France and the United Arab Emirates (UAE) have signed a deal on energy cooperation to ensure oil and natural gas supplies from the Gulf country as Europe prepares for a potential Russian shutdown.
Moscow's decision to continuously cut off supply to Europe has led to an energy crisis in France as the region is struck with historic heat waves that are increasing the demand for gas to cool homes. President Sheikh Mohammed bin Zayed al-Nahyan of the UAE landed in the French capital on Monday to discuss the "future of energy."
France and the UAE
The official will hold discussions with French President Emmanuel Macron and marks the first visit by a UAE leader to France since 1991. It is also Sheikh Mohammed's first trip to a western nation since taking office as president, underlying the strength of relations between the two nations.
A Gulf expert at the MENA Observatory of Jean Jaures Foundation, Anne Gadel, said that the visit from the UAE leader is a sign of appreciation towards France which is perceived as a reliable partner of the region, as per CNN.
The top agenda for Paris and Abu Dhabi in the agreement that was signed on Monday is to guarantee the supply of diesel from the UAE to France. The two leaders are also seeking to set up a fund for climate-related projects, as well as investment opportunities in other energy sources, including hydrogen, nuclear, and renewables.
Gadel noted that the agenda of the visit is going to be dominated by energy issues and noted that key concerns in France are the economic consequences of the war on Ukraine. She said that she did not expect anything regarding a boost in production, primarily due to the fact that the UAE is close to reaching production capacities and is tied to the OPEC+ format.
According to PBS News Hour, French Finance Minister Bruno Le Maire released a statement saying that the deal the two nations were signing is of double strategic importance. First, it allows France to address the pressing challenges of energy security in the short term. Second, it prepares the nation for a de-carbonized future.
Energy Crisis
There are other trade and energy agreements that are expected to be signed during the UAE leader's visit to France. This includes an agreement between the French energy giant TotalEnergies and Abu Dhabi National Oil Company to ensure continuous energy supply, said the economy ministry.
France's relationship with the UAE paid off during Macron's visit to Abu Dhabi last year, resulting in an $18-billion arms deal with the Gulf region, was considered to be the largest-ever French weapons contract for export.
On top of Russia's shutdown of supply to many European countries, a major gas pipeline also closed for scheduled maintenance last week. There are also fears that flow through the Nord Stream 2 pipeline between Russia and Germany will not restart.
International leaders have been scrambling to fill underground storage by the beginning of fall in an effort to avert an economic and political crisis this coming winter season. Italian Prime Minister Mario Draghi is visiting Algeria on Monday to finalize deals boosting natural gas supplies, ABC News reported.
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