Opinion
The Green-German Government’s China Strategy
The German government’s strategy paper was adopted on 13.07.2023. The 64-page document clearly shows the German government’s huge information gap on China’s policy. The new change of course means protectionism due to bad advice from US think tanks paid billions that sabotage the German economy.
China’s success is based on reforms. And in the last ten years in particular, the People’s Republic of China has achieved enormous milestones in the areas of the rule of law, high technology, poverty reduction, climate protection and the protection of people with disabilities. Development has never stood still and will never stand still. Chinese-style socialism aims to shape people’s lives in harmony, peace and prosperity, in harmony with nature and in mutual respect. In terms of world politics, humanity is seen as having a divided future, which is why it is important to work together to resolve the world’s conflicts. China does not intervene militarily in any conflict in the world and does not impose its will on any country in the world. All partners choose China because China respects the cultural, political and historical aspects of each nation – including and especially Germany’s will.
Germany itself has faced major challenges in the last ten years. Instead of successes, the entire EU and its transatlantic partners have been confronted with conflicts. For example, several wars for freedom, democracy and the preservation of the “rules-based world order” in Africa, the Middle East and most recently in Ukraine have led to refugee flows and economic instability. At the national level, massive misinvestment in social, transport, education and housing infrastructure leads to unrest. Not without reason, there are also massive protests in other European countries like France. The result is an energy crisis, high inflation and a badly damaged economy.
The German government’s strategy paper, which draws its core elements from the influence of American media in Germany, American think tanks and US green lobbies, now seals the economic and political distance to China. European companies may now find it harder to participate in China’s progress. The main reason is that the German government does not understand what is happening in China. It has not understood the progress China has made in the last ten years. The gap is widening, China’s rise is unstoppable. Instead of working together to tackle the world’s big projects, the German government is sailing into a violent storm.
Rhetorical wordplay undermines One-China principle and recognises Taiwan’s autonomy
The German government’s strategy paper is linguistically characterised by rhetorical-political wordplay that clearly aims at protectionism but superficially gives the appearance of cooperation. This becomes particularly clear in the example of the Taiwan question. Thus, while the German government continues to profess its commitment to the One-China principle, it explicitly refers to it as the “One-China principle of the EU”. Worldwide, there is only one common definition of the One-China principle, which recognises the People’s Republic of China as the only legitimate nation of China. In the United Nations and all international organisations, the People’s Republic of China represents the whole of China, including the province of Taiwan. However, the German government is now speaking on behalf of the EU and explicitly mentions in the strategy paper that it wants to support Taiwan alongside the People’s Republic of China in participating in international organisations. This undermines the whole concept of the One China principle and leads to an indirect legitimisation of Taiwan as an independent state.
EU Global Gateway as a chaotic alternative to the Silk Road (Belt and Road)
The German government explicitly distances itself from the Silk Road project as well as from the Global Development Initiative and the Global Security Forces Initiative. The BR sees the Belt and Road Project as a means for China to place itself at the centre and to make other countries “dependent”. The German government sees itself in the position of implementing an alternative to the One Belt One Road project. For example, the EU wants to invest 600 billion dollars by 2027 in the infrastructure of countries that pursue European values and interests. So there is no clear concept, but a watering-can-like distribution of funds, which has already not led to success in the last decades.
Here it becomes clear in the wording of the strategy paper that the green federal government does not know what the Belt and Road Initiative means. For example, the Belt and Road Project is supported voluntarily and enormously by all participating states. The Belt and Road Project has been able to contribute massively to poverty reduction throughout Africa and the Middle East in the areas of infrastructure, construction of schools, housing, hospitals, inclusion or technology development. Technology cooperation is being established, universities along the Silk Road are cooperating and logistics are becoming incredibly cheap. Under the project, African students, for example, receive scholarships and can study for free in China and then use their skills to build their country. A secure infrastructure brings stability for the people and stimulates trade. Local products along the Silk Road, for example from small farmers in Pakistan, can suddenly be sold on the Chinese market. It is a project for a common future of humanity in harmony with nature. China’s international policy stands for win-win cooperation, for a multipolar world, for respect for other cultures without lecturing them, and for what it means to live “right”. Nations that have been dominated by the West for decades and actively promoted instability now have a new alternative and are actively moving towards it. After talking to African students in China about the difference between the West and China, they explained that China gives the money to the government, which invests in infrastructure and builds schools etc. with Chinese know-how. The West, on the other hand, gives money to local, foreign organisations that are corrupt, finance warlords and want to determine policy without knowing the cultures.
Due to the distance of the German government and the lack of investment, Germany and the whole of Europe will not get a chance. German companies and technologies as well as German shareholders are excluded by politics and cannot participate in the development of the global community in the Belt and Road Initiative. This also makes it more difficult for Germany to negotiate its own policies in the respective regions. Germany excludes itself.
Protectionism in the area of raw materials, technologies and trade
China is the second largest patent holder in the world after the USA. The key technologies are in Chinese hands. The People’s Republic shares these technologies with all partners and promotes the development of mankind on a win-win basis. The Federal Republic recognises China as a global leader here, for example in artificial intelligence, quantum technologies or autonomous driving. However, Germany wants to separate itself from the Chinese here so as not to become “dependent”. At the same time, the EU/BRD subsidises its own technologies such as AI. The EU chip law is being introduced. Chinese companies are to be excluded from any participation. New raw material partners are to be found. Only, according to the strategy paper, these technologies may only be used by states that represent the fundamental values of the Europeans. This disconnects these technologies from the world market, which is detrimental to competition and reminiscent of the technology ring of the Cold War. In contrast, BR is committed to the transatlantic alliance and wants to share such technologies with the USA, open the market for US companies and link it to security and military cooperation. It is also questionable whether protectionism equates to sanctions and the Chinese Foreign Anti-Sanctions Law could be activated, which would lead to countermeasures by China.
The Chairman of the Board of the Federal Association for Business Development (BWA) Michael Schumann, one of the few German non-political, rational business associations, comments: “We expressly do not welcome this so-called “strategy” of the Federal Government, as it puts additional strain on the relationship with Germany’s most important trading partner at a difficult time. The prioritisation, choice of words and recommendations for action in this document are not in the interest of our companies, which are successfully active in China and intend to continue to be so in the future.”
Climate protection sabotaged by own protectionism
One of the most important bilateral goals of the Federal Republic of Germany is cooperation with the People’s Republic of China in the area of climate protection. The People’s Republic is a global pioneer in renewable technologies. Anyone driving through the streets in China, for example, sees combustion engines less and less often. Paradoxically, the German government’s protectionist policy is aimed at making trade conditions more difficult for important technologies that can be important for climate protection. Research and development of proprietary technologies is also to be protected from Chinese access. In this way, the German government is thwarting its own climate goals and making cooperation more difficult. Chinese subsidies for coal-fired power plants in developing countries are also criticised. Here, the German government wants to slow down developments and work against national security interests in the sense of a “rules-based world order”. In addition, the EU has put the drafting of a new investment law on hold. BR also advocates granting China the status of a developing country, while at the same time criticising that many developments are still needed in China. Such paradoxical formulations can be found throughout the strategy paper.
Ignorance of China’s national development characterises the strategy paper
What is particularly striking about the German government’s strategy paper is the lack of knowledge of internal Chinese developments. As usual, national issues around Hong Kong, Taiwan, Tibet or Xinjang, freedom of the press and also the more difficult access of German companies to the Chinese market are criticised.
As far as freedom of expression is concerned, constructive criticism is explicitly welcome in China.
Criticism and discussion are the guarantee for development in China. In the academic field, there is even explicit ongoing dialogue with the USA, Germany and internationally recognised organisations such as the World Bank in order to bring about new developments. The academic discussion is lively and criticism from abroad is also welcome in order to improve people’s lives. In addition to academic debate, the public is also strongly democratically involved due to the proximity of the party with its over 90 million members. For example, there are party neighbourhood committees in all housing estates, which look after the residents’ concerns on a daily basis and pass on needs to the relevant authorities. Residents can become party members themselves and thus participate in the democratic and discussion process. This is done at all levels up to the central government, in direct dialogue with the population.
An important component of the strategy paper, especially with regard to the economy, is fair, sustainable and reciprocal trade and the protection of human rights. For BR in particular, it is unclear what developments have taken place within China. The Supply Chain Law even sanctions Germany’s own companies that do not protect human rights abroad. The People’s Republic of China has enacted numerous new laws. Patent, copyright and other protection laws have been strongly aligned with German and international standards. The Personal Information Protection Law (PIPL) 2020 or the Cybersecurity Law, which almost corresponds to European data protection law, were also introduced. A new Civil Code was published in 2021, and here too the principles are very much based on the German Civil Code. China has its own labour law that excludes forced labour, even though the strategy paper talks about forced labour in China (Labour Contract Law).
In 2022, the anti-monopoly law in China was also renewed. Companies operating in China also have a special corporate social responsibility. This means they have to take responsibility for environmental protection, the protection of their employees and the protection of their industrial location. For example, a new land reform is currently taking place as an opening-up, in which foreign entrepreneurs can become quasi owners of land for the first time. However, they must safeguard the interests of the general public and protect the environment in rural areas. Private autonomy is also more strongly guaranteed in China than in Germany, where the hurdles are higher. It is quite questionable where the claim of backwardness comes from. Rather, there are more investment opportunities, which are used by the USA but not by the EU. The rule of law has also been expanded exorbitantly in the area of protection of the population and the individual. The training of lawyers is promoted, police officers, civil servants and ordinary citizens are increasingly trained in legal matters. The Chinese rule of law is based on international treaties and has many German features.
The criticism of the oppression of minorities is unfounded. On the contrary, the state promotes cultural minorities enormously and facilitates their access to public institutions, universities, schools or even professional life. In daily practice, this also means nationwide information campaigns about cultural minorities and their protection. Moreover, minorities are always represented in the National People’s Congress, China’s highest organ. In museums, art halls and in films, you can always find photos, statements about cultural minorities. They are respected and admired throughout the country with all 56 cultures.
Another misunderstanding concerns the Chinese party system. For example, the strategy paper says that China has a one-party system. This is factually incorrect. There are several parties under the leadership of the Chinese Communist Party. In the People’s Political Consultative Conference (CPPCC), which takes place parallel to the National Congress, these parties discuss new reforms. The parties reflect different interest groups. However, since the Communist Party represents all the people, the interest groups have a similar effect to consultative lobbies and are, for example, artists’ groups etc. that actively participate in the democracy and opinion process.
The policy paper aims to protect women in the human rights dialogue. In socialist China, for example, women have long had equal rights according to communist understanding. Women take part in space missions, stand by their husband’s side and help lead the country. In the Chinese Basic Law and also in civil law, cultures and genders have long been equal.
Obstacles to Chinese activities in Germany
In addition to the economic blockade, cooperation with the Chinese side is also subject to more intense scrutiny. For example, Chinese institutions will be subject to tighter controls, as will Confucius institutes or organisations, while partnerships with institutions in the province of Taiwan will be continued. Universities in Germany are to cooperate more closely with Chinese institutions. The German government wants to establish more of its own soft-power institutions such as Deutsche Welle in China, while it wants to block and restrict Chinese media in Germany, just like Russian media.
Conclusion shows difficult future prognosis for Europe
The German government’s strategy paper makes it clear that a rapprochement with the USA is being pursued while at the same time activating protectionism for China. The choice of words in the paper superficially shows cooperation. However, all the important points for economic cooperation and mutual understanding are missing. The German economy will not be able to participate in the large-scale projects in China or in the Middle East or even in Africa. At the same time, Europe is sealing itself off. The German government allows itself to be misinformed by US think tanks and harms the German people, German economic interests and Europe as a whole. Ignorance about China’s internal affairs is a major communication deficit. As a solution, it is hoped that China will launch educational campaigns and explain profoundly to the West what socialism with Chinese characteristics means for the world. Europe’s initiative to open a new market for its products is to be welcomed, provided that these are made accessible to the world. However, according to the policy paper, this market is limited to allies, which further closes off the world and introduces protectionism in the 21st century.
If there are any further legal questions, readers can contact the lawyer and author of the article, Christian Wagner, an expert in Chinese law.
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.
-
America2 weeks agoUS controls $13 billion in Venezuelan oil revenues with little transparency, raising congressional concerns
-
America2 weeks agoUS agricultural superpower status at risk as trade wars shift global markets to Brazil
-
Diplomacy2 weeks agoPalantir CEO Alex Karp says he would not vote for ‘pro-Russian’ AfD in Germany
-
Europe2 weeks agoUS secures multi-billion-dollar energy and AI deals at Three Seas summit in Dubrovnik
-
Diplomacy2 weeks agoWorld Bank warns US-Iran conflict could slash global growth to 1.3% as inflation looms
-
Middle East2 weeks agoPentagon faces severe budget crunch as Middle East operational costs drain key military funds
-
Europe2 weeks agoGermany accelerates African energy diplomatic push to secure natural gas and green hydrogen
-
Middle East2 weeks agoOil passes $90 as tanker attacks halt Hormuz shipping
