In Geopolitics Today: Friday, June 23rd
US and India Strengthen Defence Cooperation, Germany Secures Energy Future with Long-Term US LNG Deal, and other stories.
US and India Strengthen Defence Cooperation
The United States and India have strengthened their defence cooperation through a series of new initiatives unveiled during Indian Prime Minister Narendra Modi's state visit to the US. These initiatives, valued at billions of dollars, span critical industries such as semiconductors, aerospace, and artificial intelligence. The partnership was highlighted by Modi in his address to a joint meeting of Congress, where he emphasized the significance of the United States as one of India's most important defence partners.
The agreements include India's procurement of $3 billion worth of MQ-9B SeaGuardian drones, collaborations between US and Indian companies in the aerospace and semiconductor sectors, and negotiations for a reciprocal defence procurement arrangement. This deepening partnership reflects shared strategic interests and economic incentives. Over the years, both countries have worked towards mutual priorities, culminating in India's designation as a “major defence partner” by former President Barack Obama. The United States and India have also fostered collaboration through initiatives like the QUAD and the “Initiative on Emerging and Technology.” This latest upgrade on the partnership is expected to further advance military technology collaboration and reinforce bilateral ties.
Read more about this story here.
Pakistan and UAE Sign 50-Year Concession for Karachi Port Operations
Pakistan has signed a 50-year concession agreement with the United Arab Emirates' Abu Dhabi Ports Group for the terminal operations of the Karachi Gateway Terminal Limited (KGTL), commonly known as the Port of Karachi. The agreement aims to raise much-needed funds for Pakistan to help it repay the International Monetary Fund (IMF). The joint venture between AD Ports Group and UAE-based Kaheel Terminals will oversee the logistics and operations of the port, with AD Ports Group as the majority stakeholder.
The UAE Minister of State for Foreign Trade, Sheikh Thani bin Ahmed Al Zeyoudi, attended the signing ceremony and highlighted the benefits it will bring to the UAE, such as securing vital supply chains and boosting non-oil trade. The agreement follows the signing of a memorandum of understanding in May to strengthen bilateral ties between the two countries, which featured multiple efforts aimed at improving transportation infrastructure and reducing logistics costs. The UAE has been providing support to Pakistan, including loans and financial assistance, as the country faces a severe economic crisis marked by a plummeting currency, rising inflation, energy shortages, and drained reserves.
Read more about this story here.
Germany Secures Energy Future with Long-Term US LNG Deal
Germany continues to make strides in securing its energy supply and reducing reliance on Russian natural gas through long-term LNG agreements. The state-controlled firm Securing Energy for Europe (Sefe) has signed a significant 20-year deal with Venture Global LNG, paving the way for the import of 2.25 million tons of LNG per year. This partnership signifies Germany's commitment to diversifying its energy portfolio and strengthening energy security.
Germany has also secured a long-term deal with Qatar, solidifying its position in the LNG industry and ensuring a stable energy supply for the country at a high cost. These long-term agreements with Venture Global LNG and Qatar highlight Germany's proactive approach to securing energy sources and reducing dependence on traditional suppliers. By expanding its LNG import capacity and investing in infrastructure, Germany aims to achieve greater energy autonomy and contribute to environmental progress. With LNG playing a vital role in the energy mix, Germany is well on its way to becoming a major purchaser in the global LNG market.
Read more about this story here.
South Korea and Vietnam Forge Stronger Business Ties
South Korea and Vietnam have solidified their business partnerships during President Yoon Suk Yeol's state visit to Vietnam. The two countries signed a memorandum of understanding aimed at establishing a joint supply chain centre for rare earths and other minerals, aiming to ensure a stable supply chain for South Korean companies and promote investment in Vietnam. This collaboration will help transnational companies secure key minerals used in manufacturing electric vehicles, semiconductors, and smartphones.
The visit of President Yoon was accompanied by a delegation of top business leaders, including executives from Samsung, Hyundai Motor Group, SK Group, and LG. South Korea and Vietnam are also joining forces to develop energy resources. Agreements were made between Korea Gas Corp. and Vietnamese companies T&T Group and PV Power to collaborate on liquefied natural gas power projects. SK E&S and PVN signed a memorandum to establish a hydrogen business, reflecting the shared commitment to energy initiatives. These developments highlight the increasing economic ties between the two countries and underscore Vietnam's importance as South Korea's third-largest trading partner, with a trade volume of $87.7 billion in the previous year.
Read more about this story here.
Israel to Expand Eli Settlement in West Bank
Israel has announced plans to build 1,000 new homes in the Eli settlement located in the occupied West Bank, potentially doubling its population with the arrival of Israeli settlers. The decision is justified as a response to a recent Palestinian gun attack near the settlement that resulted in the deaths of four people.
The expansion proposal has raised concerns as the West Bank is a disputed territory where Palestinians seek to establish an independent state, and the establishment of Israeli settlements is viewed as illegal by most world powers. The move to accelerate settlement construction intensifies tensions in the region and hampers the prospects for a two-state solution. Many countries have repeatedly called on Israel to halt settlement projects in the West Bank. The announcement disregards previous appeals to delay the expansion plans and risks triggering further violence between Israeli settlers and Palestinians.