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Will Iran be able to counteract US sanctions?

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American sanctions and how to confront them

The Islamic Republic of Iran (IRI) today, as in the past 40 years of its existence, is in the global spotlight as the focus of major political and economic developments.

As you know, on May 8, US President Donald Trump announced the withdrawal of the United States from the nuclear deal – the Joint Comprehensive Plan of Action (JCPOA) – and the resumption of the sanctions regime against Iran.

On August 7, the United States introduced the first anti-Iranian sanctions package that envisages restrictions on the purchase of Iranian cars, gold and metals. The sanctions also affected Iranian companies specializing in aluminum, graphite, coal, and steel, as well as those manufacturing computer programs for industrial enterprises.

On November 4, the United States will launch a second package that will deal a blow to the Iranian energy sector, in the first place, to the oil and gas industry and related industries, and will affect major transactions, that is, the IRI’s banking system.

Undoubtedly, this is a major attack on the Iranian economy. If we recall the period from 2011 to 2016, back then such international sanctions nearly threw it into an abyss in just a few months. However, today the situation is somewhat different. The anti-Iranian sanctions announced by Trump have lost their international status.

Unlike in those days, when due to Tehran’s “nuclear” persistence the entire world rose against it, today Trump’s anti-Iran initiative is not supported by anyone. The White House administration counts only on the financial and economic pressure on the disobedient and the obstinate who do not want to join the campaign against the IRI.

And these turned out to be quite a few. As they met in Vienna in July, the five participants in the nuclear deal with Iran (Russia, China, Britain, France, Germany) agreed to protect the five countries’companies from the impact of US sanctions. Russian Foreign Minister Sergei Lavrov said that the parties had also agreed to establish methods of maintaining trade relations with Iran which “would not depend on the whims of the United States.”

On August 7, immediately after the introduction of American sanctions against the Islamic Republic of Iran, the European Union adopted the so-called ‘blocking’ regulation which invalidates American sanctions against Iran on its territory, bans European companies from observing them and prohibits the implementation of any foreign court rulings adopted on the basis of these sanctions.

The coming into force of this regulation also allows all European organizations to claim compensation in court for damage inflicted as a result of implementation of these sanctions from persons responsible for this (referring to US authorities).

In late August, the EU began to discuss the possibility of creating an independent payment system, which would protect the European business from US sanctions against Iran. The project may involve central banks of France and Germany.

Moreover, at the end of August, the European Commission (EC) approved financial assistance to Iran to the amount of 50 million euros to solve the “key economic and social problems” of the Islamic Republic of Iran. The first tranche amounted to 18 million euros, which will be channeled “for projects in support of sustainable economic and social development in the Islamic Republic of Iran,” with 8 million euros allocated to Iranian private companies. Measures to support the Iranian private sector include assistance to Iranian small and medium-sized businesses, development of production and marketing chains, and technical assistance to the Iranian Trade Promotion Organization. Though small, the sums are important.

The EU will support Iran as long as the country is committed to “full and effective” compliance with the “nuclear deal”, which stipulates the lifting of sanctions, the executive body of the European Union specifies.

Despite measures to support Iran, the desire to preserve the Joint Comprehensive Plan of Action and the EU’s protests against anti-Iranian sanctions, large European and transnational companies do not really believe in the European Union being able to counteract the United States. Experts say that judging by the experience of the past, when the European Union put up resistance after unilateral actions by the White House, these not quite effective “threats” are about all the “resistance” Europe can mount, since the Iranian market, despite all its attractiveness, can not be compared with the American one. Robert Einhorn, Senior Fellow at the Brookings Institution in Washington, former advisor to the US Secretary of State, said: “Foreign companies are already experiencing difficulty doing business with Iran, and if all these difficulties  – non-transparent rules, corruption, poor management, etc. – become aggravated further by the risk of being cut off from the US market and the US financial system, then no reasoning from  European politicians will work.”

Right now, three months before the Americans introduce the main portion of sanctions, many large companies are leaving the IRI. In the oil sector – this is the French oil and gas giant Total. [1]

Fully aware of the situation, the Iranian leadership relies on cooperation with small and medium-sized foreign enterprises which are not so connected with the United States. Goliam Reza Ansari, the Iranian Deputy Foreign Minister for Economic Affairs, said recently: “There are 23 million small and medium-sized businesses in Europe, and they could assist us in bypassing US sanctions.” We must use the potential of European enterprises to meet our economic needs in times of trouble. We are planning to create a working group of experts to promote such enterprises throughout the country. ”

Many countries back Tehran’s anti-sanctions measures. They are prepared to buy oil from Iran, to invest in projects, to provide know-how and technology. First of all, in the oil and gas sector.

The Chinese economic analyst Kingji Su sayvili said that the Iranian economy is able to overcome US sanctions with minimal difficulties, since these measures are not supported by the international community. The Chinese expert emphasized that after the arrival of sanctions many major economies, including European countries, China and Russia, retained or even strengthened economic relations with Iran.

Indeed, the director of the Department of International Cooperation of China Petroleum and Chemical Industry Federation (CPCIF) said that China will continue to import Iranian oil, despite US sanctions. He underscored that the Chinese market and many other Asian markets strongly depend on Iranian oil. According to The Wall Street Journal (WSJ), the number one buyer of Iranian oil – China, which acquires about a quarter of its oil supplies, is unlikely to cut down on its purchases.

In turn, Investment Director of the Iranian National Petrochemical Company (NPC) Hossein Alimorad said that the amount of Chinese investments in the Iranian oil and petrochemical industry had not changed after the US withdrew from the nuclear deal. As Mr. Alimorad announced recently, the NPC has reached an agreement with a consortium of companies from China and the Philippines regarding a $ 7 billion investment in the petrochemical industry in Iran.

Moreover, Mohammad Mostafavi, Director of Investment of the National Iranian Oil Company (NIOC), said that China National Petroleum Corporation (CNPC) together with the Iranian Petropars can take over from Total, which has 50.1% of the stake in the joint project for the development of the 11th phase of the South Pars gas field, if the French company leaves Iran.

German company ADL recently signed an agreement on cooperation in the oil refining sector with the Iranian oil company Sepahan (SOC). The goal is to share technical know-how and knowledge to improve the quality of products, including industrial oils and lubricants. ADL will begin to implement this ambitious plan in cooperation with its Swiss and Austrian partners.

South Korea (ROK) said in mid-August that Seoul will provide financial support to companies affected by new sanctions against Iran, and will look into the possibility of doing business in alternative markets so as to minimize losses to the local economy. It is clear that South Korea, having bought 147 million barrels of oil from Iran in 2017, is more than interested in expanding oil business with it.

Undoubtedly, international support for Iran as it tries to battle Trump’s sanctions is of great value. However, perhaps no less important are the internal economic measures that Tehran is taking to repel, or at least soften the blow to the key sector of its economy – the oil and gas extraction and processing industries.

Oil import substitution

Leaders of the Islamic Republic of Iran are stepping up measures to ensure import substitution. Thus, the Iranian Oil Ministry has banned the import of 84 types of equipment for the oil industry on the grounds that such equipment can be produced domestically.

Among the equipment and products prohibited for importation are wellhead equipment, desalination facilities, anticorrosive substances, sulfur recovery catalysts, wellhead control panels, and others.

Can the Iranians solve the problem of import substitution in the oil industry, while ensuring the necessary modernization of the entire oil and gas sector?

New sanctions against Iran have created severe challenges for Iran’s oil and gas production and its petrochemical industry.

However, it should be noted that the IRI, which was under American sanctions ever since the 1979 Islamic Revolution, has been developing its own production of oil and gas equipment. This kind of work was particularly intensive the period from 2010 to 2016, when anti-Iranian sanctions were the toughest.

The head of the Iranian oil company in southern regions Hamid Bovard said in 2013 that Iranian enterprises were producing oil and gas equipment and developing prototypes for launching into production of about seven thousand items. Mr. Howard expressed confidence that such oil and gas equipment as gas pumps, turbines, ball valves and compressors will be key to the restoration of Iran’s oil industry. By that time, eight hundred projects had been launched, with investments reaching about $ 15.5 billion. All of them aim to increase the recovery rate of crude oil and oil extraction.

Today, amid the increasing pressure from the Trump administration on Iran, measures to counteract sanctions are intensifying. According to Director of the Petrochemical Company Jam Said Shirdel, the company’s specialists, in cooperation with other Iranian companies, have developed and produced 1,000 types of products and equipment for petrochemicals which were previously purchased abroad. He added that in the next two years the company will produce 20,000 types of petrochemical products.

According to Reza Khayyamyan, head of the Association of Equipment Manufacturers of Iranian Oil Companies, the Iranian producers can provide technical services and produce 80% of advanced oil equipment for the development of oil extraction and processing projects. Mr. Hayamyan said this industry employs more than 50 Iranian companies. New contracts worth more than $ 6 billion will soon be signed with local oil extraction and refining companies.

Mr. Hayamyan made it clear that import substitution of oil and gas equipment is on the list of priorities of the Ministry of Oil, which is planning to roll out 14,000 major parts.

As we see, Iran is set on mobilizing its own resources. For one, Secretary of Iran’s Supreme National Security Council Ali Shamkhani said recently that the Iranian private sector plays an important role in counteracting the economic war, which was launched against Iran by the Trump administration.

Mohammad Hosseini, member of the Board of Trustees of the National Development Fund of Iran (NDF), said that Fund will allocate 12% of financial resources to counter US sanctions against Iran.

However, it is too early to talk about a profound modernization of the entire oil and gas complex on the basis of state-of-the-art technologies. As it happens, the most advanced technologies, know-how, innovations in the oil and gas and petrochemical industry, which mark dramatic breakthroughs in this industry and its overall renovation, are concentrated and receive special protection in the laboratories of just a few of the largest oil and gas companies, which, alas, are not ready to share these technologies with Iran.

Economy and politics under sanctions

In general, the economic situation in Iran before Trump announced anti-Iranian sanctions regime was not in its best condition. But in connection with the implementation of the Joint Comprehensive Plan of Action there were hopes and faith in a better future.

Now the situation has become worse because of sanctions. The rial rate has fallen, which provoked a rush for buying dollars. This further accelerated the collapse of the Iranian rial. Compared to January, when one dollar on the black market sold for 43 thousand rials, at the end of August it trade for 107 thousand. The official rate for this period decreased from about 36 thousand to 42 thousand.

In the meantime, the opposition is seizing on every opportunity to put the blame for the current situation on President Hassan Rouhani and his liberal reform Cabinet.

In late July, opposition MPs used their constitutional right to summon the president for making a report on the effectiveness of his activities. They gave President Rouhani a month to prepare the answers to their questions and explain to them why the government had done nothing to put an end of the smuggling of goods that damages production, what caused the fall of the Iranian rial, and what triggered economic recession and rising unemployment.

On August 25  President Rouhani addressed the Majlis. In particular, he said: “We are not afraid of America or economic problems. We will overcome all difficulties <…>. You can talk about unemployment, foreign currency, recession and smuggling. I think that the problem is people’s views on the future <…>. People are not afraid of the US, they are afraid of our differences. If they see that we are united, they will believe that the problems will be solved,” the president said. At the same time, he acknowledged that part of the country’s population “had lost faith in the future of the IRI and doubts its power”.

The president’s report did not satisfy Deputies of the Mejlis, who expressed their discontent with the work of Rouhani and his government. In addition to that, the MPs struck a blow to the government’s makeup by securing the dismissal of the Minister of Economy and Finance Masoud Karbasian, Minister of Labor, Social Welfare and Cooperative Affairs Ali Rabiyyi. Dismissed earlier was the head of the Central Bank, Valiollah Seif. Abdolnasser Hemmati was appointed instead.

Thus, the political situation in Iran is no longer stable being marred by visible signs of a schism within the ruling elite. However, it would be premature to suggest a crisis of the Iranian regime. The American sanctions have jeopardized the positions of only President Rouhani and his team, which was ready for a dialogue with the West. The growing political weakness of President Rouhani and his government has given a chance to his hardline opponents to strengthen their positions and exert a significant influence on the policy of the Islamic Republic of Iran at home and abroad.

For now, removal of Rouhani is not on the agenda. Supreme leader Ayatollah Khamenei, fearing an internal political explosion, is supporting the president. However, given the situation and increasing pressure from the opposition, Rouhani’s policies (both domestic and foreign) may change, though not in the direction of reforms and liberalization.

Whether Tehran will agree to new talks with Washington, to compromises on nuclear missile programs is difficult to predict. For today, it is 100% no. This would mean a ‘political death’ for Rouhani and for the supreme leader Khamenei as well. What will happen next is difficult to say. Much will depend on the ability to retain the Joint Comprehensive Plan of Action and, most importantly, on the ability of all opponents of Trump’s anti-Iran sanctions to confront them financially and economically.

However, Ayatollah Khamenei is rather pessimistic about this. He said on August 29 that Iran should give up hopes that Europe will save a nuclear deal. In addition, he added two important things. First, the Joint Comprehensive Plan of Action is not a goal, but a means, and Iran, if it finds that the Plan has ceased to meet Iranian interests, will reject it. And the second: Iran has no intention of negotiating a new agreement with the US at any level because of the “obscenity” of such talks.

Indeed, there are no conditions and no incentives for Iran entering new talks on nuclear missile issues,

Even in case of the worst of scenarios, if the IRI economy faces serious problems, the most radical groups concentrating around the political opponents of Rouhani may come to power in Tehran. These forces will not even consider the issue of negotiations with the US. The Islamic Republic of Iran will yet again become a “besieged fortress”, but this is unlikely to affect foreign policy ambitions, especially in the region. On the contrary, they will grow under the leadership of anti-Western politicians and IRGC, forming a foundation for the military and political instability in the region.

  •  [1] Total is getting ready to leave Iran before November 4. The company is developing the South Pars gas field. Total has already invested in it app. 50 million dollars. The French make it no secret that they do not want to anger Washington. The $ 2 billion project is under threat, but these losses are nothing in comparison with the fines that could be imposed on the violators of sanctions by the US Treasury, and other consequences. The most serious threat is the “cut-off” from the US financial system. For many large companies, this threat is even worse than billions in fines. For example, over 90% of all financial transactions at Total pass through US banks.
  • [2] Wellhead equipment is a set of equipment designed for tying casing strings, sealing the wellhead (annular space, internal tubing cavity, well production diversion) during drilling, well workover and well operation mode regulation.

First published in our partner International Affairs

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Middle East

The Muslim world’s changing dynamics: Pakistan struggles to retain its footing

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Increasing strains between Pakistan and its traditional Arab allies, Saudi Arabia, and the United Arab Emirates, is about more than Gulf states opportunistically targeting India’s far more lucrative market.

At the heart of the tensions, that potentially complicate Pakistan’s economic recovery, is also India’s ability to enhance Gulf states’ capacity to hedge their bets amid uncertainty about the continued US commitment to regional security.

India is a key member of the Quad that also includes the United States, Australia and Japan and could play a role in a future more multilateral regional security architecture in the Gulf.

Designed as the backbone of an Indo-Pacific strategy intended to counter China across a swath of maritime Asia, Gulf states are unlikely to pick sides but remain keen on ensuring that they maintain close ties with both sides of the widening divide.

The mounting strains with Pakistan are also the latest iteration of a global battle for Muslim religious soft power that pits Saudi Arabia and the UAE against Turkey, Iran, and Asian players like Indonesia’s Nahdlatul Ulama, the world’s largest Islamic movement.

A combination of geo- and domestic politics is complicating efforts by major Muslim-majority states in Asia to walk a middle line. Pakistan, home to the world’s largest Shiite Muslim minority, has reached out to Turkey while seeking to balance relations with its neighbour, Iran.

The pressure on Pakistan is multi-fold.

Pakistani Prime Minister Imran Khan charged recently that the United States and one other unidentified country were pressing him to establish diplomatic relations with Israel.

Pakistani and Israeli media named Saudi Arabia as the unidentified country. Representing the world’s second most populous Muslim nation, Pakistani recognition, following in the footsteps of the UAE and Bahrain, would be significant.

Pakistan twice in the last year signalled a widening rift with the kingdom.

Mr. Khan had planned to participate a year ago in an Islamic summit hosted by Malaysia and attended by Saudi Arabia’s detractors, Turkey, Iran and Qatar, but not the kingdom and a majority of Muslim states. The Pakistani prime minister cancelled his participation at the last moment under Saudi pressure.

More recently, Pakistan again challenged Saudi leadership of the Muslim world when Foreign Minister Shah Mahmood Qureshi complained about lack of support of the Saudi-dominated Organization of Islamic Cooperation (OIC) for Pakistan in its conflict with India over Kashmir. The OIC groups the world’s 57 Muslim-majority nations. Mr. Qureshi suggested that his country would seek to rally support beyond the realm of the kingdom.

Turkish President Recep Tayyip Erdogan, on a visit to Pakistan earlier this year, made a point of repeatedly reiterating his country’s support for Pakistan in the Kashmir dispute.

By openly challenging the kingdom, Mr. Qureshi was hitting Saudi Arabia where it hurts most as it seeks to repair its image tarnished by allegations of abuse of human rights, manoeuvres to get off on the right foot with incoming US President-elect Joe Biden’s administration, and fends off challenges to its leadership of the Muslim world.

Pakistan has not helped itself by recently failing to ensure that it would be removed from the grey list of the Financial Action Task Force, an international anti-money laundering and terrorism finance watchdog, despite progress in the country’s legal infrastructure and enforcement.

Grey listing causes reputational damage and makes foreign investors and international banks more cautious in their dealings with countries that have not been granted a clean bill of health.

Responding to Mr. Qureshi’s challenge, Saudi Arabia demanded that Pakistan repay a US$1 billion loan extended to help the South Asian nation ease its financial crisis. The kingdom has also dragged its feet on renewing a US$3.2 billion oil credit facility that expired in May.

In what Pakistan will interpret as UAE support for Saudi Arabia, the Emirates last week included Pakistan on its version of US President Donald J. Trump’s Muslim travel ban.

Inclusion on the list of 13 Muslim countries whose nationals will no longer be issued visas for travel to the UAE increases pressure on Pakistan, which relies heavily on exporting labour to generate remittances and alleviate unemployment.

Some Pakistanis fear that a potential improvement in Saudi-Turkish relations could see their country fall through geopolitical cracks.

In the first face-to-face meeting between senior Saudi and Turkish officials since the October 2018 killing of journalist Jamal Khashoggi in the kingdom’s consulate in Istanbul, the two countries’ foreign ministers, Prince Faisal bin Farhan and Mevlut Cavusoglu, held bilateral talks this weekend, on the sidelines of an OIC conference in the African state of Niger.

“A strong Turkey-Saudi partnership benefits not only our countries but the whole region,” Mr. Cavusoglu tweeted after the meeting.

The meeting came days after Saudi King Salman telephoned Mr. Erdogan on the eve of a virtual summit hosted by the kingdom of the Group of 20 (G20) that brings together the world’s largest economies.

“The Muslim world is changing and alliances are shifting and entering new, unchartered territories,” said analyst Sahar Khan.

Added Imtiaz Ali, another analyst: “In the short term, Riyadh will continue exploiting Islamabad’s economic vulnerabilities… But in the longer term, Riyadh cannot ignore the rise of India in the region, and the two countries may become close allies – something that will mostly likely increase the strain on Pakistan-Saudi relations.”

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Assassination of top Iranian Nuclear Scientist: A big Tragedy

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Image source: Wikipedia

On the sad incident of the assassination of a top Iranian nuclear scientist, the UN spokesman said, “We urge restraint and the need to avoid any actions that could lead to an escalation of tensions in the region.” Turkey termed the assassination of Mohsen Fakhrizadeh as an ‘act of terrorism’ while the EU calls it ‘criminal’ and urges ‘maximum restraint.’ Anger can be seen in Iran and the region. The whole region is worried and mourning.

Masses are demanding to investigate the assassination act thoroughly and punish the responsibles. It is a straight forward criminal act and a direct threat to Iran’s sovereignty. The whole world is upset and can not forgive.

It was well-known that the US assassinated General Qasim Sulymani in Baghdad just a few ago. The retaliation from Iran was just appropriate, and the US could not digest it yet. Top nuclear Scientist’s assassination is not accepted under any circumstances, and any retaliation will be justice.

Iran has the capability and will to retaliate. Although we all – peace-loving people request Iran to cool down and observe restrains, at the same time, we understand, if the aggressors are not checked, it will happen again and again, and maybe in more intensity and frequency. If the retaliation is severe, then the aggressor may not dare to attempt again in the future. A minimum level of deterrence is required to maintain. Otherwise, further assassinations are encouraged.

The ruthless assassination of Dr. Fakhrizadeh on Friday 27 November is not just ‘another’ routine incident—it’s causality is more significant than it’s aftermath. The Western world engaged Iran under JCPOA in October 2015. Things were smooth, and Iran was in full compliance with the deal. Internation Atomic Energy Agency (IAEA) was regularly monitoring Iran’s nuclear facilities and confirmed the fullcompliance. All the signatories of JCPOA were also satisfied, except President Trump. Even his administration has not noticed any deviation from Iran, but after having a close presentation from the Israeli prime minister Netanyahu, President scrapped the JCPOA in 2018. The unilateral withdrawal of President Trump from the nuclear deal was widely criticized but was celebrated by Israel. Since then, Iran was under immense pressure from the US as well as Israel.

Highly classified speculations are that the final decision to eliminate Fakhrizadeh was perhaps taken last Sunday 22 November, in a semi-secretive meeting in the Saudi coastal resort of Neom—attended by Mike Pompeo, Benjamin Netanyahu, Yossi Cohen, and Prince MBS.

There are other views that Fakhrizadeh’s assassination is another big conspiracy to destabilize global peace and stability, which might hinder the transition of power to newly elect-president Joe Biden. As a result, President Trump remains in control. Strong possibilities are that the outgoing President Trump will make the most of the power transfer transition period—taking big decisions to please his external partners/friends (Isreal and anti-Iran Arab states). Some say this killing will reduce Iran’s negotiating powers—should Joe Biden/Tony Blinken revive the JCPOA. Some global security pundits comment, this assassination was aimed at infuriating Iran, instigating it to react with military force against Israel, prompting the US and its regional allies (Israel, KSA, UAE, and Bahrain) to declare an all-out direct war on Iran.

It is relatively early to say something precisely, that what happen? How happened? And What will happen next? All are view points, and no authentic opinion is concluded. But one thing is very much clear, the region is a cooked volcano and may burst any moment.

It may destabilize the whole region; the oil-rich region may halt oil supply to the Western world. The Oil prices may shoot up; Industrial growth may be harmed, inflation may hike up, the global economy may suffer adversely.

It is also possible that the Arab and non-Arab Muslim world be divided visibly and further harm the Muslim world. Irrespective of any country or nation, or religion, humankind will suffer at the end of the day. Irrespective of race, religion, ethnicity, we must urge the safety of human lives.

The world community must proactively play a positive role in saving humankind and the loss of precious lives. Bloodshed is not permissible in any religion, society, or law, especially because we claim to be a civilized world and should act as civilized.

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Libya: Lights and shadows of the peace process

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After six days of intense closed-door talks between the 75 delegates of the various Libyan factions summoned to Tunis by the Acting Special Representative of the UN Secretary-General (SRSG), Stephanie Williams, the first round of negotiations that ended on November 15 confirmed the “ceasefire”, but failed to reach an agreement on the mechanisms and criteria for selecting the candidates for a new “national unity” government.

Acting SRSG Stephanie Williams has decided to reconvene in the coming days – via video conference – a second round of what has been called the “Libyan Political Dialogue Forum” (LPDF), with the ambition of succeeding in forming a government able to manage the national elections scheduled for December 24, 2021.

While admitting the partial failure of the Tunis talks, the U.S. diplomat declared frankly that it was not “realistically possible to find solutions to a ten-year conflict in a simple round of negotiations”. Nevertheless, Acting SRSG Stephanie Williams has stressed that “there seems to be the possibility of an agreement on three important sensitive aspects of the negotiation, i.e. the tasks and duties of the new government; the criteria for appointing those who will take up the government posts and the roadmap for the peace process.

She added that “Libyan politicians now have the opportunity to effectively occupy centre stage or end up going extinct as dinosaurs”.

Tough words that convey the disappointment for a negotiation that sees the parties involved (the Tripoli government led by Fayez al-Sarraj; the Tobruk faction commanded by General Khalifa Haftar and the Fezzan independent tribes) willing to respect the armed truce, but little inclined to make political concessions to their counterparts.

Certainly it was not easy to make the Libyan stakeholders – who, until last summer, had been fighting one another in open field -converge on a political dialogue path

It was not easy also due to the behind-the-scenes activism of the international sponsors of the opposing factions: Turkey and Qatar in favour of al-Sarraj; Saudi Arabia, the Gulf States, Egypt and Russia supporting the “Libyan National Army” led by General Haftar, while President Macron’s France is openly siding with the Fezzan tribes.

During the Tunis talks, all delegates systematically leaked to the press fake drafts of possible agreements, in view of thwarting the proposals of their counterparts.

According to “Agenzia Nova”, apparently official documents were circulated containing references to the topics actually under discussion, “polluted” by totally invented parts: “real poisoned drafts received from Libyan sources close to General Haftar”.

 Malicious rumours have also spread about the possible corruption of some delegates, bribed with many dollars to favour the appointment of Abdullh al-Dabaiba -the powerful “warlord” of Misrata and founder of the “Future for Libya” movement – to the new government. It should be recalled that, thanks to Turkish weapons and Islamist mercenaries brought by President Erdogan to Libya from Syria, Misrata’s militias rescued al-Sarraj’s government from collapse when last April General Haftar’s militias had arrived at Tripoli’s gates.

However, despite the difficulties, in her report to the UN Security Council, Acting SRSG Stephanie Williams also highlighted some positive aspects of the situation on the ground.

First of all, the military truce is holding out: there are no significant violations of the “ceasefire”, while “the exchange of prisoners continues, facilitated by the Council of Elders, with the support of the Joint Military Commission.

Another important result has been achieved in the oil sector: with the agreement of all the parties involved, the National Oil Company has resumed oil production in full swing, which has quickly returned to last year’s level of 1.2 million. However, the transparent distribution of oil revenues must be postponed until an agreement is reached between all the parties involved, pending which the National Oil Company shall set aside the proceeds from oil sale in a special UN-controlled account.

This is a sensitive aspect regarding directly Italy: the resumption of crude oil extraction means much for ENI which – albeit left alone by national institutions to operate in the dangerous situation of tension between the opposing Libyan factions – has managed to establish itself as a credible and reliable counterpart and to maintain its extraction, production and refining activities in Libya.

While concluding her briefing to the UN Security Council, Acting SRSG Stephanie Williams underlined: “Seventy-five Libyans came together in Tunis …in a good faith effort to start the process of healing their nation’s wounds. …they extended their hands, if not their hearts, to each other”.  

“Not their hearts”: this is the deepest shadow hanging over the Tunis talks, casting uncertainty over a peace process in which the role of the national players is often influenced and manipulated by the various international sponsors – and the sponsors certainly do not act for “heart” reasons.

On the Tripoli government’s front, the two key allies are President Erdogan’s Turkey and Qatar ruled by young Emir Tamin bin Hamad Al Thani.

Despite the accession of the former to NATO and of the latter to the Gulf Cooperation Council (GCC), the two countries have embraced the cause of Muslim extremism by more or less openly supporting jihadist militias during the civil conflicts in Syria, Iraq and, most recently, Libya.

At the side of these awkward travel companions, in a quiet and secluded corner, we can find Italy which, in 2016, with an undoubtedly politically correct move, followed the United Nations, which imposed a neo-colonialist governmental solution on Libya, by establishing al-Sarraj’s “Government of National Accord” (GNA), at first in Tunis and later in Tripoli. A “neo-colonialist” solution because the GNA has not been recognised by any of Tripoli’s and Tobruk’s Parliaments and has never been legitimized by elections or supported by the people.

Over the last four years, while al-Sarraj barely controlled the capital, the Italian diplomacy has not seemed able to find a clear policy and line of action, in a region of vital importance for the country, other than that of “respect for UN resolutions”, a formal pretext used also by the European Union to justify its inaction.

 As said above, faced with Turkey’s and Qatar’s political and military commitment to support al-Sarraj, but above all the Islamist militias of Tripoli and Misrata, the Gulf States have broken diplomatic relations with Qatar, accusing its Emir of an adventurous conduct in favour of the “Muslim Brotherhood” throughout the region.

Furthermore, together with Egypt, France and Russia, the Gulf States have actually established an alliance to protect two of the three Libyan political-military components, i.e. General Haftar’s”Libya Liberation Army” and the militias linked to the Fezzan tribes with whom France has established an almost exclusive partnership.

While the diplomacies interested in the Middle East are playing on several tables – just think of the new relations between the Arab Emirates, Bahrain, and above all Saudi Arabia, with Israel-Italy and Europe – probably also because of the pandemic – seem to be immobilized and bogged down into passive positions of principle on the positive aspects of “multilateralism”.

Indeed. the other countries are taking action also in view of possible political and economic dividends in the future, while Italy and Europe, with their wait-and-see attitude, remain on the sidelines to watch – as mere spectators – the development of events that will have a decisive impact on the new Mediterranean equilibria of the near future.

Nevertheless, there seem to be no good news about U.S. international commitments in the “after-Trump era”.

The new President, Joe Biden, has appointed Antony Blinken as the new Secretary of State.

 Despite his being an educated, cosmopolitan and polite person, we cannot forget that, during Obama’s Presidencies, Blinken was a close aide of Hillary Clinton, at first, and of John Kerry, later, i.e. two negative protagonists of international relations and foreign policy who, with their naïve support for the fake “Arab Springs”, contributed to upset North Africa and the Middle East in the name of a mirage that saw an unattainable goal of Western democracy for the countries experiencing Islamist civil uprisings and unrest.

After having fomented and militarily supported the revolt against Colonel Gaddafi, the U.S. Department of State led by Hillary Clinton, had to face the sacrifice of its ambassador in Libya, Chris Stevens, who was killed on September 11, 2012 in Benghazi, where he had been sent for a confused and botched negotiation with the Islamists of Ansar Al Sharia.

Under Kerry’s leadership, with Blinken at his side as Deputy Secretary of State, the United States managed the Syrian crisis in a politically and militarily unwise manner, thus finally leaving the field open to Russia and Turkey.

Against this backcloth, the prospects for a return to action of U.S. diplomacy (partly put to rest by Donald Trump) are not particularly fascinating, in an area such as Libya where Italy, in its own small way, is not even able to sketch out a credible negotiation for the release of the eighteen fishermen from Mazara del Vallo, kidnapped by General Haftar’s forces for over two months.

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China was crumbling into misery, degradation and despair, in the middle of that 109-year period (1840-1949) known as the era...

Defense7 hours ago

The Need to Reorient New Delhi in the Indo-Pacific

Beijing’s overt expansionism in South Asia and the South China Sea (SCS) continues to threaten India’s maritime security. The rise...

Environment9 hours ago

EU greenhouse gas emissions fell in 2019 to the lowest level in three decades

The Commission today adopted its annual EU Climate Action Progress Report, covering the EU’s progress in cutting greenhouse gas emissions...

Human Rights11 hours ago

Global Experts To Convene Online To Discuss Values In A Post-Covid World

Leading Islamic scholars and experts from around the world, representing government and civil society will convene online to attend the...

EU Politics13 hours ago

Towards a stronger and more resilient Schengen area

The first ever Schengen Forum, convened today by the Commission, allowed for constructive exchanges towards building a stronger and more...

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