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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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First Astana International Forum taking place in Kazakhstan on 8-9 June

First Astana International Forum taking place in Kazakhstan on 8-9 June

The first Astana International Forum (AIF) is taking place in Kazakhstan on Thursday and Friday (8-9 June). An initiative of the Kazakh President Kassym-Jomart Tokayev, the Astana International Forum writes that it will "serve as a platform for high-level delegates from foreign governments, international organizations, businesses and academic circles to engage in dialogue and seek solutions to problems such as climate change, food shortages and energy security". Over 1,000 people will participate in the conference, which is running under the theme "Tackling Challenges Through Dialogue: Towards Cooperation, Development & Progress". There will be several keynote speeches and over 40 panel sessions, discussions, and side events. The decline of Russia in Central Asia as a result of its ongoing full-scale invasion of Ukraine has propelled the region into a new geopolitical reality. Especially on trade, difficulties trading via Russia as a result of sanctions have given Central Asia a renewed, critical position in facilitating east-west trade. To that end, Central Asian connectivity is also high on the agenda at the AIF.
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Editorial: China moves in where angels fear to tread

Editorial: China moves in where angels fear to tread

It seems as if you cannot be respected as a superpower unless you burn your fingers trying to pacify Afghanistan, writes commonspace.eu in this editorial. The British in the heyday of the Raj, tried it in the 19th century; the Soviets tried it at the peak of their power in the 20th century, and the Americans had a go at a time when they were the only superpower, in the early 21st century. Now it seems it's China’s turn, and of course it is being done the Chinese way. There are no armies swarming across the Khyber Pass, nor forward military bases established across Central Asia. Instead, the Chinese are using their time tested tool – the Belt and Road Initiative. The first announcement came on 8 May following the 4th round of the Pakistan-China Strategic Dialogue in Islamabad with the participation of Chinese foreign minister Qin Gang and his Pakistani counterpart Bilawal Bhutto Zardari. In essence, the two sides agreed that the China-Pakistan Economic Corridor (CPEC), a part of the Belt and Road Initiative, will be extended into Afghanistan. At that meeting it was also agreed that both sides will “continue their humanitarian and economic assistance for the Afghan people and enhance development cooperation in Afghanistan”.
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Kazakhstan and EU discuss next steps to deepen cooperation in key areas

Kazakhstan and EU discuss next steps to deepen cooperation in key areas

Representatives of Kazakhstan and the European Union met in the Kazakh capital Astana on Tuesday (23 May) to discuss the next steps for deeping their partnership at the 20th meeting of their mutual Cooperation Committee. The meeting was chaired by the Deputy Minister of Foreign Affairs of Kazakhstan, Roman Vassilenko, and Luc Devigne, the Deputy Managing Director for Russia, Eastern Partnership, Central Asia and OSCE from the European External Action Service. Also present at the meeting were representatives of Kazakh ministries and agencies, various directorates of the European Commission, as well as representatives of the diplomatic corps of EU member states. The Kazakh Ministry of Foreign Affairs reports that the discussion focused on the practical implementation of the Enhanced Partnership and Cooperation Agreement (EPCA) between Kazakhstan and the EU and its member states, which covers 29 areas. Kazakhstan and the EU discussed cooperation in political, trade and economic spheres, the rule of law and human rights, as well as interaction in transport, energy, education and science, environmental protection and combating climate change.
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Xi outlines grand plan on how China and Central Asian states can develop together

Xi outlines grand plan on how China and Central Asian states can develop together

Leaders of China and Central Asian countries on Friday (19 May) signed and released the Xian Declaration following the first China-Central Asia Summit. The Declaration hailed the cooperation between the two sides as all-round and productive, stressing that the six countries agreed to build a closer community with a shared future between China and Central Asian countries. "This summit has added new impetus to the development and revitalisation of the six counties, and injected strong positive energy into regional peace and stability," Xi said later at a press conference with his Central Asian counterparts. "We will jointly foster a new paradigm of deeply complementary and high-level win-win cooperation." Xi said China and the Central Asian countries should deepen trust and offer "clear and strong support" on core interests such as sovereignty, independence, national dignity and long-term development. "China is ready to help Central Asian countries improve their law enforcement, security, and defence capability construction," he said. In what appears to be a concession to Central Asian states who are keen to diversify their export routes, China said that "in the longer term", it supports construction of a cross-Caspian Sea international transport corridor, and would strengthen the construction of transport hubs of China-Europe freight train services.
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President Xi hosts first ever China-Central Asia summit in Xi'an

President Xi hosts first ever China-Central Asia summit in Xi'an

The President of China Xi Jinping is hosting the first ever China-Central Asia summit on Thursday and Friday (18 and 19 May). President Xi will host the presidents of Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan in the historic city of Xi'an, which once marked the beginning of the Silk Road trade route stretching from China to Europe. It will be the first in-person meeting between the presidents of the six countries after they held an online summit in January 2022 marking 30 years of relations. Chinese officials have said that the meeting will mark "a new era of cooperation" as Central Asia looks to expand ties both to its east and west as Russian influence in the region wanes as a result of its ongoing full-scale invasion of Ukraine. According to the Chinese government newspaper Global Times, the presidents of the six countries will "exchange views on establishing mechanisms, cooperation and international, regional issues with respective concerns, as well as signing a slew of important political documents on trade, investment, connectivity and other areas".
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Azimuth Airlines to operate Russia-Georgia flights from 17 May

Azimuth Airlines to operate Russia-Georgia flights from 17 May

The Georgian Civil Aviation Authority (GCAA) announced yesterday (15 May) that Azimuth Airlines will start operating flights between Moscow and Tbilisi from 17 May. On Wednesday (10 May), Russian President Vladimir Putin reversed a 2019 ban on Russian airlines flying to Georgia, prompting many Georgian politicians to insist that no Russian airlines under international sanctions would be permitted to operate flights to Georgia. Georgian Prime Minister Irakli Garibashvili said that his government's "unequivocal" position was that "flights with sanctioned aircraft will not be carried out. This will happen only with planes and companies not under sanctions", he said. The GCAA statement from yesterday reads: "The Civil Aviation Agency of Georgia issued the necessary permission to the airline today, on May 15. As of today, Azimuth Airlines is not on the European Union blacklist. In accordance with the flight application submitted by the airline to the Civil Aviation Agency, flights on the Moscow-Tbilisi-Moscow airline will be performed from May 17 of this year, seven times a week."