Arms for Oil

German-Foreign-Policy.com

ALGIERS/BERLIN

(Own report) - The German government is considering supplying warships and military aircraft to Algeria. This was reported in the Algerian press preceding the German Chancellor's visit to Algiers, due to begin next Wednesday. In return, Berlin is evidently demanding better access to this North African nation's energy resources. According to a high ranking representative of the Federation of German Industries (BDI), the Algerian production of German military vehicles is also being considered. Among the agreements Chancellor Merkel seeks to reach with the Algerian government are those concerning the domestic repressive authorities, reinforcing the so-called war on terror. With its far-reaching bids, the German government is seeking to gain a decisive advantage over its rivals in this resource-rich area of North Africa. One of those rivals, Russia, has been strongly expanding its influence over Algerian and Libyan resources. The German thrust into Algiers puts the spotlight on Berlin's intervention against Paris' original "Mediterranean Union" project, through which France had sought to intensify also its own contacts to Algeria.

Turning Toward the Maghreb

Just a few days before Chancellor Angela Merkel's trip to this North African nation, German offers to arm Algeria were made public. German diplomats see the two-day visit as very important. It is a "highly political" meeting, is the terminology used in Berlin to indicate the high-ranking delegation, including prominent managers, state secretaries and parliamentarians. In Berlin, it is also being reminded that an intensive exchange has been ongoing over the past few years. Since Chancellor Gerhard Schroeder visited Algeria in 2004, the Foreign Minister and the Minister of the Economy, and more recently, the German President have traveled to Algiers, as well as several state secretaries and parliamentarians. After decades of having "mainly been preoccupied with the East," Berlin is now decisively turning toward the Maghreb, one hears in the German capital. The Maghreb could serve as "the bridge" that "links Europe to the Arab world and Africa." Algeria, "one of the most important countries of these two regions,"[1] will have a key role to play.

Gas Alliance

German interests are focused on Algeria's extensive energy resources. The country has oil, but above all natural gas deposits estimated at more than 60% of the gas reserves of the Mediterranean region. Libya is the only Mediterranean nation that can compare in resources. Up to now Algeria had been supplying energy resources particularly to Southern European nations (Spain, France and Italy). Germany is now casting its eye on these resources. Even though German oil imports are relatively limited, they have increased over the past year from 1,855 millions of tons to 3,164 millions of tons.[2] But Berlin is particularly interested in natural gas. The Duesseldorf-based energy company, Eon Ruhrgas AG, announced its opening of a branch office in Algeria. In cooperation with the state-owned Sonatrach, Eon Ruhrgas intends to begin importing liquid gas to Europe. Toward the end of 2006, German Foreign Minister Steinmeier declared his intentions to make Algeria the "second pillar" of German gas supplies and to establish a "gas alliance with Algeria."[3] German energy corporation managers will again be accompanying the German Chancellor to Algiers to advance their business prospects.

Competition

The Competition in the Algerian capital is intense. The Russian Gazprom natural gas company also opened a subsidiary in Algeria, just a few days after the Eon office was opened. Gazprom is acting under the authority of a memorandum of understanding that it concluded with the Algerian Sonatrac in August 2006, covering the exploration, extraction and transportation of natural gas, as well as other areas of activity. The competition is all the more intense because Berlin is seeking, through its engagement in Algeria, to extricate itself precisely from its dependence on Russian natural gas. The dimensions of this rivalry can be seen through a report concerning a Russian offer to Libya. According to this report, Gazprom, the world's largest gas company, is seeking to buy up the entire lot of Libyan oil and gas resources earmarked for export.[4] The report states that the offer was met favorably in Tripoli and is currently being evaluated. This would escalate the German-Russian struggle for North African gas.

The Price

The competition is raising the price for access to resources - bringing military hardware into play as a bargaining chip. Presently Russia is Algeria's main arms supplier, but to reduce its dependence, the country is striving to diversify its supply sources. Berlin is offering to be an alternative. The German government could provide warships and military aircraft, according to the Algerian press [5] citing Eckart von Unger, Regional Director for North Africa and the Middle East of the Federation of German Industries (BDI). He also confirmed that German military and police vehicles could be produced in Algeria. This is dependent upon the results of talks between the German Chancellor Angela Merkel and the Algerian President Abd al-Aziz Bouteflika.

Cooperation

Berlin is not only making offers in armament but in the industrial sector as well. According to reports, German companies would be prepared to make technological transfers in certain sectors, provided they are included in the lucrative state contracts of this North African country.[6] But Germany is most interested in the field of repression. German repressive authorities would like to intensify their cooperation with their Algerian counterparts. Subsequent to the tedious preparations that had also involved the intelligence services (german-foreign-policy.com reported [7]). the German Chancellor is to sign an accord on "security" cooperation during her visit to Algiers. Simultaneously military cooperation is also being initiated. While the German Defense Ministry denies any cooperation with Algeria, German and Algerian naval forces are intensifying their contacts [8] - corresponding to the new warship supply offers.

Intervention

Berlin's forceful efforts to enhance its position in Algiers has shed a new light on Germany's intervention against the original French "Mediterranean Union" project. Paris has also been trying to enhance its position in its former colony and has concluded a nuclear treaty with Algeria last June. The "Mediterranean Union" was conceived as an exclusive alliance of countries bordering the Mediterranean - of course excluding Germany. It was designed to secure the French position against German interference. This attempt has failed.[9] The German government has been able to lay the groundwork for taking up position against Paris in that North African country - thereby reinforcing its own access to Algerian resources.

Please read also: Tragende Säule, Zweite Säule, Verstoß gegen das Völkerrecht, Das Land der Aufklärung, Ergänzungsraum, Folterpartner, Ever Ready, Die Todesmaschine and Afrikanische Positionen (I).

[1] En attendant la visite de Merkel à Alger: Ce qui fait courir les Allemands; Le Quotidien d'Oran 09.07.2008
[2] Berechnungszeitraum für die aktuellsten Angaben des Bundeswirtschaftsministeriums ist Mai 2007 bis April 2008 (im Vergleich zu Mai 2006 bis April 2007).
[3] see also Zweite Säule
[4] Energieriese kauft Libyen; boerse-online.de 11.07.2008
[5] L'Allemagne veut équiper l'armée et la police algériennes; Le Quotidien d'Oran 10.07.2008
[6] En attendant la visite de Merkel à Alger: Ce qui fait courir les Allemands; Le Quotidien d'Oran 09.07.2008
[7] see also Verstoß gegen das Völkerrecht and Folterpartner
[8] see also Ever Ready
[9] see also Kein Gegenpol
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