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    What Is Behind the Escalation on the Kyrgyz-Tajik Border?

    At the end of April, a conflict over water escalated into the most serious border clashes between Kyrgyzstan and Tajikistan since their independence from the Soviet Union. By May, 36 deaths had been reported on the Kyrgyz and 19 on the Tajik side, with more than 270 injured and dozens of homes destroyed.

    This was not the first outbreak of armed violence in the contested territories of the Fergana Valley, whose densely populated oases depend on scarce water sources for irrigation. The administrative boundaries in this multiethnic area were drawn during Soviet times and have been disputed ever since. When the former Soviet republics of Uzbekistan, Kyrgyzstan and Tajikistan gained independence in 1991, delimitation of what were now international borders became a major issue and is still the subject of negotiations.

    Conflict Dynamic

    Almost half of the 970-kilometer Tajik-Kyrgyz border remains contested, with large sections neither demarcated nor controlled by posts. It is here, in the mountains between Batken in Kyrgyzstan and Isfara in Tajikistan, that the most recent violence occurred. Although the Kyrgyz and Tajiks have coexisted for generations here, population growth and increasing scarcity of arable land and water have raised tensions, resulting in occasional violence between the inhabitants of the border zone.

    This time, the bone of contention was the installation by Tajik workers of a surveillance camera at a joint water supply station situated on Kyrgyz territory to monitor the distribution of water between the two sides. The distribution is governed by bilateral agreements, but the Tajiks apparently believed that the Kyrgyz were exceeding their allocation. While Kyrgyzstan had earlier installed its own camera at that water station, the Tajik move was perceived to be a provocation, and a Kyrgyz local official, accompanied by law enforcement and an angry crowd, demanded the removal of the Tajik camera. The situation quickly escalated to involve more than a hundred participants on each side, with border guards using hunting rifles, handguns and, by some accounts, even light military weapons, including mortars.

    Embed from Getty Images

    A similar but much smaller incident occurred in September 2019 as clashes claiming lives on both sides have become frequent over the past decade. The drivers of violence are mostly economic in nature, revolving around the distribution of local natural resources. This time, a truce was agreed on the evening of April 29 and eventually stopped the fighting that had spread further to border villages as far as 70 kilometers from the initial incident.

    While each side blames the other for starting it, the violence does not seem to have happened by accident. In February, amidst fresh complaints about Tajiks illegally using land belonging to Kyrgyzstan, Kyrgyz activists demanded that the newly elected President Sapar Japarov, who espouses nationalist and populist positions, take up the border issue. Shortly afterward, in late March, Kamchybek Tashiev, the chairman of Kyrgyzstan’s State Committee for National Security, proposed an exchange of territory involving the densely populated Tajik exclave of Vorukh. The offer was castigated by former Tajik Foreign Minister Hamroxon Zarifi, with officials and commentators on both sides insulting each other on social media and other outlets.

    A few days later, Kyrgyzstan held military exercises in its Batken region, involving as many as 2,000 soldiers, 100 tanks and armored personnel carriers; around 20 units of self-propelled artillery were also involved in the drill. On April 9, Tajik President Emomali Rahmon paid a demonstrative visit to Vorukh and declared that exchanging the exclave for contiguous territory was out of the question.

    Limited Scope for External Action

    Given this background of tensions, a heightened state of alert and military deployment on the Tajik side of the border would be expected in response to the Kyrgyz land swap proposal and the subsequent military exercise. It certainly testifies to deeply entrenched mistrust on the Tajik side. The same mistrust and suspicion characterize the Kyrgyz narrative that the recent incident was planned and that the Tajik president is heading for war with Kyrgyzstan in order to distract his nation from the ever-worsening economic situation.

    The two sides have now announced that they will negotiate the demarcation of a 112-kilometer section of the border, although the details remain unclear. Given the conflicting interests and strong emotions attached to the border issue, new clashes can flare up at any moment. External actors have little influence and, as things stand, a lasting solution is a remote prospect. Efforts should therefore concentrate on confidence-building along two axes: humanitarian engagement involving NGOs and Kyrgyz and Tajik communities in the border areas, and strengthening existing early-warning mechanisms to help the two governments prevent future escalations.

    The conflict early-warning framework of the Organisation for Security and Cooperation in Europe (OSCE) could be employed in coordination with the two governments. The EU and UN could also contribute by training local officials in conflict resolution and crisis response. Local police should have rapid response teams ready to intervene to stop local clashes. Last but not least, the United Nations in particular should work toward resolving the underlying water resource conflict by helping establish a fair distribution accepted by both sides.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Is Turkey’s Ruling Alliance on the Attack or the Defensive?

    Since January 4, Istanbul’s prestigious and politically liberal Bogazici University has been gripped by student unrest. The protests were initially provoked by Turkish President Recep Tayyip Erdogan’s decision to appoint a member of his Justice and Development Party (AKP) as rector. The government has responded harshly, detaining students, raiding homes, criminalizing protesters and their supporters as “terrorists,” and vilifying the university and its students as deviants from the “nation’s true values.”

    Condemnation was not limited to the government: On February 7, Alaattin Cakıcı, an organized-crime boss and a former member of the ultranationalist Grey Wolves, tweeted a hand-written note stating the protests aimed to “harm the state and the People’s Alliance [AKP/MHP], which is the guarantor of our state.”

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    This episode of interference in the university’s administration is not an isolated incident. Under the state of emergency decree of October 2016, all rectors at public universities are now selected directly or indirectly by the president’s office, in conjunction with the Turkish Higher Education Council. The extensive purges that followed the 2016 coup attempt have created opportunities for the president to distribute academic posts to his supporters. Erdogan also regards the universities as central pillars of the “nation’s cultural hegemony.”

    Ramping Up Repression

    The attack goes beyond the universities, however. Ankara is determined to suppress all opposition. About 90% of the country’s media outlets are linked to the AKP through personal and/or financial ties. Prosecution of social media users for insulting the president is common. A new law from 2020 permits multiple bar associations, aiming to create an institutional wedge between pro-government and opposition lawyers. Ankara has also expanded its oversight over civil society organizations and worked to rein in local governments by replacing elected mayors in Kurdish municipalities with government-appointed trustees, cutting funding for opposition-held councils. It also works to contain civil society through prosecution, police violence, propaganda and, recently, even open support from mafia figures. The aim is to create a political community of supporters operating as agents of regime control.

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    In reality, the AKP is far from achieving cultural hegemony, as Erdogan himself admitted last year. In fact, popular discontent is growing. The pandemic has exacerbated Turkey’s already mounting economic woes and limited the AKP’s ability to redistribute resources to its supporters. Big business is complaining, while many small and micro-businesses are in debt. The official figure for youth unemployment reached 25.4% last November. Even AKP supporters are not immune to discontent over the rising cost of living.

    The unexpected success of opposition parties in the 2019 local elections and their united front against the presidential system further complicate the picture. The government’s divide-and-rule tactics have so far failed to bring opposition actors fully into line. Moreover, tensions and cracks within the ruling alliance are increasingly visible. For all these reasons, Ankara is in attack mode and on the defensive at the same time, which explains its disproportionate reaction to the Bogazici protests. It is no coincidence that government officials and pro-government journalists have consistently compared them to the Gezi protests of 2013 to which the AKP responded with similar criminalization, vilification and repression.

    The ghosts of the Gezi protests continue to haunt Ankara. One stark manifestation of this is the Kafkaesque trial of Osman Kavala, a Turkish businessman and human rights defender who was detained in 2017. The charges included “attempting to change the constitutional order and to overthrow the government” by leading and financing the Gezi protests. A second wave of arrests followed in 2018 for alleged links to Kavala. While the Gezi defendants were acquitted in February 2020, an appeals court overturned the acquittals of nine in January 2021. On February 5, the court rejected a request for Kavala’s release and merged the cases against him. On the same day, Erdoğan accused Ayse Bugra, a retired faculty member of Bogazici University who happens to be married to Osman Kavala, of being “among the provocateurs” of the student protests.

    Europe Should Not Turn a Blind Eye

    Europe should voice stronger criticism of Ankara’s repression of its citizens. While first and foremost a matter of principle, calling Ankara out is also in the EU’s own interests. While European policymakers have often enough prioritized stability over democracy in relations with authoritarian states, in Turkey’s case, that logic is associated with two problems. For one, it is unclear whether an authoritarian but stable Turkey would cooperate harmoniously with the EU. Even more importantly, the stability of authoritarianism in Turkey is uncertain for several reasons.

    Firstly, Turkey’s economic capacity depends heavily on popular consent, in particular because the country lacks the kind of natural resources that can be exploited through coercion. Secondly, the country’s sociopolitical diversity makes it difficult for the AKP to thoroughly penetrate the civil sphere, making future protests highly likely. Finally, the personalization of power and the tensions within the ruling alliance make the government vulnerable. While the EU certainly cannot force Turkey to democratize, it can and should hold Ankara more accountable, especially at a time when it is turning to the EU for economic support.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Brexit Deal Presents Opportunities for a New Partnership

    It was agreed almost at the last minute: The Trade and Cooperation Agreement (TCA) between the European Union and the United Kingdom, signed on December 30, 2020, prevented a no-deal Brexit just one day before the end of the transition period. Four and a half years after the referendum, relations between the EU and its former member state have thus been put on a new footing. It is a considerable achievement of the negotiators on both sides that such a complex agreement was reached despite the adverse conditions.

    Yet the end result, due to the British quest for sovereignty, is a (very) hard Brexit. Although the movement of goods will continue with zero tariffs and zero quantitative restrictions, many new non-tariff trade barriers will arise when compared to single market membership. Services, including finance, are largely excluded from the treaty, and with very few exceptions, the British are leaving European projects such as Erasmus. London has also excluded foreign and security policy altogether from the institutional cooperation with the EU.

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    Despite the restricted market access, the EU can claim to have achieved the inclusion of comprehensive instruments to ensure fair competition, a level playing field. This includes the possibility of reintroducing tariffs and other trade restrictions should there be a significant divergence in labor or environmental standards in the future. Both sides have achieved their remarkably defensive goals: Boris Johnson gets his hard Brexit, and the EU was able to defend its single market and its standards.

    To Be Built Upon

    The original idea of an “ambitious and deep partnership” between the EU and the UK, however, has fallen by the wayside. In the first few weeks of 2021, the EU and the UK have already squabbled over vaccines and the status of the EU ambassador in London. Nevertheless, if used wisely, the agreement could represent the low point in British-European relations, from which a new partnership emerges after the difficult Brexit negotiations. However, there are five reasons the TCA could enable an improvement in relations.

    First, the trade deal does not mark the end of negotiations between London and Brussels. The agreement itself provides for a review after five years — that is, just under six months after the likely date of the next UK general election — in the course of which relations can also be deepened again. There is also a review clause for the Northern Ireland Protocol in 2024, transition periods for energy cooperation and fisheries, and further talks on data exchange and financial market services in 2021. Similar to Switzerland, there will be almost constant negotiations between the EU and the UK, albeit at a less politically dramatic level than recently. It is precisely this de-dramatization of relations that offers an opportunity to restore trust and improve cooperation.

    Second, the agreement is designed to be built upon. It establishes institutionalized cooperation between London and Brussels with an EU-UK Partnership Council and a number of specialized committees, for example on trade in goods, energy cooperation and British participation in EU programs. It is explicitly designed as an umbrella agreement into whose overall institutional framework further supplementary agreements can be inserted.

    Continued Interdependence

    Third, economic relations will remain important for both sides despite new trade restrictions. The geographical proximity, the close integration of supply and production chains in many economic sectors, and the mutual importance in trade will ensure continued economic interdependence. The EU remains by far the largest export market for the UK, which, in turn, as the second biggest economy in Europe, will also continue to be a major economic partner (and competitor) for the union. Added to this are the level playing field provisions of the TCA, with both partners committing to maintaining existing EU standards as far as they affect trade and investments, and incentives have been created to keep pace with new standards.

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    Fourth, the willingness of both sides to make compromises to avoid a no-deal Brexit paradoxically also clearly revealed the common interests despite the difficult divorce. For example, the TCA declares climate policy to be a shared interest, in which the UK will play a central role in 2021 by hosting the next climate summit together with Italy. Opportunities will also present themselves here for trilateral cooperation with the new US administration. The continued participation of the British in a small number of EU programs, such as the EU’s Copernicus Earth observation program and parts of the data exchange in home affairs and justice policy, is also stronger than expected.

    Fifth, with the combination of the Withdrawal Agreement and the TCA, Northern Ireland has become a shared responsibility of the UK and the EU. In order to keep the border open with the EU member state of the Republic of Ireland, the rules of the EU single market will continue to apply in Northern Ireland, whereas a trade border has been created in the Irish Sea between Northern Ireland and the rest of the UK. Any deviation from EU standards will now require the UK government to weigh not only whether this breaks the level playing field rules — thus allowing the EU to erect trade barriers — but also whether new intra-UK trade barriers with Northern Ireland are created.

    The EU equally has a responsibility in the interests of its member state Ireland to work with the British government to ensure that these complex arrangements work as smoothly as possible so as not to jeopardize peace in Northern Ireland.

    The trade treaty, which came into being under great pressure, both temporal and political, thus achieves one thing above all — the creation of a foundation on which British-European relationship can be reconstructed. Hard Brexit is now a fact, and the step from EU membership to a third country with a trade agreement has been completed. But negotiations are from over: As neighbors, the EU and the UK will continue to negotiate and renegotiate their relationship in the foreseeable future. It is now up to the political leadership on both sides to determine how this foundation is used. The EU and Germany should be open to building on this foundation with options for deepening cooperation in areas where there were gaps left behind by the TCA due to time or political circumstances.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Is GCC-Qatar Rapprochement Good or Bad News for Turkey?

    Turkey deepened its cooperation with Qatar during the blockade imposed by the Arab quartet in 2017, when the tiny emirate was most vulnerable and highly reliant on outside assistance for food supplies and security against perceived threats from its neighbors as well as the threat of an internal coup. Given that restoring diplomatic ties announced earlier this month with the Gulf Cooperation Council (GCC) and the opening of borders and airspace will make Qatar less dependent on Turkey, it might appear surprising that President Recep Tayyip Erdogan welcomed the agreement and expects benefits for Turkey and the Gulf states.

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    The current “solidarity and stability” deal between Qatar and the GCC plus Egypt makes no mention of the 13 demands of 2017, which included closing the Turkish military base and halting military cooperation with Ankara. While full clarification of the deal’s terms and impact will have to wait, it clearly does not resolve all the problems between Qatar and its Gulf neighbors. There are challenges ahead, with three plausible consequences for Turkey.

    Three Scenarios

    First is the continuation of the status quo, where relations between Qatar and Turkey carry on largely unchanged. Although Doha’s relations with Riyadh improve, the rivalry between the United Arab Emirates and Egypt remains, and Qatar will not necessarily change its foreign policy. Saudi Arabia and its Arab quartet allies — the UAE, Bahrain and Egypt — cannot achieve with carrots what they failed to accomplish with sticks.

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    Continuation of the status quo would not, however, make Qatar Turkey’s unconditional ally; Ankara never had absolute influence over Doha. While Qatar did refuse to endorse an Arab League condemnation of Turkish military operations in Syria and Iraq in 2016, it chose not to block a later communique reflecting the same sentiment. Qatar Petroleum also joined ExxonMobil in signing exploration and production-sharing contracts with Cyprus in 2017, which contradicts Turkey’s Eastern Mediterranean policy. In this scenario, Turkey’s proactive, militaristic foreign policy will continue unchanged, from Syria to Libya. But Ankara will need to spend more effort on maintaining its relationship with a more independent Qatar.

    The second scenario is regional isolation. If Turkey loses its influence over Qatar as the latter’s relations with its neighbors revive, this will leave Ankara further isolated in the region. The Arab quartet had hoped that blockading Qatar would draw Doha away from Turkish and Iranian influence and squash its independent foreign policy. The plan failed and brought about the opposite effect: Qatar increased its cooperation with Turkey and deepened its ties with Iran.

    Following reconciliation, Saudi Arabia and its allies might pursue a more realistic, limited set of goals such as curbing rather than eradicating Turkish presence and influence in Qatar. This approach has a better chance of achieving results and would be a challenge to Turkey. Following the GCC summit, UAE Foreign Minister Anwar Gargash said that some issues would take longer to fix than others: “One of the big things will be the geostrategic dimensions, how do we see regional threats, how do we see the Turkish presence? Is Turkey’s presence in the Gulf going to be permanent?”

    Finally, there is the option of reconciliation with the Gulf region. Turkey’s disputes with Saudi Arabia and the UAE did not start with the Qatar blockade and will not end with its lifting. However, by agreeing to end the blockade without asking Qatar to concede any of their original main demands, Saudi Arabia and its allies have acknowledged a new power balance in the Gulf. That might give Qatar the leverage to mediate between Turkey and Saudi Arabia. Turkey would then benefit from the thaw.

    Separate reconciliation processes are already underway between Turkey, Saudi Arabia, Israel and Egypt. According to Mithat Rende, former Turkish ambassador to Qatar, at the same time as communication was reestablished between Qatar and Saudi Arabia, another channel was opened between Istanbul and Riyadh. Ankara has also engaged in backdoor diplomacy and intelligence cooperation with Israel and Egypt.

    A Truce

    There can be no reconciliation without an agreement to seek common ground regarding geostrategic approaches in the region. The price for Ankara could be to moderate its approaches across the Arab world and exercising restraint in Libya, Syria and Iraq. The fact that the Saudis are currently more focused on potential threats from Iran rather than on Turkish intervention in the Middle East provides a promising context for negotiations. Reconciliation between Turkey and Saudi Arabia would also constrain the Emiratis and the Egyptians, for whom stopping Turkey’s activities is more urgent than Qatar downgrading its ties with Iran.

    Turkish-Saudi efforts to find a compromise may receive a boost from Qatar. In Doha, Turkey now has a well-connected ally in the Gulf that could serve Ankara’s ends, which are also in its own interests. Although it is unlikely that Ankara will change its geostrategic direction in order to gain friendlier relations with the Gulf states, it will still benefit from Doha restoring relations with Riyadh and its allies.

    To use an analogy from war, the GCC deal is a truce rather than a peace agreement. And it is still work in progress. If rapprochement within the GCC facilitates reconciliation with Turkey, this could lead to a broader process potentially including Israel, which is itself in a parallel process of normalizing relations with Arab countries such as Bahrain, the UAE, Sudan and Morocco. If, on the other hand, the GCC and Egypt manage to gradually detach Qatar from Turkey, this will have negative repercussions for Turkey’s militaristic policies in Syria and Libya, at least financially — as Qatar funds Turkey’s partners and proxies — and politically.

    Greater regional isolation and reconciliation with the Gulf would both constrain Turkey’s activities in conflicts such as Syria and Libya. European engagement, in the form of pressure on all sides to achieve resolution, would be useful. By contributing to stability in the region such efforts could ameliorate the associated security and migration challenges.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Is Ethiopia on the Brink of Civil War?

    Two years ago, scenes of jubilation broke out across northern Ethiopia. The border between Ethiopia and its former adversary Eritrea was open again after 18 years. Siblings were reunited, grandparents saw grandchildren for the first time, phone links were suddenly restored. A new era appeared to have dawned in the Horn of Africa after decades characterized by bitter civil wars, famine and ideological rigidity. The youth, who represent more than half the population, placed especially high expectations in the young new prime minister, Abiy Ahmed.

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    A better life with work and dignity appeared possible. Ahmed had been a surprise candidate from the party of the largest ethnic group, the Oromo, which had never headed the government. He wanted to break with the rigid developmental state concept of the previous government, which had been dominated by the Tigray People’s Liberation Front (TPLF). Abiy’s guiding principles of democracy, privatization and love appeared outlandish. His peace settlement with neighboring Eritrea was a breakthrough that won him the Nobel Peace Prize.

    Escalating Power Struggle

    Today the borders between Eritrea and Ethiopia are firmly closed again. Hundreds of Ethiopians have died in ethnic pogroms in recent months. The killing of a prominent Oromo singer, Hachalu Hundessa, sparked weeks of protests, leading the government to block the internet for months and detain thousands of opposition supporters. The youth, whose protests propelled Abiy to power, have turned against him, their hopes dashed.

    The tinder ignited in early November, when fighting broke out between the TPLF and the federal armed forces in the northern state of Tigray. Internet and telephone connections were cut and flights suspended. The federal government imposed a state of emergency on the region, declared the TPLF a terrorist organization and appointed a parallel government for the TPLF-run state. Federal armed forces were deployed to the state border from other parts of the country and from neighboring Somalia. Both sides now claim to have the situation under control: Prime Minister Abiy reports successful strikes on TPLF air defenses while the TPLF claims to be militarily unscathed.

    The escalation began after Abiy indefinitely postponed the first free national elections, which had been scheduled for August, citing the COVID-19 pandemic. A few months earlier, he had dissolved the previous ruling party and founded the Prosperity Party. One effect of these moves was to reduce the political influence of the TPLF and enhance the position of previously neglected states like Somali and Afar.

    Embed from Getty Images

    The TPLF responded by questioning the government’s legitimacy — it regards Abiy as an opponent of ethnic federalism. In early September, the TPLF gained an absolute majority in elections to Tigray’s state parliament, which were deemed illegal by the federal government. After the TPLF’s long and harsh rule, many Ethiopians still bear resentment against it, and mass support for the group is therefore unlikely.

    This hardening of fronts reflects the weakness of Abiy’s government, which has failed to rein in ethnonationalist divisions and prevent ethnic pogroms. The prime minister had assumed that the completion of the gigantic Grand Ethiopian Renaissance Dam on the Blue Nile would generate enthusiasm and support across the entire population and function as a national unification project. That hope appears to have been dashed.

    A situation where conflict continues to escalate in Tigray and the country spirals into civil war could spell the end for Abiy’s transition. He risks losing the army’s loyalty and his control over parts of the country. A defeated TPLF could turn into an armed opposition, within or outside the country’s borders. There is also a risk that Eritrea’s president, Isayas Afewerki, will sense an opportunity to expand his country’s regional role again by intervening on Ethiopia’s side. This would weaken Ethiopia and render it more dependent.

    A Ceasefire Will Not Be Enough

    Internal collapse would have repercussions for Ethiopia itself — as the region’s most populous country – and for the entire Horn of Africa. A regional war would endanger the fragile transition in Sudan, while national fragmentation would directly impact the talks on a Nile dam agreement and the African Union Mission in Somalia, in which Ethiopia plays a decisive role.

    The first step toward conflict resolution would be for the TPLF and the federal government to recognize each other as legitimate actors. Talks could then be conducted by the region’s Intergovernmental Authority on Development under Sudanese leadership. The African Union, Europe, the UN and other partners should agree on a shared line on de-escalation. Saudi Arabia and the United Arab Emirates, as the mediators of the Ethiopian-Eritrean peace agreement, could also play an important role as guarantors.

    But a ceasefire can only be the start. Dissatisfaction is growing in all of Ethiopia’s regions, separatist tendencies are proliferating, and the system of ethnic federalism is on the verge of violent collapse. If these dangers are to be avoided, it is vital that the security forces prevent ethnic pogroms. And if he is to retain popular backing, Prime Minister Abiy must guarantee due process for political detainees. Finally, if any hope of a new start, democratic change and devolution of power is to survive, a comprehensive national dialogue will be vital.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Nord Stream 2: Leverage Against Russia?

    Following the poisoning of the Russian opposition politician Alexei Navalny with a nerve agent from the Novichok group, the possibility of using Nord Stream 2 to put pressure on Russia has been widely discussed. Specifically, there are calls to abandon the project, to impose a moratorium or to block gas deliveries through the pipelines if the Kremlin refuses to assist investigations.

    The Nord Stream 2 Baltic gas pipeline is highly symbolic, embodying the willingness of Germany and other European partners to cooperate with Russia. Five European energy companies hold stakes in the project, which is led by Gazprom. It began in 2015 — one year after Moscow’s annexation of Crimea — and has been the target of unrelenting criticism ever since, initially concentrating on Moscow’s declared goal of bypassing Ukraine.

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    The German government recognizes the project’s economic benefits for consumers and the gas market and has backed it within the existing legal framework under the paradigm of keeping politics out of business. In order to cushion Ukraine’s losses, Berlin also backed a Russian-Ukrainian agreement guaranteeing Kyiv gas transit revenues for another five years. To keep its options for completing the pipeline open, Berlin blocked attempts by Brussels to assert control. That is now both a burden and an opportunity.

    Pressure From Washington

    Recent developments have been largely driven by the US, which has successively stepped up pressure to abandon the project. The American Protecting Europe’s Energy Security Act has succeeded in stopping pipelaying since the end of 2019, and Congress has taken steps to make it impossible to resume the work. The US administration has also altered the guidance of the Countering America’s Adversaries Through Sanctions Act, threatening to penalize any entity or individual involved in construction since July 15, 2020.

    If construction is to resume, Berlin will have to act more proactively to counter the impact of Washington’s sanctions. On the one hand, it will be difficult to politically justify actively supporting the construction of Nord Stream 2, while on the other hand, Berlin must continue to reject and criticize such secondary sanctions as a matter of principle.

    Stopping Nord Stream 2 would be seismic. But what happens when the dust has settled? The government will have to make difficult choices. The following four aspects need to be considered.

    First, the immediate effect on the energy supply would be marginal. The project is neither — as so often asserted — a danger to European energy security, nor is it essential. Existing pipelines through Ukraine retain an annual capacity estimated at 100 to 120 billion cubic meters, with the Yamal-Europe pipeline through Poland and Belarus adding 33 billion cubic meters and Nord Stream 1 another 55 billion. There are also pipelines to Turkey and Finland. Together, these would easily cope with the peak volume of more than 190 billion cubic meters, which Gazprom supplied to Europe in 2017-18.

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    That means, conversely, that stopping Nord Stream 2 would not in the slightest reduce the volume of gas purchased from Gazprom. But this direct, efficient modern pipeline would reduce the risks of transit disruption and technical failure. Without it, Nord Stream 1 and its connecting pipelines become crucial.

    Second, indirect effects on the economy and energy supply are hard to estimate. Sunk costs in the Baltic would hurt Gazprom but would also be costly for European companies. Aside from the commercial repercussions, it should be remembered that Nord Stream 2 would improve the resilience of the European gas supply and that an expanded gas supply would benefit industry and consumers.

    The gas reserves on the Siberian Yamal Peninsula have already been developed, while the global LNG market can quickly tighten again. The “Energiewende” (green energy transition) will naturally reduce demand for natural gas, but the speed with which that occurs will also depend on an expansion of the power grid and a rapid, consistent transformation in heating and industry. Here, there is still much work to be done.

    Third, abandoning an economic infrastructure project for political reasons would represent a paradigm shift for Berlin. Major infrastructure projects undeniably have (geo)political implications, and other states do link business and politics in pursuit of national interests, too. That new geo-economic reality represents a challenge for Germany’s strategic sovereignty, also in the energy sphere.

    But that is precisely the point: Other states act in pursuit of their interests. For all the political fireworks, the project is a strategic asset for German commerce and industry. Germany and its EU partners would only be harming themselves if they stopped construction just to send a normative message to the Kremlin. Putin would probably interpret this as Germany simply caving to US pressure, further weakening the political signal

    Fourth, the normative justification raises questions: Is the situation really qualitatively new? Would earlier events not actually have offered more solid grounds? Here, we are confronted with an almost insoluble dilemma of the fossil-based energy system: We purchase oil and gas from authoritarian regimes every day. In that regard, the Energiewende has a geopolitical dividend.

    But make no mistake: Even a successful energy transition will rely on energy imports from these countries, and on the ability to reliably realize major infrastructure projects. The days of the special strategic energy partnership with Russia are over, but a functioning modus vivendi for trade and exchange with this big and resource-abundant neighbor remains essential. From that perspective, a moratorium would gain time for all involved. But the conditions for resumption would have to be clearly communicated, agreed with EU partners and implementable for Russia.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions relating to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More