Ethiopians in Lebanon took to the streets in December to protest U.S. and Western meddling in the Horn of Africa / credit: Twitter / Xinhua News
Editor’s Note: This article originally appeared in People’s Dispatch.
The Ethiopian diaspora across the Western world is condemning the United States and the European Union for “emboldening” the Tigray People’s Liberation Front (TPLF), which resumed war in the northern part of the country on August 24, ending the truce initiated by the federal government in March.
“Deploring the international community, in particular the UN, United States and the EU Member states, for their continued sympathy” towards the TPLF, the Ethiopian Advocacy Organizations Worldwide (EAOW) passed a resolution on Friday, September 2. The EAOW, a consortium of 18 organizations representing Ethiopian nationals in the United States, Canada, United Kingdom, South Africa, and 11 European countries, condemned the TPLF’s alleged systematic large-scale forced conscriptions—including of child soldiers—in the northernmost state of Tigray.
Thousands have been fleeing Tigray, which is under the TPLF’s control, in order to escape forced conscription. However, hundreds have been caught and arrested by the TLPF, which is waging a war against the Ethiopian federal government. Tens of thousands of conscripts were sacrificed in human wave attacks launched by the TPLF, which had advanced south into the neighboring states of Amhara and Afar last year before being beaten back into Tigray.
The resolution alleges that in order to conscript more soldiers for another round of invasion into Tigray’s neighboring states, the TPLF instituted a “one family, one soldier” policy, as the war became increasingly unpopular in Tigray itself. The group is allegedly denying food aid to families unable or unwilling to contribute soldiers. This is when, according to the World Food Programme (WFP), 83 percent of Tigray’s population is food-insecure and over 60 percent of pregnant or lactating women were malnourished as of January.
On resuming the war on August 24, the TPLF looted 12 full fuel trucks from the WFP and tankers with 570,000 liters of fuel meant to facilitate food aid delivery. Hundreds of WFP trucks which entered Tigray to distribute food aid had already been seized by the TPLF and used to mobilize its troops during its offensive last year.
“This has only reaffirmed the view [that] the TPLF should not be playing a central role in the distribution of aid in Tigray,” Bisrat Aklilu, a board member of the American Ethiopian Public Affairs Committee (AEPAC), said in a letter to WFP’s Ethiopia country director Adrian van der Knaap.
He called on the WFP “to undertake an urgent review of its processes and to identify any misuse of aid by the TPLF… Given the sheer number of Ethiopians in need in Tigray, Afar and Amhara regions, it would be an unforgivable scandal if WFP’s humanitarian assistance is ending up in the hands of rebel forces rather than the vulnerable communities who are suffering.”
“Deploring the deafening silence of the International Community in condemning such blatant violation of international law by TPLF,” the resolution urged the international community to force the TPLF to come to the negotiating table.
The federal government led by Prime Minister Abiy Ahmed has kept the door open for negotiations under the African Union (AU). AU’s High-Representative for the Horn of Africa, former Nigerian President Olusegun Obasanjo, had met with the government’s and TPLF’s leaders several times during the months of truce.
The EAOW resolution has called on the international community to “reiterate the peace process under the undisputed leadership” of the AU.
However, dismissing the AU as incompetent, the TPLF had effectively called for Western intervention only two days before resuming the war. It made particular references to the United States and the EU, whose envoys had met its leaders only weeks before it resumed the war.
“To date, the American Ethiopian community has been disappointed with the United States Government’s approach to the conflict, which has been perceived as more favorable to the TPLF terrorist group than the democratically elected government of Ethiopia,” the American Ethopian Public Affairs Committee (AEPAC) said in a press release.
AEPAC, which is a part of the EAOW and a signatory to its resolution, will be holding demonstrations and rallies on Tuesday, September 6, in Washington D.C., and other cities in the United States.
“The rallies will have a clear objective—to call on the U.S. government to support peace over violence in Ethiopia,” its statement said. “The only way to give peace a chance for the people of Ethiopia and ensure stability in [the] Horn of Africa is to end the TPLF’s violence. AEPAC will continue to engage U.S. legislators and the administration to educate them on the facts on the ground and views of the diaspora.”
Women in Western Sahara, officially the Saharawi Arab Democratic Republic / credit: Saharauiak / Wikipedia
Editor’s Note: This article originally appeared in People’s Dispatch.
Dismissing a now-deleted tweet by Kenyan President William Ruto about rescinding recognition of the Sahrawi Arab Democratic Republic (SADR), the Kenyan foreign ministry clarified on September 16 that it would continue to maintain diplomatic relations with SADR and support its right to self-determination.
Also known as Western Sahara, SADR is a founding member of the African Union (AU) and the continent’s last colony, fighting a war for liberation from Morocco. The Moroccan occupation of most of SADR’s territory since 1975 has been receiving increasing Western support, despite a consensus in international law that Morocco has no legitimate territorial claims over SADR, whose right to self-determination is well-recognized.
But Kenya has emerged as an important ally, championing SADR’s cause over the last decade. Ruto’s decision to change this foreign policy, only a day after his swearing-in ceremony, which was also attended by SADR President Brahim Ghali, was reversed as a result of public backlash and dissonance within the foreign ministry, sources and reports indicate.
“Kenya’s position [on SADR] is fully aligned with… the AU Charter which calls for the unquestionable and inalienable right of a people to self-determination,” read the foreign ministry communique dated September 16, addressing all of Kenya’s missions and directorates.
This communique, which was made public on Monday, September 19, reiterated, “UN Security Council Resolution 690 (1991)… calls for the self-determination of Western Sahara through a free and fair referendum administered by the UN and the AU. Kenya supports implementation of this UN security Council Resolution to the letter.”
Implicitly criticizing the new president’s hasty announcement, the communique signed by principal secretary Ambassador Macharia Kamau added, “It should be equally noted that Kenya does not conduct its foreign policy on Twitter or any other social media platforms, rather through official government documents and frameworks.”
Following a meeting with Moroccan Foreign Minister Nasser Bourita, Ruto had tweeted on September 14, “At State House in Nairobi, received a congratulatory message from His Majesty King Mohammed VI. Kenya rescinds its recognition of the SADR and initiates steps to wind down the entity’s presence in the country.”
While the tweet was soon deleted, Morocco’s foreign ministry released an official statement on its website the same day, announcing: “Following the message of His Majesty King Mohammed VI to the new President of the Republic of Kenya, Mr. William Ruto, the Republic of Kenya has decided to withdraw the recognition of the so-called ‘SADR’ and to initiate the steps to close its representation in Nairobi.”
The statement further claimed that Morocco and Kenya had signed a joint statement agreeing that “in deference to the principle of territorial integrity and non-interference, the Republic of Kenya [had extended] total support to the serious and credible autonomy plan proposed by the Kingdom of Morocco” as the only possible solution to the Sahara issue.
The Kenyan foreign ministry’s communique two days later in effect clarified that the tweet by the president had been arbitrary and had no bearing on the country’s foreign policy. This was a setback to Morocco, which had declared a diplomatic victory over SADR prematurely, before any official announcement by the Kenyan government.
Asked to explain the sudden change in stance and dissonance within the government, Kenya’s Deputy President Rigathi Gachagua told KTN News on Monday, “This was an administration in transition—[having been] only one day in office… We had many visitors, there [were] so many delegations, and communications had to be made.” He said this without specifying which countries’ delegations or visitors had sought for such a communication to be made.
Gachagua stressed that the most important thing was that “a clarification had been made,” and that the country’s position was “that of the United Nations and that of the African Union.”
United States and Israel Allegedly Lobbying Kenya
Even before the election was held in August this year, the United States and the United Kingdom, which were allegedly supporting Ruto’s candidacy, had sought from him a reversal of Kenya’s policy on SADR during his foreign trips, alleged Booker Ngesa Omole, National Vice Chairperson of the Communist Party of Kenya (CPK).
The UN, the AU, the Court of Justice of the European Union and the International Court of Justice all maintain that Morocco has no legitimate territorial claims over SADR. Nevertheless, in late 2020, then-U.S. President Donald Trump had announced his decision to open a consulate in occupied Western Sahara, in effect recognizing it as Moroccan sovereign territory.
After Ruto was declared the president-elect, a presidential delegation from the United States earlier this month and the subsequent Israeli delegation led by its minister of intelligence, had both allegedly brought up Kenya’s policy vis-à-vis SADR in the meetings with Ruto, Omole claimed.
Morocco, which is the second largest exporter of fertilizer in the world, had in the meantime seen a further opening in Ruto’s election promise of providing cheap fertilizers, he explained. With an apparent assurance from Morocco about “providing fertilizers at subsidized prices, Ruto went on national television to announce that he will provide subsidies to all farmers on fertilizers within two weeks time. A day later, he announced he was rescinding SADR’s recognition,” Omole said.
The bulk of the phosphate used in Moroccan fertilizers is extracted from the occupied Western Sahara. “The Moroccan regime uses the resources stolen from Western Sahara to bribe foreign officials to obtain recognition for its illegal occupation of our homeland,” Kamal Fadel, SADR’s Representative to Australia and the Pacific, told Peoples Dispatch.
“Those who receive the stolen goods from Western Sahara are complicit in the war crime of pillage and their involvement is a tacit support to an illegal occupation—one with continuing notorious human rights abuses occurring during a time of armed conflict,” he added.
Pointing out that within an hour of Ruto’s announcement, “Kenyans had jumped on his tweet, attacking him for surrendering sovereign foreign policy to Moroccan bribes,” Omole explained that there is a strong sentiment against what is perceived as a return to old foreign policy.
‘Kenyan Population Supports the Sahrawi People’
“Except for the last 10 years, Kenya has not had a progressive foreign policy. It was always a wait-and-see opportunistic policy, aligning with whichever position brings in most alms from foreign countries. So our relations with Western Sahara had always been strained,” Omole told Peoples Dispatch.
In 2006, Kenyan President Mwai Kibaki had placed diplomatic relations with SADR on “a temporary freeze” only months after first receiving diplomatic credentials from its ambassador. “But the Kenyan masses are always ahead of their governments. There was an uproar here, led by the Kenya Western Sahara Friendship Society (KWSFS),” said Omole, who has been a member of the KWSFS for 20 years.
“This organization has been fostering people-to-people friendship between the two countries. A few times, we have also hosted families from the refugee camps [of the displaced Sahrawis in Algeria]. Kenyan people lobbied the government to condemn Morocco’s occupation,” he explained. Under popular pressure, “Kibaki had to initiate the process to re-establish diplomatic relations with SADR.”
While this was unfolding, Uhuru Kenyatta and William Ruto, who at the time were contesting the 2013 election together as presidential and vice-presidential candidates, were put on trial by the International Criminal Court (ICC). They were tried for charges of crimes against humanity for political violence in the aftermath of the 2007 presidential election. The charges were subsequently dropped.
However, Kenyatta did not take the alleged U.S. and U.K. support for this trial well, Omole claimed. “After he won the election, he went about changing Kenya’s foreign policy against the interests of the West. He pursued alternative trade relations with the East, instead of continuing to rely on the West. He refused to follow Israel’s line and supported Palestine. He opened the SADR’s embassy in Nairobi, and, for the first time, Kenya appointed an ambassador to SADR. For the first time, a Kenyan ambassador presented his credentials to the president of the SADR.”
In the regional and international forums of the AU and the UN, Kenya actively supported the cause of the SADR. “The progressive foreign policy has continued since,” and during this period Kenyan people’s relations and solidarity with the Sahrawi people has deepened, Omole said.
There is a high degree of “awareness among the Kenyan people about the Sahrawi people’s struggle for liberation. It seems our new president was out of touch with the reality that the Kenyan population supports the Sahrawi people, regardless of the divisions that will be sown by governments,” he observed.
Prime Minister Benjamin Netanyahu met with Kenyan President Uhuru Kenyatta in Jerusalem on February 23, 2016. The two leaders signed a joint statement on water that focuses on cooperation on water and agricultural issues and establishes a joint bilateral committee / credit: GPO
The decision by the African Union Commission, on July 22, to grant Israel observer status membership in the AU was the culmination of years of relentless Israeli efforts aimed at co-opting Africa’s largest political institution. Why is Israel so keen on penetrating Africa? What made African countries finally succumb to Israeli pressure and lobbying?
To answer the above questions, one has to appreciate the new Great Game under way in many parts of the world, especially in Africa, which has always been significant to Israel’s geopolitical designs. Starting in the early 1950s to the mid-70s, Israel’s Africa network was in constant expansion. The 1973 war, however, brought that affinity to an abrupt end.
What Changed Africa
Ghana, in West Africa, officially recognized Israel in 1956, just eight years after Israel was established atop the ruins of historic Palestine. What seemed like an odd decision at the time – considering Africa’s history of western colonialism and anti-colonial struggles—ushered in a new era of African-Israeli relations. By the early 1970s, Israel had established a strong position for itself on the continent. On the eve of the 1973 Israeli-Arab war, Israel had full diplomatic ties with 33 African countries.
“The October War”, however, presented many African countries with a stark choice: siding with Israel – a country born out of Western colonial intrigues – or the Arabs, who are connected to Africa through historical, political, economic, cultural and religious bonds. Most African countries opted for the latter choice. One after the other, African countries began severing their ties with Israel. Soon enough, no African state, other than Malawi, Lesotho and Swaziland, had official diplomatic relations with Israel.
Then, the continent’s solidarity with Palestine went even further. The Organization of African Unity – the precursor to the African Union – in its 12th ordinary session held in Kampala in 1975, became the first international body to recognize, on a large scale, the inherent racism in Israel’s Zionist ideology by adopting Resolution 77 (XII). This very Resolution was cited in the United Nations General Assembly Resolution 3379, adopted in November of that same year, which determined that “Zionism is a form of racism and racial discrimination”. Resolution 3379 remained in effect until it was revoked by the Assembly under intense U.S. pressure in 1991.
Since Israel remained committed to that same Zionist, racist ideology of yesteryears, the only rational conclusion is that it was Africa, not Israel, that changed. But why?
First, the collapse of the Soviet Union. That seismic event resulted in the subsequent isolation of pro-Soviet African countries which, for years, stood as the vanguard against U.S., Western and, by extension, Israeli expansionism and interests on the continent.
Second, the collapse of the unified Arab front on Palestine. That front has historically served as the moral and political frame of reference for the pro-Palestine, anti-Israel sentiments in Africa. This started with the Egyptian government’s signing of the Camp David Agreement, in 1978-79 and, later, the Oslo Accords between the Palestinian leadership and Israel, in 1993.
Covert and overt normalization between Arab countries and Israel continued unabated over the last three decades, resulting in the extension of diplomatic ties between Israel and several Arab countries, including African-Arab countries, like Sudan and Morocco. Other Muslim-majority African countries also joined the normalization efforts. They include Chad, Mali and others.
Third, the ‘scramble for Africa’ was renewed with a vengeance. The neocolonial return to Africa brought back many of the same usual suspects—Western countries, which are, once more, realizing the untapped potential of Africa in terms of markets, cheap labor and resources. A driving force for Western re-involvement in Africa is the rise of China as a global superpower with keen interests in investing in Africa’s dilapidated infrastructure. Whenever economic competition is found, military hardware is sure to follow. Now several Western militaries are openly operating in Africa under various guises—France in Mali and the Sahel region, the United States’ many operations through U.S. Africa Command (AFRICOM), and others.
Tellingly, Washington does not only serve as Israel’s benefactor in Palestine and the Middle East, but worldwide as well, and Israel is willing to go to any length to exploit the massive leverage it holds over the U.S. government. This stifling paradigm, which has been at work in the Middle East region for decades, is also at work throughout Africa. For example, last year the U.S. administration agreed to remove Sudan from the state-sponsored terror list in exchange for Khartoum’s normalization with Israel. In truth, Sudan is not the only country that understands – and is willing to engage in—this kind of ‘pragmatic’—read under-handed—political barter. Others also have learned to play the game well. Indeed, by voting to admit Israel to the AU, some African governments expect a return on their political investment, a return that will be exacted from Washington, not from Tel Aviv.
Unfortunately, albeit expectedly, as Africa’s normalization with Israel grew, Palestine became increasingly a marginal issue on the agendas of many African governments, who are far more invested in realpolitik – or simply remaining on Washington’s good side—than honoring the anti-colonial legacies of their nations.
Netanyahu the Conqueror
However, there was another driving force behind Israel’s decision to ‘return’ to Africa than just political opportunism and economic exploitation. Successive events have made it clear that Washington is retreating from the Middle East and that the region was no longer a top priority for the dwindling U.S. empire. For the United States, China’s decisive moves to assert its power and influence in Asia are largely responsible for the U.S. rethink. The 2012 U.S. withdrawal from Iraq, its ‘leadership from behind’ in Libya, its non-committal policy in Syria, among others, were all indicators pointing to the inescapable fact that Israel could no longer count on the blind and unconditional U.S. support alone. Thus, the constant search for new allies began.
For the first time in decades, Israel began confronting its prolonged isolation at the UNGA. U.S. vetoes at the UN Security Council may have shielded Israel from accountability to its military occupation and war crimes; but U.S. vetoes were hardly enough to give Israel the legitimacy that it has long coveted. In a recent conversation with former UN human rights envoy, Richard Falk, the Princeton Professor Emeritus explained to me that, despite Israel’s ability to escape punishment, it is rapidly losing what he refers to as the ‘legitimacy war’.
Palestine, according to Falk, continues to win that war, one that can only be achieved through real, grassroots global solidarity. It is precisely this factor that explains Israel’s keen interest in transferring the battlefield to Africa and other parts of the Global South.
On July 5, 2016, then Israeli Prime Minister, Benjamin Netanyahu, kick-started Israel’s own ‘scramble for Africa’ with a visit to Kenya, which was described as historic by the Israeli media. Indeed, it was the first visit by an Israeli prime minister in the last 50 years. After spending some time in Nairobi, where he attended the Israel-Kenya Economic Forum alongside hundreds of Israeli and Kenyan business leaders, he moved on to Uganda, where he met leaders from other African countries including South Sudan, Rwanda, Ethiopia and Tanzania. Within the same month, Israel announced the renewal of diplomatic ties between Israel and Guinea.
The new Israeli strategy flowed from there. More high-level visits to Africa and triumphant announcements about new joint economic ventures and investments followed. In June 2017, Netanyahu took part in the Economic Community of West African States (ECOWAS), held in the Liberian capital, Monrovia. There, he went as far as rewriting history.
“Africa and Israel share a natural affinity,” Netanyahu claimed in his speech. “We have, in many ways, similar histories. Your nations toiled under foreign rule. You experienced horrific wars and slaughters. This is very much our history.” With these words, Netanyahu attempted, not only to hide Israel’s colonial intentions, but also rob Palestinians of their own history.
Moreover, the Israeli leader had hoped to crown his political and economic achievements with the Israel-Africa Summit, an event that was meant to officially welcome Israel, not to a specific African regional alliance, but to the whole of Africa. However, in September 2017, the organizers of the event decided to indefinitely postpone it, after it was confirmed to be taking place in Lome, capital of Togo, on October 23-27 of that same year. What was seen by Israeli leaders as a temporary setback was the result of intense, behind-the-scenes lobbying of several African and Arab countries, including South Africa and Algeria.
Premature ‘Victory’
Ultimately, it was a mere temporary setback. The admission of Israel into the 55-member African bloc in July is considered by Israeli officials and media pundits as a major political victory, especially as Tel Aviv has been laboring to achieve this status since 2002. At the time, many obstacles stood in the way, like the strong objection raised by Libya under the leadership of Muammar Ghaddafi and the insistence of Algeria that Africa must remain committed to its anti-Zionist ideals, and so on. However, one after the other, these obstacles were removed or marginalized.
In a recent statement, Israel’s new Foreign Minister, Yair Lapid, celebrated Israel’s Africa membership as an “important part of strengthening the fabric of Israel’s foreign relations”. According to Lapid, the exclusion of Israel from the AU was an “anomaly that existed for almost two decades”. Of course, not all African countries agree with Lapid’s convenient logic.
According to TRT news, citing Algerian media, 17 African countries, including Zimbabwe, Algeria and Liberia, have objected to Israel’s admission to the Union. In a separate statement, South Africa expressed outrage at the decision, describing the “unjust and unwarranted decision of the AU Commission to grant Israel observer status in the African Union” as “appalling”. For his part, Algerian Foreign Minister, Ramtane Lamamra, said that his country will “not stand idly by in front of this step taken by Israel and the African Union without consulting the member states.”
Despite Israel’s sense of triumphalism, it seems that the fight for Africa is still raging, a battle of politics, ideology and economic interests that is likely to continue unabated for years to come. However, for Palestinians and their supporters to have a chance at winning this battle, they must understand the nature of the Israeli strategy through which Israel depicts itself to various African countries as the savior, bestowing favors and introducing new technologies to combat real, tangible problems. Being more technologically advanced as compared to many African countries, Israel is able to offer its superior ‘security’, IT and irrigation technologies to African states in exchange for diplomatic ties, support at the UNGA and lucrative investments.
Consequently, Palestine’s Africa dichotomy rests partly on the fact that African solidarity with Palestine has historically been placed within the larger political framework of mutual African-Arab solidarity. Yet, with official Arab solidarity with Palestine now weakening, Palestinians are forced to think outside this traditional box, so that they may build direct solidarity with African nations as Palestinians, without necessarily merging their national aspirations with the larger, now fragmented, Arab body politic.
While such a task is daunting, it is also promising, as Palestinians now have the opportunity to build bridges of support and mutual solidarity in Africa through direct contacts, where they serve as their own ambassadors. Obviously, Palestine has much to gain, but also much to offer Africa. Palestinian doctors, engineers, civil defense and frontline workers, educationists, intellectuals and artists are some of the most highly qualified and accomplished in the Middle East. True, they have much to learn from their African peers, but also have much to give.
Unlike persisting stereotypes, many African universities, organizations and cultural centers serve as vibrant intellectual hubs. African thinkers, philosophers, writers, journalists, artists and athletes are some of the most articulate, empowered and accomplished in the world. Any pro-Palestine strategy in Africa should keep these African treasures in mind as a way of engaging, not only with individuals but with whole societies.
Israeli media reported extensively and proudly about Israel’s admission to the AU. The celebrations, however, might also be premature, for Africa is not a group of self-seeking leaders bestowing political favors in exchange for meager returns. Africa is also the heart of the most powerful anti-colonial trends the world has ever known. A continent of this size, complexity, and proud history cannot be written off as if a mere ‘prize’ to be won or lost by Israel and its neocolonial friends.
On September 10, sections of the second Nord Stream 2 pipeline laid from the German shore and Danish waters were connected in a so-called “above water tie-in.” The opposing pipe strings were lifted from the seabed by the lay barge, Fortuna. Then the pipe ends were cut and fitted together. The welding to connect the two lines took place on a platform located above the water on the side of the vessel. Then the connected pipeline was lowered to the seabed as one continuous string / credit: Nord Stream 2 / Axel Schmidt
Editor’s Note: The following represents the writer’s analysis and was produced in partnership by Newsclick and Globetrotter.
The current crisis of spiraling gas prices in Europe, coupled with a cold snap in the region, highlights the fact that the transition to green energy in any part of the world is not going to be easy. The high gas prices in Europe also bring to the forefront the complexity involved in transitioning to clean energy sources: that energy is not simply about choosing the right technology, and that transitioning to green energy has economic and geopolitical dimensions that need to be taken into consideration as well.
Gas wars in Europe are very much a part of the larger geostrategic battle being waged by the United States using the North Atlantic Treaty Organization (NATO) and Ukraine. The problem the United States and the EU have is that shifting the EU’s energy dependence on Russia will have huge costs for the EU, which is being missed in the current standoff between Russia and NATO. A break with Russia at this point over Ukraine will have huge consequences for the EU’s attempt to transition to cleaner energy sources.
The European Union has made its problem of a green transition worse by choosing a completely market-based approach toward gas pricing. The blackouts witnessed by people in Texas in February 2021 as a result of freezing temperatures made it apparent that such market-driven policies fail during vagaries of weather, pushing gas prices to levels where the poor may have to simply turn off their heating. In winter, gas prices tend to skyrocket in the European Union, as they did in 2020 and again in 2021.
For India and its electricity grid, one lesson from this European experience is clear. Markets do not solve the problem of energy pricing, as they require planning, long-term investments and stability in pricing. The electricity sector will face disastrous consequences if it is handed over to private electricity companies, as is being proposed in India. This is what the move to separate wires from the electricity they carry aims to achieve through Indian Prime Minister Narendra Modi’s government’s proposed amendment to the existing Electricity Act of 2003.
In order to understand the issues related to transitioning toward green energy, it is important to take a closer look at the current gas supply-related issues being faced by the European Union. The EU has chosen gas as its choice of fuel for electricity production, as it goes off coal and nuclear while also investing heavily in wind and solar. The argument advanced in favor of this choice is that gas would provide the EU with a transitional fuel for its low carbon emission path, as gas tends to produce less emissions than coal. It is another matter that gas is at best a short-term solution, as it still emits half as much greenhouse gas as coal.
As I have written earlier, the problem with green energy is that it requires a much larger capacity addition to handle seasonal and daily fluctuations that planners have not accounted for while advocating for switching over to clean energy sources. During winter, days are shorter in higher latitudes, and the world therefore gets fewer hours of sunlight. This seasonal problem with solar energy has been compounded in Europe with low winds in 2021 reducing the electricity output of windmills.
The European Union has banked heavily on gas to meet its short- and medium-term goals of cutting down greenhouse emissions. Gas can be stored to meet short-term and seasonal needs, and gas production can even be increased easily from gas fields with requisite pumping capacity. All this, however, requires advance planning and investment in surplus capacity building to meet the requirements of daily or seasonal fluctuations.
Unfortunately, the EU is a strong believer that markets magically solve all problems. It has moved away from long-term price contracts for gas and toward spot and short-term contracts—unlike China, India and Japan, which all have long-term contracts indexed to their oil prices.
Why does the gas price affect the price of electricity in the EU? After all, natural gas accounts only for about 20 percent of the EU’s electricity generation. Unfortunately for the people in the EU region, not only the gas market but also the electricity market has been “liberalized” under the market reforms in the EU. The energy mix in the grid is determined by energy market auctions, in which private electricity producers bid their prices and the quantity they will supply to the electricity grid. These bids are accepted, in order from lowest to highest, until the next day’s predicted demand is fully met. The last bidder’s price then becomes the price for all producers. In the language of Milton Friedman’s followers—who were known as the Chicago Boys—this price offered by the last bidder is its “marginal price” discovered through the market auction of electricity and, therefore, is the “natural” price of electricity. For readers who might have followed the recently concluded elections in Chile, Augusto Pinochet—who was a military dictator in Chile from 1973 to 1990—introduced the Constitution of 1980 in Chile and had incorporated the above principle in a constitutional guarantee to the neoliberal reforms in the electricity sector in the country. Hopefully, the victory of the left in the presidential elections in Chile and the earlier referendum on rewriting the Chilean constitution will also address this issue. Interestingly, it was not the former UK Prime Minister Margaret Thatcher—as is commonly thought—who started the electricity “reforms” but Pinochet’s bloody regime in Chile.
At present in the EU, natural gas is the marginal producer, and that is why the price of gas also determines the price of electricity in Europe. This explains the almost 200 percent rise in electricity price in Europe in 2020. In 2021, according to an October 2021 report by the European Commission, “Gas prices are increasing globally, but more significantly in net importer regional markets like Asia and the EU. So far in 2021, prices tripled in [the] EU and more than doubled in Asia while only doubling in the U.S.” [emphasis added].
The coupling of the gas and the electricity markets by using the marginal price as the price of all producers means that if gas spot prices triple as has been seen recently, so will the electricity prices. No prizes for guessing who gets hit the hardest with such increases. Though there has been criticism from various quarters regarding the use of marginal price as the price of electricity for all suppliers irrespective of their respective costs, the neoliberal belief in the gods of the market has ruled supreme in Europe.
Russia has long-term contracts as well as short-term contracts to supply gas to EU countries. Putin has mocked the EU’s fascination with spot prices and gas prices and said that Russia is willing to supply more gas via long-term contracts to the region. Meanwhile, in October 2021, European Commission President Ursula von der Leyen said that Russia was not doing its part in helping Europe tide over the gas crisis, according to an article in the Economist. The article stated, however, that according to analysts, Russia’s “big continental customers have recently confirmed that it is meeting its contractual obligations,” adding that “[t]here is little hard evidence that Russia is a big factor in Europe’s current gas crisis.”
The question here is that the EU either believes in the efficiency of the markets or it doesn’t. The EU cannot argue markets are best when spot prices are low in summer, and lose that belief in winter, asking Russia to supply more in order to “control” the market price. And if markets indeed are best, why not help the market by expediting the regulatory clearances for the Nord Stream 2 pipeline, which will ship Russian gas to Germany?
This brings us to the knotty question of the EU and Russia. The current Ukraine crisis that is roiling the relationship between the EU and Russia is closely linked to gas as well. Pipelines from Russia through Ukraine and Poland, along with the undersea Nord Stream 1, currently supply the bulk of Russian gas to the EU. Russia also has additional capacity via the newly commissioned Nord Stream 2 to supply more gas to Europe if it receives the financial regulatory clearance.
There is little doubt that Nord Stream 2 is caught not simply in regulatory issues but also in the geopolitics of gas in Europe. The United States pressured Germany not to allow Nord Stream 2 to be commissioned, and also threatened to impose sanctions on companies involved with the pipeline project. Before stepping down as the chancellor of Germany in September 2021, Angela Merkel, however, resisted pressure from Washington to halt the work on the pipeline and forced the United States to concede to a “compromise deal.” The Ukraine crisis has created further pressure on Germany to postpone Nord Stream 2 even if it means worsening its twin crises of gas and electricity prices.
The net gainer in all of this is the United States, which will get the EU as a buyer for its more expensive fracking gas. Russia currently supplies about 40 percent of the EU’s gas. If this stalls, the United States, which supplies about 5 percent of the EU’s gas demand (according to 2020 figures), could be a big gainer. The United States’ interest in sanctioning Russian gas supply and not allowing the commissioning of Nord Stream 2 has as much to do with its support to Ukraine as seeing that Russia does not become too important to the EU.
Nord Stream 2 could help form a common pan-European market and a larger Eurasian consolidation. Just as it did in East and Southeast Asia, the United States has a vested interest in stopping trade following geography instead of politics. Interestingly, gas pipelines from the Soviet Union to Western Europe were built during the Cold War as geography and trade got priority over Cold War politics.
The United States wants to focus on NATO and the Indo-Pacific region, as its focus is on the oceans. In geographical terms, the oceans are not separate but a continuous body covering more than 70 percent of the world’s surface with three major islands: Eurasia, Africa and the Americas. (Although in the formulation of British geographer Halford Mackinder, the originator of the world island idea, Africa was seen as a part of Eurasia.) Eurasia alone is by far the bigger island, with 70 percent of the world’s population. That is why the United States does not want such a consolidation.
The world is passing through perhaps the greatest transition that human civilization has known in meeting the current challenges posed by climate change. To address these challenges, an energy transition is required that cannot be achieved through markets that prioritize immediate profits over long-term societal gains. If gas is indeed the transitional fuel, at least for Europe, it needs long-term policies of integrating its gas grid with gas fields, which have adequate storage. And Europe needs to stop playing games with its energy and the world’s climate future for the benefit of the United States.
For India, the lessons are clear. Markets do not work for infrastructure. Long-term planning with state leadership is what India needs to ensure supply of electricity to all Indians and ensure the country’s green transition—instead of dependence on electricity markets created artificially by a few regulators framing rules to favor the private monopoly of electricity companies.
Prabir Purkayastha is the founding editor of Newsclick.in, a digital media platform. He is an activist for science and the free software movement.