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Greece’s Marinakis says paying Hormuz transit fees beats enduring Red Sea shipping crisis detour

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Evangelos Marinakis, one of Greece’s leading shipowners, has announced that he is prepared to pay up to $200,000 per transit to keep the Strait of Hormuz open to civilian maritime traffic.

Speaking to the Financial Times, Marinakis stated that paying a transit fee would be a far better option for him than having the strait closed to navigation.

As the chairman of Capital Maritime Group, which controls a fleet of 185 vessels including approximately 35 tankers, Marinakis emphasized that shipowners have been forced to use alternative routes around the Cape of Good Hope for years due to attacks launched by the Houthis in the Red Sea, a detour that has generated substantial additional costs.

The Greek shipowner indicated that paying a transit fee of $100,000 or $200,000, depending on the size of the cargo or the vessel, is far more reasonable than enduring the current logistical challenges. He added that such payments could offset all the losses experienced so far.

Following US strikes on Iran and the blockade of the Strait of Hormuz, the Tehran administration had introduced transit fees of up to $2 million for certain vessels transiting the waterway.

In May, Iran announced the establishment of a state agency tasked with managing the Strait of Hormuz. It was stated that the institution in question would provide real-time updates regarding maritime activities in the waterway.

Ebrahim Azizi, the chairman of the Iranian Parliament’s National Security and Foreign Policy Commission, had noted that only commercial vessels and countries cooperating with Iran would be able to benefit from the facilities provided under this “professional mechanism.”

US President Donald Trump has explicitly opposed the imposition of transit fees in the Strait of Hormuz. In a statement on the matter, Trump said, “We want the strait to be open. We do not want any transit fees to be charged. This is an international waterway.”

On the other hand, the draft text of a planned 60-day ceasefire extension agreement between the parties stipulates that the Strait of Hormuz will remain open without any transit fees being demanded.

According to the draft details reviewed by Axios, the US in return commits to lifting the blockade it has imposed on Iranian ports. The Iranian Ministry of Foreign Affairs, however, announced that the management of the Strait of Hormuz has been excluded from the scope of the agreement with the US, asserting that the issue will be addressed solely by littoral states.

Diplomacy

South Korea begins first commercial voyage via Northern Sea Route

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South Korea is launching its first commercial container ship voyage to Europe via the Northern Sea Route passing through Russian territorial waters. With this step, which shortens travel time by approximately 35%, the Seoul administration aims to transform the Arctic route into a regular trade corridor by 2030 and turn Busan into a key maritime hub.

South Korea is sending a container ship to Europe via the Arctic Northern Sea Route passing through Russian territorial waters for the first time.

Planned in the shadow of potential tensions in the Seoul administration’s relations with Western nations, this voyage represents the country’s first commercial shipping step on the route in question.

According to reports by the Reuters and Yonhap agencies, the container vessel named PanStar Acro is scheduled to set sail on 22 August.

According to VesselFinder data, the Panama-flagged vessel, which has a capacity of 2,758 TEU, is carrying a cargo of 837 TEU comprising automotive spare parts and chemical products.

Carrying its cargo measured in TEU—a unit referring to the volume of a standard 20-foot container—the ship is scheduled to depart at approximately 20:00 local time (14:00 Türkiye time).

Advancing north along Kamchatka and crossing the Bering Sea to enter the Northern Sea Route, the ship will call at the ports of Felixstowe in the United Kingdom, Rotterdam in the Netherlands, and Gdansk in Poland. The entire voyage is expected to take between 40 and 45 days.

South Korean President Lee Jae-myung has made Arctic maritime transport one of the country’s priorities. The Seoul administration plans to turn Busan into a key maritime hub through this route and make the Arctic region a regular trade passage by 2030.

According to calculations by South Korean officials, the Arctic route reduces navigation time by roughly 35%.

Nevertheless, the project carries the risk of complicating relations with Western allies who are attempting to isolate Russia internationally due to the conflict in Ukraine.

It is reported that the Seoul administration has held consultations with Moscow regarding the process, including the provision of assistance in possible emergencies such as the vessel becoming trapped in ice.

According to data from Norway’s High North Logistics Center, 88 vessels carried out a total of 103 transit passages last year on the route, which was used by 43 ships in 2022 and 97 ships in 2024.

The primary maritime traffic on the Arctic route was provided by Russia and China. Scientists point out that while melting glaciers facilitate navigation, increasing maritime traffic accelerates global warming.

As the shortest waterway between the European part of Russia and the Far East region, the Northern Sea Route lies entirely within the Arctic Ocean and partly within the seas of the Pacific Ocean, situated within Russian borders.

Transit permits for the route are issued by the Russian State Atomic Energy Corporation, Rosatom.

Igor Tonkovidov, head of the Russian shipping company Sovcomflot, had previously proposed resuming cooperation between Russia and South Korea in the field of Northern Sea Route transportation.

Tonkovidov had called for revisiting the delivery to the Russian company of three Arctic-class liquefied natural gas tankers ordered from South Korea’s DSME shipyard.

Valued at $872.1 million, corresponding to approximately 74.24 billion roubles, this contract could not be fulfilled due to sanctions imposed following the start of the military operation.

South Korea is not the only country in the Asian region utilising the Northern Sea Route. At the beginning of August, Rosatom granted transit permission to seven vessels belonging to the Chinese shipping company Sea Legend.

Rosatom Director General Alexey Likhachev stated that the company aims to establish a regular line with weekly sailings throughout the navigation season.

Last year, China officially commissioned the world’s first Arctic express route connecting China and Europe. Within this framework, the container vessel Istanbul Bridge departed from the Port of Ningbo-Zhoushan and sailed to the Port of Felixstowe.

Stating that the surge in activity on the Northern Sea Route comes amid a crisis environment in the Strait of Hormuz, Likhachev noted that the Chinese company’s initiative confirms the growing demand for the Arctic passage and represents a new phase in this route becoming a transport artery of global significance.

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Blackwater founder Erik Prince creates air defence venture with Kyiv

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Erik Prince, the founder of the private military contractor Blackwater—which operates today under the name Academi—has established a new enterprise, Vectus Air Defense Systems, that applies a paid subscription model to its air defence systems.

According to a report by the Financial Times (FT), the new company will operate on an “air defence as a service” principle based on software subscriptions. Under multi-year contracts, it will design, install, and maintain multi-layered air defence systems.

The company positions its air defence systems as a more cost-effective alternative to Patriot-type anti-missile systems deployed against inexpensive unmanned aerial vehicles in Middle Eastern conflicts.

Vectus products will integrate technologies from the US, Ukraine, Israel, and other nations, including sensors, electronic warfare tools, interceptor drones, and high-rate-of-fire heavy autocannons.

The company was founded in partnership with Swarmer, a Ukrainian drone software development group. Swarmer, which is among the founding investors of Vectus, holds a 20% stake in the firm.

The FT reported that the two companies will collaborate on counter-drone technologies, including sensors and swarm systems. According to the report, Prince currently serves as the non-executive chairman of Swarmer.

In a statement to Axios, Prince said: “It is clear the threat is rapidly evolving, and private sector demand for such solutions is very high. We must drastically lower defence costs and enable clients to take the protection of critical facilities into their own hands.”

A representative for Prince stated that the prominent entrepreneur spent the past year meeting with technology suppliers and prospective clients across Ukraine, the Middle East, Africa, and Latin America.

According to the representative, the developed air defence systems offer the most viable solution for major commercial and civilian installations that either do not wish to entrust, or cannot entrust, their security entirely to the state.

An ally of US President Donald Trump, Prince has a long-standing involvement in the defence sector.

Having established his private security firm in 1997, Prince’s company Blackwater signed $2 billion in government security contracts between 1997 and 2010, including the protection of US Department of State personnel.

The company carried out approximately 100,000 missions during the administrations of George W. Bush and Barack Obama.

Certain operations conducted by Blackwater, however, drew fierce criticism.

An incident in September 2007, in which company personnel opened fire on a crowd in Baghdad’s Nisour Square—killing 17 Iraqi civilians and severely wounding 20 others—provoked massive public outrage.

US courts convicted three employees on 15 separate counts of manslaughter in 2014 and 2019.

Following the Blackwater era, Prince established Presidential Airways, a global aviation transport company operating more than 75 aircraft across emerging markets, and Frontier Resource Group, a private investment firm focused on natural resource ventures.

A primary operational focus of this investment firm involved providing logistics to oil and mining companies in remote and hazardous regions of Africa.

In 2014, Prince acquired a 25% stake in the Austrian aviation company Airborne Technologies.

Entities affiliated with Prince sought to modify Thrush 510G agricultural crop-duster aircraft by outfitting them with surveillance equipment, machine guns, armour, and rocket pods.

The Guardian reported in September of last year that Prince planned to acquire a Ukrainian drone manufacturer. At the time, the Blackwater founder was seen engaging with local drone producers in Kyiv.

The newspaper noted that Prince’s interest in Ukraine was long-standing, recalling that in 2020 he had submitted a multi-billion-dollar proposal through his private security firm to resolve the crisis in the Donbas, though the deal never materialised.

As subsequently reported by The Guardian, Prince joined the board of directors of Swarmer, a Ukrainian start-up specialising in autonomous drone swarm management.

The Blackwater founder described the company as a venture “born in the crucible of modern combat”.

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US formally redesignates Hezbollah as Iranian proxy under sanctions

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The US has officially changed its designation of Hezbollah to identify it as a “proxy of Iran”.

Executive Order 13224 now explicitly states that Hezbollah is sanctioned for acting for or on behalf of Iran’s Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF).

Speaking to Al Arabiya, a US State Department official argued that this change underscores how Hezbollah operates with almost no regard for Lebanese sovereignty, the Lebanese people, or the Lebanese state.

The official continued:

“This decision formally recognizes that Hezbollah’s military operations, external security apparatus, and major financing networks function as an extension of the IRGC-QF—Iran’s primary instrument for executing terrorist activity beyond its borders. Hezbollah is not a Lebanese resistance movement.”

Pointing to repeated oaths of loyalty and allegiance by Hezbollah officials to Iran’s Supreme Leader, the official maintained that the Quds Force also exerts a decisive influence over the group’s military and strategic decisions.

The official stated that Washington remains committed to “disrupting the networks that allow Iran to use Hezbollah as an instrument to undermine Lebanese sovereignty, threaten regional stability, and advance Tehran’s terrorist agenda.”

The official further accused Hezbollah of dragging Lebanon into destructive wars with Israel twice within the last two years, stating that the group remains an obstacle to Lebanon’s sovereignty, stability, and economic recovery.

“The disarmament and dismantling of Hezbollah is vital for any credible path forward for Lebanon, and we are working with our partners to advance this goal,” the US State Department official said.

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