March 25, 2013 § 6 Comments
As everyone knows by now, on Friday Bibi Netanyahu talked to Tayyip Erdoğan (for the first time since Netanyahu was elected in 2009!) after being handed the phone by President Obama and apologized for operational mistakes causing the deaths of nine Turks aboard the Mavi Marmara in 2010. Netanyahu also agreed to pay compensation to the families of the deceased, and both men somewhat fudged the issue of the Gaza blockade by noting that Israel has already lifted some restrictions and pledging to work together going forward to ease the humanitarian situation in Gaza. This formula should not be surprising; in November I wrote the following:
All this aside, there seems to me to be an obvious out here. As I mentioned above, the real long term sticking point here is the demand that Israel end the Gaza blockade, but the imprecise language makes this a point that can easily be massaged. Israel is not going to end its naval blockade, particularly given the renewed focus on Iranian missiles that are being shipped to Sudan rather than directly to Gaza in an effort to avoid the Israeli navy. There is also, however, the land blockade that is enforced by both Israel and Egypt, and if Israel and Egypt jointly loosen restrictions on the land crossings to allow more goods in and out of Gaza, then Israel and Turkey can both reasonably claim victory, and it might pave the way for the countries to make up. Unless something changes though, feel free to ignore any and all news reports about secret talks and back channel negotiations between Ankara and Jerusalem.
As readers of this blog know, I have maintained for awhile that Israel was ready and willing to apologize to Turkey but that I did not think Turkey was prepared to accept an apology given the domestic political benefits for Erdoğan and the AKP of feuding with Israel. Indeed, over the past few months there have been reports of Ahmet Davutoğlu and other Turkish officials rebuffing Israeli attempts to meet and lay the groundwork for a rapprochement. That the apology was suddenly offered and accepted took me by surprise, and got me thinking about what would make Turkey change its calculus. I wrote a piece for Foreign Affairs identifying Turkey’s suddenly more pressing need for better intelligence in Syria given the chemical weapons angle and Ankara’s desire to meet its energy demands through channels other than Russian natural gas as the primary reasons, and noting that the timing here is also related to the successful talks with PKK leader Abdullah Öcalan. Here’s the core of the argument:
For Ankara, the Syrian crisis has been a major headache. Turkey has suffered a loss in trade, been forced to rely on NATO for Patriot missiles to defend against border threats, and accepted just under half a million Syrian refugees. Ankara’s demands for Assad to step down have fallen on deaf ears, and its requests for NATO intervention in the form of a no-fly zone and heavy arms for the Syrian rebels have also been brushed aside.
All this has been unfortunate for Turkey’s leaders, but it was the recent introduction of Syrian chemical weapons into the equation that really changed Turkey’s calculus; now more than ever, the country needs better intelligence and allies to bring an end to the civil war or at least prevent it from spilling over. Turkey cannot afford to have chemical weapons used anywhere near its border with Syria, and the longer the fighting goes on, the greater the chances of a chemical weapons strike gone awry. Israel simply has better intelligence on regional developments than Turkey does, and Turkey can use that help to monitor Assad’s weapons stores and troop movements on both sides. In addition, whereas the United States and other NATO countries have been reluctant to support the Syrian rebels in any meaningful way, Israel has a greater incentive to make sure that the moderate Sunni groups prevail over the more radical jihadist elements of the opposition. As the situation in Syria heats up, Turkey and Israel will be thankful that they can talk to each other and coordinate.
Another area in which Turkey needs Israel’s assistance is energy. Turkey’s current account deficit, which stood at $48.8 billion in 2012, is almost entirely a result of the country’s reliance on oil and natural gas imports; Turkey has no natural resources of its own. Furthermore, Turkey is paying through the nose for both Russian and Iranian natural gas, due to onerous price contracts. Earlier this month, I talked with a number of people in Turkey — government ministers, opposition politicians, business tycoons, and trade group leaders — and they all mentioned Turkey’s growing energy needs and lamented the country’s overreliance on Russian and Iranian natural gas. Israel, meanwhile, has just discovered two major natural gas basins, the Tamar and Leviathan fields, off its coast in the Eastern Mediterranean. Since Turkey has no hope of smoothing over ties with Cyprus, its longtime adversary, which has been the other main beneficiary of the Mediterranean gas boom, it will likely turn to Israel as a natural gas supplier. With Turkey’s economic growth slowing, Israel’s potential as a partner makes reconciliation more attractive now than at any point in recent years.
Because it is – in my view – Turkey that changed its mind on reconciling, I focused on the Turkish side of things in the FA piece, so I thought I’d now write a little bit about the Israeli side. From Israel’s perspective, making up with Turkey has made sense for awhile now, and the reasons to do so only grew stronger with each passing day. First, there is the regional dynamic in the Middle East, which is hardly trending in Israel’s favor post-Arab Spring. While I do not think that Israel has anything to fear from new governments in the region, the upheaval has opened up power vacuums in the Sinai and Syria that allow hostile non-state actors to operate with impunity. Add to this the existing threats from Hamas and Hizballah and the distinct possibility that the Jordanian government falls, and Israel desperately needs any friend who will have her. Making up with Turkey means that at least Israel is not entirely alone in the region, and being able to coordinate with Turkey and with Jordan (so long as King Abdullah remains in power) will be extremely helpful in containing the spillover threat from Syria. While I highlighted the urgency for Turkey in my FA piece, Israel’s biggest concern with regard to the Syrian civil war has always been the transfer of chemical weapons to hostile non-state actors, and now that the chatter around chemical weapons has increased, apologizing to Turkey took on an urgency for Jerusalem that was absent before.
Second, Turkey has successfully blocked Israel from NATO military activities and summits, and the ability to get back in the game has always been important to the Israeli government. While the Noble Dina naval exercises with Greece and the U.S. that Israel began doing in 2011 are nice, they are a poor substitute for Israel being able to use the vast Turkish airspace for aerial training or being able to participate in NATO military exercises. Israel has attempted to ramp up its military relations with Greece and Cyprus in response to the freeze in relations with Turkey but this has always been a suboptimal solution, and Israel has felt this acutely as the government has become increasingly preoccupied with possible threats from Iran. Furthermore, Israel’s defense industry has had billions of dollars in contracts with Turkey suspended by Ankara, and being able to resume sales to Turkey should provide a nice jolt to the Israeli economy.
Nobody should expect Israel and Turkey to go back to where they once were. Turkey does not feel as alone in the region as it once did, there is still a benefit from having cool relations with Israel, and too much has taken place between the two, from Davos to the Mavi Marmara to the “Zionism is equal to fascism” kerfuffle of a month ago. It is unfortunately not surprising to already see Erdoğan backing away from his commitment to normalize relations, although it will happen sooner rather than later since this is only Erdoğan playing politics in response to some hardline domestic criticism over the deal with Israel. Exchanging ambassadors and resuming limited military and intelligence cooperation does not negate the fact that bashing Israel will remain a potent element in Erdoğan’s box of tricks, and I expect to see issues big and small arise between the two countries, particularly as things remain static on the Israeli-Palestinian front and settlement building in the West Bank continues. Nevertheless, this restoring of formal ties is good for both sides, and I hope that both countries can get over their past issues and begin work on developing a healthier relationship.
April 26, 2012 § 3 Comments
One of the obstacles, if not the largest obstacle, to peeling Turkey away from Iran is the economic ties between the two, particularly when it comes to energy. Turkey imports 90% of its oil, and Iran was its largest supplier until 2007 when Russia took the top spot. Through March of this year, Turkey was importing 200,000 barrels per day from Iran, which accounted for 30% of Turkey’s oil imports and 7% of Iran’s oil exports. This is obviously a huge barrier for the U.S. to gaining closer cooperation from Turkey in pressuring Iran over its nuclear program, and the announcement last month that Turkey was slashing its oil purchases from Iran by as much as 20% was accordingly a big deal.
Turkey does not import oil from Iran because it is necessarily a supporter of the regime, but because Iran has been a convenient source. There are, however, real bilateral energy issues between the two that make Turkey receptive to U.S. entreaties to get its oil from elsewhere. Turkey consumes around 1.3 trillion cubic feet of natural gas annually and it imports 24% of its gas from Iran, but Iran charges Turkey more than $500 per 1000 cubic meters of gas, which is more than it charges any other country and $100 more than the market price. In contrast, Turkey pays $350 for gas from Azerbaijan and $400 for Russian gas. Turkey is stuck because it signed a 25 year deal with Iran in 1996 and because it has no way of replacing Iranian gas imports, which Tehran knows full well, and in the last few weeks Turkey has taken Iran into international arbitration over its natural gas price gouging. The gas price has become an even bigger problem in the past year as energy prices have risen across the board fueled by insecurity about global energy supplies, which led to a 40% increase in Turkey’s energy imports in 2011 as compared to 2010. The point here is that Turkey may very well be actively looking into ways to reduce its reliance on Iranian oil anyway, U.S. pressure or not. The agreement to buy oil from Libya in conjunction with reducing Iranian imports is a good first step, since it gets Turkey’s foot in the door with the new Libyan government, and might eventually lead to Saudi concessions on price as well.
It is in this context that today’s news that Turkey is starting oil and gas drilling in northern Cyprus should be viewed. Obviously this is partly a response to Cyprus’s own oil and gas exploration, but TPAO’s drilling is not merely symbolic. Turkey’s energy needs are enormous and growing, and the question is whether it will have to continue relying on Iran or if it can fill the gap somewhere else. If the answer ends up being the latter, it will have the effect of isolating Iran further and making a resolution to the nuclear issue that does not involve military strikes more likely. To that end – and to continue beating a dead horse from previous posts – a Turkish-Israeli rapprochement would help Turkey soften the blow from Iranian natural gas once the Tamar and Leviathan natural gas fields are up and running in 2013. In any event, keep an eye out for Turkey exploring any possibility open to it as far as oil and gas are concerned, since that will yield clues as to how the Iranian nuclear standoff is likely to be resolved.