Showing posts with label Black Sea. Show all posts
Showing posts with label Black Sea. Show all posts

Monday, 23 June 2014

ISIS: Britain's Lethal Embrace of Qatar and the Threat of Blowback

'Why Cameron should want to elevate, indeed almost romanticise, that menace is a mystery. The only security against this violence is from policing and from targeted intelligence. The only security against this violence is from policing and from targeted intelligence'-Simon Jenkins, Isis is no Threat to Britain, The Guardian, 22nd June 2014.
The reason both Cameron and Fox want to ramp up the threat of ISIS as one that could be directed against Britain is that the British government has backed Saudi Arabia, Kuwait and Qatar in their geopolitical struggle and use of Sunni jihadists in Syria and Iraq against Iran and its allies in Syria and Iraq.

There is a need, therefore, to pretend that ISIS is simply another 'more extreme' version of Al Qaida, another evil which has arisen as though out of the void caused by the collapse of authority in Iraq which is blamed almost wholly on Maliki in Baghdad ruling in a sectarian way.

Yet the fear is one of 'blowback' from Syria and the possibility both northern Syria and Iraq could become similar to Afghanistan, another land where Sunni jihadists backed primarily by Britain and America's Gulf allies gained a foothold and that ended up creating Al Qaida.

While Saudi Arabia has backed off from supporting Sunni jihadists such as Al Nusra, because of a certain amount of pressure from Washington, Kuwait has continued as a source of funding and Qatar made in plain in March 2014 that it would continue to back the toughest Sunni jihadists in Syria.

Foreign Minister Khaled al-Attiyah said in a speech in Paris "The independence of Qatar's foreign policy is simply non-negotiable...Qatar is to take decisions, and follow a path, of its own." Backing Sunni jihadists is considered essential to advancing its regional interests.

Removing Assad is considered crucial in order to advance the prospect of building a Qatar-Turkey pipeline that would pump Qatari gas towards lucrative EU markets and enable it to avoid having to depend on exporting LNG via the Iranian controlled Straits of Harmuz in the Persian Gulf.

Britain is a key backer of Qatar and unwilling to criticise Qatar's regional ambitions because as North Sea gas has depleted, the importance of imported Qatari LNG has become vital. In 2011 it was reported that it provided all but two cargoes of the product shipped to the UK.

Hague's obsession that 'Assad must go' is connected to energy security and backing Qatar no matter the potential threat of jihadist blowback. Britain is overdependent upon gas from Qatar but Russia, the only power that has more of the globe's gas than Qatar, is regarded as as a threat to its interests.

Russia, of course, has backed Assad and gained a foothold in exploiting the Levant Basin, a field of offshore oil and gas in the Eastern Mediterranean. Yet Russia also, through the annexation of Crimea and the advance of pro-Russia separatists in Eastern Ukraine, could control energy flows in the Black sea region.

As Russia exerts greater influence over regions considered strategically vital for the flow of oil and gas into the EU, Britain has shown readiness to court favour in Doha. Qatar owns 20% of the London Stock Exchange, invests 10bn pounds annually in the UK and has helped shore up London's property boom.

Britain is increasingly overdependent upon Qatar to prop up its ailing rentier economy and provide it with up to 90% of its LNG which, in turn, provides around a quarter of the UK's gas supply and 59.3 % of the total gas supplied to British homes. Britain's economic recovery after the financial crash of 2008 depends heavily on Qatar.

Britain, therefore, backed Qatar in its proxy war against Iran in Syria after 2011 so as to forestall the possibility of the Iran-Iraq-Syria gas pipeline that would transport gas from the Persian Gulf to the Mediterranean Sea in order to supply Europe and that could bypass Turkey and sink Qatar's proposed alternative.

The consequence of this brutal geopolitical proxy conflict is that is has opened up space for ISIS to operate no matter that Britain and the US is trying to use its intelligence services to redirect assistance to Sunni jihadists it can control in order to contain those that could pose the threat of blowback.

This 21st century will see greater conflicts over access to oil and gas in a world of increased demand and competition caused by global industrialisation and high octane consumerism, one described by the American academic and writer Michael Klare in his aptly titled Rising Powers, Shrinking Planet: The New Geopolitics of Energy. 

It is in preparation for those resource conflicts and the threat of terrorist blowback that politicians such as Liam Fox argue for increased levels of state surveillance over 'extremists' in our midst and, by implication, over the entire populace in Britain as part of a messianic 'ideological battle' that is set to 'go on for a long time'

Postscript.

How Dependent is Britain upon Qatar ? 

It is possible to argue that  LNG is not a particulary predominant section of Britain's energy portfolio and that is is not 'dependent' upon Qatar. While it's true that domestic production of gas and Norwegian supplies made up the bulk of it in 2013, this is not the entire story.

Britain's North Sea gas is rapidly depleting and Russia is held to pose a threat to the energy interests of other EU nations and the expansion of NATO power, something evident in Rasmussen's attempt to claim that anti-fracking activists were being funded by Moscow.

The only reason why demand for more LNG declined in 2013 was the mild winter which allowed stocks not to be used up, which is fortunate as LNG is becoming more expensive due to high Asian demand, especially from Japan in the wake of the Fukashima nuclear power plant disaster.

LNG is a crucial component of Britain's domestic gas market and the need for politicians to keep prices lower rather than higher accounts for the interest in a Qatar-Turkey pipeline which would run via Syria and prevent gas having to get to Europe via tanker on the Straits of Hormuz.

Support for Qatar and opening London to its lucrative investments is one reason why Qatar is prepared to divert LNG supplies west even when the price does not fall so much in Asia as as would justify that on the profits it could have otherwise made from its sale in the east.

The boost to Britain's economy provided by Qatari capital from gas exports should not be underestimated. In February 2014 it was reported that Qatar was going to boost investment in Barclays Plc
(BARC) and J Sainsbury Plc after aquiring stakes in both.


Ahmad Al-Sayed, chief executive officer of the sovereign wealth fund,claimed, on visiting London, "Britain is one of the main destinations for investment...You’ve great systems, great regulations. We’re happy to invest more when the opportunity is coming.”

The UK is the main destination in Europe for Qatari investments, amounting to $33.8 billion. By any standards, that's a huge amount and its a prime driver of London's property market boom which is blamed for creating the 'wrong kind of growth' and a bubble economy.

Britain has depended upon Qatar to assist in getting it out of the economic recession caused by the finacial crash of 2008 and out of austerity in readiness for the 2015 elections. It is prepared to invest in infrastructure projects from nuclear reactors to London's sewers.

The cost of that dependence is that Britain, led as a 'Global Player' by Cameron and Hague, is support for its foreign policy in Syria no matter the potential consequences of terrorist blowback, as part of the 'warm bilateral relationship' both countrties

LNG is not the only reason why Britain is so beholden to Qatar but is important along with its huge investments and large market for British weapons and military assistance which even led in April 2014 to plans for the UK to have a military base in the region.

As Defence Minister Phillip Hammond put it,
"The UK and Qatar enjoy a very strong and multi-faceted bilateral relationship, which embraces defence and security issues, trade and investments, and is getting stronger all the time. We are building the momentum to strengthen the relationship and we are conscious of the need to sustain that momentum,"

Friday, 20 June 2014

Iraq: ISIS, Turkey and Western Oil and Gas Interests

President Obama's decision to send 300 “military advisers” to help Iraq's army to drive back ISIS is primarily concerned with preventing the Sunni jihadists from advancing too far into Iraq and endangering the interests for which the US invaded Iraq in 2003, most obviously the oil.

No Great Power has an interest in ISIS menacing the oil fields in and around Baghdad or to the south in the highly unlikely event that ISIS would be able to overthrow the Maliki government. But the surge southwards of ISIS was made possible by the tacit acquiescence of the Kurdish militias and other Sunni groups.

The reason is that the authorities in the Kurdish region wanted to seize Kirkuk and hasten the break up of Iraq into three separate regions the better to control its great oil wealth. This policy has been backed by Turkey which has connived with the Kurds to sell crude oil without Baghdad’s authorisation.

As for the Sunni tribes in the north and east of Iraq, they are prepared to use any means of getting rid of a Shi'ite government viewed not only as apostates in league with Iran but of monopolising the oil wealth and revenues of an Iraqi state they have had no particular interest in defending.

The capture of Mosul and Tikrit by ISIS could only have been possible not only with a nod from the Kurdish militias but from Sunni militants and the tribes that supported Saddam Hussein. Yet back in January 2014 the US was advocating 'restrained approach' towards ISIS when it took Fallujah.

One reason is the Obama administration started to see the benefits of greater Kurdish autonomy from Baghdad and so lobbied and showed support for a new oil deal that would allow the Kurds to export 300,000 barrels a day along pipelines leading from the Kurdish region through Turkey.

When Washington and London calls for Maliki to rule in a 'non-sectarian' manner as a condition for military assistance, the unspoken agenda is to push Baghdad towards scrapping the de-Baathification program and to be reach out to those who supported Saddam Hussein.

From that perspective, the surge of ISIS provided an opportunity for the US and its Turkey to push for greater Kurdish autonomy and crude oil exports not only to US oil refineries but also to Israel which all sales of oil to are officially banned by the Iraqi government.

Despite accusations that Turkey turned a blind eye to ISIS, in so far as it has caused havoc for a Shi'ite government supported by Iran it has proved beneficial in furthering a reapprochement between Ankara and the Kurds after decades of hostilities with the Kurds now regarded as 'our Iraqi brothers'.

Apart from the flow of oil through Turkey and on to Europe, Turkey has profited from growing construction and trade links in Kurdistan and Erdogan announced he is "open to a divided Iraq" and his advisers claim that ISIS is a 'product' of Maliki's sectarianism as opposed to it and its Sunni allies foreign policies.

While Washington and London claim that ISIS could threaten not only Iraq but also the US and Britain, the fact is that both the Obama administration and the Cameron government were prepared to view Sunni jihadist groups as also somewhat useful in checking Iranian regional interests.

The truth that the public in Britain and the US are not being told is that whatever terrorist threat ISIS poses is a consequence of Washington and London ignoring its allies Saudi Arabia, Kuwait and Qatar bankrolling it in Iraq against Shi'ite militias and Sunni jihadists in Syria to overthrow Assad.

The reason for this failed foreign policy and the threat of terrorist blowback is the pathological struggle for control over oil and gas export routes. The tacit backing for Sunni jihadist fanatics in Syria from Washington and London lies ultimately in energy geopolitics. 

The readiness to support Sunni jihadists in northern Syria against Assad in a way that spawned ISIS's power base has its origins not in the policy of containing Iran but of removing a government prepared to co-operate with Russia in the exploitation of the gas of the Levant basin. 
 
In December 2013, Russia’s SoyuzNefteGaz signed a $90 million deal to support Syria’s first offshore drilling attempt. Not only did that outrage the Syrian opposition but it also poses a threat to the interests of their backers and US and Britain's allies- Saudi Arabia, Qatar, Turkey and Jordan.

Turkey took Ukraine's side after Russia's annexation of the Crimea which threatens its role as a predominant NATO power in the Black Sea region. In turn, this has driven Iran closer to Moscow and led to fears of a Russia-Syria-Iraq-Iran axis of influence to rival Western alliances in the Middle East.

While ISIS's surge south raises nightmare concerns of a global oil price spike, its threat offers the opportunity for the US and Turkey to detach the Kurdish region further from Iranian influenced Baghdad, though Washington has so far pulled short of demanding Maliki's departure as the condition for military assistance.

The US is hardly likely to want to join Iran in rolling back the threat of ISIS even if domestic hawks are demanding greater military action and the need to remove Maliki. Such a policy could only be enforced by committing itself to increased military intervention that could draw it into conflict with Tehran.

On the other hand, if Iran commits to a military intervention, then Turkey would be bound to back Sunni militants and its Kurdish allies as a counter measure and with the support of Qatar and Saudi Arabia which have both warned the US to stay out of Iraq and that shoring up Maliki would be seen as a 'hostile act' against Sunni muslims.

The appalling danger of the Syria and Iraq conflict is that it is is drawing in the regional powers further into a clash  which could drag in those global power players that are vying for access to the oil and gas that drives their economies and is causing collisions of interest and growing insecurity.