Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
The culmination of the Donbas battle is near. For the first time in this war, the pendulum starts swinging in Russia’s favor. By summer’s end, it’s possible that Moscow will fully secure its land bridge to Crimea. This would have catastrophic consequences.
After a hesitant beginning, the West has rallied to provide Ukraine the military assistance it needs to check Russian aggression. Longer-range rocket systems should be part of a comprehensive strategy.
One of the main long-term consequences of Russia’s invasion of Ukraine is the restructuring of export flows in the global oil market. This will have direct consequences for Middle Eastern players, forcing them to choose whether to compete with Russia and each other or continue to coordinate their efforts.
It is time for Western leaders to deal with Russia as it is and not as they want it to be. There is no room for them to back down now, as it will simply increase Putin’s appetite. The cost of providing a face-saving exit to Putin is much higher than that of his ultimate humiliation on the battlefield.
As Russia’s war in Ukraine continues, where things go from here is far from certain, but it is worth considering the range of possibilities. These three scenarios highlight the potential challenges and opportunities that Putin, Erdoğan, and, to a lesser degree, Zelenskyy may face depending on how the conflict plays out, as well as what is at stake for other countries in the Black Sea region.
As Russia’s war on Ukraine keeps oil and gas prices high, Algeria’s regime is replenishing its financial reserves after years of depleting them. This renewed budgetary space will make it easier for the government to deal with any hint of popular discontent. But rather than going back to splurging on new salary increases or other forms of accelerated rent distribution as it has done in the past, the regime seems to be adopting a more cautious approach this time around.
Palestinian Authority (PA) officials repeatedly deny acquiescing to the economic peace model with Israel, but such rhetoric is not reflected in their actions. In recent years integration between the Palestinian and Israeli economies has only deepened.
Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
On Feb. 28, Turkey triggered the Montreux Convention, not used since World War II, and closed the Turkish Straits to military ships. This one move interrupted Russia’s maritime logistical supply line to Syria, interfered with its ability to rotate naval assets in the Mediterranean, and prevented Moscow from bringing additional warships to the Black Sea. Russia can no longer supply its Syria operation or deliver defense exports to its customers using navy ships. However, close observation of traffic through the Turkish Straits reveals that Russia is continuing its naval operations in the Mediterranean and Black seas.
The Dorra Gas Field, located in shallow waters offshore in the northern Arabian Gulf, lies at the junction of competing territorial claims by Kuwait, Iran, and Saudi Arabia. With the growing gas demand in these countries, any production will be absorbed into the domestic network and the impact of production on the global gas and LNG market will be insignificant. However, the development of the field, if it occurs, may serve as a bellwether for regional relations.
Iran began the new fiscal year on March 21, 2022 having recorded an estimated GDP growth rate of about 4% over the previous year, but CPI has grown by 35% year-on-year. While GDP growth could be the result of the stabilization of the economy after several years of recession, a steady rate of high inflation is alarming for Iran’s economy.
The two-month war between Russia and Ukraine has disrupted global food supplies, exposing the fragile state of food security across much of the Middle East and North Africa. Unlike those Mena nations struggling to secure cargoes of wheat and other staples, the UAE is in a better position, even though it currently imports 80 to 90 per cent of its food, thanks to its forward-looking food strategy during the past several years.
Egypt’s energy policy is helping to change the terms of the global debate on climate change by demonstrating that there is a basic compatibility between developing domestic natural gas resources and developing renewable energy sources. Disproving the dogma that natural gas and renewables are in a zero-sum competition, Egypt is advancing as a leader in renewable energy development while also increasing its offshore natural gas production capacity.
Karen Young, director of MEI’s Program on Economics and Energy, is joined by Emily Stromquist and Colby Connelly for a discussion on gas and energy developments in the Eastern Mediterranean.