Monday 6 March 2023

Seatrade Maritime collaborates with DSAA for the development of Dubai shipping industry

Seatrade Maritime and the Dubai Shipping Agents Association (DSAA) have signed a Memorandum of Understanding (MoU), aimed at supporting and promoting shared objectives.

The main objective of the MoU is to advance the growth and development of the shipping industry in the region, by promoting the interests of the shipping agents’ community in Dubai, raising standards in the sector, fostering stronger relationships, increasing cooperation between key stakeholders, and promoting the systematic and orderly training of professionally-qualified personnel. 

As part of the agreement, Seatrade Maritime will provide the DSAA with the status of "Supporting Organization" for the Seatrade Maritime Logistics Middle East conference, the leading regional event for the logistics and maritime industries, scheduled to be held at the Dubai World Trade Centre from 16 to 18 May, 2023.

This will help to promote the work of the DSAA to Seatrade's audience and provide the association with greater exposure to potential clients.

Commenting on the partnership, Nayana Nandkumar, Manager, DSAA said, "We are delighted to partner with Seatrade Maritime. This alliance will enable us to expand our reach and promote our services to the massive audience that connects with Seatrade Maritime. We also look forward to working together to support the growth and development of the maritime industry in Dubai and the wider region. This collaboration demonstrates our dedication to promoting the interests of the Dubai community of shipping agents. To accomplish our common goals, we look forward to working closely with Seatrade Maritime.”

By having shipping agencies represented at significant think tank events; the cooperation with Seatrade Maritime will also help DSAA advance its goals of promoting the shipping sector. Together with the appropriate government agencies, it will help DSAA maintain its efforts to strengthen industry standards.

The alliance will also improve and deepen the connections and teamwork between shipping agents, principals, shippers, customs officials, and other governmental, national, and international trade organizations.

Emma Howell, Middle East Development Director, Informa Markets Maritime & Cruise portfolio said, “DSAA has played a vital role in the development of the maritime industry in Dubai, which is critical to the UAE's economy, and we look forward to supporting their mission through our platform. We believe Seatrade Maritime Logistics Middle East will provide a forum for participants from diverse industrial sectors to network and share ideas, thereby contributing positively to the development of the maritime industry in the region."

"The partnership with DSAA is a testament to Seatrade Maritime's commitment to promoting collaboration and innovation, and ensuring that its events serve as a platform for stakeholders to help in driving the sector forward.”

Chris Morley, Group Director, Seatrade Maritime said, “Seatrade Maritime's partnership with the DSAA is aimed at ensuring that the events we organize, such as the Seatrade Maritime Logistics Middle East conference, are inclusive and cater to the objectives of multiple sub-sectors of the regional maritime community. Our conference will provide a platform for participants from various segments of the industry to interact and exchange ideas. The partnership with DSAA will enhance the value proposition of Seatrade Maritime's events and it will ensure that we remain beneficial to all stakeholders in the maritime industry.”

 

Sunday 5 March 2023

Pakistan must get ready to import cotton

Cotton arrival in Pakistan decreased 34.5%YoY shows data released by the Pakistan Cotton Ginner’s Association (PCGA). The Government of Pakistan must announce ‘Cotton Import Policy’ at the earliest.

It may be recalled that in the past cotton import was allowed from India, but last minute change in policy causes serious problems for the millers and also plunged export of textiles and clothing from Pakistan.

According to the report, cotton arrival in Pakistan declined to 4.875 million bales as of March 01, 2023 as compared to 7.442 million bales during the same period last year, a fall of 2.567 million bales or 34.5%.

The decline in cotton arrival is attributed to the flash floods in Pakistan, which devastated large swathes of agricultural land in the country, especially in Sindh and Baluchistan.

Cotton is an essential raw material for the country’s textile sector and the situation is alarming for Pakistan’s cash-strapped economy, which is already facing depleting foreign exchange reserves.

As per the PCGA data, cotton arrival reported a steep fall in Sindh. Cotton arrival in the province was reported at 1.879 million bales.

Similarly, cotton arrival in Punjab was reported at 2.996 million bales as compared to 3.929 million bales a year ago.

Industrialists have expressed concern over the ongoing slump in the textile sector. All Pakistan Textile Mills Association (APTMA) has urged the federal government for a level playing field by implementing a uniform gas price of US$7 per MMBtu for the export industry across the country.

APTMA also warned that the decision of the government to suspend the regionally competitive energy tariff (RCET) of electricity for Export Oriented Units (EOUs) will hurt the textile industry, particularly in Punjab.

 

Arab reluctance to react to Iranian protests

Wilson Center has tried to find an explanation for the lack of Arab support in highlighting the actions of Iranian ruling regime. Its efforts could be termed ‘Killing two birds with one stone’. Not only has it maligned Iran, but also Arab States for not opposing Iran because they also don’t like opposition.   

When protests in Iran broke out in September 2022 following the killing of 22-year-old Mahsa Amini by the morality police, the world showed immediate support for the outraged Iranian women who took to the streets. Unlike before, these protests gained momentum as popular demands shifted from greater freedoms and economic reforms to the overthrow of the oppressive regime. The Iranian government’s harsh repression sparked international condemnation and sanctions against officials and entities, including the morality police itself.

As compared to strong responses from Western nations, Arab governments have stayed noticeably silent. This pattern of silence from Arab governments on internal Iranian issues, in contrast to Iranian involvement in Arab protests and revolutions, has been evident since the 2009 ‘green scarf movement’ in Iran and raises questions about the relationship between Arab states and Iran during times of popular upheaval.

While certain Arab nations, including Saudi Arabia, harbor a desire for the downfall of the Iranian regime, their reluctance to engage with Iran’s protests and internal politics is due to a multitude of challenges and constraints.

Many Arab governments, particularly those in the Gulf region, have a complex relationship with Iran. They may disapprove of the suppression of protests, but they also see Iran as a regional rival and may not want to give the impression of supporting domestic dissent, in effect allowing Iran to justify its interventionist policies elsewhere in the region.

The GCC nations, particularly Saudi Arabia, are grappling with the uncertainty surrounding the potential consequences of taking a unilateral adversarial approach towards Iran amid concerns about US security commitments and a decline in bilateral relations. Nevertheless, since the early days of the protests, Iranian authorities have repeatedly blamed foreign nations, including Saudi Arabia, for instigating the demonstrations.

IRGC Commander-in-Chief Hossein Salami warned the Saudi leadership, saying, “You are involved in this matter and know that you are vulnerable; it is better to be careful.” This warning was in reference to media supported by Saudi Arabia, such as funding for Iran International TV, which broadcasts in both Persian and English from London. It also refers to other Saudi-funded media outlets like Al-Arabiya and newspapers like Al-Sharq Al-Awsat, Okaz, Al-Riyadh, and Al-Madina, as well as Qatari and Jordanian newspapers. Arab News, a Saudi English-language newspaper, even dedicated special coverage to the protests.

To such accusations, Prince Faisal bin Farhan, the Saudi Foreign Minister stated, “A country that strengthens itself with good governance and a clear vision does not need to turn to the outside, and the Kingdom firmly adheres to the principle of non-interference in other countries’ internal affairs.”

Meanwhile, the Wall Street Journal reported that Iran was planning to attack Saudi Arabia, either directly or through its allies, such as the Houthis in Yemen, allegedly to distract from the protests.

Indeed, there is a state of uncertainty regarding the trajectory of events within Iran that raises four concerns:

First, it is unclear whether the current wave of protests will be more impactful than previous ones in affecting the regime. Given the past failures of protest movements to achieve their demands, it is understandable for Arabs to expect the current protests to fail or remain focused solely on reforms without aiming for regime change.

Second is the possibility of a desperate retaliation from the regime on neighboring states and interests should the protests escalate to the point of overthrowing the government—the ‘Samson option.’

Third is whether the support for the demonstrations will pressure the regime to respond positively to the JCPOA negotiations or vice versa.

Fourth is what the new regime will look like if the mullahs’ regime falls (to avoid repeating the deception of the 1979 revolution) and the role of opposition groups already plagued by sharp internal division.

Comparably, the silence and reticence of Arab capitals towards the Iranian protests are rooted in their varying relationships with Iran and their perceptions of the threat posed by the Islamic Republic.

Countries like Saudi Arabia, the United Arab Emirates, and Bahrain hold a hostile attitude toward Iran, while Iraq, Syria, and Algeria maintain close ties and similar ideologies. Oman tries to maintain a balancing act between Iran and Saudi Arabia, while Qatar has strong economic connections with Iran that have only grown stronger in recent years after the GCC blockade in 2017.

 In some ways, this explains Al Jazeera’s limited media coverage of the protests in Iran compared to that of the Arab Spring uprisings. But at least the Qatari Foreign Minister, in his interview with Bloomberg, indicated that “We are opposing using violence by security forces against civilians whether a woman or a man. This is a domestic issue, and we don’t normally interfere in domestic issues with countries.”

Arab governments may be hesitant to speak out against the Iranian government’s repression of protests due to their fear of a domino effect. This fear stems from the potential for revolutionary contagion, as seen in the Iran Islamic Revolution and Arab Spring Uprisings, and the potential undermining of ideological ties with Iran.

It is clear that since the Arab Spring uprisings, the change in the power dynamic in the region has worked in Iran’s favor, allowing it to expand the axis of resistance it leads, particularly to the detriment of Saudi Arabia.

On the other hand, these Arab governments may avoid taking a stance on the issue to avoid drawing attention to their own history of suppressing protests and to prove their goodwill and non-interference in Iran’s internal politics on the principle of good neighborliness—moral grandstanding. They believe this would strengthen their negotiating positions with Iran on outstanding and complex issues and strengthen their legitimacy in the international community.

Arabs and Iranians share the same region and religion. However, they have proud and distinct heritage, speak different languages and follow different branches of Islam, with Arabs predominantly Sunni while Iranians are Shiite. These cultural and linguistic differences create communication barriers and binary stereotypes, making it difficult to understand each other’s current common interests and demands.

Arab and Gulf media focus primarily on Iran’s regional influence and power struggles but pay little attention to local issues such as popular protests and human rights violations against minorities.

The lack of meaningful Arab media dedicated to in-depth coverage of Iranian society has heightened the divide between the Arab and Iranian peoples. The deliberate media stereotyping that portrays Iran merely through its regime and regional behavior, viewed from a narrow religious perspective, obscures the overall picture of Iranian society and erodes the trust and sympathy of the Arab public.

As against this, Iran has a vast media apparatus aimed at both the Arab and Iranian publics that reflects the views of the Iranian regime and presents political events through ideological and sectarian lenses.

Arab elites, especially after the Arab Spring, continue to face restrictions on freedom of demonstration and expression. Indeed, this impedes their ability to back advocacy campaigns for the protests in Iran organized by civil society.

Authorities are balancing a political equation that prevents them from officially supporting the protests in Iran. Nevertheless, some interaction with the protests, such as solidarity statements, condemnations, and vigils, can be observed in a few Arab capitals and elsewhere in the diaspora.

In Arab countries such as Lebanon and Iraq, which have close ties to Iran, any upheaval in Iranian politics could be viewed as a window of hope for those who grapple with their own internal struggles to challenge Iranian political influence.

In Lebanon, for example, Fe-male, a feminist organization, held a vigil to show support for the Iranian women protesting against mandatory veiling under the title “From us to you, [sending] all our love and support.” The vigil featured slogans in Arabic and Persian, including mantra of the protesters, “Woman, Life, Freedom.”

Other activist groups also sought to organize a protest in front of the Iranian embassy in Beirut, calling it “From Tehran to Beirut, the killer regime is one,” but failed amid threats from Hezbollah’s militias.

In Iraq, some women on social media launched the “No to Compulsory Hijab” campaign to support Iranian women facing regime repression and the mandatory dress code.

Also, in Tunisia, human rights and feminist organizations held a rally outside the Iranian Cultural Center to express their support for women in Iran. The demonstrators denounced the discrimination and mistreatment of women in Iran and chanted slogans such as “Tunisian women support Iranian women,” “Here to voice our solidarity with Iranian women,” and “Revolution and freedom.”

The International Federation for Human Rights (FIDH), including a coalition of Arab feminist and human rights groups, issued a statement on October 7, 2022, to express solidarity. The statement, ‘We stand in solidarity with women and demonstrators in Iran,’ condemned the suppression of peaceful protests.

We likely won’t see decisive Arab reactions to the protests in Iran any time soon. Despite Arab grievances to Iran’s regional behavior, states will maintain political neutrality given the uncertain trajectory of the protests.

Furthermore, they may fear exposing themselves ideologically if they endorse foreign protests. Lastly, in a cultural dimension, there is already a wide gulf between how Arabs and Iranians perceive each other. Despite what limited civic action we have seen, these factors inhibit any broad social expression of solidarity as seen in the west.

With the challenging and fading prospects of altering Iran’s behavior or the entire regime from within, Arabs still have other choices. These include waiting for a full-fledged revolution in Iran, capitalizing on international stances and sanctions, and luring its allies to abandon it, as were tried recently with China, Russia, and Iraq.

 

Saturday 4 March 2023

Saudi Aramco CEO will not attend Houston energy conference

The chief executive of Saudi Arabian state oil company Aramco will not attend an energy conference organized by S&P Global next week, the event's updated schedule showed.

Amin Nasser, head of the world's largest oil company, had been listed as delivering a keynote address at CERAWeek, the largest gathering of high-profile oil executives and energy ministers.

Nasser was one of the few high-level Saudi officials on this year's schedule and has been a regular presence at past CERAWeek conferences.

The agenda for this year's event is dominated by major oil company executives and US government officials, with fewer Middle East executives and officials.

A record 7,000 people have signed up for the week-long event, which includes discussions of fossil fuels, clean energy and advanced energy storage.

Recent clashes over supply and demand between the Organization of the Petroleum Exporting Countries, Europe (OPEC) and the US have led to some visible vacancies. Unlike in past years, the event's agenda has no oil ministers from Iraq, Kuwait, the United Arab Emirates or Russia.

Top energy executives and officials from around the world will descend on Houston as the political fallout from Russia's invasion of Ukraine a year ago continues to distort global oil supply lines and put long-term energy security front of mind for governments.

Oil company chiefs and ministers will make their case for investment in all forms of energy - fossil fuels and renewables - to meet rising demand and at the same time accelerate the move toward the low-carbon industry of the future.

The war in Ukraine sparked a rally in crude oil and fuel prices that led to record industry profits, prompting the US government and others to accuse Big Oil of profiteering and for Britain and some other governments to impose windfall taxes on energy companies.

Big Oil executives and US government officials will likely trade blows publicly again as they did at last year’s event. While the US and many Western governments continue to call on oil firms to pump more, executives at top oil firms say they have a duty to their shareholders to maximize returns for staying invested in an industry which faces an uncertain long-term future.

"We will get a sense of how companies' strategies have been changed by the events of the last year," said Dan Yergin, the Pulitzer Prize-winning author and vice chairman of conference organizer S&P Global, in an interview.

BP's Looney will share the stage with Hertz car-rental CEO Stephen Scherr, whose firm has become an energy transition champion with plans to buy tens of thousands of electric vehicles from General Motors, Polestar and Tesla.

"The industry is on board with the energy transition, ESG and decarbonization, but there is a recognition that we are going to need hydrocarbons from an energy reliability and security standpoint," Pat Jelinek, EY Americas oil and gas leader, said of the return to prominence of Big Oil executives.

Top shale executives also will get less of the limelight. US shale also battled with the Biden administration over oil drilling restrictions and a lower investment in new output. Shale has become less of a factor in global markets, and tensions between OPEC and shale are less intense than they used to be.

Executives from shale bigs Hess Corp, EQT Corp and Pioneer Natural Resources last year dined with the late OPEC Secretary General Mohammad Barkindo. He received a gift bottle of "Genuine Barnett Shale," the oilfield that launched the shale revolution.

US shale also has been overshadowed by Big Oil as the companies grapple with slower gains and tight-fisted investors. Total US oil production is forecast to rise modestly this year - less than 600,000 bpd – as compared to a jump of about 2 million-bpd in 2018.

“US exploration and production companies have moderated growth," said Andy Hendricks, CEO of US driller Patterson-UTI, and leaving OPEC in charge of oil prices.

"There's never been such a focus on innovation of technologies across the energy industries," said S&P's Yergin.

Some 225 start-ups will participate, a 60% increase from a last year, many of which got a shot in the arm from Biden's Inflation Reduction Act, which provides tax credits and incentives for low-carbon and clean energy technology.

US Energy Secretary Jennifer Granholm and White House clean energy advisor John Podesta will lay out implementation of the Inflation Reduction Act, said S&P Global's Yergin.

"The amount of renewables that we're going to have to build over the next decade is enormous, and I don't think everybody has really digested the scope of that," said Andres Gluski, CEO of energy and utility giant AES Corp.

 

 

 

 

Israel: Where is Benjamin Netanyahu?

Herb Keinon pointed in The Jerusalem Post, Israel will mark another 75-year anniversary, this one more joyous – the country’s 75th Independence Day. Nevertheless, there is no joy in the air right now and there does not seem to be any plans to host foreign dignitaries at this year’s state celebrations.

Even if they were invited now, it does not seem like any foreign head of state would want to travel here. The feeling in Israel this week is one of anarchy and as if there is no one in charge of the country.

This reminds of  January 23, 2020, more than 50 heads of state and members of royal families traveled to Jerusalem to mark a momentous occasion – the 75th anniversary of the liberation of Auschwitz-Birkenau. Vice-president Mike Pence, Prince (at the time) Charles, French President Emmanuel Macron, German President Frank-Walter Steinmeier, Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, King of Spain Felipe VI, and many more were all there. It was recognition of the victory over the Nazis and the tremendous accomplishment the Jewish people, in general, and the State of Israel more specifically have seen in the years since.

There are the weekly protests (and sometimes more) that are bringing hundreds of thousands of Israelis out to the streets screaming against what they perceive as the end of democracy; there are the images from the Knesset of MKs jumping on tables and being pulled by ushers out of committee rooms; there are the terrorist attacks that have claimed the lives of 14 Israelis in just one month; the settler pogrom in Huwara; the weakening of the shekel; the hike in the interest rate; the tech executives who are pulling money out of Israel, and more.

After the tragic murder of Hillel and Yagel Yaniv in Huwara, Finance Minister Bezalel Smotrich used the phrase “the landlord has gone crazy,” an expression meaning that it is time to show the Palestinians that there would be an escalated IDF response. Well, it seems that the owner has gone crazy and the country with it.

The questions are, what has happened to Prime Minister Benjamin Netanyahu? Where is he? Why is his presence not being felt? Why is his voice barely being heard?

A look at the 51 front pages in the recent two month shows Netanyahu only about 12 times on the front page.

This is in comparison to previous periods when he served as prime minister and he seemed to be everywhere. He was speaking at public events, conferences, doing media interviews, traveling the globe and hosting world leaders in Jerusalem. Every statement was setting the national agenda – whether about Iran, the fight against COVID-19 or another economic policy that his government was unveiling.

In the last couple months, though, his presence is not felt. Members of his own party wonder out loud where he has disappeared to. He is not setting the agenda; it is being done by others like Justice Minister Yariv Levin, who is driving the judicial reform steamroller, and National Security Minister Itamar Ben-Gvir, who is the one getting the headlines when it comes to West Bank terrorism.

It is true that after the election when asked about his new coalition partners – Ben-Gvir and Smotrich – Netanyahu said that he would be in charge, but in practice that does not seem to be the case. Even his past critics could appreciate knowing that his hand was on the wheel and that he was running the show.

It is unclear where he is. His voice is not heard on the main issue that is dividing the country – judicial reforms – and while he can claim that it is because the attorney-general has banned him from doing so because of his trial, which is just an excuse.

Even regarding terrorism, his voice is barely being heard and his presence is not being felt. In the past, Netanyahu knew how to create a sense of calm, but after 14 people were killed in a month, it feels like he is not even trying.

Why isn’t Netanyahu visiting the scenes of the attacks? Except for the attack in Neveh Ya’acov, he hasn’t gone to any, not even to the one at the Ramot bus stop where the Paley brothers – Ya’acov and Asher – were murdered. Why isn’t he calling one of those special prime ministerial 8 p.m. addresses like he did regularly during COVID, to address the nation and try to ease their concerns?

Some politicians explain that it has to do with the advisers who are around him. He does not yet have full-time spokespeople, diplomatic advisers and more. Others claim that it is just not that important right now and that his focus is on passing the judicial reform, which he wants to advance out of a personal vendetta against the judiciary.

Others say that he is controlled today more than ever by his wife and son, and that he has become closed off to the more moderate players who used to surround him.

There are people who claim that Netanyahu’s real plan is to create chaos so that he can then strike a plea deal that will allow him to remain prime minister. The situation will be so bad, this theory goes, that the prosecution will agree to a deal just to stop some of the craziness.

 

 

Friday 3 March 2023

Bangladesh exports reported at US$4.63 billion for February 2023

Bangladesh export earnings were at US$4.63 billion in February 2023, the lowest in four months; although overall receipts rose 7.81%YoY led by apparel, leather and leather goods shipments.

Last month’s receipts took the total proceeds from the shipment of goods to US$32.44 billion during first eight months of the current financial year. The growth moderated to 9.56%.

The latest data comes at a time when apparel exporters are complaining about falling orders from global clothing retailers as high inflation erodes the purchasing capacity of consumers in Europe and the US, the two biggest export destinations for Bangladesh.

The impact of the weak global demand is already visible for other major sectors such as jute and jute goods, frozen fish and shrimp.

Garment exporters say the overall shipment in volume declined but receipts increased in value.

“We are getting orders for high-value clothes. This has helped us post positive growth in earnings,” said Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“Once we were used to getting orders to make jackets worth US$15-US$20. Now we are receiving orders to make jackets that are sold at US$100. This is a very positive development.”

Earnings from apparel exports, which accounted for about 85% of national shipments in July-February, rose 14.06%YoY to US$31.36 billion.

Knitwear exports brought home US$17.06 billion, up 13.21% as compared to a year earlier. Woven shipment generated US$14.30 billion, a spike of 15.08%.

Bangladesh has performed well in new markets too, said the BGMEA chief.

“But overall export declined in quantity. If we take into account the expansion of factories in the past two years, we will see that a number of them are running below capacity,” said Hassan, also the Managing Director of Giant Textiles.

The war in Ukraine, geopolitical tension and high consumer prices has eroded the buying capacity of consumers in Europe and the US. “For this, we are worried,” he said.

“But the good news is a number of buyers have shown interest in placing higher orders. So, Bangladesh’s share in the global apparel market will increase in 2023.”

Leather and leather products exports rose 6% to US$832 million in eight months. Other major sectors – home textiles, jute and jute goods, frozen and live fish and agricultural products – suffered more than 20% decline in earnings.

Frozen fish and shrimp exporters recorded a nearly 22% decline and fetched US$318 million.

“The volume of exports has declined too. It has resulted in a stockpile as the shipment is not taking place as it should be,” said Md Amin Ullah, President of the Bangladesh Frozen Foods Exporter Association.

“Exporters are selling products at reduced rates in order to bear operational expenses.”

He expressed a hope for a rebound in export receipts from frozen fish and shrimp, grown mainly in the southwestern coastal region.

Amin said because of the falling imports, there will be a shortage of products in the western market.

“The demand will improve as people can’t stop eating despite the war. So, prices will rise.”

Helal Ahmed, Chief Operating Officer of Janata Jute Mills and Sadat Jute Industries Ltd, also expects a revival in export earnings in the second half of 2023.

Exports from jute and jute goods, one of the few sectors for which raw materials are locally available, plunged 24% to US$610 million in the eight months.

The sector suffered drops in shipment for the shrinking demand for jute yarn among carpet makers, the main user of jute yarn. The use of alternative yarn following a spiral in prices of jute in Bangladesh has also affected the export performance.

Ahmed said reduced prices of jute would lead to increased use of jute yarn, “The situation is expected to improve.”

A sharp depreciation of the taka against the US dollar has made exports from Bangladesh attractive in the global markets. The local currency has lost its value by about 25 per cent against the American greenback in the past one year.

“Besides, orders for garments from major markets will shift away from China. So, there is an opportunity to elevate garment shipments,” said Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue.

He said the prices of cotton, yarn and other items have increased and the latest export earnings figure reflects the price effect of the garment items shipped.

“The growth is price-driven to some extent as the prices of raw materials have increased. Until now, the demand side remains depressed.”

The trade expert called for an increased focus on regional markets as demand is growing there.

“At the same time, productivity would have to be raised and the cost of doing business would have to be brought down.”

 


Defending submarine cables in Back Sea

Deep in the world’s oceans and seas lies a network of submarine communication cables connecting continents and regions. This critical infrastructure, owned mostly by international consortia of private telecommunication companies, spans, in total, more than 1.3 million kilometers and handles over 95% of the world’s data.

The rise of projects like SpaceX’s Starlink and their use in the war in Ukraine has increased the attention on satellites and space security. However, submarine cables remain a crucial yet underappreciated part of the global communications system. The widespread use of these cables by private individuals, businesses, and government agencies makes their protection a matter of national and international security.

As fighting rages on in Ukraine, the cables in the Black Sea could be in danger of disruption. Accidents have caused damage to the cables in the past, and stepped-up naval activity in the region could raise the risk of vessels accidentally cutting the lines lying on the seafloor.

Moreover, deliberate Russian attacks on these cables, either through cyber operations or physical destruction, follow the Kremlin’s modus operandi of targeting critical infrastructure to gain strategic advantage without necessarily delivering decisive blows against its enemies.

To ensure regional security in the communication and data spheres, Black Sea states must increase their emphasis on protecting submarine cables, including within the format of the North Atlantic Treaty Organization (NATO) or novel regional frameworks.

Unlike the attacks on land-based power grids and energy pipelines, the threat to submarine cables is still a hypothetical national security concern as no definitive case of sabotage by a state actor has been confirmed thus far.

However, some defense officials, notably the chief of the British Defense Staff, Admiral Tony Radakin, have begun to emphasize the security implications of the cables’ vulnerabilities, especially in the context of the Russian invasion of Ukraine.

Russia has been investing in capabilities that would allow specialized submarines to place explosives on the seafloor, physically endangering underwater communication infrastructure. In addition to the Russian navy, the Main Directorate of Deep-Sea Research (GUGI) — known as Russia’s “Deep-Sea Spetsnaz” — can undertake covert operations along the seabed.

NATO officials suspect that GUGI has been increasingly focusing on undersea cable networks in recent years. Notably, in January 2022, Norway detected damage to one of two fiber optic cables off the Svalbard archipelago; suspicions that the cable disruption may have been intentional grew later that year, after a mysterious explosion crippled the underwater Nord Stream natural gas pipeline, an incident that is still under investigation.

Skeptics argue that such concerns are exaggerated, especially since companies that own these undersea networks have been building redundancies to provide different data flow routes in case of a disruption to one cable.

Of the four Black Sea submarine cables, the only one physically connected to the territories in conflict is the Kerch Strait Cable, which links the occupied Crimean Peninsula with the Russian mainland. Not only is the cable owned by Rostelecom — Russia’s largest telecom firm — but any disruption to communications and internet in Ukraine through sabotage would affect Russian forces on the ground as well.

The primary objective of such an attack on submarine cables would be to create confusion and anxiety among the affected populations. The Kremlin could also order sabotage operations on cable networks connected to Ukraine’s allies in North America and Europe specifically to exacerbate the growing war fatigue caused by high inflation and gas prices.

Other than the Kerch Strait Cable, Rostelecom also owns the Georgia-Russia cable system in a joint venture with Georgian and Danish companies. Stretching across the Black Sea, the Caucasus Cable System, owned by Caucasus Online, connects Georgia and Bulgaria. In the west, Türk Telekom International operates the Black Sea Fiber Optic System (KAFOS), which has landing points in Turkey, Bulgaria, and Romania.

Yet a multinational security apparatus — whether through NATO or a Black Sea regional defense cooperative — is needed to help private companies successfully defend existing systems and launch future projects. The war in Ukraine has exposed NATO’s deficiencies in preventing and responding appropriately to potential Russian sabotage operations on critical infrastructure.

Measures taken by private companies to implement redundancies to limit the impact of individual disruptions will mitigate the risks of widespread internet blackouts. And if NATO states invested more in the defense of these networks, Russia would lose a potential point of leverage against the Alliance.

NATO defense ministers highlighted the importance of identifying the threats posed to submarine infrastructure, particularly by the Russian navy. As part of this effort to enhance security, NATO tasked Joint Force Command Norfolk (JFC-NF) to monitor and protect these networks in the Atlantic.

Introducing a similar mission concept to the Eastern Mediterranean and Black Sea regions could be a productive step in ensuring the security of NATO’s exposed southeastern flank. The next iteration of the Black Sea Maritime Forum, first convened on February 25 of last year, could provide the appropriate platform to advance this issue and discuss solutions among Black Sea states with NATO involvement.

Regionally, coordinating strategic interests among the Black Sea states, especially with NATO, has always been a challenge. Despite Romania’s vocal support for an increased NATO presence in the region, the lack of enthusiasm from Turkey and Bulgaria has hindered progress toward sufficient Black Sea defense.

Turkey’s hesitation may be because of its “middleman” approach to the competition between Russia and the United States. Even as Russian aggression continually destabilizes the Black Sea region, Turkish President Recep Tayyip ErdoÄŸan remains unwilling to fully commit to the West’s punitive stance against Moscow.

Turkey’s expanded trade relations with Russia, despite increasing pressure from the US to abide by Western sanctions, and its foot dragging on ratifying Finland and Sweden’s accession to NATO, demonstrate the country’s insistence on prioritizing its own security concerns, even at the expense of hindering a united Euro-Atlantic front.

However, Turkey must not overlook the importance of securing the critical infrastructure networks in the Black Sea, including submarine communication cables, especially as one of them — KAFOS — has a landing point in Istanbul, near the Bosporus Strait. Given Ankara’s interest in minimizing the risk of escalation in the Russo-Ukrainian war, it should contribute to the broader Black Sea region’s underwater domain awareness as well as monitor key vulnerabilities that could be exploited or put at risk by a malign actor — whether Moscow or anybody else.

Short of a wider North Atlantic Alliance mission, Turkey should actively cooperate with other Black Sea states, including non-NATO member Georgia, in pursuing their own regional security framework that would include as its mission the protection of submarine cables in the Black Sea.