Opinion
The impotent and the potent
Deripaska, the founder of Rusal, published a commentary in the RBK on December 30, pouring out the big bourgeoisie’s plans to get Russia out of difficulties. According to Deripaska, to overcome the obstacles before Russia’s development, these are the must-do’s: Staying in the market economy in the age of change, “rejecting the delusions of the sinister state capitalism,” and “removing the visible or quiet bans” on “businesspeople” taking part in the government.
“Deripaska’s manifesto”
While it’s essential to break down each of the points in this neoliberal manifesto on its own, the truth is that nothing here is genuinely novel. Deripaska had already announced his program on April 8: Abandoning “state capitalism,” adopting a “market economy,” and calling an end to the Ukrainian campaign. Then, realizing that the Kremlin might get enraged over the Ukraine situation, and this time it would not be limited to being publicly shamed over a ballpoint pen and a collective bargaining agreement, he removed the message. On April 17, a revised version of the program, which deliberately made no mention of Ukraine, was issued: It is needed to “find new markets,” “deal with exports,” and establish a new “beginning point”; in this way, “we can create a strong economy in 10 years”. At the time, Nezavisimaya Gazeta, another regardable journal of the liberal bourgeoisie, covered this program under the heading “Deripaska’s manifesto” (and with absolute enthusiasm. Please see the following sentence: “Deripaska’s manifesto is a collection of extremely serious theses, proposals, and recommendations”).
Let’s have a look at the details of the April manifesto:
The end objective is to eliminate state capitalism. The reason is that “history has revealed that only under the circumstances of a free-market economy and with the importance of private property, it is feasible to achieve a high and steady rate of economic growth that ensures a balanced development and rise in incomes for the entire community.”
It’s incredible, isn’t it? It’s great to be able to quote these words as if they were verses from the Bible in a nation that owes achieving the world’s highest pace of industrialization to socialism.
If so, large it! If competition is sacred, all obstacles before foreign capital should be eliminated, free zones must be created to entice foreign capital, all state-owned businesses must be privatized, and assets held by pension funds must be transferred immediately. There must be no restrictions on moving money out of Russia. It’s necessary to reduce state expenditures at all levels. Not only at the national level, federal, regional, and local levels, including the Central Bank and state monopolies, as well as law enforcement and civil servants. The state instrument should be slashed in half; law enforcement that is “unrelated to the military” should be decreased by three or four times (it takes courage to call for lower military spending while the Ukraine crisis persists, and Navalny is the only one who has shown that). From Gaydar to Nemtsov, Ryzhkov to Navalny, this has been the common dream of all liberal prophets in Russia. At the same time, Deripaska called for an amnesty for all “businesspeople” convicted under Articles 159 and 160 of the Penal Code, as well as a release from the “aggressive pressure of law enforcement officials who dismissed them.” Fraud, credit card fraud, check fraud, electronic payment fraud, insurance fraud, data theft, extortion, and embezzlement are all covered in these articles and clauses. Deripaska’s class solidarity is a trait that should be admired and even followed as an example. Not enough, he demanded that the government and the Central Bank utilize all sources at their disposal to get out of the current crisis. He warned that escaping this crisis would be possible in commensurate with “the strength of the entrepreneurs.” Calls for the welfare state were sprinkled in the manifesto as well. For example, he wanted local governments to build homes and federal district banks to put more money into regional projects. Perhaps most importantly, he advocated for the state to finance small and medium-sized private businesses. However, these enterprises he deemed available for funding would be limited to spare part manufacturers; he favored allowing the middle bourgeoisie to rise only in intermediate goods production. Deripaska’s hopes were limitless as well as his hopes. He demanded to end “the senseless compensation of state capitalism for more than 14 years”. “Either the employment of ordinary, normal citizens who always pay their taxes regularly will be retained, or the state bourgeoisie will continue to be pampered,” Deripaska concluded his manifesto.
Deripaska’s goals are thus:
1) Wiping out all state-owned monopolies and complete privatization.
2) The middle bourgeoisie engaging solely in producing intermediary goods.
3) The “downsizing” of the government.
4) Eliminate any regulatory and legal obstacles to foreign capital, such as inquiries into the motivations of their investments in Russia and the threat of an investigation into offshore accounts.
5). A blanket pardon for the bourgeoisie, who has been convicted of bribery, embezzlement, corruption, fraud, etc.
It seems like he’s gearing up for an all-out confrontation with the Kremlin. However, that’s not the case. The big bourgeoisie is shrewd. Before publishing her manifesto, Deripaska had also argued with Lyubov Sokol, and her former silent partner had come out against this indomitable preacher of the liberal bourgeoisie, calling her an “idle parasite,” “debauched,” “racketeer,” and “jackal.” Deripaska went as far as accusing her, the most rightist woman imaginable, of being a “radical leftist.” This was the case. Sokol urged Deripaska and the other representatives of the big bourgeoisie to rise up against the Kremlin. This call terrified him so much that Deripaska wanted to guarantee that he would never do such a thing with phrases ostensibly targeting Sokol: “Don’t be afraid, I’m not keen on becoming a chef.”
The sole difference between Deripaska’s April and December manifestos is that in the latter, he enthusiastically argued that there is discrimination against entrepreneurs and demanded equality: “As long as free and private entrepreneurs enjoy equal rights with all other social groups (artists, patriotic journalists, athletes, siloviki, representatives of law enforcement, veterans), [these free entrepreneurs] along with the dismissed intelligentsia remain as ‘the impotent.’ But it is up only to entrepreneurs to bring about significant change quickly.”
Not freedom but prison
The term “slaboviki,” which I translated as “the impotent,” is a significant notion. Referring to the Medvedev fraction, the slaboviki is placed against the siloviki. The latter comes from the word “strong,” whereas the former is derived from the word “weak.” Siloviki means “employees of the force instruments to whom the state has delegated its monopoly of legal violence.” Therefore, it sounds Marxist since it refers to the state’s repressive mechanisms. In political contexts, however, the meaning narrows down: Siloviki refers not to all of the employees of these instruments but rather to their leaders, their representatives in power. Regarding slaboviki, before digging down to its meaning, I should quote a single sentence from a column that’s just as valuable as the definition itself. This is from an article regarding the situation before the Georgian war published on January 18, 2019, in Novaya Gazeta, the most “respectable” and militant mouthpiece of the big bourgeoisie and the advocates of liberal reforms (now fully declassified), former middle bourgeoisie:
“Medvedev’s slabovikis were wandering the Kremlin corridors; talks about modernization had begun.”
The slaboviki, then, included the following groups: The faction of the power bloc that Medvedev represented, the fraction against siloviki, the weak wing of power in the face of the siloviki; the proponents of “modernization,” or those who support Russia’s immediate integration with the imperialist world.
Obviously, liberal and slaboviki are linked ideas.
Saltykov-Schedrin wrote a story called “Liberal” which I translated into Turkish (in “Bilge Kayabalığı”; Helikopter, Istanbul: 2013). The liberal in Russia, and by extension all liberals, is portrayed as a man who abandoned his ideals altogether and “adapted them to life.” And how stunningly he depicts! The liberal’s ideal was not freedom anymore but a prison. He has buried his old ideas in the dirt, but he still hopes that the sun will rise tomorrow, and the muck will dry off of him.
Suddenly, he felt as if a drizzle had just hit his face. Whence did it come? What gives? The liberal looked up: “Is it raining?” However, he saw that the sky was completely clear, with the sun crazily hovering over the peaks. The wind was blowing, though, but yet there was no sign of water dripping from a window; there was no such thing.
“It’s a miracle!” said the liberal to his friend. “Not a drop falls, no puddles, yet something tickles my face.”
“But look, there’s a guy lurking in the corner,” replied his friend, “That’s his job. Due to your liberal affairs, he desired to spit in your face, but he didn’t venture into doing it. Here, in the context of ‘adapting to the life,’ he spitted out of the corner, and the wind blows his spit right to you.”
That liberal is slaboviki.
Theory and practice
I gave that a lot of thought. The adopted policy is the limitation of the political power of the big bourgeoisie and its economic power to the extent that it bolsters the political power and the replacement of the middle bourgeoisie, which has been declassed since February 24, with a new middle class that will be the stable mass base of the Kremlin. This policy can only be implemented with unstated NEP measures, leading to leftist backing.
The most crucial distinction between the big and middle bourgeoisie must not be overlooked. The big bourgeoisie can invest significant fixed capital and get adequate financing from the financial oligarchy of which it is generally a part. Thus, to maximize profits, it does not need to resort to primitive solutions like extending the workday or slashing social programs. (“Unnecessity” is a factual situation, but impulses, not needs, drive free-market capitalism.) When compared to the big bourgeoisie integrated with the financial oligarchy, the middle bourgeoisie is unable to make big investments in fixed capital or locate suitable credit opportunities like the bourgeoisie incorporated with the financial oligarchy. That fact leaves them with no choice but to resort to primitive methods like extending the working day and reducing social rights to increase profits.
The big bourgeoisie may, thus, inflame or quickly defuse the conflict with the working class it employs, but the struggle between the proletariat and the middle bourgeoisie only grows. This is the norm everywhere. This is precisely why the big bourgeoisie uses what is called “people’s capitalism” (of the kind that Potanin preached a few months ago) as one of the ideological means to gain the working people over the middle bourgeoisie. This “uselessness” situation facilitates the neutral position of the working class in the conflict between the big bourgeoisie with the middle bourgeoisie.
The bourgeoisie is generally impotent since they seldom claim for the government and almost always demand the state to protect its relative autonomy. In general, their political representatives usually rule on behalf of the bourgeoisie. The bourgeoisie, both big and middle, want a “neutral” state. On the other hand, the monopoly bourgeoisie only favors a neutral state since its members are in a mortal conflict with one another and, therefore, have lesser shared interests against their enemies. But when it is united vis-à-vis a more significant threat and starts a struggle as a bloc against its common enemy by sidelining its internal conflict, it recalls that it is “crème de la crème.” Now it is less numbered to rule directly, but politically influential, economically robust, and enormously homogenous. The working masses are often seen as the only possible common opponent for the big bourgeoisie, but this view reduces the scope of the class conflict. The struggle, even the struggle for life and death, need not necessarily be monolithically between the bourgeoisie and the working class. Moreover, the dominant aspect of class struggle under capitalism is rather often the struggle of the bourgeoisie within itself.
Thus, Deripaska’s hubris to demand the de facto transfer of the state to the “businesspeople” stems not only from his relations with the ruling circles but also, and primarily, from these two reasons: 1) A new kind of NEP conflicts with the interests of the big bourgeoisie and that makes them unite against the common enemy (the rising middle bourgeoisie) and its political representatives. 2) Since resorting to the “basic” (not referring to “primitive,” “rudimentary,” or “extinct,” but to the most animalistic impulses that never go away) methods of capitalism is “unnecessary,” the working class can remain neutral in this conflict.
Opinion
Macroeconomic consequences of asymmetric UAV attacks in Russia
Today, the nature of asymmetric threats is undergoing a profound transformation, with their focus shifting increasingly toward economic centers. By mid-2026, the nature of asymmetric warfare within the borders of the Russian Federation entered a qualitatively new and critical phase.
An analysis of the Ukrainian unmanned aerial vehicle (UAV) strikes carried out in July 2026 reveals a deliberate shift in targeting. Moving beyond military installations and fuel-energy infrastructure, these attacks directly targeted civilian logistics networks and critical nodes of the macroeconomic infrastructure.
The primary objective of this strategic shift is to deplete the country’s internal resources, induce insurmountable disruptions in supply chains, and exert intense psychological pressure on the civilian population.
Large-scale, coordinated strikes on the distribution centers of Wildberries—Russia’s largest e-commerce platform and part of the RVB joint venture (formed by the 2024 merger of Wildberries and Russ)—became the symbol of this new phase of home-front vulnerability. The geographic scope of these attacks, spanning an unprecedented area from the Northwestern Federal District to Southern Russia and Crimea, exposed critical gaps in national industrial risk insurance mechanisms. Furthermore, this situation sparked severe legal disputes between platform economy giants and small businesses, compelling immediate intervention from both corporate executives and senior state officials.
Tracing the multi-layered consequences of the kinetic impacts resulting from these July attacks on the state’s digital and physical economy will shape the new architecture of civilian sector security.
The zenith of the logistical terror waged by Ukraine was recorded on the night of July 24, 2026, marking the most technically complex UAV attack inflicted on Russian Federation territory since the beginning of the year. According to data from the Ministry of Defense of the Russian Federation, domestic air defense systems detected and destroyed 571 fixed-wing Ukrainian UAVs that night.
Two points have become exceptionally critical here: saturating radar fields and the military “swarm” effect. In short, this event is the clearest indication that the enemy has transitioned to a tactic of overwhelming radar systems. At the same time, the “swarm” effect generated across a vast geographic expanse aims to rapidly deplete the ammunition of anti-aircraft missile systems and expose air defense positions deep behind the front lines.
The breadth of the targeted geography attests to the unprecedented scale of the operation. UAVs were neutralized over the Belgorod, Bryansk, Kaluga, Kursk, Leningrad, Novgorod, Oryol, Pskov, Ryazan, Smolensk, Tver, Tula, and Vladimir regions, as well as over Moscow, Krasnodar, the Republic of Crimea, and the waters of the Azov and Black Seas.
Such a dense dispersion of targets across a vast territory points to an attempt to paralyze transportation and logistics arteries within Russia’s European landmass.
In parallel with the mass deployment of UAVs, missile strikes were also conducted against civilian industrial enterprises. During the same period, a missile attack on a local enterprise in the Fileyka district of Kirov resulted in outright catastrophe, leaving 6 people dead and 32 employees injured with varying degrees of severity.
Following the incident, Regional Governor Aleksandr Sokolov stated that the situation required not only the evacuation of the wounded, but also large-scale interventions such as restoring water and power supplies and auditing the security of neighboring settlements. This combined approach—employing inexpensive kamikaze drones to degrade air defenses followed immediately by missile strikes on unprotected industrial zones—presents an entirely new threat paradigm for the civilian economy.
Systematic and sequential attacks directed at the facilities of a single commercial entity completely eliminate the possibility of coincidence. The strategic, macroeconomic, and psychological factors turning civilian commercial warehouses into critical vulnerabilities for an entire state rest upon four pillars:
- Role as the central circulatory system of domestic trade: Wildberries plays a critical role in the architecture of the modern Russian economy, connecting millions of consumers with tens of thousands of SMEs. Damage to distribution centers severe supply chains, triggering localized shortages of essential consumer goods and regional inflationary spikes. The primary goal is to destabilize the domestic market and create an artificial supply vacuum.
- Immense facility footprints and defense complexity: Spanning hundreds of thousands of square meters across the nation, these hangars constitute massive targets with high radar contrast. Unlike military bases, these commercial warehouses cannot possess their own air defense systems; placing every such facility under an air defense umbrella is physically impossible without compromising frontline systems.
- Social and psychological impact: In the eyes of the public, logistics centers symbolize daily economic stability. Black plumes of smoke visible from miles away, massive fires, and civilian casualties represent a hybrid terror tactic designed to transport an atmosphere of fear deep into peaceful cities and shake the internal socio-political climate.
- Magnified radius of economic impact: Inventory consumed by flames in these warehouses generally consists of stock purchased by merchants on credit. The destruction of commodity inventories holds the potential to cause mass vendor bankruptcies, bank loan defaults, and cascading layoffs across small businesses.
The events of July 2026 mark an irreversible shift in the threat landscape facing Russian commerce and macroeconomics. Attacks directed at Wildberries hubs in regions such as St. Petersburg, Moscow, and Tambov exposed the utter vulnerability of civilian logistics infrastructure.
Deploying relatively inexpensive unmanned aerial vehicles, the enemy is capable of inflicting tens of billions of rubles in direct damage, paralyzing the supply of essential goods, and triggering an acute social crisis in which hundreds of thousands of entrepreneurs face the threat of bankruptcy. According to Russian experts, the total cost of a single fire—similar to the Kotovsk incident on July 18—can range between 50 and 100 billion Rubles ($630 million – $1.2 billion USD).
Despite its massive capital reserves, corporate business was caught unprepared for military threats. The medium-term survival of the e-commerce economy depends on the state and the private sector uniting to engineer unprecedented systemic solutions. Establishing compensation funds and introducing mandatory risk-distribution mechanisms are critical steps that must be taken.
Logistics hubs will remain open targets unless a “state program for subsidized reinsurance of military risks” is established for the critical nodes of the civilian economy. In the future, it will not suffice for large enterprises merely to pour capital into the physical protection of infrastructure; they must also deeply decentralize their logistics networks to prevent the concentration of goods and capital at single points of failure.
Opinion
Egypt Under Fire: What Does the Damietta Strike Mean for Global Energy Markets?
Dr. Ahmed Moustafa, Director & Founder, Asia Center for Studies & Translation, Egypt
For the first time since successive waves of escalation between Washington and Tehran began in recent months, an Egyptian liquefied natural gas (LNG) export facility has become a direct target.
In the early hours of Wednesday, 29 July 2026, at least one drone struck the floating storage unit Energos Winter, owned and operated by a U.S. company and sailing under the Marshall Islands flag, while it was moored at the Mediterranean port of Damietta. The impact ignited a fire that spread to a neighboring LNG carrier, GasLog Salem. Egyptian authorities confirmed that the blaze was brought under control without any reported casualties, while no group had claimed responsibility for the attack at the time of writing.

A Broader Context That Cannot Be Ignored
The incident did not occur in a vacuum. It came only hours after the United States Central Command (CENTCOM) announced that it had conducted joint strikes with Saudi forces targeting armed factions in Iraq accused of launching drone attacks against Saudi oil facilities. Tehran responded by warning against a “miscalculation,” at a time when the Middle East is still grappling with the repercussions of an earlier round of escalation that erupted on 8 July, when U.S. forces carried out strikes inside Iranian territory following an attack on a commercial vessel in the Strait of Hormuz. Iran retaliated with attacks targeting U.S. military bases in Bahrain, Jordan, Qatar, Kuwait, the United Arab Emirates, and the Sultanate of Oman.
Against this tense backdrop, Damietta appears to represent yet another link in the chain of regional escalation—but an exceptional one. For decades, Egypt has sought to keep itself removed from direct military polarization in the region, unlike several Gulf states that have increasingly become arenas of open confrontation.
At the same time, this interpretation does not entirely rule out the possibility of an indirect Israeli role, driven by hostility toward Egypt’s growing diplomatic influence in the Palestinian and Gaza files. Cairo has remained committed to advancing the two-state solution and to implementing the second and third phases of the peace roadmap agreed upon following the Sharm El-Sheikh Peace Summit last October. The Israeli government, led by Benjamin Netanyahu, has sought to obstruct these efforts. Netanyahu, who is the subject of arrest warrants issued by the International Criminal Court, is widely accused of bearing responsibility for committing genocide that, according to Palestinian authorities, have resulted in the deaths of approximately 73,000 Palestinian civilians since 7 October 2023.
Why Egypt?
Over the past two years, Egypt has steadily strengthened its position as a regional hub for liquefying and re-exporting natural gas. This growing role has been supported by its two LNG plants at Idku and Damietta, in addition to a network of pipelines linking the country with Israel and Cyprus.
This infrastructure—unmatched elsewhere in the Eastern Mediterranean in terms of combined liquefaction capacity and direct access to European and global markets—has transformed Damietta and Idku into critical gateways for Eastern Mediterranean gas, including increasing volumes of Israeli/Stolen Palestinian natural gas liquefied and re-exported through Egyptian facilities.
According to local reports, the Energos Winter alone was supplying approximately 450 million cubic feet of gas per day to Egypt’s national grid and was preparing to receive four additional cargoes during August.
This expanding role gives any attack on Egypt’s gas infrastructure significance far beyond the immediate incident itself. It threatens not only Egypt’s domestic energy supplies but also a supply chain upon which Europe has increasingly relied as part of its strategy to diversify away from Russian natural gas.
Who Was Behind the Attack? Open Scenarios
At the time of writing, no organization had officially claimed responsibility, leaving several possible interpretations.
The first scenario cautions against prematurely attributing responsibility to Iran or its regional allies. It argues that the ambiguity surrounding the incident—and the absence of any claim of responsibility—may itself be deliberate, allowing whichever actor carried out the attack to undermine Egyptian stability without incurring immediate political costs.
This possibility includes actors competing over Eastern Mediterranean energy routes, as well as local or transnational groups pursuing agendas unrelated to the U.S.-Iran confrontation. Egyptian officials themselves have adopted a notably cautious approach. Egypt’s Minister of Information warned against “rushing to accuse any party,” while a former official suggested that “certain actors are seeking to drag Egypt into the conflict,” implying that the attack may have been designed precisely to draw Cairo into a confrontation it has consistently sought to avoid.
A second scenario, Israeli Involvement or the Involvement of Israel’s Allies
This, in itself, remains a serious hypothesis that is reportedly being discussed in undisclosed investigative circles. The prevailing analyses, supported by pro-Israeli and pro-American narratives, have largely centered on suspicions directed at Iran or Iran-aligned actors within the context of the ongoing conflict, rather than at Tel Aviv. This is partly because Israel maintains an energy partnership with Egypt, making any attack on an Egyptian export terminal potentially detrimental to its own natural gas interests.
Nevertheless, this hypothesis—like all others—must ultimately be assessed in light of the findings of the official investigations, which are still underway. It is worth recalling, however, that repeated warnings have been voiced regarding the visits of Israeli Prime Minister Benjamin Netanyahu to Washington, as such visits have often been followed by heightened regional instability, as was argued after developments last December. According to this line of analysis, Netanyahu seeks to prolong the conflict with Iran in order to strengthen his domestic political position, secure his continuation in office, and advance Israel’s long-term strategic objective of neutralizing Iran and carrying out “Greater Israel.”
Within this framework, some analysts argue that there are broader efforts to weaken both Egypt and Türkey. They cite remarks attributed to a former Mossad operative during appearances on Israeli television, alleging that such a strategy would also serve to divert international attention away from the Gaza file and the question of Palestinian statehood—an issue on which Egypt has intensified its diplomatic efforts in recent days. According to this interpretation, creating indirect pressure on Egypt—the region’s most stable and secure state—could be viewed as a means of drawing Cairo into a wider regional confrontation.
A third scenario links the incident directly to the broader U.S.-Iran escalation. According to the article, The New York Times, citing two Iranian sources, reported that the attack may have been intended as a signal that global shipping and energy supplies could face deeper disruptions should Tehran or its allies choose to escalate further. The sources, however, did not identify the perpetrators or specify the launch point of the drone.
The Messages Behind the Attack
Regardless of who carried out the operation, the choice of target sends several important signals. An attack on what the article describes as the first American-owned energy asset on Egyptian soil would convey a message to Washington that not only its military installations in the Gulf, but also its economic footprint across the region, has become increasingly vulnerable.
For Egypt, which has consistently pursued a policy of strategic restraint and regional neutrality, the incident serves as a reminder that its geographic position—adjacent to some of the world’s most important energy and maritime corridors—no longer guarantees insulation from the conflicts unfolding around it.
For global markets, the attack suggests that the geographic scope of potential disruption is expanding beyond the Strait of Hormuz and the Arabian Gulf into the Eastern Mediterranean, increasing insurance premiums for shipping and critical energy infrastructure in a region long regarded as comparatively secure.
Egypt’s Official Response
The Egyptian government handled the incident with considerable caution and procedural professionalism, treating it primarily as a crisis-management operation rather than a political event.
The Cabinet confirmed that the fire had been caused by a drone attack without attributing responsibility to any specific party, emphasizing that investigations were continuing “to take all necessary measures to safeguard Egypt’s interests and national security.”
Prime Minister Mostafa Madbouly described the response as a test of the state’s crisis-management capabilities, praising emergency teams for successfully moving the burning vessels away from the port, thereby preventing what could have become a far larger disaster.
President Abdel Fattah El-Sisi addressed the incident publicly for the first time during a telephone conversation with Spanish Prime Minister Pedro Sánchez. During the call, he confirmed that the competent authorities were conducting a comprehensive investigation, warned of the dangers posed by the escalating regional situation, and stressed the importance of cooperation between Egypt and the international community to contain the crisis while adhering to peaceful solutions.
This measured diplomatic approach—avoiding direct accusations while emphasizing de-escalation—reflects Cairo’s determination not to be drawn into a broader regional confrontation despite having come under direct attack on its own territory.
Several Gulf states also expressed their full solidarity with Egypt and voiced support for its efforts to safeguard its national security and sovereignty.
The Impact on Global Energy Markets
The Damietta incident occurred at a time when global energy markets were already under considerable strain. Brent crude had been hovering around US$90 per barrel following the escalation of 8 July, while the European Title Transfer Facility (TTF) benchmark for natural gas had climbed above US$700 per 1,000 cubic meters for the first time since March.
Any additional disruption affecting an Egyptian LNG export terminal risks reinforcing this upward trend. Europe has increasingly relied on Egyptian liquefied natural gas as part of its broader strategy to diversify supplies away from Russian pipeline gas. Consequently, even a temporary interruption to Egypt’s export infrastructure could heighten market concerns over supply security.
The incident also adds to the geopolitical risk premium already factored into insurance costs for vessels operating in the Eastern Mediterranean. Higher perceived risks could translate into increased shipping and insurance costs for LNG carriers throughout the region, even if subsequent investigations conclude that the attack was an isolated event unlikely to be repeated.
What Should Be Done to Prevent Similar Incidents?
First, Egypt should further strengthen its short-range air defense capabilities and counter-drone systems around strategic energy installations along its Mediterranean coastline. This includes deploying advanced early-warning radar networks and cost-effective interception systems capable of neutralizing small unmanned aerial vehicles before they reach critical infrastructure.
Second, broader regional intelligence-sharing mechanisms should be expanded among Egypt and neighboring states—including Cyprus, Greece, and Türkiye—in recognition of the increasingly interconnected nature of Eastern Mediterranean gas infrastructure and the shared strategic importance of safeguarding regional energy corridors.
Third, given that the targeted floating storage unit is owned by a U.S. company, Washington should contribute to financing and modernizing the protection of such critical infrastructure rather than limiting its response to statements indicating that it is merely “monitoring the situation,” as the article characterizes the U.S. reaction.
Finally—and perhaps most importantly—reducing the broader cycle of regional escalation between Washington and Tehran remains the only sustainable guarantee against similar incidents in the future. Any purely technical or localized security measures can mitigate immediate risks but cannot eliminate them so long as the underlying geopolitical drivers of confrontation remain unresolved.
Conclusion
The Damietta incident serves as a stark reminder that geographic neutrality alone is no longer sufficient to shield a country that has become a pivotal node in the global energy network.
References:
1- https://www.bbc.com/news/articles/c39ez3klwmro
4- https://www.nytimes.com/2026/07/29/world/middleeast/ships-drone-strike-egypt.html
Opinion
Rising populist parties in Europe and liberalism
Leon Trotsky, one of the foremost leaders of the October Revolution, defined fascism as the totalitarian organization of society by monopoly capital. Magnates of large-scale monopoly capital are acutely aware that their profits cannot be safeguarded in the absence of authoritarian political power. Thus, fascism finds its bedrock of support among capitalist forces, the grand bourgeoisie, monopoly capital circles, and major landowners. We are all too familiar with the calamities fascism wrought upon the world in the era preceding the Second World War.
The post–World War II era is often commemorated as the golden age of capitalism—a period characterized by robust growth rates and low unemployment. Real wages climbed, social rights expanded, demands for a welfare state remained vibrant, and the pursuit of a social state yielded tangible results. This era ultimately met its demise in the 1970s, undone by shifts in the regime of accumulation and structural economic crises.
Today, across Europe, political parties that could virtually be characterized as the direct successors to pre-WWII fascist movements are consolidating their electoral gains. Germany, France, and Italy serve as quintessential examples. These parties weaponize poverty, unemployment, and anti-foreigner, anti-immigrant, anti-Muslim, and anti-Middle Eastern sentiments, while capitalizing on the incompetence of traditional center-right and center-left parties and taking a deeply Eurosceptic, critical stance toward the European Union. They employ caustic rhetoric against the political elites who have dominated governance for decades. Receiving endorsement from both US President Trump and Russian leader Putin, they draw substantial support simultaneously from working-class constituencies—traditionally the bedrock of the left—and from grand capital circles. While monopoly capital quietly pats these populist movements on the back, it simultaneously winks at liberal-democratic and increasingly indistinguishable social-democratic parties that champion unbridled capitalism and aggressive liberalism. Beyond France and Germany, examples abound from Italy to the United Kingdom…
The interests of grand capital, which back populist regimes and advocate authoritarian governance, also champion localization. For the erosion of the national, the public, and the collective—alongside the attenuation of the central state and the elevation of the local—works decisively to the advantage of big capital.
Why?
Because of this:
Under liberalism, the state does not regulate the market; rather, the market regulates, directs, and subdues both the state and society. In a liberal order, the state is expected to act on behalf of capital and in favor of the market—intervening in politics, society, and the law, and enacting statutory frameworks strictly to this end. The state is tasked with engineering legal and institutional arrangements for the market’s account and benefit. Society is reduced to a market-society, wherein the citizen is reimagined as a consumer, a client, and an entrepreneur. Since competition is elevated as the supreme imperative, citizens themselves must become entrepreneurial and competitive—a posture the state actively promotes and incentivizes.
According to liberals, the state bears no obligation to shield its citizens from the pitiless mechanics of the market or the ferocity of unchecked capitalism. On the contrary, the state demands and encourages that citizens establish themselves as entrepreneurial actors within the market arena. Consequently, the state aligns itself with capital, operating at its beck and call. Hence, liberalism harbors an innate preference for unorganized, non-unionized, cheap labor. Wages are suppressed; agricultural subsidies are gutted to a minimum; and strikes are banned on the flimsiest of pretexts.
Because liberalism insists that the state be sculpted, organized, and driven according to market demands—allowing the market to command and direct the state—the liberal vision of the nexus between politics and economics, as well as politics and law, is deeply fractured. In their worldview, law must operate exclusively to the advantage of capital, acting as the vigilant sentinel for the inviolability of property rights. It must dismantle every obstacle standing in the way of free trade, unbridled competition, and the free market, while swiftly and severely penalizing any force that dares to impede them. To conform to the expectations and demands of capital: this is the primary imperative required of the law.
In sum, through its championing of identity politics, its reduction of the citizen to a mere client, and its liquidation of the state’s social character in order to place public power at the disposal of capital, liberalism stands fundamentally opposed to the social, the public, and the national. This is a truth that must be firmly impressed upon left-liberals, nationalist-liberals, and conservative-liberals alike.
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