What’s Happening in East Syria’s Deir Ezzor Province? 

The Kurdish-led SDF spearheaded the offensive that defeated the ISIS group in Syria in 2019. (AFP)
The Kurdish-led SDF spearheaded the offensive that defeated the ISIS group in Syria in 2019. (AFP)
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What’s Happening in East Syria’s Deir Ezzor Province? 

The Kurdish-led SDF spearheaded the offensive that defeated the ISIS group in Syria in 2019. (AFP)
The Kurdish-led SDF spearheaded the offensive that defeated the ISIS group in Syria in 2019. (AFP)

Days of deadly clashes between the US-backed, Kurdish-led Syrian Democratic Forces (SDF) and local fighters have rocked eastern Syria's Deir Ezzor province, threatening a fragile balance in the strategic area.

The SDF spearheaded the offensive that defeated the ISIS group's self-declared “caliphate” in Syria in 2019.

Arab-majority Deir Ezzor province, a resource-rich region which borders Iraq, is bisected by the Euphrates river and is home to dozens of local tribal communities, some of whose fighters joined the SDF in its battle against ISIS.

AFP looks at what's behind the recent violence.

Who's in Deir Ezzor?

Control of Deir Ezzor is split between the US-backed SDF to the east of the Euphrates, and Iran-backed Syrian government forces and their proxies, including fighters from Iraq, Afghanistan and Pakistan, to the west.

The border area is part of key smuggling routes for fighters, weapons, drugs and consumer goods.

The SDF, which includes Kurdish, Arab, Armenian and other fighters, seized swathes of Deir Ezzor province following successive US-backed campaigns against ISIS.

A semi-autonomous Kurdish administration controls areas in north and northeast Syria, through local civilian and military councils in an effort to stave off Arab discontent, and regularly announces meetings between SDF officials and tribal leaders.

US-led coalition forces, who entered Syria in 2014 to fight ISIS, have set up bases to the east of the Euphrates.

ISIS cells in the province carry out attacks on both SDF and government forces, particularly from desert hide-outs.

What triggered the fighting?

On August 27, Kurdish-led forces detained Ahmad al-Khabil, also known as Abu Khawla, the head of the Deir Ezzor Military Council, which is affiliated with the SDF.

The SDF has accused Khabil of communicating with the Syrian government, and of alleged drug trafficking and mismanagement leading to an uptick in ISIS activities.

Angry fighters loyal to Khabil launched attacks on the SDF that spiraled into clashes in several villages and towns, according to the Syrian Observatory for Human Rights, a war monitor.

The situation escalated after some pro-government fighters crossed the Euphrates and joined the clashes, according to the SDF and the Britain-based Observatory, which has a vast network of sources inside Syria.

Dozens of people have been killed, mostly fighters loyal to Khabil and SDF members including Arab fighters, but also civilians, according to the Observatory.

The SDF announced a 48-hour curfew in the area starting last Saturday, and on Monday urged civilians to leave the last town where it said hostile local fighters were stationed.

The US embassy in Syria, which is based outside the country, said Sunday that two senior officials had met with the SDF, Kurdish authorities and tribal leaders from Deir Ezzor, urging de-escalation "as soon as possible".

Dispute with Arab tribes?

The SDF has denied any dispute with Arab tribes in the region, saying the clashes have mostly involved "elements of the regime and some beneficiaries" of Khabil.

It has urged local residents "not to be drawn into the strife".

However, Syrian state media has characterized the fighting as pitting the SDF against Arab tribes, while pro-government daily Al-Watan has described the local fighters as "Arab tribal forces".

"There is nothing actually known as Arab tribal forces," said Omar Abu Layla, an activist who heads the DeirEzzor24 media platform, noting that some tribal leaders work with the SDF while others quietly collaborate with the government.

Officials close to Khabil, "especially those who benefit from smuggling", started the fighting, he noted.

"What is happening today is incitement to chaos by a number of internal and external parties," he said.

Aron Lund of the Century International think tank said that "village, family, tribe, trade, smuggling -- all of that probably matters as much as the ethnic Arab-Kurdish dimension or the political conflict".

However, "if fighting spreads and Arab-Kurdish relations are poisoned... there's no shortage of actors that would be interested in feeding the chaos", he told AFP, describing the area as a "tinderbox".

Clashes rocked neighboring Hasakeh province on Sunday, after some fighters in Turkish-held areas had urged support for those opposing the Kurdish-led forces in Deir Ezzor.

Türkiye sees the Syrian Kurdish People's Protection Units (YPG), which dominate the SDF, as an offshoot of the banned Kurdistan Workers' Party (PKK) and has launched successive incursions into Syria targeting Kurdish forces.

President Bashar al-Assad's government rejects the Kurdish administration and accuses it of "separatism".



Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
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Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)

Several of Europe's biggest financial firms have cut back their links to Israeli companies or those with ties to the country, a Reuters analysis of filings shows, as pressure mounts from activists and governments to end the war in Gaza.

While banks and insurers are often vocal about their environmental and governance aims, they are less forthcoming about disclosing their potential exposure to war.

UniCredit put Israel on a "forbidden" list as the conflict escalated in October last year, said a source familiar with the matter, confirming a study by Dutch NGO PAX.

While in line with the Italian bank's defense-sector policy of not directly financing arms exports to any country involved in conflict, it goes beyond Italy's guidelines on arms exports to Israel.

UniCredit declined to comment on its move and the Israeli finance ministry also declined to comment.

Meanwhile, Norwegian asset manager Storebrand and French insurer AXA have sold shares of some Israeli firms, including banks.

Although corporate filings offer only a glimpse into such exposures, they show companies have been readjusting.

"We don't know whether this represents the beginning of a shift in the industry, one that recognizes the power banks have in choosing where to allocate capital, and where not," said Martin Rohner, executive director at the Global Alliance for Banking on Values, which focuses on sustainable financing.

"Investing in the production and trade of weapons is fundamentally opposed to the principles of sustainable development," Rohner added.

Israeli Finance Minister Bezalel Smotrich told a press briefing last week that although there are challenges to Israel's economy, firms are still raising money. "I sit with foreign investors and they believe in our economy," he said.

Reuters has reported that Israel's investor base has narrowed since it entered Gaza last year in response to attacks by Hamas, and it is feeling the effects of rising borrowing costs.

The potential wider effects can be seen in the approach taken by Storebrand, which a filing showed divested a holding worth about $24 million in Palantir, citing the risk of violations of international humanitarian law and human rights.

US group Palantir, which provides technology to Israel's military, did not respond to a request for comment.

Storebrand's annual investment review said that, as of the end of 2023, it had excluded 24 firms, including Israeli companies, across its portfolios in relation to the occupation of Palestinian territories.

The International Court of Justice, the United Nations' highest court, ruled in January of plausible risk of irreparable harm to Palestinian rights to be protected from genocide.

The same court said in July that Israel's occupation of Palestinian territories including the settlements is illegal.

Israel has rejected the rulings, which combined with growing pressure from activists and governments, are nevertheless having an impact on investment decisions.

AXA, one of Europe's largest insurers, British bank Barclays and German insurer Allianz have increasingly been targeted by campaigners.

"Increasing demand for greater transparency and scrutiny can only mean that financial institutions will intensify and broaden their self-assessment of their commercial associations with arms-related businesses or states," said David Kinley, professor and chair of human rights law at the Sydney law school.

The Ireland Strategic Investment Fund (ISIF) has exited six Israeli companies, selling holdings which amounted to about 3 million euros ($3.26 million), including some of Israel's largest banks, a spokesperson told Reuters.

Earlier this year, the 15-billion-euro Irish fund said that the risk profile of such investments were no longer within its investment parameters.

And Norway's $1.8 trillion wealth fund, the world's biggest, may divest shares of companies that aid Israel's operations in the occupied Palestinian territories which violate its ethics standards for businesses.

WAR EXPOSURE

Investments in Israeli banks are also under scrutiny.

The UN included them in 2020 in a list of companies with ties to settlements in the occupied Palestinian territories as part of its mission to review the implications on Palestinian rights.

A study by research firm Profundo, commissioned by corporate watchdog Ekō, shows that AXA sold almost all of its holdings in Israeli banks stocks earlier this year, retaining only a marginal stake in Bank Leumi.

Reuters verified the data with LSEG. A representative for Bank Leumi did not respond to a request for comment.

A spokesperson for AXA declined to comment on whether AXA had cut its holdings, adding that it is not invested in the banks targeted by activists. The UN list is among the criteria AXA takes into account for investment decisions, they added.

'A CLEAR LINE'

Foreign direct investment into Israel fell by 29% in 2023 to its lowest since 2016, UN Trade and Development data shows.

While UNCTAD 2024 figures are not available, credit ratings agencies have flagged the war's unpredictable impact on investment in Israel as a concern.

Although the US remains Israel's biggest military and financial backer, Spain, Ireland and Norway have recognized a Palestinian state, French President Emmanuel Macron has called for an arms export halt and Britain has suspended some licenses.

When it comes to international politics, "it should be down to the governments to take a clear line," said Richard Portes, professor of economics at London Business School, adding: "To put the burden on the private firms, where does this end?"

In an example of how activists are targeting companies directly, Barclays came under pressure from a campaign in Britain, prompting it to withdraw sponsorship from summer music festivals, while the Financial Times reported in August that it considered pulling out of an Israeli government bond sale.

Barclays said in a statement that it remained "fully committed" to its role as a primary dealer and that such activities fluctuated each quarter. The bank fell out of the top five dealers of Israeli bonds in the second and third quarters, after ranking third in 2023.