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Climate change: UAE and Russia eye geopolitical and commercial mileage

Dr. James M. Dorsey

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Climate change, much like war, could prove to be a geopolitical and commercial gold mine. At least, that is the take of DP World, Dubai’s global port operator, and Russia’s sovereign wealth fund.

DP World is partnering with the fund, the Russian Direct Investment Fund (RDIF) to create an all-year round maritime sea route from Europe to Asia through the Arctic.

“Time is money in business and the route could cut travel time substantially more than traditional trade arteries for cargo owners in the Far East wanting to connect with Europe, coupled with benefits to the Russian economy,” DP World chairman and CEO Sultan Ahmed bin Sulayem told the Arab News.

In partnering with DP World, RFID brings to the table Rosatom, Russia’s atomic energy agency, which operates nuclear-powered ships that could ply the route, and Norilsk Nickel, a mining and commodities company.

Dubai and Russia are betting that climate change, which has dramatically shrunk the Arctic ice sheet in the past two decades, has made possible what eluded Europeans for centuries: ensuring that the Northeast Passage linking the Northern Atlantic with the Pacific is accessible all year round even if rail remains faster than carrying cargo by ship.

The commercial and geopolitical implications of all year-round passage are significant.

Beyond challenging the status of the Suez Canal as the foremost link between the Atlantic and the Pacific, the Artic route would grant Russia the one thing it has so far failed to achieve in its partnership with China: a key role in the transportation linkages between Europe and Asia that the People’s Republic is seeking to create with massive investment in its Belt and Road initiative.

That role would be bolstered by the fact that the Arctic route would cut the maritime journey from Northeast Asia from somewhere between 34 and 45 days through the Suez Canal to 23 days via the Northeast Passage.

“Because of global warming, there are some things happening that open some opportunities. Russia has this frozen coast all of the seasons. Now it’s opening up and it’s possible to navigate for nine months. When you have special ships, you can actually have 12 months navigation,” RFID CEO Kirill Dmitriev told the Saudi paper.

The partnership with Dubai gives a new laese on life to Russian aspirations to become a key node in Belt and Road linkages after Russia failed to persuade China Railway Eryuan Engineering Group (CREEC) to invest in converting the Trans-Siberian Railway into a high-speed link that would connect St. Petersburg with the Far East.

CREEC  last year definitively dashed Russian hopes, declaring that the “the high-speed rail through Russia will never pay off.

In a further setback, China simultaneously opted for an east-west road link through Kazakhstan after efforts to complete a Moscow-St. Petersburg highway as well as a ring road around the Russian capital and a Volga-Kazakhstan road stalled.

Frustrated with the lack of Chinese interest, state-run Russian Railways is itself investing heavily and reaching out to Japan to significantly increase freight traffic on the almost 9,300-kilometre-long trans-Siberian route.

The rail company aims to increase by a factor of 100 the number of containers transported from Japan to Europe from 3.000 last year to 300,000 and tonnage by 50 percent from less than 90 million to 180 million, according to Russian Railways first vice president Alexander Misharin.

Mr. Misharin told Nikkei that the investment, including US$745 million last year, involves laying double tracks, linking the railroad to seaports and automating the system.

Mr. Misharin was hoping to cooperate with Japan Railways Group to create a door-to-door cargo transportation system between Japan and Europe that would reduce transportation time to at most 19 days. He said the Russian rail company was looking at building logistics centres with Japanese trading firm Sojitz.

Upgrading the Trans-Siberian Railway would significantly bolster Russia’s geography as a key bridge in the emergence of Eurasia, the gradual integration of Europe and Asia that ultimately would erase the seemingly artificial division of one landmass into two continents.

It would also significantly facilitate linking the railway to the Belt and Road by making it financially feasible.

That is less far-fetched with China Railway International Group lending Russia US$6.2 billion for the construction of a 790-kilometre long Moscow-Kazan high speed rail line, envisioned as the first phase of a link between the Russian capital and Beijing that would cut travel between the two cities to two days.

To secure the loan, Russia agreed to use Chinese technology and construction equipment.

Russia has also expressed interest in linking its Trans-Siberian Railway to the Chinese-controlled Pakistani port of Gwadar, a Belt and Road crown jewel.

Russia is betting that the combination of the Northeast Passage and upgraded Trans-Siberian rail links would make its positioning as a transit hub significantly more attractive.

That is true even though the Northeast Passage is too shallow for giant box ships that traverse the Suez Canal and lacks the kind of ports capable of accommodating those vessels. The Passage is likely to see primarily smaller container ships.

One way or the other, DP World, expecting to operate ports that Russia plans to build along an Arctic route, would emerge a winner by expanding its global footprint. “We were always missing Russia. Russia is a link,” DP World’s Mr. Sulayem said.

Said Russian shipping giant Sovcomflot CEO Sergey Frank: “Trade is growing and there is space for everybody. If the cargo originates in the south part of China, it will go through the Suez. If it originates in Northern China, the NSR (Northern Sea Route) will be seriously considered. Cargo will always find the fastest way to move.”

Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Würzburg’s Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and three forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africaas well as Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.

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The secret behind Trump’s moves in eastern Deir ez-Zur

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Trump’s desire for Syrian oil has led observers to consider it as the beginning of occupying oil wells in other countries, including Libya, Iraq, Saudi Arabia and other Persian Gulf Arab states.

The obsession of the U.S. president with money and oil is obvious for everyone and that is why U.S. military commanders have used this temptation by Trump to persuade him to keep some troops in Syria.

On October 28, Trump said, “We are keeping the oil — remember that. Forty-five million dollars a month?  We have secured the oil”.

Last week, news sources reported that the U.S. president has agreed to develop military missions to protect oilfields in eastern Syria.

The Turkish Anadolu Agency reported that the U.S. has established a new military base in the oil-rich parts of Deir ez-Zur in Syria.

In this regard, Trump announced the settlement of some U.S. companies in Syria’s east to invest in and exploit oilfields. It was a move that drew Russian backlash.

Russian opposition to Trump’s oil ambitions

Russian Foreign Minister Sergey Lavrov said in a statement in late October that the Syrian oil is the focus of U.S. attention. In a phone call with U.S. Secretary of State Mike Pompeo, Lavrov said it was important to refrain from “steps undermining the sovereignty and territorial integrity” of Syria.

Russian Defense Ministry spokesman Major General Igor Konashenkov also said, “This, what Washington is doing now — capturing and maintaining control through the use of arms over oil fields in eastern Syria — that is, to put it simply, international, state-sponsored banditry,” DW reported on October 26.

Konashenkov said tank trucks guarded by U.S. military servicemen and private military companies smuggle oil from fields in eastern Syria to other countries.

Russian Deputy Foreign Minister Sergei Vershinin also pointed to U.S. efforts to reinforce its presence in Syrian oil-rich lands, calling it an illegal act by Washington. Vershinin also said that Moscow will never accept the policy that the U.S. is pursuing in Syria.

The Russian Defense Ministry in recent weeks has also released satellite images of some areas in Syria showing that U.S. troops have created security guard to smuggle Syria’s oil. Earlier, images of eastern Syria were released documenting oil trucks were traveling across Syria-Turkey borders, an action which reveals the goals of those countries which support terrorism in Syria.

 Syria’s oil reserves

In terms of oil reserves, Syria is in 32nd place after Malaysia and ahead of Argentina, with 2,500,000,000 barrels. Syria’s known oil reserves are mainly in the eastern part of the country in Deir ez-Zor, the second largest Syrian province after Homs. The rest of reserves are in other provinces such as Hama, Ar Raqqah and Homs.

Before the beginning of civil war in 2011, Syria was extracting 385,000 barrels of light crude oil with an approximate value of €3 billion, which were being transferred to Homs via pipeline. 89,000 barrels of the extracted oil were being refined and used for domestic uses. The rest was being exported through port of Baniyas.

Lebanon has uncovered some oil and gas reserves in the Mediterranean. Syria can also explore some of these reserves as it has long coasts along the Mediterranean if it invests in its territorial waters.  

U.S. actions in eastern Euphrates

Now that the defeat of terrorists is clear to everyone, the U.S. is seeking to create an economic crisis in Syria by using oil as a tool against Damascus. This is the reason why it is seizing the country’s oil reserves and also pressures Damascus to accept Washington’s conditions.

From our partner Tehran Times

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Middle East

Middle Eastern protests: A tug of war over who has the longer breath

Dr. James M. Dorsey

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Mass anti-government protests in several Arab countries are turning into competitions to determine who has the longer breath, the protesters or the government.

In Algeria, Lebanon and Iraq, countries in which the leader was either forced to resign or has agreed to step down, authorities appear to be dragging their feet on handovers of power or agreed transitional power sharing arrangements in the hope that protesters, determined to hold on to their street power until a political transition process is firmly in place, either lose their momentum or are racked by internal differences.

So far, protesters are holding their ground, having learnt the lesson that their achievements are likely to be rolled back if they vacate the street before having cemented an agreement on the rules of the transitional game and process.

Algerians remain on the streets, seven months after President Abdelaziz Bouteflika was forced to step down, in demand of a complete change of the political system.

Scores of recent arrests on charges that include “harming national unity” and “undermining the morale of the army” have failed to deter Algerians who refuse to accept the military’s proposed December 12 date for elections.

Lebanon enters its second months of protests with the government going through the motions but ultimately failing to respond to demands for a technocratic government, a new non-sectarian electoral law and early elections.

An effort to replace prime minister Saad Hariri with another member of the elite, Mohammad Safadi, a billionaire businessman and former finance minister, was rejected by the protesters.

We are staying here. We don’t know how long – maybe one or two months or one or two years. Maybe it will take 10 years to get the state we are dreaming of, but everything starts with a first step.” said filmmaker Perla Joe Maalouli.

Weeks after agreeing to resign in response to popular pressure, Iraqi prime minister Adil Abdul Mehdi appears to be increasingly firm in his saddle.

Much like what prompted US President George H.W.. Bush to first call in 1991 for a popular revolt against Saddam Hussein and then give the Iraqi strongman the tools to crush the uprising, Mr. Mehdi is holding on to power in the absence of a credible candidate acceptable to the political elite to replace him.

Mr. Mehdi’s position is strengthened by the fact that neither the United States nor Iran wants a power vacuum to emerge in Baghdad.

Backtracking on Mr. Mehdi’s resignation and refraining from appointing a prime minister who credibly holds out the promise of real change is likely to harden the battle lines between the protesters and the government.

The tugs of war highlight the pitfalls protesters and governments need to manoeuvre in what amounts to a complex game with governments seeking to pacify demonstrators by seemingly entertaining their demands yet plotting to maintain fundamental political structures that anti-government activists want to uproot.

The risk of a tug of war is that protests turn violent as happened in Hong Kong or in Lebanon where cars of parliamentarians were attacked as they drove this week towards the assembly.

Meeting protesters’ demands and aspirations that drive the demonstrations and figure across the Middle East and North Africa, irrespective of whether grievances have spilled into streets, is what makes economic and social reform tricky business for the region’s autocrats.

Its where what is needed for sustainable reforms bounces up against ever more repressive security states intent on exercising increasingly tight control.

Sustainable reform requires capable and effective institutions rather than bloated, bureaucratic job banks and decentralisation with greater authorities granted to municipalities and regions.

Altering social contracts by introducing or increasing taxes, reducing subsidies for basic goods and narrowing opportunities for government employment will have to be buffered by greater transparency that provides the public insight into how the government ensures that it benefits from the still evolving new social contract.

To many protesters, Sudan has validated protesters’ resolve to retain street power until transitional arrangements are put in place.

It took five months after the toppling of president Omar al-Bashir and a short-lived security force crackdown in which some 100 people were killed before the military, the protesters and political groups agreed and put in place a transitional power-sharing process.

The process involved the creation of a sovereign council made up of civilians and military officers that is governing the country and managing its democratic transition.

Even so, transitional experiences have yet to prove their mettle. Protesters may have learnt lessons from the 2011 popular Arab revolts that toppled the leaders of Tunisia, Egypt, Libya and Yemen.

Yet, this time round, protesters lack the broad-based international empathy that 2011 uprisings enjoyed and are up against more than domestic forces backed by conservative Gulf states.

Powers like Russia and China make no bones about their rejection of protest as an expression of popular political will.

So has Iran that has much at stake in Iraq and Lebanon, countries where anti-sectarian sentiment is strong among protesters, even if the Islamic republic was born in one of the 20th century’s epic popular revolts and is confronting protests of its own against fuel price hikes.

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Iran’s next parliamentary election hinges on economic problems, US sanctions effective

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It seems any faction focuses on solving the economic problems, has more chance for victory in the parliamentary elections.

The eleventh elections of the Islamic Parliament in Iran will be on Feb 21, 2020 across the country. Seyed Salaman Samani spokesman of Interior Ministry said in an interview that has published on the official website of the ministry.

About 4 months have remained to the elections, but the politicians and parties have started to organize their campaigns and planning for victory.

The current parliament was formed from 41 percent Reformers and Moderates, 29 percent Principlists, 28 percent Independents and 2 percent Minorities, according to the ISNA News Agency.

In Tehran, capital of the country, all seats were gained by the Reformers, but some important cities such as Mashhad as the second city in the country, the Principlists were decisive winners.

But the majority of people and political activists are serious dissatisfactions concerning the function of the parliament, even some experts have emphasized on the famous slogan that says: “Reformer, Principlist, the story is over.”

This situation has formed, while Iran`s Parliament has been under control between two parties in the past years. So, some experts seek up the third faction for improving the country’s position, but so far the third faction has had not a leader and specific structure.

Due to the Reformers supporting of President Hassan Rouhani in the last presidential elections and lack of his rhetoric realization, the position of the Reformers has weakened increasingly. For example, Rouhani said during the contests of the presidential elections about 2 years ago in Iran television that If Iranians reelect me, all sanctions even non-nuclear sanctions will be lifted. But now, the sanctions against Iran have increased and the economic situation of the people has hurt extremely.

But recently, many celebrities of Iran have regretted concerning supporting Rouhani like Ali Karimi the former football player and Reza Sadeghi the famous singer, they demonstrated their regret on social media. So, some suggested that the victory of Principlists in the elections is certain.

“The Principlists need not do anything; they are comfortably the winner of the next parliamentary elections.” Sadegh Zibakalam, an Iranian academic reformist said in an interview with Shargh Newspaper.

“We have no chance for parliamentary elections and next presidential elections unless a miracle happens,” he added.

The Iranian Principlists are closer to Iran`s supreme leader and guard corps than the Reformers. A political face in the right-wing like, Mohammad Bagher Ghalibaf with the slogans “New Parliament ” and “Neo-Principlism ” has recalled young people to receive their ability to provide the elections list. Ghalibaf launched his third presidential campaign for the Iranian presidency on April 15, 2017, but on May 15, 2017, Ghalibaf withdrew, but he supported Ebrahim Raisi who is the current chief of Iran`s judiciary.

Another face is the former president Mahmoud Ahmadinezhad. Some experts say Ahmadinezhad has a great plan for the next elections but so far he has not spoken about it. Recently he criticized toughly from the government of Rouhani and Iran’s Judiciary. Recently, some of his close activists arrested by Iran’s Judiciary, and they are in Evin Prison now. Some analyzers say Ahmadinezhad has high popularity, just as the people have welcomed warmly lately on his travels across the country.

JAMNA or “Popular Front of Islamic Revolution Forces” is another chance for Principlists in the next elections. JAMNA founded in late 2016 by ten figures from different spectrum of conservative factions, in the end, the party elected Ebrahim Raisi as a candidate for the presidential election but Raeisi defeated.

But Reformers are not hopeless, Mohammad Khatami as the leader of the Reformers, who served as the fifth President of Iran from 1997 to 2005 has said statements recently. He has wanted from the government to qualify the Reformers candidates for participation in the political event.

One of the Reformer’s big problems in the history of Iran `s elections has been the disqualification by the Guardian Council. According to Iran constitution, all candidates of parliamentary or presidential elections, as well as candidates for the Assembly of Experts, have to be qualified by the Guardian Council to run in the elections.

Some Reformers in reformist newspapers state that they will take part in the parliament elections on this condition the majority of Reformers’ candidates will be qualified by the Guardian Council.

Some analysts said the Iran parliament has not enough power in order to improve the country’s situation. Just as the parliament has approved the bill of “United Nations Convention against Transnational Organized Crime” by a 126 vote in last year, but the Guardian Council has disagreed with it and its fate shall determine by Expediency Discernment Council, while the government has frequently emphasized on the bill. The government believes the approving the bill will cause to reducing the bans about the economic transaction with the world.

Generally, Iran`s economic position is very critical currently, tough sanctions by Trump administration and the defeat of the nuclear deal (JCPOA) has caused that Iranians to be under serious problems. The stuff prices and inflation are at the highest level since Iran`s revolution in 1979. So, it seems any faction that focuses on solving the economic problems, has more chance for victory in the parliamentary elections. Also, the more important issue is the participation rate of people. If dissatisfactions about economic problems will be continued, hope and joy between people would reduce the rate of Participation in the next elections. Some experts say based on experiences in Iran, when the rate of participation in the elections is reduced, the Principlists has a more chance for the victory, because the gray spectrum that is not black or white, usually has a willing to the Reformers. the spectrum includes younger people even teenagers in the urban society.

Some political observers say the gray spectrum has not very willing to participate in the next elections. Some suggested that the future situation, especially in the economic field is very important to make the willingness about the gray spectrum to participate.

Analysts said the winner of the presidential elections 2 years later is the winner of the parliamentary elections on Feb 21, 2020. The majority of the next parliament will affect the political space across the country. This procedure in Iran has precedent. Like the victory of the Reformers in the last parliamentary elections that it caused the Rouhani victory about 2 years ago.

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