Erdogan visits Trump, amid much friction between US, Turkey

In this April 6, 2017 photo, President Donald Trump speaks at Mar-a-Lago in Palm Beach, Fla., after the U.S. fired a barrage of cruise missiles into Syria. On a collision course with an ally, the United States will arm Syria’s Kurds to fight... (AP)
Updated 15 May 2017
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Erdogan visits Trump, amid much friction between US, Turkey

WASHINGTON: The United States is on a collision course with its NATO ally Turkey, pushing ahead with arming Syrian Kurds after deciding the immediate objective of defeating Islamic State militants outweighs the potential damage to a partnership vital to U.S. interests in the volatile Middle East.
The Turks are fiercely opposed to the U.S. plans, seeing the Kurdish fighters as terrorists. And when Turkish President Recep Tayyip Erdogan visits the White House this week, the most he and President Donald Trump may be able to do is agree to disagree, and move on.
"The Turks see this as a crisis in the relationship," said Jonathan Schanzer at the Washington-based Foundation for Defense of Democracies.
The challenge is hardly new. Long before Trump took office, U.S. presidents have grappled with the fragility of partnering with Turkey's government and the Kurds to carry out a Middle East agenda.
Past administrations have sought a delicate balance. Too exuberant in its support for the Kurds, and the U.S. risks pushing ally Turkey toward U.S. geopolitical rivals like Russia or emboldening the Kurds to try to create an independent state — a scenario that would destabilize multiple countries in the region. Too little cooperation with the Kurds risks squandering a battlefield ally with proven effectiveness against extremist threats and who has staunchly supported Washington.
Trump has made his priorities clear.
His administration is arming Syrian Kurdish fighters as part of an effort to recapture the Syrian city of Raqqa, the Islamic State group's self-declared capital. Coupled with the U.S.-backed fight in the Iraqi city of Mosul, Raqqa is seen as a key step toward liberating the remaining territory the militants hold.
Turkey has been pressuring the U.S. to drop support for the Kurdish militants in Syria for years and doesn't want them spearheading the Raqqa effort. Turkey considers the Syrian Kurdish group, known as the YPG, a terrorist group because of its ties to the outlawed Kurdish Workers' Party inside Turkey. The United States, the European Union and Turkey all agree the YPG is a terrorist organization.
The Turks fear any weapons the U.S. provides the Syrian Kurds could well end up with their ethnic brethren in Turkey, who've fought violently as part of a separatist insurgency for more than three decades. As a nod to Turkey's concerns, the Pentagon has promised tight monitoring of all weapons and greater intelligence sharing to help the Turks better watch over their frontiers. Kurds are an ethnic group predominantly concentrated along the borders of four countries — Turkey, Syria, Iraq and Iran.
But a face-to-face confrontation on the matter between Trump and Erdogan seems inevitable.
Erdogan and other top Turkish officials have pressed for the U.S. to reverse its strategy, however low the prospects of Trump changing his mind. As a result, experts see Erdogan using the meeting to confront Trump on a host of other Turkish grievances. Those include extraditing the Pennsylvania-based cleric, Fethullah Gulen, whom Erdogan blames for fomenting a failed coup last summer, and dropping U.S. charges against Reza Zarrab, a Turkish businessman accused of money-laundering and violating U.S. sanctions in Iran.
"I see this trip as a new milestone in Turkey-U.S. relations," Erdogan said, as he prepared to fly to Washington.
The U.S., too, has a wish list for Turkey. Washington is concerned by rising anti-Americanism in Turkey that Erdogan's government has tolerated since the July coup attempt. The U.S. also has pressed unsuccessfully for the release of Andrew Brunson, an American pastor, and other detained U.S. citizens.
Trump also has much at stake. His willingness to partner with authoritarian rulers and overlook their shortcomings on democracy and human rights have alarmed U.S. lawmakers of both parties. Trump's premise has been that he is focusing on deal-making. That puts added pressure on him to get results.
Trump has gone out of his way to foster a good relationship with Erdogan. After a national referendum last month that strengthened Erdogan's presidential powers, European leaders and rights advocates criticized Turkey for moving closer toward autocratic rule. Trump congratulated Erdogan.
Now, the American leader may try to cash in.
"Trump has prioritized protecting U.S. national security interests over lecturing allies on democratic values or human rights," said James Phillips, a senior research fellow for Middle Eastern affairs at the Heritage Foundation. "I don't think the president will lose any sleep if he is criticized for meeting with President Erdogan, as long as it pays dividends for advancing his foreign policy agenda."
But Erdogan may not be amenable to accepting the U.S. military support for the Kurds in a quid pro quo. Last month, the Turkish military bombed Kurdish forces in Syria and Iraq, in one case with American forces only about six miles (10 kilometers) away. His government has insisted it may attack Syrian Kurdish fighters again. The U.S., whose forces are sometimes embedded with the Kurds, has much to fear.
Barack Aydin of the Washington-based Kurdish Policy Research Center, said the key ought to be a broader peace process between Erdogan's government and Kurdish opponents in Turkey, which would eliminate these problems.
"That would be a very good start," Aydin said.


IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine

Updated 21 min 31 sec ago
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IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine

  • The loan adds to a $300 million commitment announced in April, bringing the total to $700 million
  • Reko Diq, one of the largest undeveloped copper-gold deposits, is being developed by Barrick Gold

ISLAMABAD: The International Finance Corporation will provide a $400 million subordinated loan for Pakistan’s Reko Diq copper-gold mine, according to an IFC disclosure on Friday.

The loan adds to a $300 million commitment announced in April, bringing IFC’s total financing for the project to $700 million. The estimated cost of the mine is $6.6 billion, to be funded through a mix of debt and equity from a consortium of lenders.

“The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity,” the disclosure said, adding that other parallel lenders will provide the remaining debt financing.

This type of loan, known as subordinated debt, is typically repaid after other senior loans and helps absorb more risk, making it easier for other lenders to invest.

Other financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, are also expected to join the financing package, project director Tim Cribb told Reuters in April.

Term sheets are expected to close by early in the third quarter. IFC chief Makhtar Diop said earlier this year that the institution was “doubling down” on Pakistan, with a focus on infrastructure, energy and natural resources.

Reko Diq, located in Balochistan, is one of the world’s largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds 50 percent, with the remainder split between Pakistan’s federal and provincial governments.

Production is expected to begin in 2028. Barrick has projected the mine will generate up to $74 billion in free cash flow over its estimated 37-year life.


Saudi Arabia takes leading role in Helsinki ICRC donor summit

Updated 29 min 20 sec ago
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Saudi Arabia takes leading role in Helsinki ICRC donor summit

  • The Kingdom’s delegation took part in various discussions, led by its deputy ambassador to Finland, Faisal Al-Shehri

RIYADH: Saudi Arabia has joined the International Committee of the Red Cross donor support group during a high-level summit in Helsinki, while simultaneously taking charge of a global peace-building initiative.

The Kingdom’s delegation took part in various discussions, led by its deputy ambassador to Finland, Faisal Al-Shehri, and Geneva-based humanitarian affairs chief at Saudi Arabia’s Permanent Mission to the United Nations, Shatha Al-Ahmadi.

ICRC president Mirjana Spoljaric highlighted Saudi Arabia’s status within the humanitarian community, describing the Kingdom as “not only a donor state, but a trusted and vital political partner for the International Committee of the Red Cross.”

Spoljaric specifically commended Saudi Arabia’s significant contributions to the global initiative designed to strengthen political commitment to international humanitarian law, positioning the Kingdom as a key driver of humanitarian policy development.

The Saudi delegation expressed appreciation to both the ICRC and Finnish government for organizing the summit, saying the Kingdom’s membership reflected its commitment to humanitarian work: “Our participation reflects an unwavering dedication to humanitarian action, rooted in our firm belief in the international community’s collective duty to assist conflict victims and deliver humanitarian aid.”

The delegation emphasized its full recognition of the ICRC’s unique mandate and exceptional position among humanitarian organizations, reaffirming Saudi support for maintaining its independence and neutrality.

The Kingdom has assumed leadership of the global initiative’s third operational track, which addresses the intersection of international humanitarian law and peace-building efforts. 

Saudi delegates stressed the need for peaceful conflict resolution, political dialogue enhancement and diplomatic engagement between nations to foster mutual respect and create pathways toward lasting reconciliation and sustainable peace building.

The summit concluded with a ceremonial leadership transfer from Finland to the UK within the donor group structure. 

Saudi representatives congratulated their British counterparts, expressing their enthusiasm for enhanced collaboration with the incoming leadership and all international partners to advance multilateral humanitarian system development.


Pakistan stocks drop over 1,900 points amid Israel-Iran tensions

Updated 49 min 12 sec ago
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Pakistan stocks drop over 1,900 points amid Israel-Iran tensions

  • Analysts cite fears of broader regional escalation following Israeli strikes on Iran
  • Israel struck Iran, claiming Tehran was “close” to developing a nuclear weapon

KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel’s strikes on Iran, triggering fears of wider regional escalation.

The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12.

Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities.

“Geopolitical tensions after Israel’s attack in Iran weighed down on world equities, including the KSE100,” Raza Jafri, Head of Intermarket Securities, told Arab News. “In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan’s import bill comprises of petroleum products.”

He noted that Pakistan was now “much more disciplined” economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past.

Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes.

“Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,” he said.

Israel launched strikes on Iran earlier on Friday, claiming Tehran was “very close” to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
 


Pakistan stocks drop over 1,900 points amid Israel-Iran tensions

Updated 49 min 19 sec ago
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Pakistan stocks drop over 1,900 points amid Israel-Iran tensions

  • Analysts cite fears of broader regional escalation following Israeli strikes on Iran
  • Israel struck Iran, claiming Tehran was “close” to developing a nuclear weapon

KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel’s strikes on Iran, triggering fears of wider regional escalation.

The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12.

Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities.

“Geopolitical tensions after Israel’s attack in Iran weighed down on world equities, including the KSE100,” Raza Jafri, Head of Intermarket Securities, told Arab News. “In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan’s import bill comprises of petroleum products.”

He noted that Pakistan was now “much more disciplined” economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past.

Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes.

“Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,” he said.

Israel launched strikes on Iran earlier on Friday, claiming Tehran was “very close” to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
 


Saudi FM holds calls with Kuwaiti, Palestinian and Norwegian counterparts on regional tensions

Updated 54 min 21 sec ago
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Saudi FM holds calls with Kuwaiti, Palestinian and Norwegian counterparts on regional tensions

  • Calls came amid rising tensions between Israel and Iran

RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan on Friday held a series of phone calls with regional and international counterparts to discuss the escalating situation in the Middle East, the Saudi Press Agency reported.

In a call with Kuwaiti Foreign Minister Abdullah Ali Al-Yahya, the two sides reviewed the recent Israeli strike on Iran, its regional repercussions, and stressed the importance of de-escalation and safeguarding regional security, SPA added.

Prince Faisal also spoke with Palestinian Prime Minister and Foreign Minister Mohammad Mustafa, with discussions also focused on the latest developments in the region and their wider implications.

In a separate call, the Saudi minister discussed regional and international issues of common interest with Norwegian Foreign Minister Espen Barth Eide.