Gas Directory, www.stratener.com, Iraq, (2013); Northern Refineries Company, accessed December 2014; and South Refineries Company, accessed December 2014. Effective capacity of refineries in Iraq (Baghdad): Energy Intelligence Group, ”Iraq Sees Three Big Downstream Projects by 2021,” (May 14, 2014). Capacity of refineries in Iraqi Kurdistan: Iraq Oil Report, ”Kurdistan rushes to expand refineries,” (October 20, 2014).

Figure 2. Iraq’s crude oil exports in 2013, by destination. Crude oil liftings and deliveries from Iraq: Lloyd’s List Intelligence (APEX tanker data).

Figure 3. Iraq’s crude oil exports, by location, 2013-14. Southern exports and northern exports (Iraq-Turkey pipeline): Iraqi Ministry of Oil, Crude Oil Exports. Northern exports (KRG-Turkey pipeline): Lloyd’s List Intelligence (APEX tanker data).

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Egypt’s Second Suez Canal Project: Implications For Global Maritime Trade – Analysis

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By Shashwat Tiwari*

During the recent visit of the Egypt’s President Sisi to China, both sides agreed to work together on the Silk Road Economic Belt and Maritime Silk Road projects. It was also emphasized that Egypt would actively welcome Chinese investment for its US $4 billion New Suez Canal project that will run parallel to the existing canal in linking the Mediterranean and Red Seas. The new canal is a natural fit for China’s Maritime Silk Road vision, with the planned route already moving through the Suez Canal to reach Europe. So far, China has invested US $1.5 billion in the Suez Canal development zone, which is expected to become the largest service centre for Chinese businesses based anywhere outside of China.

The significance of the Chinese investments lies in the fact that the existing Suez Canal, is the shortest and busiest maritime route between Europe and Asia. Currently, 8-10 percent of global sea trade in value passes through the Suez Canal, and earns Egypt annual revenues of about US $5 billion are in the form of transit fees (US $150-US $200/container). According to a report released by the International Energy Agency (IEA), merchant shipping from Asia taking the route around the Cape of Good Hope would add 15 days of transit to Europe and 8-10 days to the United States. Hence, the potential for developing maritime services to generate additional revenue is substantial.

The number of commercial ships that pass through the Suez Canal has increased steadily even during the recent political instability in the region (e.g., from 8,012 in January-June 2013 to 8,160 in January-June 2014). The drop in oil prices (which make the short cut offered by the Suez Canal all the more attractive), the volume of traffic is expected to increase substantially. However, ‘Port Said East’ is unlikely to be able to handle increasing volumes, and transit waiting times are likely to grow—hence the importance of developing the Suez Canal area.

The new canal is part of the Suez Canal Development mega project, which includes the development of several seaports in the three governorates bordering the canal – Suez, Ismailia and Port Said – in addition to a seaport in the South Sinai city of Nuweiba and the development of Sharm Al-Sheikh airport. A number of large-scale projects are also planned including a “Technology Valley” in Ismailia which will host several technology projects along with a new industrial zone west of the Gulf of Suez.

The initial cost of project infrastructure will be about US $20 billion; other estimates run as high as US $100 billion. At least a dozen countries, including the United States, China, Norway, India, Russia, and Holland, have expressed an interest in investing in the project. The Gulf such as Saudi Arabia, Kuwait and the United Arab Emirates are also in the fray. The first investor meet to concretize the sector participation is to be held in around March 2015.

The significance of Suez route lies in its close proximity to global oil producer’s hub i.e. Middle East. Europe which is heavily dependent on Russian energy supplies will see the development of Second Suez Canal Project as a viable alternative to reduce its dependence on Russia, as well as increase its maritime trade with China and other Asian countries. China’s trade relations with Africa has grown at 10 percent per annum, which makes this project also important to their trading interests in the region. However, in short term due to near stagflation like scenario in the European Union the feasibility of the Project might appear questionable, but in the longer run, the construction of this Project will play an important factor to Europe’s economic rejuvenation, by providing enhanced connectivity to energy resources and manufacturing hubs of Asia. An increase in the Suez capacity would mean more goods can travel at a faster speed to markets in Europe and also the trans-Atlantic North Americas.

The Suez Canal has been an important part of the global maritime commerce and Egyptian economy since its completion almost a century and half ago. The leadership of Egypt wants the project to be a symbol of Egypt’s national honor. If properly enlarged and upgraded, it can turn the region into a global port, and be an engine for development and growth in Egypt for the 21st century. But the mega project must be carefully planned and properly managed and lessons must be learned from similar attempts in other countries; otherwise, the project also risks draining valuable resources.

*The author is a Research Associate at the National Maritime Foundation, New Delhi. The views expressed are those of the author and do not reflect the official policy or position of the Indian Navy or National Maritime Foundation. He can be reached at shashwatin2005@gmail.com.

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The Power Of The Street In Egypt’s Arab Spring – Analysis

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Corruption and favoritism have motivated people to protest against the ruling regimes. In Egypt, in particular, the protests brought down Hosni Mubarak’s government. To what extent this reduced the corruption and favoritism is less clear. This column sheds light on this problem. It present evidence that daily protest numbers were linked to variation in stocks prices of firms connected to the group in power. This suggests that popular mobilization and protests have indeed a role in restricting the ability of connected firms to profit from favoritism and corruption.

By Daron Acemoglu, Tarek Hassan and Ahmed Tahoun*

From the Arab Spring to the recent uprising against Victor Yanukovic’s government in Ukraine, corruption and favouritism have motivated people to pour into the streets to protest against the economic and political arrangements benefiting connected individuals and firms. Such protests have sometimes been successful in unseating unpopular rulers, as illustrated by the recent events in Tunisia, Egypt, Libya, and Ukraine. But are they effective at limiting the extent of corruption and favouritism that set them off in the first place?

We shed light on this question by studying Egypt’s Arab Spring. On 11 February 2011, Hosni Mubarak, Egypt’s president and de facto dictator since his accession to power in 1981, was forced to resign in the face of large protests in the main square of Cairo, Tahrir Square (Berman 2013). Mubarak’s regime was a perfect specimen of economic favouritism. Rampant corruption and repression, which excluded vast segments of the population from political participation, was a major trigger of the protests. Mubarak’s fall was followed by a phase of military rule until June 2012, when Mohammed Mursi, an Islamist, was elected president. Mursi’s presidency, in turn, was followed by a second phase of military rule starting in July 2013. Throughout these four phases of Egypt’s Arab Spring, politically connected firms (in particular, those connected to the Mubarak’s National Democratic Party (NDP), the military, and the Islamists) have seen their fortunes ebb and flow, offering a window to study the real-time effects of episodic street protests against a changing cast of ruling political elites.

The effect of street protests on the stock market valuation of connected firms

Using information from Egyptian and international print and online media, we construct a daily estimate of the number of protesters in Tahrir Square. We then analyse the effect of these protests on the returns of firms connected to the group then in power. Our main specifications estimate the differential changes in the stock market values of different types of connected firms relative to non-connected firms as a function of the size of the protests. The blue bar in Figure 1 shows the effect of 500,000 protesters demonstrating against the current regime in Tahrir Square on the daily stock return of firms connected to the incumbent regime.

  • It shows that on days with such protests, firms connected to the incumbent regime tend to lose 0.8% of their value relative to non-connected firms.

The green bar shows the effect of the same protest on firms that are politically connected to one of the two rival groups. Interestingly, this effect is also negative, albeit statistically insignificant. So while protests against the regime appear to disrupt the ‘pipeline’ of privileges and unearned income that flows to politically favoured companies, their political rivals do not appear to benefit from this disruption. In this sense, investors appear to believe that protesters may effectively achieve their goal of reducing future corruption and favouritism in the economy.

Figure 1. Effect of 500,000 protesters in Tahrir Square on the daily stock returns of firms connected to the incumbent regime (blue bar) and rival connected firms (green bar), relative to non-connected firms.hassan fig1Notes: The red lines show 95% confidence intervals. The specification on the left hand side uses data from 1 Jan, 2011 through 31 July, 2013 and controls for time- and sector fixed effects as well as the interaction of time effects with various firm characteristics, such as its leverage, market beta, etc. The specification on the right hand side drops all trading days surrounding changes in regime, constitutional changes, elections, and other major political events.

Interestingly, the pattern shown in Figure 1 holds regardless of who is the target of the protests. Under Mubarak, we find a significant effect of protests on the relative valuation of NDP-connected firms, but no effect on military and Islamic-connected firms; under military rule, protesters harm the valuation of military-connected firms, but not the valuation of their rivals. When Islamists are the target of the protests, bigger protests harm Islamic firms but have no effect on NDP- and military-connected firms.

The right panel of Figure 1 shows that this association between street protests and the stock market valuations of firms connected to the incumbent power group is not just a reflection of spikes in protests during some of the key events, such as the fall of a president, a change in a constitution, elections, etc. When we drop all days surrounding such major political events from our sample, we find almost the same results as before. In other words, even during periods when protests did not lead to changes in governments or institutions, and even when such changes appear unlikely, protest activity is strongly associated with swings in the relative stock market valuations of (incumbent) connected firms.

Figure 2 shows that the timing of the effect of street protests on the value of firms connected to the incumbent power group is consistent with our interpretation that street protests, and not some other omitted variable, drive the relative fall in the valuation of firms connected to the incumbent government:

  • The impact on stock returns is on the day of the protest and the following day, but does not occur before the protest itself.

Figure 2. Effect of 500,000 protesters in Tahrir Square on the daily stock returns of firms connected to the incumbent regime before and after the day of the protest.hassan fig2

 

We further use data from Twitter to shed light on several interrelated questions. First, we document that activity on Twitter predicts protests in Tahrir Square, suggesting that social media has helped coordinate street mobilisations. Second, we also find that this social media activity has no direct effect on stock market valuations with or without simultaneously conditioning on street protests.

Conclusion

We draw two main conclusions from these facts.

  • First, since the Tunisian and Egyptian Revolutions, a widespread view in political science has been that social media has fundamentally altered the nature of successful mobilisation against a repressive regime. Our results are consistent with the view that it has indeed facilitated coordination among potential demonstrators.

However, the fundamental challenge does not seem to have changed: discontent voiced on social media has no effect on corruption and favouritism unless it results in mobilisation in the street.

  • Second, large protests and street mobilisation appear to be effective means of changing the future distribution of power and act as a constraint on the ability of connected firms to siphon off returns to corruption and favouritism.

This interpretation is consistent with the results in the previous literature that protests during various critical periods have an autonomous impact both on future protests and on certain economic and political outcomes (Aidt and Franck 2014, Madestam et al. 2013), and by our finding on the interplay between social media activity and protests.

*About the authors:
Daron Acemoglu
Professor of Applied Economics, MIT

Tarek Hassan
Associate Professor of Finance and Economics and Neubauer Family Faculty Fellow at the Booth School of Business, University of Chicago; Research Fellow, CEPR

Ahmed Tahoun
Assistant Professor of Accounting, London Business School

References:
Acemoglu, D, T A Hassan, and A Tahoun (2014), “The power of the street: evidence from Egypt’s Arab Spring”, NBER Working Paper w20665

Aidt, T S and R Franck (2014), “Democratization under the threat of revolution: evidence from the great reform act of 1832”, Working Paper .

Berman, S (2013), “The Continuing Promise of the Arab Spring”, foreignaffairs.com, 17 July.

Madestam, A, D Shoag, S Veuger, and D Yanagizawa-Drott (2013), “Do political protests matter? Evidence from the tea party movement”, The Quarterly Journal of Economics 128 (4), 1633–1685.

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World United Against Islamic State, Strikes Making Difference, Kirby Says

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By Jim Garamone

The battle against the Islamic State of Iraq and the Levant is not a U.S. war, it is a large international effort to defeat a crazed and barbaric ideology, Pentagon Press Secretary Navy Rear Adm. John Kirby said Tuesday.

ISIL burned a captured Jordanian pilot alive in January. Kirby condemned the murder, and said it in no way will stop the effort against the terrorists. “We know that they have the ability to continue to generate young men that are attracted to this group and this ideology, and that’s going to be a long-term problem,” he said during a Pentagon news conference.

“It’s going to take a while to get at the ideology, which is the real center of gravity here,” the admiral said. “You’re not going to do that through bombs and airstrikes. That doesn’t mean the bombs and airstrikes aren’t going to keep happening. They are.”

A Coalition of 60

Kirby disputed allegations that the war against ISIL is a U.S. war. “I think a coalition of 60 nations proves that it’s not,” he said. “We’re not the only ones involved in this in trying to get rid of this group.”

U.S. air strikes on the group continue to be effective, he said. As indigenous forces become more capable, the attrition will continue. Still, ISIL is capable of bringing more people to the fight. “We are going to stay committed to this for the long-term, and it is going to be a long-term fight,” the admiral said.

Judging the coalition effectiveness against the group is difficult. “A better judgment of the strength of this group is their behavior,” he said. “So, we’ve seen them change the way they operate on the ground. They are hiding more. We’ve seen them not travel around in convoys. …They are not as agile as they once were. We know that they’ve lost literally hundreds and hundreds of vehicles that they can’t replace.”

Coalition strikes have also worked to hit the group’s main source of income – oil. “We assess that it’s no longer the main source of revenue,” Kirby said.

ISIL is largely in a defense posture now. The group launched a small offensive against Kirkuk over the weekend and it lasted a day, Kirby said. They took no new ground. “And they’re not on Kobani anymore,” the admiral said. “They are losing ground.”

The group is worried about lines of communications and supply now. “This is a different group than it was seven months ago,” he said. “I’m not saying they are not still dangerous. I’m not saying they are not still barbaric, but they are different. Their character, their conduct, their behavior is different. And that is a sign of progress.”

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Burma: Raw Power And Co-Opted Judiciary – OpEd

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By Francis Wade

The Burmese military’s response to allegations that soldiers gang-raped and murdered two Kachin women last month provides a sobering reminder that the country’s most powerful institution remains beyond the scope of public scrutiny and independent investigation. In late January the military published a statement denying involvement in the attack and threatening legal action against any media outlets that carry the allegations first raised by activists and community leaders in Kachin state. The investigation that did take place occurred after the site was sealed off to bar anyone who was not part of the investigation from entering. This would be normal procedure, were it not for the fact that the investigation team was comprised of police and military personnel – two entities with a patchy track record of forensic examinations of alleged military abuses.

It is not the first such instance of media intimidation following claims of extra-judicial killings by the army. As Fortify Rights notes in a statement, Brang Shawng, a 49-year-old ethnic Kachin man, faces at least two years in jail for filing a complaint to the Myanmar National Human Rights Commission (MNHRC) alleging the army was responsible for the death of his 14-year-old daughter. The lawsuit against him appeared tactical, in more ways than one, given the military has diverted what should be an investigation into the killing of the girl to an investigation into the actions of her father.

What is troubling about the two cases is the breathless support the military has received from President Thein Sein, whose office repeated the threats directed at journalists. It signals the continuation of a long-standing symbiosis between the two institutions, one that any genuine democratization process should necessarily seek to undo. It also severely limits any chance of an independent investigation into the allegations – even that a truly independent body exists in Burma that stands a remote chance of being sanctioned by the government to carry this out.

Implicit in the military’s threats towards the media is the expectation that journalists will not report on abuses. That expectation is born of decades of control of the media by the junta, which sought to precondition journalists to avoid matters of such sensitivity. Doing so would induce a self-censorship that frees the military up to do what is necessary to maintain its predominance. Two recent developments however have complicated this: one is that space has emerged for Burmese to challenge those processes, to a point; the other is that several years of cautious liberalization has meant the military’s raw power – namely its ability to use violence or the threat of violence without fear of punishment – has been constrained, albeit it in a very minor way.

Despite this, it can still resort to more subtle and institutionalized modes of intimidation – namely threat of punitive action. This is a prime example of why reform needs to be all encompassing, given how power in a country like Burma emanates from a single entity and is filtered through institutions. The military can therefore still use the cover of a corrupted and co-opted judiciary to carry out its work.

The key concern of the military in all this however isn’t the possibility that soldiers could be brought to justice, but rather the newfound sense of agency displayed at a grassroots level. While a free media doesn’t yet exist in Burma – these threats, issued by both military and “civilian” authorities, reflect this – the audacity of journalists and activists has meant the story has made it out of Burma, and thus the persistently criminal nature of the army, unbowed by reforms, is on show for all to see. It will continue its efforts to obfuscate whatever abuses it carries out – but those efforts, if given the light of day, are themselves evidence of where we’re currently at with the transition.

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The Russo-Ukrainian War: Phase III – Analysis

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By Adrian A. Basora*

Given the launch in early January of a vigorous new separatist offensive in eastern Ukraine, backed by a reported 9,000 Russian troops and abundant new armaments, it is now incontrovertible that Moscow is engaged in a full scale war in Ukraine.

Phase I of this initially undeclared war was the lightning Russian take-over of Crimea in March/April 2014, under the initial cover of a seemingly plausible separatist movement.

Phase II was the establishment of self-declared separatist governments controlling parts of the eastern provinces of Donetsk and Luhansk, initially with crude attempts at plausible deniability as to the extent of direct Russian military involvement.

Phase III has now begun, with the separatists attempting to expand their enclaves to include the entirety of both of the contested provinces –this time with blatant Russian military backing on a larger scale.

Given Moscow’s now-familiar pattern of escalating military support for  the separatists each time the Ukrainian military seems to be gaining ground, this is now clearly a war that Ukraine cannot possibly win absent sharply increased U.S. and European backing.

For any Western intervention to succeed, it must include not just increased economic sanctions but also substantially enhanced military aid. It is true that the current financial sanctions have resulted in visible damage to Russia’s economy, and this damage has been multiplied by the precipitous drop in oil prices. However, Putin has obviously decided to double down on his aggression in Ukraine despite these economic setbacks–and, arguably, perhaps even because of them. This is not surprising, given that the war has been highly popular domestically and that it will be a long time before the mounting longer-term economic costs are fully apparent to most Russian citizens.

Phase I of Vladimir Putin’s undeclared war in Ukraine ended, from his point of view, in a resounding success. Russia’s stealth campaign in Crimea, triggered by the February 21 ouster of pro-Russian Viktor Yanukovich, took just one month to reach its triumphal conclusion.

By March 16, the entire province was under Moscow’s military control, and its puppet separatists held a sham referendum with an alleged 97 percent vote in favor of secession.

Crimea was formally annexed to the Russian Federation on March 21, thus permitting it to claim sovereignty over its major naval base in Sevastopol and a province that most Russians had long thought of as an intrinsic part of their country. At home, Putin’s popularity soared to over 80 percent in the polls, and it has remained in that range ever since.

The lesson for Putin was clear: given the weak Western response, he could score large geopolitical and domestic political gains with no significant price to pay internationally. Yes, there were numerous rhetorical condemnations by Western leaders, plus selective financial sanctions against a few members of Putin’s inner circle. But, for Putin, these were mere pinpricks, reminiscent of the initial outcries and minimal sanctions imposed on Russia after its 2008 war with Georgia. These minor costs have long since been forgotten, and Russia now enjoys full and unchallenged control of South Ossetia and Abkhazia, the two provinces taken from Georgia via Putin’s intervention.

Despite this ominous Georgia precedent, many analysts and policy officials in both Europe and the US treated the Crimea annexation as a one-off event. They argued that Crimea was a special case, with a 60 percent ethnically Russian population and a strategic naval base on long-term lease that Moscow “understandably” wanted to secure permanently. Furthermore, Crimea had historically been a part of Russia until Nikita Khrushchev transferred the territory to the then Ukrainian Soviet Socialist Republic in 1954, a decision that Putin argued was illegitimate.

Within just three weeks, however, this optimistic interpretation was proven to be delusional.

Phase II of the Ukraine war began on April 7, when pro-Russian separatists took over key government buildings in the capitals of Donetsk, Luhansk and Kharkhiv, proclaiming that these provinces would seek independence from Kiev. Although the Kharkhiv portion of the uprising fizzled, Russian-backed rebels in the other two capitals quickly expanded their territorial control. Only seven weeks later on May 11 the separatists held bogus referenda, with the polling centers surrounded by gunmen, “confirming” the two provinces’ secession from Ukraine.

Despite clear evidence that none of this could have happened without Russian instigation and strong (albeit semi-covert) military support, the EU temporized for months before deciding to join the U.S. in a significant escalation of economic sanctions. Brussels finally agreed to institute moderately punitive financial sanctions only on July 29. This was twelve days after the separatists had shot down Malaysian Airways Flight 17, killing 298 (mostly European) passengers. The shoot-down involved a sophisticated anti-aircraft missile system supplied by, and most likely directly supported by, the Russian military.

In August, the Ukrainian army launched an offensive to recapture territory held by the separatists, with some initial success. Since then, there have been both lulls and spikes in military action on the ground, with Putin at times giving the appearance of seeking a peaceful outcome. He and Ukrainian president Poroshenko agreed at a September 5 meeting in Minsk that they would both back a cease-fire. But the cease fire was repeatedly violated by the separatists and involved substantial casualties from shelling on both sides, despite the relatively stable battle lines that obtained through most of the fall. In retrospect, it is clear that Putin was simply buying time in which to help consolidate the rebel governments and their military positions in Donetsk and Luhansk.

Phase III began overtly in January with a new separatist offensive strongly backed by Russian soldiers and new heavy weaponry. On January 22, the separatists finally captured Donetsk airport, previously under siege for months. They also began shelling Mariupol, a key port city and transportation hub in the southeast corner of Donetsk province. Both places have major symbolic importance but they could also serve as strategic gateways for further expansion of separatist control into contiguous provinces.

Putin’s short-term goal is to ensure that the separatists gain full control of the two provinces whose independence they have proclaimed. Based on his well-established pattern of “two steps forward, one step (temporarily) back,” he might then order a pause in fighting, and he might once again go through the motions of seeking a negotiated solution while the separatists fully consolidate their new regimes.

In the middle term, however, if Putin succeeds in totally severing these two provinces from Kiev’s control his sights will most likely be set on a fairly prompt Phase IV. This fourth stage in the Russo-Ukrainian War would probably involve the establishment of a “land bridge” from Mariupol to Crimea, through the provinces of Zaparozhe and Kherson. There have also been signs that Putin may not have given up on Kharkiv, a key province immediately to the northeast of Donetsk and Luhansk.

And, for the longer term, there are continuing signs that Vladimir Putin still has his sights set on the eventual creation of a “Greater Novorossiya” stretching through Odessa all the way to Transnistria–the breakaway province of Moldova that was once part of Catherine the Great’s actual historic Novorossiya.

Unless the United States and its key European allies take prompt and decisive action, including major military assistance, there is every likelihood that the eastern and southern provinces of Ukraine will continue to be sliced away, one or two at a time. This would mean the dismemberment of Ukraine and the death knell of its Orange Revolution–once a beacon of hope for would-be democrats throughout post-communist Europe and Eurasia. It would also confirm the definitive end of the post-Cold War dream of a “Europe Whole and Free.”

About the author:
*Ambassador Adrian A. Basora is a Senior Fellow at the Foreign Policy Research Institute and Director of the Project on Democratic Transitions, an in-depth assessment of the political, economic and social transitions of postcommunist Europe/Eurasia twenty years after the fall of the Berlin Wall. The Project continues to analyze the successes and failures of these countries’ transformation effortsand their evolving relationships with the U.S., the European Union and other Western institutions, deriving lessons learned that can strengthen current efforts to establish successful democracies and market economies in the region in the face of new adversities.

Source:
This article was published by FPRI.

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Obama’s India Visit And Paradox Of Countering Chinese Expansionism And Western Messianism – Analysis

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By P. Stobdan

India’s outlook towards global politics is at a turning point and it could mark the beginning of a new role for India on the global stage. Underlying this is the seeming desire of Prime Minister Narendra Modi to recover the lost dignity and pride (swabhimaan) of India or at least regain its primacy in Asia.

Among his many steps, the invitation to President Obama for a historic second visit was clearly meant to serve the twin goals of bolstering bilateral ties and finding a clear strategic congruent to contain China’s rise. To be sure, Modi stood firm in terms of not compromising upon India’s independent foreign policy, not buckling under US pressure to ink a climate deal, and his disagreement about Russia’s bad behavior.

President Obama’s visit was a huge success. Western policy thinkers particularly hailed the China-centric “Joint-Strategic Vision” document on the Asia-Pacific and Indian Ocean Region as a triumph for the United States. They see it as a major success in terms of weaning India away from its long-pursued posture of neutralism to finally join the global line-up drawn by the US. Henry Kissinger, in his appearance before the Senate Armed Services Committee, interpreted it as India entering the “Asia equation” and a system of US-China relationship. Zbigniew Brzezinski, however, cautioned that this could antagonize China and make it uncooperative on key global issues. Not surprisingly, the Chinese media quickly cautioned India not to fall into the US “trap” and wrote off Obama’s visit as a “superficial rapprochement”, reflecting more “symbolism than pragmatism”.

India had earlier remained skeptical of the US rebalancing strategy, but the realists now find good reasons for joining the balance of power game especially as the best way to boost immunity against threats, the best recipe to advance economic and military strength, and the shortest way for regaining India’s supremacy. However, many still hope that Modi’s diplomacy is not about joining the American bandwagon and putting a common front against China, but about leveraging the relationship with the United States to get the best deals out of US-China rivalry. From the latter perspective, the shift is, therefore, not ideological but only indicative of the transformation and refinement in the conduct of Indian diplomacy, which is becoming more robust and crafty for achieving national goals.

The strategic vision statement, however, carries the most definitive intent in terms of curtailing the spread of the Chinese presence in the Indian Ocean, which India considers to be within its sphere of influence. It is reflective of India’s seriousness in standing stand up against repeated incursions in Ladakh and Arunachal Pradesh, the growing presence of Chinese construction troops in Pakistan-occupied Kashmir and continued arms supplies to a Pakistan that sponsors and propels terrorists across into India. Clearly, India wants to create compelling pressures on China to stop nibbling away on issues that concerns its core security interests. Many would argue that China respects balance of power and refer to how Beijing started taking India seriously only after the 1998 Pokhran tests and the 2008 nuclear deal with the US–compelling it to sign a Guiding Principle agreement to solve the boundary problem with India.

However, Obama’s real strategic message came in his parting shot when he tried to nudge India to ensure freedom of religion as enshrined in Article 25 of the Indian Constitution. His assertion on religion strongly conveyed the point that a close strategic partnership will come only if India is able to shed its growing sentiment for cultural exclusivity. The subtle meaning was that the West still considers India potentially a virgin and fertile ground for harvesting souls and that India will succeed only so long as it ensures freedom to practice and propagate religion.

This puts the current politico-ideological discourse, endorsed by the ruling party, in a paradoxical situation of whether to counter the Chinese expansionist threat or the Western messianic idea. After all, the idea of the revival of India’s supremacy embeds into it the need to see a new era of Hindu resurgence along with its territorial, demographic and materialistic vitality. The rising discourse in the country resents the increasing ideological infiltration, separatism and terrorism posing an enduring existential threat to the Indian (Hindu) culture. They are up against the missionaries resorting to conversion through allurement and exploitation, while also facilitating Ghar Wapasi movement for converts to return to Hinduism.

Many would argue that the Church considers Asia as a vital continent having the greatest potential for the expansion of Catholicism. The same goes for Islam and its growth. It is hard to argue and link Obama’s subtle message with those prospects of Catholic missions, but one cannot scoff at the notion that the Western world always sought its political and trade interests in Asia in a certain amorphous way.

In fact, the underlying contestation between the West and China is surely not about trade, military and power equations but a manifestation of Beijing’s firmness to eschew external ideological infiltrations, i.e., neoliberal, jihadi, evangelical, etc., which it thinks tends to subvert the core of the Chinese nation. China has long identified itself as being one of the targets and as such has adopted tougher ‘ideological security’ measures against the increasing influence of messianic orders that comes in the garb of soft power. In fact, Beijing finds itself locked in a zero-sum soft conflict with the West on this front.

India’s problem is the same as the one confronted by China. India’s seemingly conscious aligning with the US requires analysis in terms of how it confronts an admittedly difficult conundrum. How will the government reconcile the US advocacy of religious diversity with its own ideology and vision of containing the forays of external forces and expanding its own? Will Modi seek a deep ideological compromise and push the Hindutva agenda on the back burner of the political discourse or keep it in abeyance simply in the interest of containing China’s rise? The US Congressmen are already forcefully seeking the inclusion of religious freedom and human rights in the India-US strategic dialogue. These issues will be important aspects of the Indian discourse in the coming years.

For now, Modi will do well to find a balance between the American relevance in the economic arena and the need to collaborate with China on both economic and cultural revival theory. This is necessary because, as the Russians say, “markets alone cannot substitute for ethics, religion, and civilization.”

***

This debate apart, India needs to figure out its key problem with China and the need to contain its rise. China’s encirclement, not a new idea though, but understanding what it would mean, let alone actualizing it, is difficult. Despite favorable projections about India’s growth prospects, it will take us more than three decades to catch up with China.

While dealing with China, India needs to work on two basic premises. Firstly, the idea of selling the illusion of China as a villain in Asia may not work beyond a point. For years, China has sought integration with almost all regional systems of Asia and one should not deny China’s role as the moderator of Asian economic and security affairs. Americans may grudgingly deny it but India’s friend Russia is accepting it. Consequently, China’s profile and role will continue to grow. What may happen in the distant future is something that one cannot say of it at present. India should not waste time thinking about outstripping China’s rise and influence now. To that extent, the West would like to play on the Indian sentiment against China to sustain the nature of their strategic competition.

Secondly, India needs to understand how others nations outside the US camp perceive China to be. Curiously, they do not see the Chinese carrying any messianic idea, just like Indians and Japanese do not profess such ideas. The threat of power is a Western narrative sold to create rifts in Asia so that evangelists implement their projects smoothly. For example, none of India’s spiritual and trade missions beyond its frontiers was messianic in nature. The rationale behind the Chinese and Indian historical campaigns including the fabled Silk Road or Spice Route reaching up to Arab lands and Europe was economic in nature. They provided incentives for economic integration across Asia and beyond.

If we take the long historical view, the spread of Indian ideology and its interface with Chinese philosophies never threatened Chinese nationhood. In fact, the Indian and Chinese thoughts of Hinduism, Buddhism and Confucianism helped forge the early social, political and commercial systems in Asia that became an attractive reward for European colonizers.

Unfortunately, in the case of India, it had to experience repeated violent ideological onslaughts, and a long colonial intervention along with ideological reasoning that not only resulted in the Indian nation dividing into three parts but also continues to obscure its political and economic patterns to align with West.

China consistently worked to acquire the image for itself as a trading power backed by military power that helps it to counterpoise the messianic forces. Even the Islamic world began to respect the Chinese power, albeit grudgingly, for the Arab Jihadis were wiped out by the Mongols in the 13th century whereas India remained a killing field for the zealots for centuries.

Yet the vitality of Asian civilizations survives. In countries such as Japan and India, the consistent democratic practices are deeply rooted in the non-conflicting and inclusive philosophic traditions of Buddhism and Hinduism. They have defined Asia as a unique space, and in their highly flexible and responsive stances over long historical time their relative ability to catalyze economic prosperity, technological skills and others tools of meeting modern demands is growing. Therefore, any China-India congruity and trend of warming up could still spring surprises in Asia, though this is a difficult scenario given the diverse and complex array of interests. However, any such prospects could pose a direct challenge to American supremacy and thus bad news for the rest of Asia. Therefore, India’s economic resurgence and to play on the Indian sentiment against China may be a good idea to sustain the nature of strategic competition in Asia.

To be sure, the US will continue to do what it can for blocking any meaningful rapprochement between India and China or Japan and China for it knows the danger of its loss of a dominant role in Asia. However, despite all the distortions of time and space, the hard geographic reality of Asia will triumph just as it happened in Europe.

However, it is also a fact that both India and China are unable to produce any new political initiatives beyond the idea of securing their individual economic interests and narrow parameters of nationalism. Clearly, India-China problems are borne not out of any ideological conflict or territorial sovereignty but on the narrow view of nationalism built on the burden of the recent history of 1962 war. The legacy of mistrust persists less due to India’s sense of defeat than betrayal by China. Although it is yet to decipher what went wrong in the minds of China’s Maoist national strategic thinkers then, this element lingers in the Western and Indian discourse as a paranoia that weighs on any future prospect of a thaw.

To be sure, neither China nor India is going to do anything to remove the mutual mistrust, fearing that it would go against their respective views of nationalism. For India to recover its primacy in Asia, a comprehensive civilizational dialogue with China is necessary. It should transcend the boundary issue and cover aspects essential to assuage any ill feeling about the past and concentrate on the future together. Clearly, there is nothing wrong in Modi’s dream of reviving the notion of Bharatvarsh (Indian World) just as Putin’s notion of protecting “Russky Mir” (Russian World) in its Near Abroad or China’s attempt at securing its ‘glacis’ in its offshore islands. India’s interest demands consolidation of its own geopolitical ‘near abroad’ stretching from the Hindu Kush to the Indian Ocean.

Surely, both India and China will have to confront immutable pressures on the core of their nationhood. However, the Chinese need to drop their Leninist-style excessive aggressiveness and start to value and work within the Asian culture, for it should realize that its economic hand-outs in Xinjiang and Tibet alone cannot quell the cultural sentiments among the local population. Beijing must find a new intellectual common ground with India that would enable the two to collaborate to stop the division of Asia further. A frank dialogue can build bridges necessary for resolving local conflicts. This should offer India the prospect of considering less confrontation and more cooperation with Beijing. This will also instil confidence among those who are fearful of China’s aggressive ambition and its long-term objective.

Views expressed are of the author and do not necessarily reflect the views of the IDSA or of the Government of India

Originally published by Institute for Defence Studies and Analyses (www.idsa.in) at http://www.idsa.in/idsacomments/ObamasVisittoIndia_pstobdan_040215.html

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Iran Says Missile Program Off Limits In Talks

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Iran’s missile capabilities are not on the negotiating table in the talks with the 5+1, Iranian deputy foreign minister and senior nuclear negotiator Abbas Araghchi said on Tuesday February 3.

Araghchi said Iran’s missile capabilities are part of a complete defense program and are not negotiable.

Yesterday, U.S. State Department spokeswoman Jen Psaki expressed concern regarding Iran’s rocket capabilities following the launch of Iran’s Fajr satellite on a rocket.

Araghchi said the launch of the Fajr satellite is in line with the Islamic Republic’s objective to expand its presence in space and strengthen the country’s communication and information infrastructure.

Araghchi stressed that Iran’s defence program in non-negotiable.

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Modi Sends Best Wishes To Sri Lanka On Independence Day

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Indian Prime Minister Narendra Modi on Wednesday wished the neighbouring country Sri Lanka on the its 67th Independence Day.

In three separate tweets in English, Sinhala and Tamil, Mr. Modi said: “On their Independence Day, my greetings to people of Sri Lanka.The bonds of history, culture & shared values that we share are unbreakable.”

“My best wishes for the development of Sri Lanka in the years to come. I look forward to welcoming President Sirisena later this month,” he added.

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Choosing McCain To Address Saudis – OpEd

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By Sousan Al-Shaer

The delegation that recently accompanied US President Barack Obama on his recent visit to the Kingdom was an interesting mix of people with opposing viewpoints over different regional and global issues. The selection of delegates indicated Obama’s perception about the difficult task of meeting with Saudi officials.

Obama had to put aside his pride by including some of his bitter opponents to join him during the visit to Saudi Arabia. Perhaps he knew that some members of the delegation would help facilitate his mission or maybe he thought some might have more credibility than him. Noteworthy delegates included Republican Sen. John McCain and Secretary of Defense, Chuck Hagel, who has resigned from his position in protest against the administration’s decisions in its war on terror.

McCain was likely selected by Obama to bridge and regain some of the lost trust as a result of his policies in the region. McCain is an expert on the region and his views toward Iran and its nuclear issue are very much in line with the aspirations of the people of the region.

The US Middle East policy has been problematic under Obama in sharp contrast with the policies pursued by the GOP, whether we agree with them or not. The GOP usually leaves no ambiguity in its policies and strategies. On the other hand, the foreign policy approach of the Democrats appears to be immature and inconsistent. It lacks strategic depth and primarily focuses on short-term solutions. Charles Krauthammer, a writer for the Washington Post, accurately described Obama’s foreign policy, “It has lost any sense of reality.” These policies certainly lack reality when it comes to the complicated situation in the Arab world, as they have led to consequences that not only threatened the security of this region, but US interests in the region as well.

For example, the self-ascribed Islamic State (IS), which Obama wants Saudi Arabia to help weaken and demolish, demonstrates the adverse consequences of US policies in the region. IS could not have expanded in the region had it not been for the political vacuum in Syria and Iraq. The IS would not have been able to find social support in these areas had it not been for armed Shiite militants wreaking havoc on those areas and killing Sunni leaders and clans. Both a weakened central authority and the spread of Shiite militants were the results of US policy decisions under Obama administration. It was the US that decided to withdraw its forces without ensuring or planning for a viable alternative, and it was also the US administration that helped train Shiite militants and turned a blind eye to the absence of power in Syria, which was later grasped by Iran and Hezbollah.

In an attempt to end the Iranian nuclear standoff, the US has dangerously overlooked the expansionist designs of Tehran. At a recent hearing of the Armed Services Committee in Congress, Henry Kissinger reportedly highlighted the expansionist ambitions of Iran in the Middle East, noting that its foreign policy since the 1979 revolution has consisted of a mix of religion and imperialism.

According to Kissinger, the Iranian regime will not give up on its vision and ambition to restore Persian influence and control in the region, noting that obtaining a nuclear weapon is one of its specific tools to achieve this goal. “Has the Iranian political vision changed? We cannot judge that by its nuclear ambitions alone, and this is the challenge we are facing,” said Kissinger.

Regardless of the fact that Kissinger’s views focus on threats to US interests in the region, his views are not much different from ours. We also share the same apprehensions but Obama administration has been unable to link the nuclear issue with Iran’s imperialistic ambitions. This reflects a string of policies based on isolated issues; the US is waging a war on terrorism in isolation from the Iranian issue and its expansionist goals, which in turn has undermined the role of its Sunni allies, including regimes, tribes, and the vast majority of the region’s population in the war on terrorism. The result has been a lack of public participation in counterterrorism efforts and a hike in sectarian sensitivities, making the task of those in charge of the fight against terrorism all the more difficult.

Furthermore, when the Democratic administration announces that it does not see any Iranian role in Bahrain, Iraq or Yemen, such comments only reflect its sheer ignorance and illogical reasoning. Such statements are simply false, especially as Iranian support to Shiite militants in these countries is not only political, but also involves training and funding.

So, the presence of John McCain was clearly very important in the delegation. Despite the different points of view of Saudi Arabia and Sen. McCain on Egypt’s issue, they align when it comes to the Iranian issue. They even share similar views about energy and petroleum, as evidenced by McCain’s statement requesting the White House to thank Saudi Arabia for its policies that affected the Russian economy after the failure of US sanctions.

If Saudi Arabia and other Gulf states insist on the presence of a Republican such as McCain at meetings to discuss regional issues, it might help prevent further degradation of the Saudi-US ties. There is no doubt that the terrorism issue, which is linked to the Iranian issue, must be discussed with the US and thus requires experts who are connected and familiar with the realities on the ground.

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Islamic State: A US-Saudi Chicken Come Home To Roost – OpEd

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Saudi Arabia is clearly of great importance to the government of the United States. President Obama not only cut short his India trip to visit with newly installed king Salman, but brought along a who’s who of administration officials and congressional leaders for the ride. Secretary of State John Kerry, former secretaries Condoleezza Rice and James Baker, Vice President Joseph Biden, Senator John McCain, Democratic House leader Nancy Pelosi, National Security Adviser Susan Rice, and CIA director John Brennan were all part on the entourage. All that fire power was devoted to a visit which lasted for just a few hours. The show of force was not coincidental.

The reaction of the corporate media to the death of the late Saudi king Abdullah tells us everything we need to know about the United States/Saudi axis of evil. It is one thing for the president to call Abdullah his friend and for the secretary of state to claim that the absolute monarch was a “man of wisdom and vision” but it is another for the media to parrot the same words. The New York Times called Abdullah a “shrewd force” and a “cautious reformer.” He didn’t reform the policies of beheading and flogging his citizens or creating instability in other countries. Those facts don’t count when our government makes it clear that he was a partner in America’s imperial designs.

It is easy to tell who is and isn’t an American ally just by reading the newspaper. Hugo Chavez was elected president of Venezuela three times but the most positive description from his New York Times obituary referred to him as “a polarizing figure.” Unlike the Saudi royals, Chavez didn’t intervene in the affairs of other nations. In fact he used his nation’s oil wealth to aid neighboring countries. You wouldn’t know any of that from the media which get and obey marching orders that come straight from the White House.

Saudi Arabia gets the kid glove approach from the press because it works hand in hand with Washington. It is now more than thirty years since the Saudis joined the United States in backing jihadists in Afghanistan to drive out a left wing government. The blowback resulted in past allies like Osama bin Laden attacking the United States on September 11, 2001. Similarly, ISIS wouldn’t exist without collusion between the west and the gulf monarchs. Now ISIS makes clear that it wants to rid the region of the same kingdoms that brought it into existence. ISIS is a United States/Saudi chicken that inconveniently came home to roost.

The Saudis backed jihadists in Libya to overthrow Muammar Gaddafi and in the process created an ongoing civil war and the destruction of a once prosperous country. They did the same in the as yet unsuccessful effort to dispatch Bashar al-Assad in Syria and now nine million people are refugees. They committed those crimes in full accord and cooperation with the United States.

Saudi Arabia is able to create so much damage because it has the world’s largest oil reserves and decides what everyone else on the planet will pay for energy. It may produce a lot of oil or a little and thus determines whether prices are low or high. Recent Saudi and American machinations have brought prices down very precipitously and caused considerable damage to other oil producers such as Venezuela, Iran and Russia. Because these governments demand their rights as sovereign states they have been declared enemies. The two bad actor nations are willing to forego temporary profits if they think they can rid themselves of troublesome countries that won’t obey their dictates.

The Saudis and the American government are locked in a loveless marriage of convenience. The Americans have military and economic dominance and want to keep it. That means working against the aspirations of any nation that refuses to toe the line. The Saudis are natural allies because they don’t want democracy in their own country or anywhere else in the region. They have become useful in providing support to the jihadists du jour who do their bidding for a brief moment in time but eventually wind up being very ungrateful.

Sometimes the Saudis want what the United States can’t give. Obama failed in his attempt to directly attack Syria in 2013. He also knew that the tide had turned in Egypt and Hosni Mubarak had to go. The Saudi monarchs have been itching for an attack on Iran but that is biting off more than America can chew. The two countries need but are also wary of one another.

Of course the president came running with a huge retinue to pay homage to Salman. He doesn’t really have a choice. The desperate imperialist game will go nowhere without the House of Saud. In turn, the new monarch needs American muscle on his side to make Saudi Arabia an undisputed power with the ability to decide who lives and who dies.

Any head of state who gets a visit from the American president, vice president, and current and former secretaries of state is up to no good. If all of those criminals descend at once it means that evil acts are in the works. The old adage is true. There is no honor among thieves.

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Turkish Stream Won’t Work, Says EU Commission VP Šefčovič

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By Georgi Gotev

(EurActiv) — Commission Vice-President Maroš Šefčovič said Wednesday that the Russian plan for a pipeline named “Turkish Stream” was not viable. It also became clear that the Commission is organizing a secretive ministerial meeting in Sofia on 9 February, to discuss alternatives to the supply of Russian gas to the region.

Announcing the results of the first orientation debate on the Energy Union, Šefčovič answered questions from the Brussels press, most concerning Russia’s plans to replace South Stream with Turkish Stream, which would bring Russian gas across the Black Sea to Turkey, and from there, to the Turkish-Greek border.

One of the aims of the project is to bypass Ukraine, and another, to punish Bulgaria, which Russia blames for having obstructed the construction of South Stream.

Šefčovič repeated that it was very “unusual” for a country such as Russia to communicate with its clients via press conferences. Indeed, the first announcement about Moscow’s change of plan was during a press conference of President Vladimir Putin, in Turkey.

The Commission Vice-President also said that none of the countries or companies involved in the South Stream project had been officially notified of the project’s cancellation.

‘Radical proposal’

The same happens with Turkish Stream, Šefčovič said, calling it a “radical proposal”, which is hardly in conformity with the bilateral agreements individual companies have signed with Russia, which stipulate a precise place of delivery.

“I doubt that this place of delivery is the Greek-Turkish border,” Šefčovič said, referring to Russian statements that Turkish Stream will bring gas to a hub at the Greek-Turkish border.

On top of it, he said he was questioning the economic viability of the project, because in his words Turkey needed some 15 billion cubic metres per year (bcm/y), and the other countries of the region needed another 15 bcm.

“Why (do) you need to ship to that part of the world more than 60 bcm of gas?” he asked, referring to the fact that Russia said Turkish Stream will have the same capacity as South Stream, that is, 63 bcm.

“This will not work. I cannot see that this would be the final solution. I think that we will have to come back to a more rational debate on what should be the economically viable solutions for this project, and for overall gas cooperation between Gazprom and the European countries,” Šefčovič said.

EurActiv asked Šefčovič why Russia wants to bring gas to the Greek border, and whether this is linked to a scenario in which Greece would cease to abide by EU law.

Šefčovič avoided a direct answer, but said that when he was in Moscow on his first trip in his new capacity, on 14 January, the only Russian reasoning had been the need to bypass Ukraine, because the country was unreliable, and that the rehabilitation of its gas grid would be too costly.

He added that he didn’t agree with this reasoning, because Kyiv was committed to energy reform, and that the EU and other financial institutions were going to provide funding for the modernization of the gas transmission system. Moreover, he said that it was not possible that the current volume of transit of Russian gas of over 100 bcm could be immediately rerouted.

Secretive meeting

Asked about alternatives to South Stream, Šefčovič said that on Monday, EU ministers from the region would start “a very thorough discussion how to re-create the energy landscape in South Eastern Europe”.

“This part of Europe is not yet adequately integrated into the European energy system. There is still a big need for major infrastructural projects,” the Commission Vice-President said.

Regarding a proposal by Bulgarian Prime Minister Boyko Borissov for a European gas hub near the city of Varna, Šefčovič said that the EU would support such projects if they are transparent, viable, and if they are supported by neighbouring countries.

As EurActiv has learned, the meeting in Sofia will be hosted by the Bulgarian authorities, but it is basically run by Šefčovič’ services. It will be held with the participation of energy ministers only from EU countries: Bulgaria, Austria, Croatia, Greece, Hungary, Romania, Slovenia and Slovakia. Serbia, a candidate country, will reportedly be informed of the results of the meeting afterwards.

No other stakeholders are expected to attend. Also, no press events are foreseen, except doorstep statements. Russian journalists have applied for accreditation, EurActiv was told, but it was not clear at the time of this article’s publication that they would be able to report from the meeting.

It also remains unclear what alternatives to Russian gas the region has, except some of the 10 bcm/y which would become available via the Southern gas corridor, when gas from Azerbaijan will start coming through the planned TANAP pipeline via Turkey, and the TAP (Trans-Adriatic) pipeline via Greece and Albania, by 2019-2020.

The post Turkish Stream Won’t Work, Says EU Commission VP Šefčovič appeared first on Eurasia Review.

Macedonian Ban On Publishing ‘Coup’ Material Slated

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By Sinisa Jakov Marusic

Macedonia’s Independent Journalists’ Trade Union, SSNM, has slated a ban on the publication of compromising material in relation to the case involving the head of the opposition Social Democratic Party, SDSM.

The union said journalists who obtain “information about potential conflict of interests, acts or statements by officials… that misinform the public, about unethical or illegal conduct of office holders, about crimes or serious legal breaches, have a professional responsibility to publish them”.

Naser Zelmani, head of the country’s oldest and biggest media union, the Journalists’ Association of Macedonia, ZNM, also said publication of such material was in the public interest.

On 24 Vesti TV, he said journalists had to balance respect for the law against the democratic principle not to “conceal anything that goes against the public interest”.

The Macedonian Helsinki Committee for Human Rights on Monday condemned the use threats of criminal charges against journalists to “neutralize” possible evidence of corruption “through the attempts to portray them as illegal and classified”.

On Tuesday, only a few media outlets published the statement by the Prosecution warning journalists that “publication of material that may become the subject of further criminal procedure is forbidden and punishable by law”.

The warning came after police charged the Social Democrat leader, Zoran Zaev, with espionage and with making violent threats to the government with the goal of undermining constitutional order.

In a TV address last Saturday, Prime Minister Nikola Gruevski said Zaev had threatened to publish compromising data from conversations involving top state officials unless a caretaker government was formed that would include the SDSM.

He also said Zaev had obtained his information from foreign intelligence agencies.

The SDSM leader has been ordered to remain in the country and his passport has been confiscated. Three others have been detained in the same case, including the former secret police chief, Zoran Verusevski.

In spite of the warning not to publish sensitive material related to the case, the SDSM has said the charges will not prevent it from releasing the material soon.

“Publishing evidence and arguments about criminal activities of the authorities cannot be considered a coup attempt,” Zaev said.

However, the party has not published anything thus far.

The charges against the opposition come after almost a year of an opposition boycott of parliament, which started after the March-April early general and presidential elections.

The SDSM accused Gruevski of winning through electoral fraud. Gruevski, who has been in power since 2006, has dismissed the allegations.
The latest developments in Macedonia will feature on the agenda of Thomas Melia, visiting US Deputy Assistant Secretary of State at the Bureau of Democracy, Human Rights and Labor. During his stay he is meeting both leaders and opposition representatives.

The post Macedonian Ban On Publishing ‘Coup’ Material Slated appeared first on Eurasia Review.

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