How Will the Conflict in Sudan Impact Egypt's Stance over GERD?

A view of the Grand Ethiopian Renaissance Dam (GERD). (Ethiopian Ministry of Water and Energy)
A view of the Grand Ethiopian Renaissance Dam (GERD). (Ethiopian Ministry of Water and Energy)
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How Will the Conflict in Sudan Impact Egypt's Stance over GERD?

A view of the Grand Ethiopian Renaissance Dam (GERD). (Ethiopian Ministry of Water and Energy)
A view of the Grand Ethiopian Renaissance Dam (GERD). (Ethiopian Ministry of Water and Energy)

The fighting between the Sudanese military and Rapid Support Forces (RSF) has raised concerns that it may affect the Grand Ethiopian Renaissance Dam (GERD) file as Ethiopia prepares for its fourth filling of the dam on the Nile River.

Observers and experts told Asharq Al-Awsat that the fighting will have a "direct impact" on a number of regional files, including the GERD crisis.

The fighting will "weaken Sudan's reservations" on the filling of the fourth reservoir that is set to begin in summer.

The weakened Sudanese position will only create a greater burden on Egypt and its international efforts to tackle the crisis, added the observers.

A spokesman for the Ethiopian foreign ministry declared last week that his country was determined to complete the construction of GERD.

Addis Ababa does not need anyone's permission to kick off the fourth filling of the dam, he added, stressing that the move will not harm Egypt and Sudan.

Ethiopia had completed the second filling in July 2021 and the third in August 2022. Just days ago, it announced that it had completed 90 percent of the dam.

The developments have deepened the dispute between Ethiopia with Egypt and Sudan that oppose the filling the dam and who have accused Addis Ababa of acting unilaterally.

Former Egyptian Minister of Water Resources and Irrigation Dr. Nasreddine Allam said the fighting in Sudan was unfortunate.

Sudan's stability is in Egypt and the region's strategic interest, he told Asharq Al-Awsat.

Any unrest in Sudan will have deep repercussions on vital strategic files, including water security, he remarked.

He added that the united Sudanese and Egyptian positions were a "real guarantee" that ensures the historic and legal rights of the Nile basin countries.

Cairo and Khartoum fear that the GERD will impact their share of the Nile waters. They have been demanding that Ethiopia join them in signing a binding legal agreement that manages the filling and operation of the dam.

Negotiations over the issue have stalled since January 2021.

Deputy Director of the Al-Ahram Center for Political and Strategic Studies Ayman Abdulwahhab told Asharq Al-Awsat that the unrest in Sudan will directly impact several regional files, including the GERD dispute.

As Ethiopia nears the fourth filling, Sudan will unlikely make any protests or express any reservations amid its internal turmoil, he noted, throwing an added burden on Egypt to handle this vital file.

He urged regional powers, starting with Egypt, to act to put a stop to the internal fighting in Sudan to "avoid a repeat of painful experiences in history", such as those seen in Lebanon, Somalia, Iraq, Yemen and Syria, where internal conflicts flared out to have regional consequences.



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.