The advertisement could read as follows: Landlocked country seeks a stretch of seacoast; payment for lease or purchase is negotiable, but cash is out of the question; motivated buyer is prepared to sweeten any contract with some freebies.

Sovereign real estate deals may sound like ancient history — but they are still a thing. Even in 2024, a nation’s territory can be a commodity, to be sold or rented at the right price. The practice may sound like pillage, but it’s a better alternative to military coercion.

On Jan. 1, Ethiopia, the world's most populous country without sea access, signed a preliminary deal to rent a 20-kilometer (12-mile) expanse of coast from its neighbor for half a century. Further negotiations, including over price and payment terms, are expected, and a final deal could come as soon as this year.


The problem? Well, there are many. For starters, the seller is a breakaway nation called Somaliland, which lacks international standing. The United Nations-recognized owner of the land -- Somalia -- says the deal is illegal. And then there is the question of money: Ethiopia, embroiled in a simmering civil war, is an impoverished nation that defaulted on its international sovereign debt on Christmas day; instead of cash, it's offering a chunk of its state-owned airline.

Ethiopia is also throwing in a diplomatic freebie: It would accept Somaliland as an independent state, further inflaming tensions in the Horn of Africa. The region is already witnessing several armed conflicts, plus mounting piracy in the Red Sea and the Gulf of Aden, including across the sea from Yemen. So far, only Taiwan recognizes Somaliland as a nation, despite the African region having declared its independence in 1991.

QOSHE - A Land Deal Cranks Up the Tension in the Red Sea - Javier Blas
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A Land Deal Cranks Up the Tension in the Red Sea

3 1
03.01.2024

The advertisement could read as follows: Landlocked country seeks a stretch of seacoast; payment for lease or purchase is negotiable, but cash is out of the question; motivated buyer is prepared to sweeten any contract with some freebies.

Sovereign real estate deals may sound like ancient history — but they are still a thing. Even in 2024, a nation’s territory can be a commodity, to be sold or rented at the right price. The practice may........

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