The Odd and Not So Odd Timing Of Israeli-Turkish Reconciliation
December 18, 2015 § 2 Comments
This is starting to feel like Groundhog Day. In March 2013, I wrote an article for Foreign Affairs explaining the timing behind Israel and Turkey agreeing to reconcile, and here I am again nearly three years later explaining the timing behind Israel and Turkey agreeing to reconcile. That the two countries have had a number of false starts is instructive and provides the first lesson of the day, which is that despite yesterday’s announcement, expectations should be tempered until there is an actual signed agreement. That is not to say that this is a feint, but that there are still a lot of obstacles ahead, including President Erdoğan’s desire to use this as a domestic political win bumping against Prime Minister Netanyahu’s desire not to be used for Erdoğan’s political gain; a recent history of extremely difficult relations between the two governments that cannot be papered over at the drop of a hat; the Gaza blockade remaining as an extra large sticking point; and the big elephant – or more accurately, bear – in the room that is looming over this entire thing and that I’ll get to in a minute. In other words, this won’t be entirely easy so no champagne corks should be popping yet.
But assuming that this does indeed go through, it’s not terribly difficult to see why. What I wrote in March 2013 was that the two sides were being pushed together by energy needs and Syria, and that remains true today but even more acutely. Dan Arbell on Monday (exhibiting impeccable timing!) wrote about thawing relations between Turkey and Israel focusing on Turkey’s ongoing quest for energy security and Israel’s complementary ongoing quest to find an export destination for its natural gas, with the Syria situation being a factor as well. Turkey is in a serious bind now that its relationship with Russia has deteriorated in such a big way, and Israeli gas provides a way out. If Russia cancels the Turkish Stream project or even takes things one step further and halts natural gas shipments to Turkey entirely, Israeli gas won’t solve things in the short term but will provide a long term hedge against relying on Russia as a primary energy supplier. On the Israeli side, the simple truth is that no energy company is going to invest the resources to develop the Leviathan field without a viable export destination, and the two best large market options were always Egypt and Turkey. The first one is far less attractive now due to the recent Egyptian gas discoveries mitigating how much Israeli gas Egypt will want to buy over the long haul, leaving Turkey as the best destination remaining. There are still political hurdles to be overcome on both sides, and the technical hurdle of constructing a deepwater pipeline is nothing to sneeze at either, but the formal approval granted yesterday to Noble to develop Leviathan likely resulted directly from the reconciliation agreement with Turkey.
On Syria, Turkey is always desperate for more intelligence and coordination given how much it has been affected by the civil war, and Israel can benefit as well since it does not want spillover across its northern border. The Russian intervention has made this more stark for both sides, since where Israeli opinion has been divided from the start on whether it is better for Assad to stay or go, there has emerged a slightly dominant view that it is better for Assad to be deposed given his role as the linchpin of the Iran-Hizbollah axis, and Russian intervention now makes that harder (if you’re interested in the subject, I participated on a Wilson Center panel yesterday with Tamara Wittes and Yoram Peri on the subject of the Syrian crisis and Israeli security, and you can watch it here). For Turkey, which has set Assad’s downfall as its top foreign policy priority for over four years, Russia’s involvement in Syria is a disaster and so to the extent that Israeli priorities are slowly lining up on the same side, any joint cooperation is a net positive.
All of this is why the timing of rapprochement makes sense, maybe even urgently so on the Turkish side. So why do I think that in some ways it is odd? The same way that the Russia variable is driving Turkey to find alternative solutions to some of its problems and reestablish close links with its Western allies – and certainly making up with Israel is a factor in pulling the U.S. closer – the mirror image is true for Israel. Whereas in the past Israel could reconcile with Turkey and it would be cost-free in the larger geopolitical context, now it’s not quite so simple. Israel and Russia have gotten along remarkably well despite Israeli and Russian military planes both flying along the same corridor in southern Syria, and up until now Russia has respected and tolerated Israeli freedom of action to attack weapons convoys on their way to Hizballah in Lebanon. This shouldn’t be taken for granted, however, and a closer Israeli relationship with Turkey has the potential to alter this equation. Russia is undoubtedly annoyed by yesterday’s news as it has been trying to isolate Turkey as best it can, and that in itself may lead to frostier relations with Israel. But even if you take Russian pettiness out of the equation, closer coordination between the Israeli and Turkish militaries has real potential to encroach on Russian priorities in Syria, which mainly consist of ensuring Assad’s rule over at least part of the country. Should Israel be drawn into Turkey’s fight and end up striking Syrian army positions that do not directly impact Hizballah advanced weaponry, Israeli leeway in Syria will be quickly narrowed by Russia.
Furthermore, Israel has now dramatically reduced Russian leverage over Turkey by mitigating Russia’s energy blackmail strategy. This is not only a matter of economics but geopolitics as well, since Russia uses Gazprom and its energy policy as a tool for foreign policy outcomes, and in the case of Turkey, that has now been significantly undermined. I’m no Russia expert, and I don’t know that there is a Russia expert alive who can predict what Putin will or won’t do, but my casual observation of Russian behavior leads me to believe that it is not outlandish to assume that Putin won’t retaliate against Israel in some manner or another for throwing Turkey a gas lifeline. With relations with Russia as terrible as they are for Turkey, it makes sense for Ankara to risk even more Russian wrath if it means solving the energy security problem. What mystifies me a bit is why Israel, which has so far gotten along with Russia remarkably well despite working somewhat at cross purposes against Russia in Syria, would risk a downturn in relations with Russia in order to make up with Turkey, a country that cannot threaten Israel in any real way and upon whose favor Israel does not depend in order to keep on going after Hizballah in Syria. Helping Turkey out of its morass in order to realize some economic benefits while risking the chance of limiting your range of action in Syria and provoking a much stronger power is penny wise and pound foolish. On top of this, there is also the lesser but not irrelevant factor that Israel has been frantically trying to establish better ties with the “moderate” Sunni bloc that includes Saudi Arabia and Egypt, and there is no love lost for Turkey in that group of countries. When you look at the regional chess board, partnering in a closer way with Turkey brings with it some significant potential downside for Israel.
I’ll reiterate that nothing is done until it’s done, and so this post may prove to be as irrelevant as my last deep dive into this subject. From where I am sitting, this deal is a no-brainer for Turkey, but I don’t think the same can be definitively said for Israel. It will be fascinating to see where all of this leads and whether the benefits of reconciliation that both sides fantasize about end up fully materializing.
Israel’s Unnatural Dreams For Its Natural Gas
October 23, 2013 § 6 Comments
On Monday, Israel’s High Court cleared the way for Israel to export 40% of its new natural gas bonanza after rejecting petitions that challenged the government’s export plan. The Israeli government harbors high hopes of reaching $60 billion in profits over the next two decades from natural gas exports, and so the High Court’s decision is being celebrated as paving the way for an economic windfall. The problem is that there are some very big and intractable regional issues that have to be settled before Israel sees even a shekel from gas exports, and the prospect for all of this coming together is quite slim. If anything, Israel’s natural gas fields are going to end up sparking competition and regional destabilization rather than the opposite.
There are two ways for Israel to export its natural gas. The first is via pipeline to Turkey and hooking up with the planned TANAP or TAP pipelines in order to send Israeli gas to the rest of Europe. The prospects of Israel and Turkey cooperating on a pipeline deal at this point are laughable when the two sides cannot even agree on something as basic and simple as compensation for the Mavi Marmara deaths, not to mention the most recent unpleasantness between the two countries. Let’s assume for a moment though that cooler heads are able to prevail and mutual economic interests override the basic domestic politics of both countries, there is still a thornier problem of geography. A pipeline from Israel to Turkey has two possible routes. The first runs through Lebanon and Syria, which is a non-starter for all sorts of obvious reasons. The second route is undersea and has to travel through Cyprus’s exclusive economic zone. Given the animosity between Turkey and Cyprus and Turkey’s adamant insistence that is does not and never has occupied any part of Cyprus, reconciliation between these two parties over an issue that has been dubbed a diplomats’ graveyard is not on the horizon. It is true that there are many good reasons for a deal to happen, from the fact that there is a lot of money at stake to the fact that Turkey is completely isolated on the Cyprus issue and is the only country in the world that even recognizes the Turkish Republic of Northern Cyprus as an independent state, but that doesn’t mean that movement is imminent. Greek Cypriots overwhelmingly rejected a painstakingly negotiated federal model in 2004, and there is no reason to think that opinion on this has changed. What this means is that a pipeline, which would be the most cost-effective and easiest solution, is out for now.
The other way for Israel to export its gas is to liquify it and ship LNG to Turkey and other destinations. This comes with its own set of challenges as well. The first is that liquifying natural gas is an expensive process that reduces profit margins as compared to shipping it via pipeline. On top of the process itself, it requires building an LNG terminal that takes approximately 3-5 years to build and costs somewhere between $5 billion and $10 billion, which cuts into profits even further. An LNG terminal is unlikely to be built in Israel itself due to legal and environmental challenges, which again leaves Cyprus as the natural partner, but absent reconciliation between Turkey and Cyprus, shipping LNG to Turkey from a Cypriot LNG terminal is likely off the table. Without a Turkish market for gas, Israel is not going to expend the time and resources to build a LNG terminal in Cyprus to then have it essentially be bricked. Even assuming that Turkey and Cyprus are able to patch things up and Israel goes the LNG route, the security challenges posed by protecting an Israeli LNG terminal that is in Cyprus rather than in Israel and then protecting Israeli tankers plying the waters of the Eastern Mediterranean are enormous. Israeli ships carrying Israeli natural gas are immediately going to become an attractive target for all manner of jihadi and terrorist groups, and the Israeli Navy does not now have the capacity to protect such a potentially large venture.
So the bottom line is that a boom in natural gas exports is not assured by any means. No matter which way Israel turns, the path to huge profits from natural gas is complicated by geopolitics that have so far proved immune to easy resolution. In the short term, the answer is likely to send natural gas to Jordan, which will be profitable to a limited extent since Jordan is not a very big market. Another cheap alternative with much larger potential is to export to Egypt, but despite Energy Minister Silvan Shalom’s insistence that this avenue is open, the Egyptians claim that they have no interest in buying Israel’s natural gas.
Looking at the bigger picture, Israel’s long term problem may be more serious than simply not having a viable market for its exports. Turkey and Egypt both project very high growth in energy demand with no real energy resources of their own at the moment, and they are sitting next to countries – Israel and Cyprus – that are resource rich and with whom they do not have great relations. In addition, there are claims on Eastern Mediterranean gas fields being made by Lebanon and by the Palestinians in Gaza, not to mention Northern Cyprus’s claims to the fields claimed by the Cypriot government. How these tensions will be resolved is unclear and anyone’s guess, but a very combustible situation is developing, and the idea of major resource conflict at some point is not all that far-fetched. Should the Israel-Turkey-Cyrpus triangle not get resolved to each party’s relative satisfaction, the Eastern Mediterranean may very well become a lot less placid.
Israel’s Russian Roulette
May 30, 2013 § Leave a comment
A year ago I wrote about the way in which Israeli domestic politics was coloring its foreign policy toward Russia on account of Israel’s large Russian population – over 1 million immigrants from the former Soviet Union now live in Israel, making up somewhere between 10-15% of the total population – and noted that the government was doing its best to cozy up to Putin on account of the domestic political benefits despite the fact that there were obvious foreign policy pitfalls for Israel in pursuing such a strategy. In light of the violence in Syria, it is time to revisit this issue. The topic has taken on greater urgency now that Bashar al-Assad has claimed that Russia has already sent a shipment of S-300 surface-to-air missile batteries to Syria. Earlier this week, Defense Minister Bogie Ya’alon had warned Russia not to arm the Assad regime with these missiles, considered to be a significant upgrade to existing Syrian air defense capabilities, and said that if the shipment of weapons left for Syria, Israel would “know how to act.” While Russia had postponed the initial shipment of missiles at Israel’s request, all signs point to further Israeli requests to delay delivering the SAM batteries being likely to fall on deaf ears. Russia’s interest in propping up the Assad regime has only grown, and the increasing calls for Western intervention and hints of U.S. plans for a no-fly zone in Syria have only seemed to strengthen Russian resolve as it turns the fight in Syria into a proxy battle against the West.
As Jordan Hirsch and Sam Kleiner smartly argued a couple of weeks ago, the chaos in Syria is in some ways restoring a Cold War dynamic between the U.S. and Israel that is focused on Israel as a proxy and strategic ally against a larger adversary, which in this case is Iran. However, the past couple of weeks have added a twist to this observation, which is that in some ways we are actually returning to the original Cold War dynamic of the U.S. against Russia and Israel caught in the middle. While the relationship between Israel and Russia has been strong, full of state visits and Israeli officials fawning over their Russian counterparts, the situation in Syria has put the brakes on what was in many ways a friendship built on a mirage. Israeli politicians have wanted to reap the low-hanging political fruit of being seen as having close ties with Russia, but Russia never gave Israel any indication of being willing to budge on its support for Iran or its backing of Assad. In fact, fostering a close relationship with Russia might have actually backfired, as when Israel hit Syrian military sites in Damascus earlier in May, it infuriated the Russian government, which was taken by surprise by the Israeli raid. Close ties between Jerusalem and Moscow may have created an expectation in Russia’s mind of notification by Israel, or perhaps some level of leeway on Russian priorities that Israel is unwilling to give.
The entire situation demonstrates the strategic quandary in which Israel finds itself due to its relatively small stature. Israel is not enough of a heavyweight to do much of anything to change the direction of Russian foreign policy, and its threats are not credible when dealing with a country the size and strength of Russia. Israel has spent years cultivating Putin and other Russian leaders, and Avigdor Lieberman played up his Russian connection while serving as foreign minister to an unprecedented degree, but when push comes to shove, all of this falls by the wayside in the face of larger Russian geostrategic priorities. Keeping Assad as an ally and maintaining the Russian naval base in Tartus, and in the big picture frustrating Western efforts to get Assad to exit power, is just worth much more to Moscow than anything Israel can offer and any benefits that accrue to Russia as a result of closer ties with Israel. Furthermore, Russia even has good cause to start intimidating Israel if it believes that Israeli natural gas exports – if they ever happen, which is a big if – might in any way cut into Russian market share in Europe. Israel just does not measure up when it comes to ordering Russian priorities, and Israel is learning this the hard way in the context of the Syrian morass.
There is another element at play here, which is how Israeli domestic politics require Israel to tread carefully in its dealings with Russia. As I noted a year ago, the Russian population in Israel feels a strong pull and sense of nostalgia toward its previous home even as its connection there wanes, much like American Jews feel strongly about Israel and Irish-Americans feel strongly about Ireland. Were the U.S. ever to have tense relations with Ireland, it would actually raise a serious problem in Congress and make for an extremely tricky political environment. Domestic politics affects every move the Israeli government makes, and if the connection between the large population of Russian origin and Israel’s foreign policy maneuvering has not already been taken into account by the more insightful politicians, I’d be surprised. Note that Israel has not yet directly threatened Russia, but has instead made veiled threats toward Syria on the issue of missile shipments, which is a counterintuitive move when you consider the supply chain here and that the party that needs to be prevented from moving is Moscow rather than Damascus. Part of that is, as I noted above, that Israel just does not have the heft to make any credible threats against Russia, but I think part of it is also the domestic political angle of trying not to pick a public fight with the Russian government any more than is absolutely necessary. Whatever the outcomes of the spat over the S-300 missile batteries, it will be very difficult going forward for Israel to pretend that its relationship with Russia is as cozy as it has portrayed in the past.
