Egypt Prepares for New Step Towards Completing Construction of Dabba Nuclear Plant

Egypt is preparing to receive Russian President Vladimir Putin to participate in the inauguration of the station's fourth reactor. (Egypt's Nuclear Power Plants Authority)
Egypt is preparing to receive Russian President Vladimir Putin to participate in the inauguration of the station's fourth reactor. (Egypt's Nuclear Power Plants Authority)
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Egypt Prepares for New Step Towards Completing Construction of Dabba Nuclear Plant

Egypt is preparing to receive Russian President Vladimir Putin to participate in the inauguration of the station's fourth reactor. (Egypt's Nuclear Power Plants Authority)
Egypt is preparing to receive Russian President Vladimir Putin to participate in the inauguration of the station's fourth reactor. (Egypt's Nuclear Power Plants Authority)

Egypt is moving towards a new executive step in inaugurating its first nuclear plant in Dabaa on the Mediterranean coast.

Egypt is preparing to welcome Russian President Vladimir Putin to participate in the inauguration of the station's fourth reactor.

Experts told Asharq Al-Awsat that the visit had significant implications, including an "end to Moscow's isolation" and "pushing towards a greater role for Moscow in the region."

Putin will visit Egypt to participate in laying the foundation for the fourth reactor, confirmed Russian presidential spokesman Dmitry Peskov.

"Yes, preparations are already underway, and this event is very important," Peskov told reporters on Friday.

According to the Russia’s RT Arabic, Peskov said Russia's cooperation with Egypt continues in various fields. Cairo "is a very important partner, including in the field of this advanced technology, which is crucial for further development in Egypt."

Moreover, Peskov stressed that Russia is an unparalleled leader in the global nuclear industry.

"We provide better, cheaper, and higher quality services, making it extremely challenging for other participants in this market to compete with us," he stated.

4 Generation III Reactors

In 2015, Egypt contracted with the Russian state company Rosatom to establish a nuclear station in Dabaa.

The plant will include four "Three +" generation reactors operating with pressurized water, with a total capacity of 4,800 megawatts, 1,200 megawatts each, with the first reactor scheduled to be launched in 2028 at a cost of up to $30 billion.

Egypt's former Ambassador to Moscow and Director of the Egyptian Council for Foreign Affairs Ezzat Saad told Asharq Al-Awsat that Putin's visit underlines the importance of bilateral relations and cooperation on peaceful uses of nuclear energy.

Saad added that the visit is evidence of significant and sustainable strategic cooperation between Cairo and Moscow.

Rosatom

Russia's Rosatom State Atomic Energy Corporation recently announced it was opening a representative office in Egypt.

Director of Rosatom's country office in Egypt Murad Aslanov said Rosatom has launched an industry-wide initiative to consolidate its foreign presence's office infrastructure.

The Dabaa station is the company's most significant project in Africa. Located in the Matrouh Governorate, it is Egypt’s first nuclear facility.

Under the agreement, the Russian company will deliver nuclear fuel, train personnel, and provide support in the operation and servicing for the first ten years of the operation of each unit.

Political science professor at Cairo University Nourhan al-Sheikh echoed the ambassador's statement, telling Asharq Al-Awsat that Putin's visit reflects the strength of the strategic cooperation between Egypt and Russia that has been ongoing for the past two years.

Sheikh confirmed that Russia can no longer be isolated, especially after Putin visited Saudi Arabia and the UAE last year.

Putin is acting according to agendas and agreements with friendly countries, and sanctions or the International Criminal Court's (ICC) ruling have no impact, said the professor.

Putin's isolation

Since the Russian war on Ukraine in February 2022, the US and Europe have sought to isolate Putin, who broke the seclusion with his state visits to Saudi Arabia and the UAE last December.

Putin's visit to Cairo confirms Moscow's interest in the Middle East region, said Sheikh, noting that Russia is boosting its role in the Middle East and Africa. The Gaza war is one of the important issues that will be discussed by President Abdulfattah al-Sisi and Putin.

Sheikh added that Moscow is interested in the Red Sea and is aware that the military actions of the US and UK forces in the waterway not only target the Houthi militias in Yemen, but Russia and China as well.

Russian president's visit

The former diplomat stressed that many regional issues will be discussed during Sisi and Putin’s meeting.

The US must review its Middle East policy, he stressed, explaining that Washington's insistence on siding with Israel and its inability to achieve a ceasefire in Gaza have harmed its credibility.

Saad elaborated that Russian positions on regional crises may lead to rapprochement between nations, but within limited capabilities given Moscow's preoccupation with its war on Ukraine and its domestic economic concerns.

Sheikh said Russia is concerned with the stability of the Middle East and sees this as achieving its interests, in contrast to the United States, which prefers instability.

The Russian policy towards regional issues has gained traction compared to the decline in public acceptance of Washington, she noted.

Recent years have witnessed intense competition between the US and Europe, on the one hand, and Russia and China, on the other, for influence in Africa. Moscow has boosted its commercial presence in Africa and in the Middle East.



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.