The European Union is exploring new ways to diversify its trade and energy routes, after the Iran War exposed the weakness of relying too heavily on the Strait of Hormuz.
In recent weeks, the EU considered several options, including revamping older policies and plans. One that European Commission President Ursula von der Leyen mentioned is the so-called India-Middle-East-Europe Economic Corridor (IMEC). She mentioned it during this week’s G7 meeting, saying that “other routes will be built — for example, a typical one is IMEC.”
IMEC has so far received limited support from the member states, despite a memorandum of understanding signed by the EU. However, behind the scenes, there is stronger support, according to inside sources in Brussels, as reported by AP. The EU is trying to make the corridor viable and move into the implementation phase, with new pipelines and transmission cables.
One potential block is that IMEC passes through Israel. The country supports it, but it will need a normalisation of relations between Israel and Saudi Arabia. At the moment, Riyadh will not normalise its relationship unless there is a viable path for Palestinian statehood. Still, recent developments with Iran may lead to a change of mind among the Saudi government.
In order to diversify energy routes, the EU may team up with Gulf countries to establish new routes, potentially terrestrial ones that circumvent the Strait of Hormuz. This could be framed within IMEC, but it is unclear how new pipelines may align with the EU green targets unless they are built with dual use for gas and hydrogen.
Another project that could see the light of day due to the changed geopolitical climate is the Great Seas Interconnector (GSI). This 1,208-kilometre electricity cable should connect the continental European grid to Cyprus and, potentially, Israel. At the moment, the project has never moved into the implementation phase due to financing issues. It could be revamped and added to the IMEC. The idea of connecting Cyprus and Israel to Greece and the rest of continental Europe could also receive support from the US, which sees the Eastern Mediterranean region as increasingly crucial.
