In Geopolitics Today, Tuesday, May 31st
Japan to Loosen Arms Export Rules, EU Leaders Agree on Russian Oil Ban, Egypt is Modernising its Air Force
Japan to Loosen Arms Export Rules
The Japanese government has floated the idea of relaxing rules the rules which govern Japan’s export of defence equipment. In 2014, Japan established a framework over the export of defence equipment and eased regulations that had prohibited transferring Japanese weapons. Details of a revision to this framework are expected to be included in an upcoming economic and fiscal management policy, and is expected to translate to an increase in the export of Japanese-made weapons to other countries.
Japan is wary of China's expanding military footprint, and likely seeks military transfers to other countries as a way to balance against China’s rising power. To do this, Japan intends to strengthen ties with other regional powers by offering advanced weapons and inter-operability drills. So far, Tokyo has exported a warning and control radar to the Philippines as part of the only defence export contract the country has fulfilled since 2014. Now, Japan seeks to loosen the rules which govern strict export restrictions in a bid to facilitate security ties with other countries in Asia while also bolstering Japan's own defence industry. Export customers for Japanese weapons will allow Japan's manufacturers to lower production costs, and thereby lower the government's procurement costs in implementing its own national security strategy.
Read more about this story here.
EU Leaders Agree on Russian Oil Ban
After weeks of intense negotiations, European Union leaders have agreed to ban a significant portion of all oil imported from Russia. The move is part of the bloc's latest sanctions package on Russia, and will translate to an embargo on around 90% of all oil imports from Russia to the EU by the end of 2022. EU leaders were able to agree on a compromise deal that will see exemptions apply to deliveries arriving by the Druzhba pipeline.
Given that two-thirds of all Russian oil imported into the EU is delivered via tanker while only one third via the Druzhba pipeline, the EU is expected to phase out the majority of Russian oil and oil-related products in a short span of time. Initially, this round of sanctions aimed to see the EU ban all Russian oil, yet Hungary has remained persistent in presenting staunch opposition to a total oil embargo. The oil ban was part of the sixth round of EU sanctions that also includes the removal of Russia's biggest bank — Sberbank — from the SWIFT financial transactions and payments system. In addition, three major Russian broadcasters will be prevented from distributing their content anywhere in the EU, while Ukraine will receive almost $10 billion in economic assistance.
Read more about this story here.
Egypt is Modernising its Air Force
The United States has concluded a preliminary approval of the sale of 23 CH-47F Chinook Helicopters worth an estimated $2.6 billion to Egypt. The announcement comes a few months after the sale of 12 C-130J Super Hercules Aircraft and three SPS-48 Land Based Radar Systems were sold to Egypt in January for a total of around $2.55 billion. These two deals bring the total value of Egyptian-US arms dealings so far this year to around $5 billion, and is a part of the ongoing military modernisation program the Egyptian government is undertaking.
The aircraft in both deals made this year are designed for transport and logistics. Egypt already possesses a number of Chinooks but the latest deal involves an upgraded model that will see some of Egypt’s older models upgraded and renovated over the next two to three years. Agreement by the US State Department for the sale of the newer Chinooks to Egypt indicates that Cairo has achieved a significant step in the process of modernising its military logistic and tactical capacities. Moreover, Cairo is also in the process of modernising combat aircraft, and has recently concluded two deals with France for the purchase of Rafale fighter jets. The recent increase in arms contracts between Egypt and the US seems to originate from Washington’s strategic outlook on the Middle East and the convergence of Egyptian and US interests and designs in region.
Read more about this story here.