In Geopolitics Today - Thursday, May 19th
Latin America Looks to Develop Regional Transport Links, The Russian Economy Continues to Withstand Sanctions, Fragile State of Relations Between Pakistan and Afghanistan
Latin America Looks to Develop Regional Transport Links
Several Latin American countries are undertaking large-scale transport infrastructure projects in an effort to improve regional and international infrastructure and trade. Among the most ambitious infrastructure projects currently under development in Latin America are the Trans-Isthmus railway project and the Bioceanic Corridor. These projects promise to drastically help build up Latin America’s infrastructure and unlock economic development opportunities throughout the region.
The Bioceanic Corridor aims to connect the port of Santos on the Atlantic Ocean with the ports of Iquique and Antofagasta on the Pacific Ocean through the construction of a road network. Alongside this transnational motorway, the project promises to be compatible with the eventual construction of a freight railway which is planned to run parallel to the motorway. Separately, Mexico is also pursuing large-scale transport infrastructure projects, the most prominent of which is the Trans-Isthmus railway project. The Trans-Isthmus railway promises to link ports along the two coasts of Mexico’s narrowest section of land, known as the Isthmus of Tehuantepec. Upon completion, this project will connect the port of Coatzacoalcos in the Gulf of Mexico to Salina Cruz on the Pacific, and the project is set to include a natural gas pipeline as part of the development process.
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The Russian Economy Continues to Withstand Sanctions
The resilience of Russia’s economy has been demonstrated by the ability of Russian economists to take measures that have effectively limited the damage of far-reaching sanctions. In a world that is already suffering from supply chain problems and a global economic slowdown, the US-led sanctions regime has so far failed to bring Russia’s economy to its knees.
The sanctioning of Russia’s central bank, a ban on the export of cutting-edge technologies, energy industry equipment, and aerospace technology to Russia, have all complicated long-established economic activity within Russia. In addition to these export bans, the United States has banned imports of Russian coal, crude, gas, and any other energy products from Russia. In parallel, the European Union has committed to banning imports of coal from Russia, and discussions are taking place on placing Russia under a total energy ban across the EU. However, Russia’s unique position as a net exporter of both energy and food commodities has allowed the Russian economy to stay afloat.
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Fragile State of Relations Between Pakistan and Afghanistan
Pakistan has recently begun to ratchet up pressure on Afghanistan’s Taliban in order to crack down on militants hiding on Afghan territory. Last month came a sharp deterioration in relations between the two neighbours when Pakistan carried out a series of airstrikes in eastern Afghanistan. Pakistan never confirmed the strikes, but its Foreign Ministry issued a warning to the Taliban not to shelter militants just days after the strikes were carried out.
Militant attacks in Pakistan have increased since the Taliban took power in Afghanistan last year. The airstrikes conducted by Pakistan in April marked a change in relations between the two countries, and the strikes came came after a militant ambush in Pakistan reportedly killed seven soldiers near the border with Afghanistan. While Pakistan and Afghanistan border forces exchange sporadic rocket fire across their shared border, it is rare for Pakistan to use warplanes to strike at targets inside Afghanistan. In an effort to ease tensions, the Taliban hosted talks between various militant groups and a Pakistani government delegation in the hopes of facilitating a compromise that can ease mounting pressure from Islamabad.
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