A Turkish proposal to share Syria’s oil fields with Russia highlights a latent struggle for the country’s most prized resource, which had fallen to Kurdish militia dependent on the US.
Turkish President Recep Tayyip Erdogan indicated this week that he offered President Vladimir Putin joint revenue management for oilfields in eastern Syria to use for reconstruction.
An understanding between Ankara and Washington in October let Turkey invade areas that had been captured by Kurdish militia in north-east Syria, but kept the Turkish forces and their Syrian rebel proxies away from the oilfields.
Turkey hopes to turn the 30 kilometre deep strip and other border territories it took over in the past two years into a home for refugees it is hosting.
Ankara unveiled plans to build cities and infrastructure and then move more than three million Syrian refugees in Turkey into the zones, which would supposedly be free from regime bombardment.
Mr Erdogan said that if Mr Putin agreed, “we can do the construction and through the oil obtained there, we can help destroyed Syria get on its feet".
"If such a step can be taken here, I can even make the same offer to [US President Donald] Trump," Mr Erdogan said.
"Instead of terrorists benefiting here, we would have the opportunity to rebuild Syria."
He indicated that Mr Putin had not committed to the plan and there was no official reaction from Russia.
Deir Ezzor and Hasakah governorates in eastern Syria account for most of Syria’s oil production.
Most of the oilfields in the regions are with the Kurdish People’s Protection Units (YPG), the military wing of the Democratic Union Party (PYD).
The YPG is closely linked with the Turkish Kurdish Worker’s Party (PKK), which is listed as a terrorist organisation in Turkey, the US and in much of Western Europe.
Despite reducing its military presence in Syria, the US kept troops that prevented the regime of President Bashar Al Assad from taking over the oilfields in Deir Ezzor and stopped Turkey from overrunning Rmelan, a major oilfield in Hasakah on the border.
Mr Trump said in October that he believed US oil companies should “take some of the oil”.
The regime’s loose grip on the oilfields created a new class of smugglers and local barons in Syria’s east.
There, corruption and mismanagement of agriculture contributed to near-famine in the decade before the 2011 revolt against Assad family rule.
A new wealthy class emerged among the Kurds of eastern Syria by taking on an intermediary role through links with Kurdish militia commanders and the Assad regime.
Among the new profiteers is a Kurdish merchant known as Abu Al Dalu from the city of Qamishli.
He is connected with the YPG and with Muhammad Al Qatirji, a regime associate under US sanctions, Kurdish sources and European diplomats say.
The US Treasury describes Mr Al Qatirji as having enbled “fuel trade between the regime and ISIS, including providing oil products to ISIS-controlled territory”.
A Kurdish source working with the YPG administration in Hasakah said oil production, mainly from Rmelan oilfield and Al Omar in Deir Ezzor, brings in about $100 million a month.
The revenue comes from sales to regime and rebel areas, as well as to Iraq and smuggling to Turkey.
“The oil not only finances YPG salaries but has become a major source for the PKK in Qandil,” the source said, referring to the PKK’s headquarters in the mountains of northern Iraq.
Control over the oil and Syria’s border crossings were main points of contention in talks between the regime and the YPG, which had picked up since the Turkish incursion in October then subsided, European diplomats said.
Syrian Oil Ministry figures put oil production in Syria in 2010, the last full year before the revolt, at 380,000 barrels per day.
But industry executives working in Syria at the time said actual production was significantly lower due to dilapidated infrastructure and US sanctions, which have intensified since the revolt.
Today Syria’s oil output, mostly from regions under Kurdish militia control, is estimated at 50,000-70,000 barrels per day.
Jihad Yazigi, editor of the Syria Report economic and business newsletter, said that although Syria's output could help to meet some of Turkey's oil needs, Mr Erdogan's main aim was to starve his Kurdish enemies of the revenues.
“A direct takeover by Turkey would bring with it problems related to sanctions and legal issues,” Yazigi said.
“Erdogan wants to take the oilfields out of the hands of the PKK.”
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
MATCH INFO
Final: England v South Africa, Saturday, 1pm
UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
THE SPECS
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Power: 416hp at 7,000rpm
Torque: 410Nm at 3,500rpm
Transmission: 6-speed manual
Fuel consumption: 10.2 l/100km
Price: Dh375,000
On sale: now
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
more from Janine di Giovanni
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
