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Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.

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Kazakhstan to host EU-Central Asia Economic Forum on 18-19 May

Kazakhstan to host EU-Central Asia Economic Forum on 18-19 May

The Kazakh capital of Almaty will be hosting the 2nd European Union-Central Asia Economic Forum next week on 18-19 May. Building on the 1st EU-Central Asia Economic Forum that took place in Bishkek in 2021, next week's forum will "take stock of progress made so far and discuss ways forward on policy, programmes, and investment needed to develop a more integrated and interconnected regional market engagement". "The Forum will allow to strengthen sustainable connectivity and promote regulatory approximation in the economic area between the EU and Central Asia countries, which is so vital for a better business environment and a safe investment climate," a statement from the EU Central Asia Invest Programme says. "The Forum will gather high-level government officials, the European Investment Bank, the European Bank for Reconstruction and Development, other bilateral and international financial institutions, representatives of the private sector and members of civil society. It is organised in partnership with the Organisation for Economic Co-operation and Development," the statement adds. The forum will focus on three priority areas: a green and digital transition, a better business environment, and trade and connectivity. Next week's forum follows the 4th EU-Central Asia civil society forum that took place in the Uzbek capital of Tashkent in March.
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Russia lifts ban on flights to Georgia, removes visa restrictions for Georgian citizens

Russia lifts ban on flights to Georgia, removes visa restrictions for Georgian citizens

On Wednesday (10 May), Russian President Vladimir Putin signed two separate decrees lifting a ban on flights to Georgia, and abolishing visas for Georgian citizens. From 15 March, Georgian nationals will be allowed to enter Russia without visas for up to 90 days. Lifting the ban on flights reverses a 2019 decision in which the Kremlin banned air traffic with Georgia following a wave of anti-Kremlin protests there. After President Putin signed the decrees, the Russian Foreign Ministry also released a statement reversing its 2019 advice against Russian citizens travelling to Georgia. The statement added that Putin's decrees "are in line with our principled approach of consistently facilitating the conditions for communication and contacts between the citizens of Russia and Georgia, despite the absence of diplomatic relations". Later, Russian state media outlet RIA Novosti reported that the Georgian Deputy Minister of the Economy and Sustainable Development Mariam Kvrivishvili said that Georgia would issue permits for direct flights to non-sanctioned airlines, before adding that authorities were yet to receive any such requests from Russian airlines.
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Kazakhstan and Azerbaijan to deepen cooperation as Aliyev meets Tokayev in Astana

Kazakhstan and Azerbaijan to deepen cooperation as Aliyev meets Tokayev in Astana

Kazakhstan and Azerbaijan have agreed to significantly increase bilateral cooperation in a number of sectors after the President of Azerbaijan Ilham Aliyev met with his Kazakh counterpart Kassym-Jomart Tokayev in Astana on Monday (10 April). The meeting was comprehensive, focusing on strengthening political, trade, economic, transport and transit, as well as cultural and humanitarian cooperation between the two Caspian Sea states. The two presidents signed several memoranda of understanding on cooperation in sports, diaspora initiatives, science, telecommunications, business and culture. President Aliyev and President Tokayev also signed a joint statement and protocol on the establishment of a Supreme Interstate Council, "which is designed to serve the comprehensive strengthening of bilateral relations", according to Tokayev. He said, "The full deployment of the potential of the Trans-Caspian International Transport Route, the so-called Middle Corridor, is of particular importance." Meanwhile, Aliyev said that Azerbaijan is "truly determined to deepen and expand the multifaceted cooperation" with Kazakhstan.