The Consequences of ‘Normalization’ with Damascus

Syrian President Bashar al-Assad receives the UAE Foreign Minister (SANA)
Syrian President Bashar al-Assad receives the UAE Foreign Minister (SANA)
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The Consequences of ‘Normalization’ with Damascus

Syrian President Bashar al-Assad receives the UAE Foreign Minister (SANA)
Syrian President Bashar al-Assad receives the UAE Foreign Minister (SANA)

Key Arab countries are expected to take more steps towards the normalization of ties with Syria before re-admitting Damascus into the Arab League by a more significant political initiative next spring when the regional organization holds its scheduled summit in Algeria.

Attention is now directed towards the parties conducting the next steps in normalizing ties with Damascus.

This comes after the visit of UAE Foreign Minister Abdullah bin Zayed to Damascus and his meeting with President Bashar al-Assad last week, Syrian Foreign Minister Faisal Miqdad meeting with a number of his counterparts in New York two months ago, and the head of Syria’s main spy agency, the General Intelligence Directorate, Maj. Gen. Hossam Louka, participating at an intelligence forum in Cairo a few days ago.

In the past few days, a series of public and non-public meetings were held between Arab and foreign officials to discuss the Syrian crisis and to coordinate between the involved parties “so that normalization would not come for free.”

Several ideas were put on the table of main Arab countries.

As for these states, they have taken the “first step” with Damascus, and therefore are waiting for “reciprocal steps” on Syria’s part before the normalization train goes to its next stations.

Individual or collective Arab expectations relate to three levels:

The first level pertains to Syrian files, such as Damascus positively handling the political process and the meetings of the Constitutional Committee.

The seventh round of Committee meetings led by Special Envoy for Syria Geir Pedersen is currently under consideration by the UN to be held on December 13. Talks will tackle the return of refugees, detainees, and displaced persons, and finally the implementation of Resolution 2254.

The second level revolves around geopolitical expectations regarding the Iranian presence in Syria, the Turkish incursion into its north, and the possibilities of opening channels between Tel Aviv and Damascus.

Demands are no longer focused on removing Iran completely from Syria.

Rather, expectations revolve around mitigating, redefining, or dissolving the Iranian role, in addition to lowering Syria’s provision of logistical-military-training support to Iran in other files related to Arab countries.

As for the third level, it concerns Damascus’ cooperation in the areas of combating terrorism and crime, controlling the borders with Jordan, and stopping drug smuggling to Arab countries, whether from Jordan’s borders or from Syrian and Lebanese ports.

It also concerns not having more refugees pouring into neighboring countries.

Washington has not prevented Arab countries from normalizing ties with Damascus. Instead, the US is asking these countries to obtain internal or geopolitical “Syrian concessions” while reminding them of sanctions under the Caesar Syria Civilian Protection Act.

Washington, at the same time, informed European countries of the need to maintain the “three no’s”: No to financing the reconstruction of Syria, no to breaking isolation, and no to lifting sanctions before achieving progress in the political process according to UNSC resolution 2254.

Indeed, countries are still committed to their positions and have sanctioned new Syrian ministers.

However, a number of European countries began to ask questions about the future of European policies towards Syria, which are confused between three directions: the urgency of Arab countries to normalize ties with Damascus, and the great doubts, especially from France and Germany, about the feasibility of engaging with Russia, which increases pressure on Europe with the “weapon of refugees” in Belarus, and American advice about the need to commit to traditional policy with Syria.

Doses of Arab normalization renewed the call for the need of reaching an international-Arab formula for a “step-for-step” approach that defines what is required of Damascus and the incentives offered to it, but a collective understanding on this has not yet emerged.



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.