Group items tagged

During Ahmet Davutoğlu’s tenure as Turkey’s prime minister, relations between Ankara and the Tobruk-based parliament deteriorated to the point where all Turkish firms were expelled from Libya. 

Ankara's efforts to gain influence in Libya pale in comparison to the security assets that Moscow and Egypt may be preparing for a more expanded military presence in Libya. On November 7, 2018, Haftar and his senior staff visited Moscow for their latest meeting with Russia's defense minister Sergei Shoigu. Following the session, the Libyan Armed Forces released a video showing the presence of Yevgeny Prigozhin, an associate of Russian President Vladimir Putin and linked to several Russian private military companies, including the Wagner Group that allegedly participated in operations in Syria. Prigozhin's presence at the Haftar-Shoigu meeting has suggested to observers within Russia and beyond that Moscow may be gearing up for some form of increased intervention in Libya with operations similar to those conducted in Syria.

from November 3 to 16, Egypt hosted a two-week long joint exercise with the militaries of Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Jordan. Dubbed Arab Shield 1, the exercise involved land, naval, and air forces as well as Special Forces and took place at Egypt's base in Marsa Matrouh. While some view the exercises as a step toward creating an 'Arab NATO' to confront Iran, the massive joint Arab exercise on Egypt's Mediterranean coast sent a clear signal to Turkey and demonstrated the sort of coalition Egypt could muster should it decide to expand its military footprint in Libya

both Russia and Egypt have strategic incentives to escalate their support for the aging Libyan commander Field Marshal Khalifa Haftar.  In April 2018, the general suffered a stroke and required hospitalization in an intensive care unit in Paris.  Although two of Haftar's sons are commanders in the Libyan National Army, it is unclear whether either one of them could maintain the loyalty of the coalition of diverse factions that have united under the figure of Khalifa Haftar.  It would behoove both Moscow and Cairo to press their current advantage and deepen their respective positions in preparation for a post-Haftar era.

Moscow’s military presence in Libya would enable the Kremlin to complete a Russian ring around the southern half of the eastern Mediterranean. It is worth noting that Vladimir Putin's Russia is more popular than NATO in Greece and among Greek Cypriots. With only 195 nautical miles (360 km) separating Tobruk and Crete, Turkey thus faces the prospect of eventually finding itself encircled by a Russian presence among all of its regional adversaries

The change in the balance of power in North Africa in favor of Russia and Egypt inevitably and severely undermines Turkey's already challenging strategic position in the Eastern Mediterranean.

The plan, to be funded by private Saudi and Emirati investors and executed by Egyptian firms that helped broaden the Suez Canal, also envisions the construction of five hotels, two ports and a free trade zone.

The $750 million project would have the dump ready for when Saudi Arabia inaugurates the first two of its 16 planned nuclear reactors in 2027. Saudi Arabia is reviewing proposals to build the reactors from US, Chinese, French, South Korean contractors and expects to award the projects in December.

Qatar’s more liberal Wahhabism of the sea contrasts starkly with the Wahhabism of the land that Prince Mohammed is seeking to reform. The crown prince made waves last year by lifting a ban on women’s driving, granting women the right to attend male sporting events in stadiums, and introducing modern forms of entertainment like, music, cinema and theatre – all long-standing fixtures of Qatari social life and of the ability to reform while maintaining autocratic rule.

A traditional Gulf state and a Wahhabi state to boot, Qatari conservatism was everything but a mirror image of Saudi Arabia’s long-standing puritan way of life. Qatar did not have a powerful religious establishment like the one in Saudi Arabia that Prince Mohammed has recently whipped into subservience, nor did it implement absolute gender segregation. Non-Muslims can practice their faith in their own houses of worship and were exempted from bans on alcohol and pork. Qatar became a sponsor of the arts and hosted the controversial state-owned Al Jazeera television network that revolutionized the region’s controlled media landscape and became one of the world’s foremost global English-language broadcasters.

Qatari conservatism is likely what Prince Mohammed would like to achieve even if that is something he is unlikely to acknowledge

“I consider myself a good Wahhabi and can still be modern, understanding Islam in an open way. We take into account the changes in the world,” Abdelhameed Al Ansari, the then dean of Qatar University’s College of Sharia, a leader of the paradigm shift, told The Wall Street Journal in 2002.

if built, the channel would suggest that geopolitical supremacy has replaced ultra-conservative, supremacist religious doctrine as a driver of the king-in-waiting’s policy

“We don’t get instructions from the U.S. government.” He recalled Trump’s announcement, in December, 2017, that the U.S. would recognize Jerusalem as the capital of Israel. As the United Nations considered a resolution condemning the move, Nikki Haley, Trump’s envoy to the U.N., circulated a threatening letter, saying that Trump “has requested I report back on those who voted against us.” Feeley heard nothing in advance about the letter. “Do you think we got a heads-up, to prepare?” he said. “Nothing.” Soon afterward, he received outraged telephone calls from Panama’s President and Vice-President, Isabel de Saint Malo. Feeley recalled that when Saint Malo called “she said, ‘John, friends don’t treat friends like this.’ All I could say was ‘I know. I’m sorry.’ We both knew it was going to hurt our personal and institutional relationship. And there was nothing we could do about it.”

Since Trump’s election, “we’ve taken a step back in tone,” Feeley said. “We tried to get Kerry to bury the Monroe Doctrine. But now, all of a sudden, it’s back.”

Early this year, during an appearance in Texas, Tillerson called the Monroe Doctrine “clearly . . . a success.” The rhetoric has had a chilling effect, Feeley said, “Latins believe that Trump and his senior officials have no real interest in the region, beyond baiting Mexico and tightening the screws on Cuba and Venezuela.”

a building in the style of a pagoda: a monument to China’s presence in Panama. “Look how prominent they’ve become,” one of the staffers said. In June, 2016, a major expansion of the canal was completed, and the first ship through was an enormous Chinese freighter, designed to fit the new dimensions. “I got a big American naval ship to park right outside the locks, where the Chinese ship would see it,” Feeley said. “And I threw our annual Embassy July 4th party on it.” He laughed at the memory, but he knew that the gesture was ultimately futile.

As the United States has retreated from Latin America, China’s influence has grown. Since 2005, banks linked to Beijing have provided more than a hundred and fifty billion dollars in loan commitments to the region—some years, more than the World Bank and the Inter-American Development Bank combined. In less than two decades, trade between China and Latin America has increased twenty-seven-fold.

The Taiwanese government furiously denounced Panama for succumbing to “checkbook diplomacy,” but Panamanian officials denied that the decision was motivated by economics. Then, last November, Varela travelled to Beijing and joined President Xi Jinping in a ceremony to celebrate their new friendship, at which he signed nineteen separate trade deals. At around the same time, the China Harbour Engineering Company began work in Panama on a hundred-and-sixty-five-million-dollar port.

Panama could well become China’s Latin-American hub; the One Belt, One Road initiative, working with Varela’s government, is planning to build a railway from Panama City to near the Costa Rican border. But, Feeley added, “the Panamanians are naïve about the Chinese.” He told me that he had worked to persuade Panama’s security ministry not to sign a communications-technology deal with the Chinese, partly out of concern that they would use the infrastructure for espionage, as they have elsewhere. The Chinese company Huawei, which has headquarters in Panama, lobbied hard “to delay, divert, and get the contract.” In the end, the work was contracted to an American firm, General Dynamics, but the negotiations were difficult.

Varela’s government has quietly leased the Chinese a huge building plot, on the strip of land that juts into the ocean at the mouth of the canal, to use as the site of a new Embassy. Sailors on every ship in the canal will see the proof of China’s rising power, as they enter a waterway that once symbolized the global influence of the United States.

As morale sank in the State Department, veteran diplomats had been leaving, in what some called “the exodus.” David Rank, the senior American diplomat in China, stepped down last June, after Trump withdrew from the Paris accord. “You have decisions that the rest of the world fundamentally disagrees with,” Rank said recently. He recalled that, on September 11, 2001, “I got a call from the Embassy of an allied country seconds after the attack. The person said, ‘Whatever you need, you can count on us.’ Now that we pulled out of Paris and Iran, swept tariffs across the world, I wonder if we’re going to get that call again.”

Feeley pointed out that leftist leaders were in retreat throughout Latin America, and that popular movements were rejecting old habits of corrupt governance. It was, he said, “the greatest opportunity to recoup the moral high ground that we have had in decades.” Instead, we were abandoning the region. “I keep waiting for a Latin leader to paraphrase Angela Merkel and say, ‘We can no longer count on the Americans to provide leadership.’ ”

Some people liken it to an own goal. I’d say it’s more like a self-inflicted Pearl Harbor

“There’s this idea that the States is just like the rest of us. That’s the saddest thing to me.”

Foreign Service officers were willing to work with the Trump Administration. “I don’t know of a single Trump supporter who is an F.S.O.,” he said. “But I also don’t know of a single F.S.O. who hopes for failure, myself included. Far from the Alex Jones caricature of a bunch of pearl-clutching, cookie-pushing effetes, we have an entire corps of people who will do everything they can to successfully implement American foreign policy, as it is determined by the national leaders—to include Mike Pompeo.” But, Feeley suggested, Pompeo would need to moderate his boss’s instincts. “I just do not believe that, with Trump’s rhetoric and a lot of his policy actions, we are going to recoup our leadership position in the world,” he said. “Because the evidence is already in, and we’re not. We’re not just walking off the field. We’re taking the ball and throwing a finger at the rest of the world.”

The drug, which gives a faster high than traditional amphetamine, has for years been a favorite among ISIS fighters. But its export from the country, through ports like Latakia that are controlled by the Bashar Assad government, suggests that the Syrian regime might now be turning to fenethylline sales internationally to bolster its treasury. At the very least, suggest experts, it might be allowing corrupt officials to carry out trade in the illegal substance to keep them loyal.

Captagon, Biocapton and Fitton were the brand names for drugs whose main active ingredient is fenethylline, which was legal in the U.S. until 1981, when its addictive properties saw it categorized as a Schedule 1 drug alongside heroin and cocaine. When legal in the 1960s and ’70s, it was used to calm hyperactive children and for patients suffering from narcolepsy and depression. By 1986, it was banned in most countries. Yet as with most narcotics, the ban only drove production underground, with southeastern Europe emerging as the manufacturing hub. Faced with increasing international pressure, production shifted to the Middle East after 2011. Until then, Syria had no history as a manufacturer or exporter of the drug

Before the 2011 uprising, Syria’s robust pharmaceutical industry meant that almost all medicinal drugs consumed in Syria were produced in-country. Despite the war, Syria still maintains significant pharma infrastructure capable of producing vast quantities of legal medicines, and therefore illegal drugs such as Captagon. In 2017, the country’s health minister Nizar Yazayi told a pharmaceutical conference in Damascus that 40 of Syria’s 62 drug plants were still safe. State media in Syria also occasionally reports forces capturing Captagon pills worth millions on the international market from rebels. But the government hasn’t made clear what it does with all those pills.

In Saudi Arabia, the pill, which contains caffeine and quinine, a painkiller, is more popular than cocaine, weed, heroin or ecstasy. According to a 2016 study published in the journal Basic & Clinical Pharmacology & Toxicology, three-quarters of people treated for drug addiction in Saudi Arabia are addicted to amphetamines, and almost all of those are Captagon users.

Captagon is also becoming increasingly popular in the United Arab Emirates, Qatar and North Africa. While a batch of 200 sells for about $70 in Lebanon, in wealthy Gulf states a single pill can fetch between $10 and $20

There are also fears that the development, with its large-scale building work and dredging activities, will threaten irreparable damage to what is one of the world’s most pristine but vulnerable ecological regions.

with climate change and rising sea levels, there is a very real possibility that the majority of the island nation’s land area will be underwater by the end of the century

Abdulla Yameen, the current president – who has strongly denied allegations about government corruption made recently by the Qatar-based Al-Jazeera network - has stressed the need for economic growth and sees the giant Saudi investment as key to future prosperity.“We do not need cabinet meetings under water,” says the government. “We need development.”

The opposition says part of the rational behind the multi-billion dollar Saudi development could be a plan by Riyadh to establish a staging post and special economic zone, complete with port facilities, for oil and gas exports to Asia, particularly to China.

Islam in the Maldives has traditionally blended elements of Sufism and other religions; in recent years, a stricter form of Saudi-style "Wahhabism" has predominated. There are concerns that a number of people from the Maldives are believed to have joined the Islamic State (IS) group in Syria and Iraq.

The Saudis have pledged to build what they describe as 10 "world class" mosques in the archipelago and have donated $100,000 for scholarships to study in Saudi Arabia. 

In early 2016, the government in Male cut diplomat ties with Iran

The growing ties between Riyadh and Male have been causing some concern in the region, particularly in India.Last year the Binladin Group, the troubled Saudi construction conglomerate, was awarded – for an undisclosed sum – a contract to build a new international airport in the Maldives. A previous agreement with an Indian company to build the airport was terminated; it is likely the Maldives will have to pay millions of dollars in compensation. 

Analysts say the Asia trip is about extending Saudi influence and diversifying the Kingdom’s economy away from oil and gas and investing in the region.

Egypt is not collecting tolls on ships’ passage. And ships, including those operated by Evergreen, have begun to reroute around the Cape of Good Hope.

For now, the knock-on effect of the stoppage is the accumulation of insurance claims and late fees, and delays in the delivery of cargo. But in the longer term, much as it did in the mid-twentieth century, the 2021 blockage of the Suez Canal, combined with the effects of the pandemic, may precipitate a reckoning in how maritime transport operates.

the volume of trade exchange between Senegal and Turkey increased from $15 million in 2008 to $250 million in 2019.

History shows that when sponsoring a client dictatorship becomes a sacred pillar of Washington’s foreign policy, client rulers become extremely dependent upon U.S. support, prioritizing their relationship with Washington over their own people. In Jordan’s case, the government has preserved U.S. dominance in the Middle East and protected Israel while neglecting Jordanians’ own woes.

Policymakers fear that reducing any part of their support will destabilize their client state, which could not survive without it. The only option is to perpetuate the current system, even though that regime’s own policies are clearly destabilizing it.

Jordan’s transformation into a U.S. dependency began during the Cold War. Washington replaced the fading British in the late 1950s as its great protector, a logical move given the need to back anti-Soviet regimes everywhere. Jordan had no oil. However, so long as Jordan endured, it could be a geopolitical firebreak insulating Israel and the oil-rich Arabian Peninsula from the radical forces of communism and Arab nationalism.

Washington helped build the Jordanian state. Foreign aid was one mechanism. In many years, U.S. economic aid exceeded all domestic tax revenues, the only thing keeping “Fortress Jordan” from collapsing into insolvency. While Jordan today receives support from many donors, including the International Monetary Fund, U.S. economic support remains uniquely fungible: It comes mostly in cash, it is guaranteed, and it now exceeds $1 billion annually.

the U.S. Agency for International Development began designing and operating much of Jordan’s physical infrastructure in the 1960s, doing the basic task of governance—providing public goods to society—for the monarchy. When Jordanians get water from the tap, no small feat in the bone-dry country, it is because of USAID. Even the Aqaba Special Economic Zone, a mega-project aimed at turning the Red Sea port city of Aqaba into a regional commercial hub, was funded and designed by U.S. technocrats.

The General Intelligence Directorate, glorified by Western journalists as an Arab version of Mossad, spends as much time smothering Jordanian dissent as battling terrorism. It owes much of its skills and resources to the CIA.

Of course, being a U.S. protectorate brings occasional costs. Dependency upon Washington’s goodwill, for instance, gave Abdullah little room to halt the Trump administration’s “deal of the century.” That provocative plan to resolve the Israeli-Palestinian dilemma incensed Abdullah, as it favored Israel’s land claims while sidelining Jordan’s traditional front-line role as mediator to the conflict.

Washington cannot imagine any other kind of Jordan, because it never had to. It may yet learn the hard way.

The Middle East remains a revolutionary place, as six of its autocratic rulers have lost power to mass uprisings in the last decade. Whether Jordan is next depends upon if the monarchy can fundamentally rethink its approach, rather than fall back upon the United States for affirmation.

As the UAE officially ended its involvement in the Yemen conflict in October 2019 and its military intervention on Khalifa Haftar’s behalf in Libya failed, Abu Dhabi has relied increasingly on crisis diplomacy to expand its international influence

Although the US envoy to the Horn of Africa, Jeffrey Feltman, is currently discussing the dam on a regional tour, President Joe Biden has not committed the United States to a mediation role and recently consulted with the UAE on the Tigray crisis. The European Union has confined its role in the dam dispute to consultations with regional actors, such as Egypt, Ethiopia and Saudi Arabia, while Russia insists that the African Union should resolve disagreements over the dam. Saudi Arabia’s support for Egypt and Sudan’s position weakens the credibility of the Saudi mediation offer, while Egypt is wary of Turkish mediation, as it believes that Turkey provided technical assistance to Ethiopia on constructing the dam.

In addition to the positive precedent set by its successful facilitation of peace between Ethiopia and Eritrea in August 2018, the UAE views its close relationships with all of the conflicting parties in the dam dispute to be a major asset

an anti-UAE backlash that was caused by its initial opposition to Sudan’s democratic transition, recruitment of Sudanese mercenaries in Yemen and Libya and Eritrea’s alleged use of Emirati drones in Tigray.

udan and Egypt are much more likely than Ethiopia to accept Emirati mediation

A former senior US official who is familiar with the dam negotiations told Al-Monitor that Egypt was “forum-shopping” on the dam dispute as it fears a military escalation that could cause Ethiopia to retaliate by attacking Egypt's Aswan High Dam.

On March 3, Dina Mufti, a spokesperson for the Ethiopian Foreign Ministry, said inviting external mediators would demean the African Union’s efforts

Although Qatar’s recent mediation of the Somalia-Kenya maritime dispute underscores the arbitration potential of Gulf countries in the Horn of Africa, the UAE faces an uphill struggle to achieve a major diplomatic breakthrough on the dam.

since 2019, Egypt has become aware that Addis Ababa has been presenting Cairo as a “North African, Arab country” that doesn’t care about the rest of the continent

Egypt’s foreign policy in the Horn is also about re-establishing a security presence over the Bab al-Mandeb, the strait leading into the Red Sea and Suez Canal, where Egypt had grown concerned about the increased presence of foreign powers

By establishing a presence in East Africa, Egypt will have the opportunity to cooperate with international powers that are trying to expand their presence in the region, including the US, Russia, and China, says one of the Egyptian officials, adding that this cooperation could take the form of trade agreements, combatting “terrorism” or controlling irregular migration

Egypt has grown increasingly worried about the role of the Emirates, which has become a major power broker and the principal architect of the security framework in the fiercely competitive Red Sea, with bases in Berbera, Somaliland; Bosaso, Somalia; and several coastal ports in Yemen, where it had fought alongside the Saudi-led coalition since 2015.

while Turkey and Egypt have publicized their quiet rapprochement, Turkey has made its own prominent foray into East Africa: signing a military cooperation with Niger last year; being invited by Somalia, to whom Turkey has long provided aid, to explore for oil in its seas; and holding high-level talks with Ethiopian officials.

A consultant for the Turkish Foreign Ministry’s Africa policy previously told Mada Masr that Turkey’s “developing relations with Ethiopia is a direct answer to Egypt. There are two dimensions. We want to develop our relations with Ethiopia, and we want to develop our relations with an Ethiopia that is stronger against Egypt. A strong Ethiopia against Egypt is something that Turkey wants.”

incident, yet to be independently confirmed, is the latest involving oil tankers in the Red Sea and Gulf region, and may ratchet up tensions between Iran and Saudi Arabia, long-time regional adversaries fighting a proxy war in Yemen, which lies at the southern end of the Red Sea

Cairo had officially announced that the talks over the Ethiopian Renaissance Dam have come to a dead end, and that Ethiopia rejected the proposals Cairo made to Addis Ababa and Khartoum. This is while Ankara said Oct. 7 that the Turkish drilling vessel Yavuz will start gas drilling activities southwest of Cyprus.

Egypt needs to mobilize international support in the talks over the dam, and that Cyprus needs similar support against the Turksih gas drilling activities in the waters that Cyprus considers to be part of its Exclusive Economic Zone

the energy dossier, particularly natural gas, was of utmost importance at the summit.

“I do not think that such support would have a major impact on the [international] decisions relating to the Turkey-Cyprus dispute. Neither do Egypt and Greece have effective means to pressure Turkey, nor are Cyprus and Greece able to pressure Ethiopia in the talks over the dam. Yet at the end of the day it is a kind of political support.”

Cyprus and Greece are interested in investing in the Suez Canal, and Egypt is interested as well in the advantages Cyprus and Greece can bring to the field of ports management

Syrian and Libyan crises and subsequent illegal migration via the Mediterranean Sea,

The three countries signed May 22 an electricity interconnection agreement.

 “The summit delivers to Turkey the warning message that carrying on with its international law violations would require the three countries to take a firm stance that the European Union — which already imposed sanctions against Turkey — backs.”

part of the Eastern Mediterranean Initiative (Cairo Declaration) on tripartite cooperation and coordination in the gas, energy and oil resources dossiers in the Eastern Mediterranean that Egypt launched on Nov. 8, 2014

there are currently hundreds of containers of imported foods, and butter among them, sitting in Haifa and Ashdod ports. Due to the High Holidays that occurred in September and October, the containers have not been inspected by the Ministry of Health, and so have not been released

The Economy and Industry ministries recommend getting rid of  tariffs on imported butter and opening the Israeli market to competition. But under Israel’s current interim government,  policy changes are unlikely to be made any time soon. In the meantime, the Agriculture and Economy ministries cite unequal distribution of import quotas and blame each other for it.  

why not allow Israeli farmers to increase milk production, thus allowing Tnuva to obtain the milk fat needed to make it?

skirmishes between the warring parties in the port city of Hodeidah, where the two sides agreed on a ceasefire last year, have been reduced by 80 percent after the deployment of UN monitors in recent weeks

Morocco, a country of both origin and transit for migration, is a tense middle ground. The kingdom is the closest African country to Europe and shares land borders with two Spanish enclaves, making it a practical conduit for migrants. After Turkey and the European Union signed a border deal in 2016 and Italy closed its southern ports in 2018, scores more migrants headed for Morocco. 

after hundreds of sub-Saharan migrants breached the border fences of the Spanish enclave of Ceuta in mid-2018, Morocco cracked down. 

Morocco, facing pressure from Europe, has aggressively policed their presence. Since 2018, authorities have taken sub-Saharan migrants from their homes and the streets in border cities and bused them hundreds of miles to the south. The EU has given 232 million euros to Morocco to manage migration, most of which is spent on border policing. 

“When international deals were at stake, financial compensation to the kingdom was at stake, we started to see hardened migration policies.” 

Whether or not an official directive, the CTM poster hit all the wrong targets. Sub-Saharan Africans buying the company’s relatively expensive tickets are likely regularized and working in Morocco, not undocumented, Magallanes-Gonzalez said. “It’s like a slap in the face. It reminds documented migrants that the policy that promised them integration and access to social services — the policy they thought offered them hope in this country — may not be fully in practice," she added. Moreover, she said, “It reminds them that because they’re black, they’re being targeted.”

Thirty-one percent of migrants who crossed the Strait of Gibraltar in 2018 were Moroccan; 70% of Moroccans under the age of 30 have considered leaving, according to Arab Barometer.

Lacking legal options, they turn to traffickers who may exploit them and put them in deadly situations. EU border policing, combined with a broken Libyan state, led to migrants being sold as slaves in Libya in 2017 and 2018. 

Iran has seen weekly incidents including explosions at a missile-production facility on June 22; the Natanz nuclear facility, Iran's largest uranium-enrichment facility, on July 2; and an important shipyard in the port city of Bushehr on Wednesday.

Israeli officials told The New York Times in July that their intelligence services were responsible for the nuclear facility explosion, and implied that other attacks would be forthcoming.

I fear the Israeli plan here is to provoke an Iranian response that can turn into a military escalation while Trump remains in office

The attacks appear to be part of a campaign of "maximum pressure, minimal strategy," said the EU intelligence official

The source warned that Iran could be considering a rash response after exhibiting relative patience in the wake of the January assassination of top commander Qassem Soleimani in a US drone strike.

"It's been decided to follow the Trump administration's lead of exerting 'maximum pressure' on the Iranians," they said, referencing the US' economic sanctions policy directed toward Iran.

With a broad belief among America's allies that Trump is unlikely to win reelection, Israel's apparent shift in tactics towards high-pressure "kinetic" operations seem to reflect a belief that under a Biden administration, there would be a move to save the 2015 nuclear deal that had been scuttled by Trump.

Now that the Emiratis have broken the ice, opportunities for Arab-Israeli energy deals are broad and lucrative, ranging from investment in the Israeli pipeline itself, to adapting it for carrying natural gas or connecting it to pipelines across Saudi Arabia and the wider Middle East

Just over 60 years ago when it was built, the Eilat-Ashkelon pipeline was a massive national construction project aimed at guaranteeing Israel’s and Europe’s energy supplies in the wake of the 1956 Suez crisis

Most of the oil flowing through the pipeline came from Iran, which had close but discreet relations with Israel for decades under Shah Mohammad Reza Pahlavi. In 1968, the Israeli and Iranian governments registered what was then called the Eilat-Ashkelon Pipeline Co. as a 50-50 joint venture to manage the export of Iranian crude through Israeli territory and onward by tanker to Europe

A Swiss court ordered Israel in 2015 to pay Iran compensation of about $1.1 billion as a share of profits from the joint ownership of the pipeline since the two enemies broke off relations in 1979, but Israel has refused to pay up.

While the company’s main 42-inch pipeline was built to transport Iranian oil north to the Mediterranean, it now does most of its business in reverse. It can pump oil unloaded in Ashkelon from ships sent by producers such as Azerbaijan and Kazakhstan to tankers in the Gulf of Aqaba for transport to China, South Korea, or elsewhere in Asia

The pipeline’s advantage over the Suez is the ability of the terminals in Ashkelon and Eilat to accommodate the giant supertankers that dominate oil shipping today, but are too big to fit through the canal. Known in oilspeak as VLCCs, or very large crude carriers, the ships can transport as much as 2 million barrels of petroleum. The 150-year-old Suez Canal, on the other hand, is only deep and wide enough to handle so-called Suezmax vessels, with just half the capacity of a VLCC

The company’s business has always been one of Israel’s most closely guarded secrets. Even today, EAPC releases no financial statements. Levi says he can’t disclose the names of customers—though he says they include “some of the biggest companies in the world.” What little information that is publicly known only came to light as the result of legal battles following a 2014 rupture in the pipeline that caused the worst environmental disaster in Israeli history, spilling more than 1.3 million gallons of crude oil into the Ein Evrona desert nature preserve.

The boycott enforced by Saudi Arabia, the UAE, and their oil-producing neighbors meant that tankers acknowledging their docking in Israel would be barred from future loadings in the Persian Gulf, effectively destroying their business. The details are highly confidential—but generally the ways ships can obscure their activities include turning off their transponders, repainting, reflagging, reregistering, and faking their docking records.

EAPC’s business model improves dramatically with the erosion of the Arab boycott. “If the concerns [with secrecy] go down significantly, the price will drop significantly,”

Saudi Arabia has indicated it won’t establish formal links until the Palestinian conflict is resolved, although its business connections with Israel are plentiful and growing

Because of the canal’s limitations, much of the Gulf crude bound for Europe and North America gets pumped through Egypt’s Suez-Mediterranean Pipeline, in which Saudi Arabia and the UAE hold a stake. Egypt’s pipeline, however, operates in only one direction, making it less useful than its Israeli competitor, which can also handle, for example, Russian or Azerbaijani oil heading to Asia.

Even more possibilities arise from Israel’s discovery of a bounty of natural gas deposits off its Mediterranean coast that can supply far more than Israel’s own needs. Bringing in Gulf investors in addition to Israel’s current partners such as Chevron, and the possibility of connecting to the Middle East’s gas pipeline grid, would open yet another new horizon for Israel’s nascent energy industry.