Egypt Appeals to UNSC: Ethiopia’s Actions Threaten Regional Stability

Grand Ethiopian Renaissance Dam (GERD) (X)
Grand Ethiopian Renaissance Dam (GERD) (X)
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Egypt Appeals to UNSC: Ethiopia’s Actions Threaten Regional Stability

Grand Ethiopian Renaissance Dam (GERD) (X)
Grand Ethiopian Renaissance Dam (GERD) (X)

Egypt has heightened its conflict with Ethiopia regarding the Grand Ethiopian Renaissance Dam (GERD), asking the UN Security Council to address what it calls Addis Ababa’s “unilateral actions” that it believes endanger regional stability.
The two countries have been at odds for years over the dam, which Ethiopia has been building since 2011 on the Blue Nile River, near the Sudanese border. Egypt argues the project affects its water supply.
On Sunday, Egyptian Foreign Minister Badr Abdelatty sent a letter to the UN Security Council President, criticizing Ethiopian Prime Minister Abiy Ahmed’s recent comments about the dam’s fifth filling phase, which started in July.
Egypt’s letter rejected Ethiopia’s actions as violations of international law and a breach of a 2015 agreement between Egypt, Sudan, and Ethiopia, as well as a 2021 Security Council statement.
The letter condemned Abiy Ahmed’s remarks about storing more Blue Nile water this year and finishing the dam’s construction, calling them unacceptable and disruptive to regional stability. Egypt is concerned that Ethiopia’s approach undermines efforts to promote cooperation in the region.
Last Monday, Abiy Ahmed announced that the dam’s construction would be finished by December. He stated that the dam’s reservoir currently holds “62.5 billion cubic meters” of water, expecting this to increase to between 70 and 71 billion cubic meters by December, out of a total capacity of 74 billion cubic meters.
Egypt and Sudan are seeking a legally binding agreement to manage the dam’s filling and operation without harming their water shares.
This is not Egypt's first appeal to the Security Council over the dam. The country previously raised concerns in October after Ethiopia completed the fourth filling of the dam, and the Security Council had called for renewed negotiations under the African Union’s guidance in September 2021.



Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
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Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)

Iraq faces a budget crunch in 2025 due to the slump in the price of oil, the overwhelming source of government revenue, a top economic adviser to Prime Minister Mohammed Shia al-Sudani said.

"We don't anticipate major problems in 2024, but we need stricter financial discipline for 2025," Mudher Saleh told Reuters in an interview late on Monday.

Iraq, OPEC's second-largest producer, is heavily dependent on oil revenues. The hydrocarbons sector accounts for the vast majority of export earnings and some 90% of state revenue.

This huge reliance on oil makes Iraq particularly vulnerable to fluctuations in global crude prices.

Still, Iraq increased its budget in 2024 even after record spending in 2023, when more than half a million additional employees were hired into the already-bloated public sector and a capital-intensive nationwide infrastructure revamp began.

The 2024 budget rose to 211 trillion dinars ($161 billion) from 199 trillion dinars ($153 billion) in 2023, maintaining a projected deficit of 64 trillion dinars, Saleh said.

The budget assumes an oil price of $70 per barrel in 2024, around $6 less than the likely average price this year.

Saleh said that paying salaries and pensions on time remain a top priority. They account for 90 trillion dinars ($69 billion), or over 40% of the budget, and are a key factor of social stability in Iraq.

"The government will pay salaries even if it costs everything. Salaries are holy in Iraq," he said.

Infrastructure development, meanwhile, could be refocused on the most strategic projects - such as key road and bridge works in the capital Baghdad - if the state finds itself in a financial crunch, he said.

To bolster finances, Iraq is focusing on increasing non-oil revenues through improved tax collection but is not exploring any new levies, Saleh said.

He estimated that Iraq loses up to $10 billion annually due to tax evasion and customs-related problems.

Concerns for the 2025 budget reflect a challenging global oil market. Oil prices have been on a downward trend since mid-2022, with Brent crude, the international benchmark, falling from over $120 per barrel to below $75 in recent days.

This decline is largely attributed to weakening global demand, particularly from China, the world's largest oil importer, as its economic growth slows down.