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Given the current situation between Israel and Palestine, it is timely to examine Russia’s relations with the Palestinian State. Palestine is recognised as a country by Russia, with the two establishing diplomatic relations in 1988.
Palestine’s Sovereign Status
Of the 193 members of the United Nations, 138 regard Palestine as a sovereign nation. The United States, Canada, European Union, the United Kingdom, Australia, New Zealand and Israel do not, meaning the political background to non-recognition of Palestine issue is almost identical to the countries that have imposed sanctions upon Russia. Accordingly, the current situation may be viewed in part as the same struggle – a unipolar, Western focused world attempting to impose its will ahead of the wider global consensus. For this reason, the Palestinian issue has become somewhat existential as its resolution one way or the other determines where the global balance of power lies: East, or West.
Palestine Demographics
Palestine is a small country, divided into two areas – the West Bank, with a population of about 3 million and the Gaza Strip with about 2 million. The state was established in 1948; and covers in total 6,020 sqkm with the Gaza Strip enclave, bordering Egypt, Israel, and the Mediterranean Sea coastline amounting to some 365 sqkm. In total, to compare, Palestine is about double the size of Hong Kong and about seven times larger than Singapore.
The country has a GDP (PPP) of about US$36 billion, similar to that of Mauritius and slightly more than Malta. GDP per capita (PPP) is about US$6,600, roughly equivalent to Pakistan and Kenya. Of the two parts of Palestine, the West Bank is the more affluent.
However, due to on-going blockades by both Israel and Egypt, the increased Israeli restrictions on Gaza and despite strong revenue outturn, Palestine’s fiscal situation was expected to worsen during 2023 due to an unsustainable wage bill, larger Israeli deductions and low aid. Lacking other financing options, the PA is expected to continue accruing arrears to the private sector and public pension fund and paying partial salaries to public employees. According to the World Bank, “The outlook remains precarious and subject to security and political stability.” That statement has just manifested itself with extraordinary violence as Palestinian frustrations has boiled over into violence.
The current elected government is Hamas, a political party with a strong military component as the world has just seen. The current Prime Minister is Mohammad Ibrahim Shtayyeh, a Palestinian politician, academic, and economist who has been Prime Minister since March 2019. Shtayyeh is aligned with the Palestinian Authority President Mahmoud Abbas.
Russia – Palestine Bilateral Trade
Russia-Palestinian trade levels are small given the complexities of doing business with the country and its relative isolation viz-a-viz Israel. However, the two countries have established a joint Russia-Palestine Committee which operates at Ministerial level. Relations have been described as ‘strong’.
Much trade that does exist has been based on humanitarian needs. In 2021, Russia exported products valued at US$37 million to Palestine, being chiefly medical supplies such as vaccines, blood plasma, antisera, toxins and cultures. Russia also supplies wheat and aluminium. The same year, Palestine exported about US$510,000 worth of produce to Russia, with the vast bulk of this being tropical fruits and some leather goods.
Russia – Palestine Investments
Russia has made investments in the pharmaceutical sector in Palestine, and has been involved in providing practical support to Palestinians in various areas including vocational training, health, safety, and labor standards. Russia has been offering up to 150 scholarships to Palestinians each year; and invested US$40 million to set up a Russian cultural center in Bethlehem. Main industries include investments into tourism – a surprising number of Russians visit Holy sites in Palestine, while small investments into developing Palestine’s tropical fruits exports have also been underway.
Russia – Palestine Aid
Russia does provide aid to Palestine, including transfers to the Palestinian National Authority. These have typically been to amounts of US$10 million, with agreements that the money is spent on meeting the social and humanitarian needs of the Palestinian people, primarily in public health and education, and will be channelled to specific medical and educational establishments in Palestine. Support has been given for measures to combat contagious diseases, in particular, bird flu, and to purchase vaccines and other medicines.
Russia’s Palestine Position
Russia has been supportive of Palestinian rights, including the right to an independent state, based on the 1967 borders. This position has been constant since the two countries established diplomatic relations. Sergey Lavrov, the Russian Foreign Minister, stated upon meeting Ahmed Aboul Gheit, the Arab League Secretary General in Moscow on Monday that Russia wanted an immediate ceasefire and that the existing status quo between Israel and Palestine had failed. He again reiterated Russia’s position that the only solution to the crisis is the full international recognition of Palestine. China’s Foreign Ministry has said the same.
Repercussions
Here lies the tragedy – the collective West doesn’t want to be seen to be listening to what it regards as its major rivals and doesn’t want to be seen to be following their lead as concerns a two-state solution (Israel and Palestine to recognise each other as sovereign nations).
The United States has said it will provide military support to Israel, while the European Union has threatened to cut off aid to Palestine and stated that they will not support the creation of a ‘terrorist state.’ Israel has threatened to reduce the Gaza Strip – home to 2 million people with no route out to leave – to rubble.
In this way, the Israel-Palestine conflict, while it has its roots in the rights of the Palestinian people to be internationally recognised as a sovereign nation, is also now part of the struggle between the collective West and the Rest of the World in terms of who is the global decision-making power.
Chris Devonshire-Ellis is the Chairman of Dezan Shira & Associates. He may be contacted at asia@dezshira.com
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