Daily News Brief

July 20, 2022

Top of the Agenda

The European Commission asked that European Union (EU) countries reduce their natural gas use by 15 percent (FT) amid fears that Russia could cut off gas supplies. Russian President Vladimir Putin said gas flows to Europe could be reduced when the Nord Stream 1 pipeline resumes operation after a maintenance period ends tomorrow. Brussels proposed emergency legislation that would make the gas usage cuts mandatory if shortages intensify in the winter.

Nord Stream 1 delivers over one-third (Reuters) of Russian gas exports to the EU. Its flow was reduced by 60 percent even before the current maintenance period. Moscow blamed a turbine’s delayed shipping from Canada. European Commission President Ursula von der Leyen said today that the turbine is in transit, so “there is no pretext not to deliver gas.”

Analysis

“It’s absolutely clear that Moscow is cutting supplies for geopolitical reasons—it wants to create a European gas crisis this winter to bring Europe to its knees to the point where it cuts support to Ukraine,” BlueBay Asset Management’s Timothy Ash tells Bloomberg.  

 
“If countries retreat into strategic energy blocs, a multidecade trend toward more energy interconnectedness risks giving way to an age of energy fragmentation,” Columbia University’s Jason Bordoff and Harvard University’s Meghan O’Sullivan write for Foreign Affairs.

Pacific Rim

In a letter to the United Nations, Beijing expressed “grave concern” about an upcoming report on rights violations in China’s Xinjiang region and aimed to halt its publication, Reuters reported.

Australia: Authorities urged people to work from home (ABC) amid a surge of COVID-19 infections. The rate of hospitalizations from the disease is nearing levels of a peak in January.

South and Central Asia

Interim President and former Prime Minister Ranil Wickremesinghe beat his opponent (Indian Express), who was backed by the opposition, in a 134-82 vote.

For the Asia Unbound blog, Akhil Bery explains why Sri Lanka’s crisis likely won’t be resolved anytime soon.

Myanmar: An Amnesty International investigation found that the military is committing war crimes by laying banned antipersonnel landmines in Kayah State.

Middle East and North Africa

Iran has increased supplies of a type of crude oil that Venezuela is using to boost production at its refineries, Reuters reported. Venezuela is set to receive four million barrels of Iranian heavy crude this month, up from just over one million in June.

This Backgrounder discusses oil’s role in Venezuela’s decline.

Syria/Ukraine: Syria said it will end diplomatic relations (AP) with Ukraine. Kyiv severed ties with Damascus earlier this year after Syria became the first country other than Russia to recognize Luhansk and Donetsk, separatist regions in eastern Ukraine, as independent republics.

Sub-Saharan Africa

U.S. President Joe Biden will host leaders (White House) from African countries in Washington between December 13 and 15. They will focus on topics including economic cooperation, COVID-19 and future pandemics, climate change, and food security. 

Kenya: William Samoei Ruto, a leading candidate in next month’s presidential election, said he would not seek to restructure Kenya’s debt (Bloomberg) if elected. His main opponent, Raila Odinga, has said he would seek to restructure the loans. Kenya is one of the developing economies that is most vulnerable to a debt crisis.

Europe

Ahead of a potential confidence vote in Italy’s legislature, Mario Draghi said he is willing to continue as prime minister, but he demanded support (Politico) for his program of EU-mandated reforms, stronger climate policies, and aid for Italy’s cost-of-living crisis. 

Americas

The U.S. embassy in Brasília called the country’s election system a “model for the world” (Bloomberg) after President Jair Bolsonaro told diplomats it was subject to fraud. 

El Salvador: The legislature extended a state of emergency (BBC) that was declared after a rise in gang violence in March. Since then, authorities have arrested forty-six thousand people on suspicion of gang involvement, prompting criticism from human rights groups.

This In Brief looks at why gang violence has spiked in El Salvador.

United States

The bill was promoted amid concerns (AP) that the Supreme Court could overturn the right to such marriages. It is expected to stall in the Senate.

Council on Foreign Relations

58 East 68th Street — New York, NY 10065

1777 F Street, NW — Washington, DC 20006

Shop the CFR Store

Forward This Email

Manage Your Email Preferences