Egypt & Israel: Cold Peace or Enduring Understanding?

On March 26, 1979, under the sponsorship of then US President Jimmy Carter, Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin signed a peace treaty (AFP)
On March 26, 1979, under the sponsorship of then US President Jimmy Carter, Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin signed a peace treaty (AFP)
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Egypt & Israel: Cold Peace or Enduring Understanding?

On March 26, 1979, under the sponsorship of then US President Jimmy Carter, Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin signed a peace treaty (AFP)
On March 26, 1979, under the sponsorship of then US President Jimmy Carter, Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin signed a peace treaty (AFP)

When Egyptian soldiers crossed the Suez Canal, and their Syrian counterparts stormed the Golan Heights on the afternoon of October 6, 1973, perhaps they did not foresee the intricate calculations and unprecedented transformations that would follow the military clashes.

Nevertheless, to varying degrees, these events shaped the course of politics and diplomacy, ushering the region into a new era known as the “post-October” period, where Arab destinies intersected with the strategies of major powers.

Around half a century has passed since the “last of the battles” between Egypt and Israel, during which nearly 45 years of peace have prevailed between the two countries.

Some describe this peace as “cold” since it remains limited to official relations without extending to popular normalization.

The “psychological barrier” towards Israel persists, untouched by the years of peace, yet others view the resilience of the Cairo-Tel Aviv peace amid internal transformations and regional storms as a success in its own right.

On March 26, 1979, under the sponsorship of then US President Jimmy Carter, Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin signed a peace treaty.

However, bilateral relations between Egypt and Israel continue to remain confined to official aspects, whether in diplomacy or security, while economic relations have taken an upward trajectory over the past two decades.

The US has sought to encourage both countries to enhance cooperation beyond the political stalemate and Egyptian popular resistance to normalization.

This was achieved through the 2004 Qualified Industrial Zones (QIZ) agreement in Egypt, allowing duty-free access to the US market for goods produced with at least 10.5% Israeli inputs.

Despite some business leaders attempting to break the “silence barrier” in relations between the two countries, the volume of trade between them has remained limited, totaling $270 million annually in the past year.

Israel exports goods worth $150 million to Egypt, while importing $115 million, according to official Israeli statistics from the Ministries of Industry and Trade, and Economics.

Updated Egyptian data on this matter remains unavailable.

In addition to “limited” economic cooperation, relations between the two nations have managed to overcome a series of crises, some of which were related to security incidents, such as border skirmishes.

The most recent incident was in June last year and resulted in the deaths of 3 Israeli soldiers and one Egyptian security personnel.

A statement from the Egyptian army stated that they were “pursuing smugglers on the border with Israel.”

This incident was not the first of its kind. In October 1985, the “Ras Burqa” operation occurred, executed by the Egyptian soldier Suleiman Khater, resulting in the deaths of seven Israelis in a border area between the two countries.

In November 2004, Egypt protested the killing of three Egyptian Central Security Forces personnel after an Israeli tank fired a shell across the border between Egypt and the Gaza Strip.

In August 2011, an Israeli airstrike along the Egyptian border south of Rafah led to the deaths of five Egyptian border guards, for which Israel later issued a formal apology.

Relations between the two countries have also endured regional conflicts, including the wars in Lebanon (1982 and 2006), the Palestinian uprisings (1987 and 2000), and repeated Israeli aggressions on the Gaza Strip.

Egypt has managed to utilize its communication with Tel Aviv to halt these aggressions on several occasions, marking Egyptian success on both regional and international fronts.

Despite changes in Egypt’s government system and shifts in Israel’s leadership, relations between the two nations have maintained a degree of stability.

However, this has not succeeded in altering the popular stance in Egypt, which remains opposed to normalization with Israel.

This sentiment reached its peak following the events of January 25, 2011, when enraged protesters entered an annexed apartment of the Israeli embassy, removed the Israeli flag from the top of the building.

Additionally, Egypt terminated a long-term agreement through which it supplied natural gas to Israel after the pipeline crossing the border was subjected to frequent acts of sabotage.

Ahmed Youssef Ahmed, a professor of political science and former dean of the “Arab Research Institute,” attributes the resilience of the peace relationship between Egypt and Israel to the former’s commitment to its international obligations.

He also highlights what he refers to as “political realism,” considering regional and international circumstances.

In statements to Asharq Al-Awsat, Ahmed points out that the relationship between the two parties indeed appears to be a “cold peace.”

According to Ahmed, this peace has remained confined to official frameworks, with the minimum necessary for security and diplomatic arrangements being upheld.

However, it has never transitioned into a “warm peace,” at least not at the popular level.

On the other hand, Ahmed believes that Egyptian popular rejection of normalization with Israel “remains strong” and describes it as a “remarkable stance.”

This reflects the commitment of the Arab regime not to normalize relations until the Palestinian issue is resolved.

Ahmed points out that Egyptian authorities have “never attempted at any stage since signing the peace agreement with Israel to pressure unions and parties to change their positions or attempt to brainwash their citizens into accepting normalization with Israel.”



What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
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What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.