In Geopolitics Today - Wednesday, December 15th
Qatar Agrees Diamond Trade Deal with Israel and Russia Holds Talks with China
Qatar Agrees Diamond Trade Deal with Israel
After years of an official boycott and strong opposition to the Abraham Accords, Qatar has reached an agreement with Israel on rules for conducting the diamond trade. Official ties between Israel and Qatar were broken off in 2009 when the Israeli Air Force launched Operation Cast Lead in the Gaza Strip. Since then, the two countries have coordinated on very few matters in the region, and have not conducted diplomatic missions in public. But as Israeli ties with other Gulf states have warmed, Qatar is increasingly coming to terms with the reality that Israel is now an important player in the region.
Following the signing of the Abraham Accords between Israel and the UAE and Bahrain, Qatar made clear that its participation in the Accords hinged on a solution to the dispute with the Palestinians. But given the unlikelihood of such a solution, Qatar has nonetheless wanted to avoid being left out in the new diplomatic balance in the Middle East. The agreement between Israel and Qatar over the diamond trade could be a sign of a thaw in relations, which could preclude various economic and political agreements, even if not quite full normalization. The reasoning for Doha’s policy change is unclear, but the economic and commercial appeal of the Accords may have attracted Qatari investors, which could open the door for limited cooperation between the two countries.
Qatar was aware that without Israeli agreement, its businesses couldn't operate as legitimate actors within the regional diamond industry. Doha now intends to set up a free trade zone that will specialize in the trade of precious stones and gold. While the move still requires final approval by the members of the Kimberley Process Certification Scheme and approval by the Diamond Exchange Federation, Israeli opposition was a significant barrier to Qatari participation in the diamond trade. For Israel, such a thawing of relations could also prove beneficial as warming ties with Qatar could distance Doha from Israeli adversaries in the region.
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Russia Holds Talks with China
Vladimir Putin and Xi Jinping have held a video call in which they are said to have discussed bilateral relations and global affairs. In recent years, China and Russia have chosen to more closely align their foreign policies in an effort to counteract US dominance of the international economic and political order. In doing so, they have raised concerns in Washington, where policymakers are increasingly concerned of an enduring Moscow-Beijing alliance. Washington is invested in both Ukraine and Taiwan, and these are the two areas where Russia and China are applying pressure to achieve their respective policy priorities.
During their call, Putin and Xi hailed relations between Russia and China, and both leaders emphasized their shared committment to the principles of mutual internal non-interference and respect for the other’s interests. Putin is said to have stressed to Xi that the United States and NATO are presenting “mounting threats” to Russia’s national interests by moving military infrastructure closer to Russia’s borders. When Putin raised the set of legally binding security guarantees which he requested of Biden, Xi responded by saying he “understands Russia's concerns” and that he “fully supports” Russia’s efforts to secure these legally binding security guarantees. Beyond their publically released statements, the two leaders likely held a long conversation with a broad agenda including energy, trade and investment.
Perhaps the most substantial part of the talks were the optics of the talks themselves. While both leaders agreed to deepen ties going forward, the meeting bore no concrete agreements. Instead, the statements allude to a public show of strong bilateral relations which, while not between treaty-bound allies, increasingly show signs of deep cooperation across all economic and some military sectors. Both leaders described relations between the two countries as an example of genuine inter-state cooperation for others to admire. Going forward, leadership in Russia and China will make attempts at further integrating the Eurasian Economic Union with China’s Belt and Road Initiative.
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