The Grand Ethiopian Renaissance Dam Crisis... From Good Faith to Unilateral Measures

Grand Ethiopian Renaissance Dam. (Ethiopian Ministry of Water Energy)
Grand Ethiopian Renaissance Dam. (Ethiopian Ministry of Water Energy)
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The Grand Ethiopian Renaissance Dam Crisis... From Good Faith to Unilateral Measures

Grand Ethiopian Renaissance Dam. (Ethiopian Ministry of Water Energy)
Grand Ethiopian Renaissance Dam. (Ethiopian Ministry of Water Energy)

“I swear to God, we will never harm you,” Ethiopian Prime Minister Abiy Ahmed pledged in 2018 from inside the Al-Ittihadiya Palace in Cairo. He made the pledge after Egyptian President Abdel Fattah al-Sisi asked him to reassure the Egyptian people that they would receive their fair share of the Nile’s waters.

However, it seems that these pledges came to nothing, as the negotiations in “good faith” that have been held between Egypt, Sudan, and Ethiopia over the past 11 years have not yielded a final agreement Egypt is comfortable with, pushing Cairo to return to the Security Council once again in protest of what it called “unilateral measures” taken by Addis Ababa.

The recent escalation was in response to Ethiopia beginning the third phase of filling the Grand Ethiopian Renaissance Dam (GERD) without the approval of neither Egypt nor Sudan. Egypt sent a letter to the UN Security Council calling on it to “meet its obligations in this regard” and emphasizing its “legitimate right... to take all necessary measures to ensure and protect its national security” and its “objection and complete rejection of Ethiopia continuation to fill the Renaissance Dam unilaterally without a deal.”

The statement signed by Egyptian Foreign Minister Sameh Shoukry then warned that Egypt would not tolerate any actions that threaten its rights or water security or any of the wealth belonging to the Egyptian people, whom it added see the Nile River as their only lifeline.

The dispute between Egypt and Ethiopia began after Ethiopia began building its dam, with Egypt worried that it could threaten its share of the Nile’s water. Meanwhile, Ethiopia claims that the GERD is necessary for the country’s development.

Over the past 11 years of negotiation, Cairo has insisted on resolving the dispute peacefully, initiating negotiations that led to Egypt, Sudan, and Ethiopia signing the Declaration of Principles Agreement in Khartoum in 2015. In a speech at the time, Sisi stressed that good faith and management are the foundation for any agreement.

However, it seems that this good faith was nowhere to be found, as Ethiopia continued to build the GERD, which the Egyptian Foreign minister referred to in his statement to the Security Council, saying that Egypt sought a fair and equitable agreement, but Ethiopia thwarted all the efforts to resolve the crisis.

As the negotiations between the three countries continued to falter after the Declaration of Principles Agreement, Cairo sought a strong mediator to apply pressure on Addis Ababa. It called on the US to meet with the three concerned countries in November 2019. However, the US-sponsored negotiations went on until January 2020 and ended with an agreement on six principles without ending the dispute, with Ethiopia not attending the signing, while Egypt signed and Sudan did not.

When Donald Trump left the White House, US meditation paused and the countries met for a new round of talks in the capital of the Democratic Republic of the Congo in April 2021. It was at this point that Egypt decided to ask the Security Council to get involved, but the latter replied that settling technical disputes on this matter is not among its duties.

African mediation did lead to the emergence of a legal settlement, and Addis Ababa continued to take unilateral actions that experts see as “an attempt to buy time as Ethiopia proceeds to fill and operate the dam.”

Sisi’s meeting with his US counterpart Joe Biden in Jeddah earlier this month announced the resumption of US mediation. In a joint statement, both men stressed the need to agree to a binding joint framework on the filling and operation of the GERD.

US Special Envoy for the Horn of Africa Mike Hammer then began a series of visits to Egypt, Ethiopia, and the UAE last Sunday. His round of visits will continue into August, but it seems that these US efforts have come too late, as, on July 26, Egypt received a message from Ethiopia saying it would continue filling the reservoir of the Renaissance Dam during the current flood season.

Speaking to Asharq Al-Awsat, Dr. Nader Noureldeen, a Water Resources Professor at Cairo University, said: “We had hoped that the US would take action before the third filling of the Dam’s reservoir. Now, we have to wait and see what this round of US and UAE mediated negotiations will come to.”

“Egypt engaging the Security now is an attempt to create a global lobby in solidarity with Egypt and pressure Ethiopia to resume negotiations,” he added. Though the UNSC resolutions are “nonbinding,” the international community is “sympathetic to Egypt and its opposition to Ethiopia’s insistence on building a massive dam that holds 75 billion cubic meters of water without coordinating with the downstream countries.”



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.