What Impact Will GERD’s Filling Have?

The Grand Ethiopian Renaissance Dam
The Grand Ethiopian Renaissance Dam
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What Impact Will GERD’s Filling Have?

The Grand Ethiopian Renaissance Dam
The Grand Ethiopian Renaissance Dam

Since the project was launched in 2011, a controversial Ethiopian dam has been raising tensions as Egypt and Sudan fear for their share of the Nile’s water and the social and economic repercussions of Ethiopia’s actions.

The ramifications of Addis Ababa moving forward with the third filling of the Grand Ethiopian Renaissance Dam (GERD) has deeply unsettled Cairo and Khartoum, which has announced a state of “maximum alert.”

After Cairo received a letter from Ethiopia on July 26 that stated it would continue to fill GERD during this flood season- acting unilaterally and before having reached an agreement- it responded by filing a complaint with the UN Security Council on Friday.

GERD Project Manager, Kifle Horo, has himself admitted that the shares of Egypt and Sudan could be undermined by the filling in an official statement about two months ago.

According to experts, Addis Ababa will fill GERD with approximately five additional billion cubic meters of water, which reduces Egypt's water supply.

Professor of Geology and Water Resources at Cairo University Dr. Abbas Sharaki says that any water stored in the GERD, whether a large or small quantity, is Egyptian-Sudanese water.

If used in agriculture, this water would bring in one billion dollars for every billion cubic meters. It is enough to water 1.1 million feddans of rice fields, and the cost of building water treatment plants to reuse agricultural drainage water, lining canals, developing field irrigation, and expanding greenhouses, among other processes, is extremely high, billions of Egyptian Pounds.

In Sudan, there is panic over the operation of dams, and there are fears of decreased agricultural productivity as a result of silt storage, rising groundwater, and increased costs of agricultural activity because of the need to use additional fertilizers.

In a study he published, Sharaki made several conclusions about the political damage Ethiopia is doing, saying it “is continuing to impose the framework that suits it on the ground, take unilateral decisions, and break international agreements, the Declaration of Principles Agreement it signed in 2015, and the Security Council’s (September 2021) statement.”

He warned that Ethiopia could continue to take similar actions on other projects in the future.

Sharaki goes as far as saying the matter “threatens peace and security in the region, especially after the holding capacity of GERD increased sevenfold.”

In case of a flood, the lives of 20 million Sudanese living by the Nile would be threatened and destroyed, he said.

The Egyptian expert added that the dam could upend the lives of millions of Sudanese farmers “who use simple and inexpensive flood farming methods, depending on the floods of the Blue Nile flowing to both banks in low and flat lands.”

Ethiopia’s insistence on acting unilaterally and disregarding the objections of both Sudan and Egypt has left farmers in both countries fuming, he said.

“More water will evaporate as the lake of GERD rises and the rocks surrounding GERD leak into the reservoir. The trees drowning in the lake will die out and undermine the quality of the water, and the biodiversity in the area will be reduced.”

Addis Ababa has claimed the dam will be among the largest in Africa, and reduced its production from 6,500 to 5,000 megawatts- twice Ethiopia's current levels. It is expected to reach full production capacity in 2024.

Meanwhile Khartoum and Cairo have demanded that Ethiopia compromise to agree to a framework that organizes the GERD’s operation and filling in order to safeguard the shared interests of the three 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.