HOUSTON — The Trump administration reached a nearly $1 billion agreement with
French energy giant TotalEnergies on Monday to cancel its offshore wind leases
off the coasts of New York and North Carolina.
The announcement marks the latest blow by the Trump administration against the
U.S. offshore wind industry, particularly in the Northeast, after it faced a
series of recent legal losses.
“The era of taxpayers subsidizing unreliable, unaffordable and unsecured energy
is officially over,” Interior Secretary Doug Burgum told reporters at the
CERAWeek by S&P Global conference in Houston.
As part of the agreement, the Interior Department would terminate the leases for
TotalEnergies’ Attentive Energy and Carolina Long Bay projects, worth $928
million, the department said. The lease sales occurred during the Biden
administration.
TotalEnergies committed to invest the value of those leases into oil and natural
gas production in the United States, after which the United States will
reimburse the company dollar-for-dollar for the amount they paid for the
offshore wind leases, the department said. The company is poised to redirect the
funds toward the Rio Grande LNG plant in Texas and the development of upstream
conventional oil in the Gulf of Mexico and of shale gas production, according to
the Interior Department.
Burgum and TotalEnergies signed the agreements Monday from the conference.
President Donald Trump has often attacked the U.S. offshore wind sector as
unreliable and expensive. He’s repeatedly said he plans to have “no windmills
built in the United States” under his tenure. Still, the settlement would
suggest a new tack by the administration to target the sector. The Trump
administration previously issued stop-work orders for offshore wind projects
currently under construction on the East Coast, but judges lifted all five
orders earlier this year.
“Considering that the development of offshore wind projects is not in the
country’s interest, we have decided to renounce offshore wind development in the
United States, in exchange for the reimbursement of the lease fees,”
TotalEnergies Chair and CEO Patrick Pouyanné said in a statement.
Pouyanné previously said the company would halt development of the Attentive
Energy project, off the New Jersey and New York coasts, following Trump’s return
to the White House. Both the Attentive Energy and Carolina Long Bay projects
were in the early stages of development.
Pouyanné told reporters that the company continues to invest in solar, onshore
wind and batteries.
The deal is a major blow for New York’s offshore wind targets, although proposed
projects in the lease area controlled by TotalEnergies and its partners never
secured final contracts with the state. New York Gov. Kathy Hochul (D) called
the prospect of a deal “not helpful” last week.
Attentive Energy dropped out of a bidding process for deals with New York in
October 2024, even before Trump’s election. The state concluded that process
last month with no awards amid the federal uncertainty and officials have
struggled to determine next steps for the industry writ large.
Hochul has pivoted to an “all of the above” energy strategy in the face of
Trump’s opposition to offshore wind — including nuclear and fossil fuels.
Further delays to the development of the technology off New York’s coast will
likely further the state’s reliance on repowering fossil fuel plants to serve
the New York City region.
The deal also leaves New Jersey without any workable offshore wind projects at a
time when Democratic Gov. Mikie Sherrill is already searching for more clean
energy to combat a regional power crunch. The project was supposed to
provide more than 1,300 megawatts of power.
Sherrill’s predecessor, Phil Murphy, had lofty ambitions for the industry that
were all for naught. His administration approved a series of offshore wind
projects that all ran into financial or permitting challenges. The state
approved Attentive Energy’s project in early 2024 as part of an attempted reset
of the industry, which was already facing woe.
The new affront could also prove problematic to permitting reform discussions on
the Hill, as Democratic lawmakers have linked progress on those negotiations to
whether or not the administration continues its attacks on renewable energy.
ClearView Energy Partners said in a note last week the deal could also “re-raise
concerns about the durability of federal approvals and therefore further erode,
but not eliminate, the thin opportunity for bipartisan permitting reform on
Capitol Hill.”
So far, Senate Environment and Public Works ranking member Sheldon Whitehouse
(D-R.I.) is staying the course on permitting talks, despite reports of the
settlement agreement last week — a development he derided as “just more selling
out the public for the fossil fuel industry.”
His office did not immediately provide further comment Monday. Some Moderate New
York Republicans last week also criticized the reported settlement.
Marie French and Ry Rivard contributed to this report.
Tag - Development
Many describe our geopolitical moment as one of instability, but that word feels
too weak for what we are living through. Some, like Mark Carney, argue that we
are facing a rupture: a break with assumptions that anchored the global economic
and political order for decades. Others, like Christine Lagarde, see a profound
transition, a shift toward a new configuration of power, technology and societal
expectations. Whichever perception we adopt, the implication is clear: leaders
can no longer rely on yesterday’s mental models, institutional routines or
governance templates.
Johanna Mair is the Director of the Florence School of Transnational Governance
at the European University Institute in Florence, where she leads education,
training and research on governance beyond the nation state.
Security, for example, is no longer a discrete policy field. It now reaches
deeply into energy systems, artificial intelligence, cyber governance, financial
stability and democratic resilience, all under conditions of strategic
competition and mistrust. At the same time, competitiveness cannot be reduced to
productivity metrics or short-term growth rates. It is about a society’s
capacity to innovate, regulate effectively and mobilize investment toward
long-term objectives — from the green and digital transitions to social
cohesion. This dense web of interdependence is where transnational governance is
practiced every day.
The European Union illustrates this reality vividly. No single member state can
build the capacity to manage these transformations on its own. EU institutions
and other regional bodies shape regulatory frameworks and collective responses;
corporations influence infrastructure and supply chains; financial institutions
direct capital flows; and civic actors respond to social fragmentation and
governance gaps. Effective leadership has become a systemic endeavour: it
requires coordination across these levels, while sustaining public legitimacy
and defending liberal democratic principles.
> Our mission is to teach and train current and future leaders, equipping them
> with the knowledge, skills and networks to tackle global challenges in ways
> that are both innovative and grounded in democratic values.
The Florence School of Transnational Governance (STG) at the European University
Institute was created precisely to respond to this need. Located in Florence and
embedded in a European institution founded by EU member states, the STG is a hub
where policymakers, business leaders, civil society, media and academia meet to
work on governance beyond national borders. Our mission is to teach and train
current and future leaders, equipping them with the knowledge, skills and
networks to tackle global challenges in ways that are both innovative and
grounded in democratic values.
What makes this mission distinctive is not only the topics we address, but also
how and with whom we address them. We see leadership development as a practice
embedded in real institutions, not a purely classroom-based exercise. People do
not come to Florence to observe transnational governance from a distance; they
come to practice it, test hypotheses and co-create solutions with peers who work
on the frontlines of policy and politics.
This philosophy underpins our portfolio of programs, from degree offerings to
executive education. With early career professionals, we focus on helping them
understand and shape governance beyond the state, whether in international
organizations, national administrations, the private sector or civil society. We
encourage them to see institutions not as static structures, but as arrangements
that can and must be strengthened and reformed to support a liberal, rules-based
order under stress.
At the same time, we devote significant attention to practitioners already in
positions of responsibility. Our Global Executive Master (GEM) is designed for
experienced professionals who cannot pause their careers, but recognize that the
governance landscape in which they operate has changed fundamentally. Developed
by the STG, the GEM convenes participants from EU institutions, national
administrations, international organizations, business and civil society —
professionals from a wide range of nationalities and institutional backgrounds,
reflecting the coalitions required to address complex problems.
The program is structured to fit the reality of leadership today. Delivered part
time over two years, it combines online learning with residential periods in
Florence and executive study visits in key policy centres. This blended format
allows participants to remain in full-time roles while advancing their
qualifications and networks, and it ensures that learning is continuously tested
against institutional realities rather than remaining an abstract exercise.
Participants specialize in tracks such as geopolitics and security, tech and
governance, economy and finance, or energy and climate. Alongside this subject
depth, they build capabilities more commonly associated with top executive
programs than traditional public policy degrees: change management,
negotiations, strategic communication, foresight and leadership under
uncertainty. These skills are essential for bridging policy design and
implementation — a gap that is increasingly visible as governments struggle to
deliver on ambitious agendas.
Executive study visits are a core element of this practice-oriented approach. In
a recent Brussels visit, GEM participants engaged with high-level speakers from
the European Commission, the European External Action Service, the Council, the
European Parliament, NATO, Business Europe, Fleishman Hillard and POLITICO
itself. Over several days, they discussed foreign and security policy,
industrial strategy, strategic foresight and the governance of emerging
technologies. These encounters do more than illustrate theory; they give
participants a chance to stress-test their assumptions, understand the
constraints facing decision-makers and build relationships across institutional
boundaries.
via EUI
Throughout the program, each participant develops a capstone project that
addresses a strategic challenge connected to a policy organization, often their
own employer. This ensures that executive education translates into
institutional impact: projects range from new regulatory approaches and
partnership models to internal reforms aimed at making organizations more agile
and resilient. At the same time, they help weave a durable transnational network
of practitioners who can work together beyond the programme.
Across our activities at the STG, a common thread runs through our work: a
commitment to defending and renewing the liberal order through concrete
practice. Addressing the rupture or transition we are living through requires
more than technical fixes. It demands leaders who can think systemically, act
across borders and design governance solutions that are both unconventional and
democratically legitimate.
> Across our activities at the STG, a common thread runs through our work: a
> commitment to defending and renewing the liberal order through concrete
> practice.
In a period defined by systemic risk and strategic competition, leadership
development cannot remain sectoral or reactive. It must be interdisciplinary,
practice-oriented and anchored in real policy environments. At the Florence
School of Transnational Governance, we aim to create precisely this kind of
learning community — one where students, fellows and executives work side by
side to reimagine how institutions can respond to global challenges. For
policymakers and professionals who recognize themselves in this moment of
rupture, our programs — including the GEM — offer a space to step back, learn
with peers and return to their institutions better equipped to lead change. The
task is urgent, but it is also an opportunity: by investing in transnational
governance education today, we can help lay the foundations for a more resilient
and inclusive order tomorrow.
Biotechnology is central to modern medicine and Europe’s long-term
competitiveness. From cancer and cardiovascular disease to rare conditions, it
is driving transformative advances for patients across Europe and beyond . 1
Yet innovation in Europe is increasingly shaped by regulatory fragmentation,
procedural complexity and uneven implementation across m ember s tates. As
scientific progress accelerates, policy frameworks must evolve in parallel,
supporting the full lifecycle of innovation from research and clinical
development to manufacturing and patient access.
The proposed EU Biotech Act seeks to address these challenges. By streamlining
regulatory procedures, strengthening coordination and supporting scale-up and
manufacturing, it aims to reinforce Europe’s position in a highly competitive
global biotechnology landscape .2
Its success, however, will depend less on ambition than on delivery. Consistent
implementation, proportionate oversight and continued global openness
will determine whether the a ct translates into faster patient access,
sustained investment and long-term resilience.
Q: Why is biotechnology increasingly seen as a strategic pillar for Europe’s
competitiveness, resilience and long-term growth?
Gilles Marrache, SVP and regional general manager, Europe, Latin America, Middle
East, Africa and Canada, Amgen: Biotechnology sits at the intersection of
health, industrial policy and economic competitiveness. The sector is one of
Europe’s strongest strategic assets and a leading contributor to research and
development growth . 3
At the same time, Europe’s position is under increasing pressure. Over the past
two decades, the EU has lost approximately 25 percent of its global share of
pharmaceutical investment to other regions, such as the United States and
China.
The choices made today will shape Europe’s long-term strength in the sector,
influencing not only competitiveness and growth, but also how quickly patients
can benefit from new treatments.
> Europe stands at a pivotal moment in biotechnology. Our life sciences legacy
> is strong, but maintaining global competitiveness requires evolution .” 4
>
> Gilles Marrache, SVP and regional general manager, Europe, Latin America,
> Middle East, Africa and Canada, Amgen.
Q: What does the EU Biotech Act aim to do and why is it considered an
important step forward for patients and Europe’s innovation ecosystem?
Marrache: The EU Biotech Act represents a timely opportunity to better support
biotechnology products from the laboratory to the market.
By streamlining medicines’ pathways and improving conditions for scale-up and
investment, it can help strengthen Europe’s innovation ecosystem and accelerate
patient access to breakthrough therapies. These measures will help anchor
biotechnology as a strategic priority for Europe’s future — and one that can
deliver earlier patient benefit — so long as we can make it work in practice.
Q: How does the EU Biotech Act address regulatory fragmentation, and where will
effective delivery and coordination be most decisive?
Marrache: Regulatory fragmentation has long challenged biotechnology development
in Europe, particularly for multinational clinical trials and innovative
products. The Biotech Act introduces faster, more coordinated trials, expanded
regulatory sandboxes and new investment and industrial capacity instruments.
The proposed EU Health Biotechnology Support Network and a u nion-level
regulatory status repository would strengthen transparency and
predictability. Together, these measures would support earlier regulatory
dialogue, help de-risk development and promote more consistent implementation
across m ember s tates.
They also create an opportunity to address complexities surrounding combination
products — spanning medicines, devices and diagnostics — where overlapping
requirements and parallel assessments have added delays.5 This builds on related
efforts, such as the COMBINE programme,6 which seeks to streamline the
navigation of the In Vitro Diagnostic Regulation , 7 Clinical Trials Regulation8
and the Medical Device Regulation9 through a single, coordinated assessment
process.
Continued clarity and coordination will be essential to reduce duplication and
accelerate development timelines .10
Q: What conditions will be most critical to support biotech
scale-up, manufacturing and long-term investment in Europe?
Marrache: Europe must strike the right balance between strategic autonomy and
openness to global collaboration. Any new instruments under the Biotech Act
mechanisms should remain open and supportive of all types of biotech
investments, recogni z ing that biotech manufacturing operates through globally
integrated and highly speciali z ed value chains.
Q: How can Europe ensure faster and more predictable pathways from scientific
discovery to patient access, while maintaining high standards of safety and
quality?
Marrache: Faster and more predictable patient access depends on strengthening
end-to-end pathways across the lifecycle. The Biotech Act will help ensure
continuity of scientific and regulatory experti z e, from clinical development
through post-authori z ation. It will also support stronger alignment with
downstream processes, such as health technology assessments, which are
critical to success.
Moreover, reducing unnecessary delays or duplication in approval processes can
set clearer expectations, more predictable development timelines and earlier
planning for scale-up.
Gilles Marrache, SVP and regional general manager, Europe, Latin America,
Middle East, Africa and Canada, Amgen. Via Amgen.
Finally, embedding a limited number of practical tools (procedural, digital or
governance-based) and ensuring they are integrated within existing European
Medicines Agency and EU regulatory structures can help achieve faster
patient access . 11
Q: What role can stronger regulatory coordination, data use and public - private
collaboration play in strengthening Europe’s global position in biotechnology?
Marrache: To unlock biotechnology’s full potential, consistent implementation is
essential. Fragmented approaches to secondary data use, divergent m ember
state interpretations and uncertainty for data holders still limit access to
high-quality datasets at scale. The Biotech Act introduces key building blocks
to address this.
These include Biotechnology Data Quality Accelerators to improve
interoperability, trusted testing environments for advanced innovation, and
alignment with the EU AI Act ,12 European Health Data Space13 and wider EU data
initiatives. It also foresees AI-specific provisions and clinical trial guidance
to provide greater operational clarity.
Crucially, these structures must simplify rather than add further layers of
complexity.
Addressing remaining barriers will reduce legal uncertainty for AI deployment,
support innovation and strengthen Europe’s competitiveness.
> These reforms will create a moderni z ed biotech ecosystem, healthier
> societies, sustainable healthcare systems and faster patient access to the
> latest breakthroughs in Europe .” 14
>
> Gilles Marrache, SVP and regional general manager, Europe, Latin America,
> Middle East, Africa and Canada, Amgen.
Q: As technologies evolve and global competition intensifies, how can
policymakers ensure the Biotech Act remains flexible and future-proof?
Marrache: To remain future-proof, the Biotech Act must be designed to evolve
alongside scientific progress, market dynamics and patient needs. Clear
objectives, risk-based requirements, regular review mechanisms and timely
updates to guidance will enhance regulatory agility without creating unnecessary
rigidity or administrative burden.
Continuous stakeholder dialogue combined with horizon scanning will be essential
to sustaining innovation, resilience and timely patient access over the long
term. Preserving regulatory openness and international cooperation will be
critical in avoiding fragmentation and maintaining Europe’s credibility as a
global biotech hub.
Q: Looking ahead, what two or three priorities should policymakers focus on to
ensure the EU Biotech Act delivers meaningful impact in practice?
Marrache: Looking ahead, policymakers should focus on three priorities for the
Biotech Act:
First, implementation must deliver real regulatory efficiency, predictability
and coordination in practice.
Second, Europe must sustain an open and investment-friendly framework that
reflects the global nature of biotechnology.
And third, policymakers should ensure a clear and coherent legal framework
across the lifecycle of innovative medicines, providing certainty for the use
of artificial intelligence — as a key driver of innovation in health
biotechnology.
In practical terms, the EU Biotech Act will be judged not by the number of new
instruments it creates, but by whether it reduces complexity, increases
predictability and shortens the path from scientific discovery to patient
benefit.
An open, innovation-friendly framework that is competitive at the global level
will help sustain investment, strengthen resilient supply chains and deliver
better outcomes for patients across Europe and beyond.
--------------------------------------------------------------------------------
References
1. Amgen Europe, The EU Biotech Act Unlocking Europe’s Potential, May 2025.
Retrieved from
https://www.amgen.eu/media/press-releases/2025/05/The_EU_Biotech_Act_Unlocking_Europes_Potential
2. European Commission, Proposal for a Regulation to establish measures to
strengthen the Union’s biotechnology and biomanufacturing sectors, December
2025. Retrieved from
https://health.ec.europa.eu/publications/proposal-regulation-establish-measures-strengthen-unions-biotechnology-and-biomanufacturing-sectors_en
3. EFPIA, The pharmaceutical sector: A catalyst to foster Europe’s
competitiveness, February 2026. Retrieved from
https://www.efpia.eu/media/zkhfr3kp/10-actions-for-competitiveness-growth-and-security.pdf
4. The Parliament, Investing in healthy societies by boosting biotech
competitiveness, November 2024. Retrieved from
https://www.theparliamentmagazine.eu/partner/article/investing-in-healthy-societies-by-boosting-biotech-competitiveness#_ftn4
5. Amgen Europe, The EU Biotech Act Unlocking Europe’s Potential, May 2025.
Retrieved from
https://www.amgen.eu/docs/BiotechPP_final_digital_version_May_2025.pdf
6. European Commission, combine programme, June 2023. Retrieved from
https://health.ec.europa.eu/medical-devices-topics-interest/combine-programme_en
7. European Commission. Medical Devices – In Vitro Diagnostics, March 2026.
Retrieved from
https://health.ec.europa.eu/medical-devices-vitro-diagnostics_en
8. European Commission, Clinical trials – Regulation EU No 536/2014, January
2022. Retrieved from
https://health.ec.europa.eu/medicinal-products/clinical-trials/clinical-trials-regulation-eu-no-5362014_en
9. European Commission, Simpler and more effective rules for medical devices –
Commission proposal for a targeted revision of the medical devices
regulations, December 2025. Retrieved from
https://health.ec.europa.eu/medical-devices-sector/new-regulations_en#mdr
10. Amgen Europe, The EU Biotech Act Unlocking Europe’s Potential, May 2025.
Retrieved from
https://www.amgen.eu/docs/BiotechPP_final_digital_version_May_2025.pdf
11. AmCham, EU position on the Commission Proposal for an EU Biotech Act
12. European Commission, AI Act | Shaping Europe’s digital future, June 2024.
Retrieved from
https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai
13. European Commission, European Health Data Space, March 2025. Retrieved from
https://health.ec.europa.eu/ehealth-digital-health-and-care/european-health-data-space-regulation-ehds_en
14. The Parliament, Why Europe needs a Biotech Act, October 2025. Retrieved
from
https://www.theparliamentmagazine.eu/partner/article/why-europe-needs-a-biotech-act
--------------------------------------------------------------------------------
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Amgen Inc
* The ultimate controlling entity is Amgen Inc
* The political advertisement is linked to advocacy on the EU Biotech Act.
More information here.
LONDON — Britain will reduce its aid sent to Africa by more than half, as the
government unveils the impact of steep cuts to development assistance for
countries across the world.
On Thursday the Foreign Office revealed the next three years of its overseas
development spending, giving MPs and the public the first look at the impact of
Labour’s decision to gut Britain’s aid budget in order to fund an increase in
defense spending.
Government figures show that the value of Britain’s programs in Africa will fall
by 56 percent from the £1.5 billion in 2024/25 when Labour took office to £677
million in 2028/9. It follows the move to reduce aid spending from 0.5 to 0.3
percent of gross national income.
However, the government did not release the details of the funding for specific
countries, giving Britain’s ambassadors and diplomats time to deliver the news
personally to their counterparts across the world ahead of any potential
backlash from allies.
Foreign Secretary Yvette Cooper told MPs that affected countries want Britain
“to be an investor, not just a donor” and “want to attract finance, not be
dependent on aid,” as she pointed to money her department had committed to
development banks and funds which will help Africa raise money.
The decision shows a substantial shift in the government’s focus, moving away
from direct assistance for countries, and funneling much of the remaining money
into international organizations and private finance initiatives.
Chi Onwurah, chair of the All Party Parliamentary Group for Africa, told
POLITICO that she was “dismayed at the level and extent of the cuts to
investment in Africa and the impact it will have particularly on health and
economic development.”
She added: “I hope the government recognizes that security of the British people
is not increased by insecurity in Africa and increased migration from Africa,
quite the opposite.”
Ian Mitchell from the Center for Global Development think tank noted the move
was “a remarkable step back from Africa by the U.K.”
NEW PRIORITIES
Announcing the cuts in the House of Commons, Cooper stressed that the decision
to reduce the aid budget had been “hugely difficult,” pointing to similar moves
by allies such as France and Germany following the U.S. President Donald Trump’s
decision to dramatically shrink America’s aid programs after taking office in
January 2025.
She insisted that it was still “part of our moral purpose” to tackle global
disease and hunger, reiterating Labour’s ambition to work towards “a world free
from extreme poverty on a livable planet.”
Cooper set out three new priorities for Britain’s remaining budget: funding for
unstable countries with conflict and humanitarian disasters, funneling money
into “proven” global partnerships such as vaccine organizations, and a focus on
women and girls, pledging that these will be at the core of 90 percent of
Britain’s bilateral aid programs by 2030.
A box with the Ukrainian flag on it awaits collection in Peterborough, U.K. on
March 10, 2022. | Martin Pope/Getty Images
Only three recipients will see their aid spending fully protected: Ukraine, the
Palestinian territories and Sudan. Lebanon will also see its funding protected
for another year. All bilateral funding for G20 countries will end.
Despite the government’s stated priorities, the scale of the cuts mean that even
the areas it is seeking to protect will not be protected fully.
An impact assessment — which was so stark that ministers claimed they had to
rethink some of the cuts in order to better protect focus areas such as
contraception — published alongside the announcement found that there will
likely be an end to programs in Malawi where 250,000 young people will lose
access to family planning, and 20,000 children risk dropping out of school.
“These steep cuts will impact the most marginalized and left behind
communities,” said Romilly Greenhill, CEO of Bond, the U.K. network for NGOs,
adding: “The U.K. is turning its back on the communities that need support the
most.”
Last-minute negotiations did see some areas protected from more severe cuts,
with the BBC World Service seeing a funding boost, the British Council set to
receive an uplift amid its financial struggles, and the Independent Commission
for Aid Impact (ICAI) — the aid spending watchdog that had been at risk of being
axed — continuing to operate with a 40 percent budget cut.
GREEN THREAT
Though the move will not require legislation to be confirmed — after Prime
Minister Keir Starmer successfully got the move past his MPs last year — MPs
inside his party and out have lamented the impact of the cuts, amid the ongoing
threat to Labour’s left from a resurgent Green Party under new leader Zack
Polanski.
Labour MP Becky Cooper, chair of the APPG on global health and security said
that her party “is, and always has been, a party of internationalism” but
today’s plans would “put Britain and the world at risk.”
Sarah Champion, another Labour MP who chairs the House of Commons international
development committee said that the announcement confirmed that there “will be
no winners from unrelenting U.K. aid cuts, just different degrees of losers,”
creating a “desperately bleak” picture for the world’s most vulnerable. “These
cuts do not aid our defense, they make the whole world more vulnerable,” she
added.
Her Labour colleague Gareth Thomas, a former development minister, added: “In an
already unsafe world, cutting aid risks alienating key allies and will make
improving children’s health and education in Commonwealth countries more
difficult.”
The announcement may give fresh ammunition to the Greens ahead of May’s local
elections, where the party is eyeing up one of its best nights in local
government amid a collapse in support for Labour among Britain’s young,
progressive, and Muslim voters.
Reacting to the news that Britain will cut its aid to developing countries aimed
at combatting climate change, Polanski said: “Appalling and just unbelievably
short-sighted. Our security here in the U.K. relies on action around the world
to tackle the climate crisis.”
BRUSSELS — Europe’s insistence that it doesn’t face an energy supply crisis took
a blow Thursday when Qatar warned it would have to scrap contracts with Italy
and Belgium following a massive Iranian attack.
QatarEnergy CEO Saad al-Kaabi told Reuters on Thursday it would have to cancel
long-term liquefied natural gas supply contracts for up to five years after an
Iranian ballistic missile knocked out a significant share of its production
capacity in the Persian Gulf.
The state-owned company, which produces a fifth of the world’s LNG, said the
damage could impact deliveries to Italy, Belgium, South Korea and China.
“These are long-term contracts that we have to declare force majeure,” al-Kaabi
said.
On Wednesday Iran bombed the Ras Laffan gas plant in Qatar. The ballistic
missile attack, which followed an Israeli attack on Iran’s South Pars gas
field, caused “sizeable fires and extensive further damage,” QatarEnergy said in
a post on X.
The strikes damaged two of Qatar’s 14 liquefied natural gas trains and one
gas-to-liquids facility, QatarEnergy said Thursday. The outages will remove
around 12.8 million tons of LNG annually from the market, roughly 17 percent of
Qatar’s total export capacity and around 3 percent of global supply, for an
estimated three to five years.
The strikes mark a major escalation in regional tensions. Qatar’s LNG plant had
already been offline following a previous drone strike, but the latest damage is
expected to significantly prolong the disruption.
Gas markets reacted sharply on Thursday, with European futures jumping as much
as 35 percent to more than double pre-conflict levels, underscoring the risk of
a prolonged supply shock.
The outage leaves major buyers in Europe and Asia scrambling to replace lost
volumes, raising concerns over energy security and the potential for sustained
price pressure as competition for alternative LNG cargoes intensifies.
NOTHING TO SEE HERE
Earlier on Thursday German Energy Minister Katherina Reiche had downplayed the
impact of the war, saying: “What we in Europe don’t have is a physical
bottleneck.” She insisted the EU’s gas supplies are still flowing from Norway,
the U.S., Kazakhstan and other countries.
But Reiche said while she doesn’t believe the current situation is as serious as
the 2022 shock following Russia’s invasion of Ukraine, “the current situation is
also causing us concern,” and that it’s critical for Europe to continue to
“monitor this crisis and make careful decisions.”
Her comments came as EU leaders met for high-level talks in Brussels on
Thursday, with energy one of the top issues.
In 2022 Germany depended on Russia for more than half of its gas, but now relies
on Norway and the Netherlands for the majority, importing some LNG from the U.S.
It is not dependent on Qatari LNG.
Other EU countries including Poland, Italy and Belgium depend on the Middle East
country for a larger percentages of their LNG.
Poland said Thursday its gas supplies “are secured,” adding Qatari LNG only
accounts for 10 percent of the country’s total gas supply. “[T]his volume can be
gradually supplemented with supplies from other sources, if necessary,” said
Grzegorz Łaguna, a spokesperson for Poland’s Ministry of Energy.
“Deliveries for March are being made, and there is currently no information
indicating any significant risks to meeting current demand for natural gas,
including the continued restrictions on supplies from Qatar,” he added.
The U.K. government and regulators also played down fears of a supply shock.
“The U.K. has very strong energy supplies from a diverse range of sources,” said
Energy Minister Michael Shanks on Tuesday. But the country has just two
days’ worth of gas supplies currently in storage, according to reports based on
National Gas data.
U.K. Green Party leader Zack Polanski has demanded the government freeze
bills in July, when the cap is set to jump hundreds of pounds. Chancellor Rachel
Reeves insists support should be “targeted” only at the poorest families,
wanting to avoid a rerun of the eye-watering sums spent by the last government
to protect all households and businesses after Russia’s invasion of Ukraine in
2022.
India and China’s reliance on disrupted Middle East gas supplies has already
caused price hikes and questions about European gas reserves.
“Geopolitics continue shaping gas and LNG markets, and despite the industry’s
large scale, it lacks flexibility to absorb major disruptions, creating market
volatility,” said Kristy Kramer, head of LNG strategy and market development at
Wood Mackenzie. “How the industry responds to this event will vary, but we
expect buyers to prioritise LNG supply security with a renewed focus on
diversity.”
Dr. Daniel Steiners
This is not an obituary for Germany’s economic standing. It is an invitation to
shift perspective: away from the language of crisis and toward a clearer view of
our opportunities — and toward the confidence that we have more capacity to
shape our future than the mood indicators might suggest.
For years, Germany seemed to be traveling along a self-evident path of success:
growth, prosperity, the title of export champion. But that framework is
beginning to fray. Other countries are catching up. Parts of our industrial base
appear vulnerable to the pressures of transformation. And global dependencies
are turning into strategic vulnerabilities. In short, the German model of
success is under strain.
Yet a glance at Europe’s economic history suggests that moments like these can
also contain enormous potential — if strategic thinking and decisive action come
together. One example, which I find particularly striking, takes us back to
1900. At the time, André and Édouard Michelin were producing tires in a
relatively small market, when the automobile itself was still a niche product.
They could have focused simply on improving their product. Instead, they thought
bigger; not in silos, but in systems.
With the Michelin Guide, they created incentives and orientation for greater
mobility: workshop directories, road maps, and recommendations for hotels and
restaurants made travel more predictable and attractive. What began as a service
booklet for motorists gradually evolved into an entire ecosystem — and
eventually into a globally recognized benchmark for quality.
> In times of change, those who recognize connections and are willing to shape
> them strategically can transform uncertainty into lasting strength.
What makes this example remarkable is that the real innovation did not lie in
the tire itself or merely even a clever marketing idea to boost sales. It lay in
something more fundamental: connected thinking and ecosystem thinking. The
decision to see mobility as a broad space for value creation. It was the courage
to break out of silos, to recognize strategic connections, to deepen value
chains — and to help define the standards of an emerging market.
That is precisely the lesson that remains relevant today, including for
policymakers. In times of change, those who recognize connections and are
willing to shape them strategically can transform uncertainty into lasting
strength.
Germany’s industrial health economy is still too often viewed in public debate
in narrowly sectoral terms — primarily through the lens of health care provision
and costs. Strategically, however, it has long been an industrial ecosystem that
spans research, development, manufacturing, digital innovation, exports and
highly skilled employment. Just as Michelin helped shape the ecosystem of
mobility, Germany can think of health as a comprehensive domain of value
creation.
The industrial health economy: cost driver or engine of growth?
Yes, medicines cost money. In 2024, Germany’s statutory health insurance system
spent around €55 billion on pharmaceuticals. But much of that increase reflects
medical progress and the need for appropriate care in an aging society with
changing disease patterns.
Innovative therapies benefit both patients and the health system. They can
improve quality and length of life while shifting treatment from hospitals into
outpatient care or even into patients’ homes. They raise efficiency in the
system, reduce downstream costs and support workforce participation.
> In short, the industrial health economy is not merely part of our health care
> system. It is a key industry, underpinning economic strength, prosperity and
> the financing of our social security systems.
Despite public perception, pharmaceutical spending has remained remarkably
stable for years, accounting for roughly 12 percent of total expenditures in the
statutory health insurance system. That figure also includes generics —
medicines that enter the ‘world heritage of pharmacy’ after patent protection
expires and remain available at low cost. Truly innovative, patent-protected
medicines account for only about seven percent of total spending.
Against these costs stands an economic sector in which Germany continues to hold
a leading international position. With around 1.1 million employees and value
creation exceeding €190 billion, the industrial health economy is among the
largest sectors of the German economy. Its high-tech products, bearing the Made
in Germany label, are in demand worldwide and contribute significantly to
Germany’s export surplus.
In short, the industrial health economy is not merely part of our health care
system. It is a key industry, underpinning economic strength, prosperity and the
financing of our social security systems. Its overall balance is positive.
The central question, therefore, is this: how can we unlock its untapped
potential? And what would it mean for Germany if we fail to recognize these
opportunities while economic and innovative capacity increasingly shifts
elsewhere?
Global dynamics leave little room for hesitation
Governments around the world have long recognized the strategic importance of
the industrial health economy — for health care, for economic growth and for
national security.
China is demonstrating remarkable speed in scaling and implementing
biotechnology. The United States, meanwhile, illustrates how determined
industrial policy can look in practice. Regulatory authorities are being
modernized, approval procedures accelerated and bureaucratic barriers
systematically reduced. At the same time, domestic production is being
strategically strengthened. Speed and market size act as magnets for capital —
especially in a sector where research is extraordinarily capital-intensive and
requires long-term planning security.
When innovation-friendly conditions and economic recognition of innovation meet
a large, well-funded market, global shifts follow. Today roughly 50 percent of
the global pharmaceutical market is located in the United States, about 23
percent in Europe — and only 4 to 5 percent in Germany. This distribution is no
coincidence; it reflects differences in economic and regulatory environments.
At the same time, political pressure is growing on countries that benefit from
the American innovation engine without offering an equally attractive home
market or recognizing the value of innovation in comparable ways. Discussions
around a Most Favored Nation approach or other trade policy instruments are
moving in precisely that direction — and they affect Europe and Germany
directly.
For Germany, the implications are clear.
Those who want to attract investment must strengthen their competitiveness.
Those who want to ensure reliable health care must appropriately reward new
therapies.
Otherwise, these global dynamics will inevitably affect both the economy and
health care at home. Already today, roughly one in four medicines introduced in
the United States between 2014 and 2023 is not available in Europe. The gap is
even larger for gene and cell therapies.
The primacy of industrial policy: from consensus to action — now
Germany does not lack potential or substance. We still have a strong industrial
base, a tradition of invention, outstanding universities and research
institutions, and a private sector willing to invest. Political initiatives such
as the coalition agreement, the High-Tech Agenda and plans for a future strategy
in pharmaceuticals and medical technology provide important impulses, which I
strongly welcome.
> A fair market environment without artificial price caps or rigid guardrails is
> the strongest magnet for private capital, long-term investment and a resilient
> health system.
But programs must now translate into a coherent action plan for growth.
We need innovation-friendly and stable framework conditions that consider health
care, economic strength and national security together — as a strategic
ecosystem, not as separate silos.
The value of medical innovation must also be recognized in Germany. A fair
market environment without artificial price caps or rigid guardrails is the
strongest magnet for private capital, long-term investment and a resilient
health system.
Faster approval procedures, consistent digitalization and a determined reduction
of bureaucracy are essential if speed is once again to become a competitive
advantage and a driver of innovation.
Germany can reinvent itself, of that I am convinced. With courage, strategic
determination and an ambitious push for innovation.
The choice now lies with us: to set the right course and unlock the potential
that is already there.
LONDON — Ministers are poised to axe the watchdog that measures the U.K.’s
overseas aid spending as part of deep cuts to the development budget, set to be
confirmed this week.
Prime Minister Keir Starmer announced last year he would reduce the aid budget
from 0.5 percent to 0.3 percent of economic output in order to pay for a boost
to defense spending, but has not yet spelled out where those cuts will fall.
Foreign Secretary Yvette Cooper is expected to unveil details before the Easter
recess, including tough funding settlements for the BBC World Service and the
British Council.
The Independent Commission for Aid Impact (ICAI), which scrutinizes official
development assistance (ODA), may be downsized or scrapped altogether under the
plans, according to three people with knowledge of discussions with the Foreign,
Commonwealth and Development Office (FCDO).
The move comes as Starmer’s government shifts away from a focus on international
development — a cornerstone of Labour Party foreign policy since the 1990s — and
plows those resources into defense.
An ICAI spokesperson said: “The Independent Commission for Aid Impact costs less
than 0.03 percent of the total U.K. aid budget. … As the government reduces the
aid budget and changes the way it does development, independent scrutiny and
learning become even more important, not less.”
The ICAI’s latest report lambasted the government for a lack of “an overarching
strategy or set of priorities,” pointing out that aid cash is being spent on
supporting refugees in the U.K. rather than on the global poor.
The potential closure of the ICAI has drawn concern from within Starmer’s own
ranks, with Labour MPs pointing out that the party made an explicit commitment
to “work closely” with the watchdog in their 2024 election manifesto.
Foreign Secretary Yvette Cooper is expected to unveil details before the Easter
recess. | WPA pool photo by Jaimy Joy/Getty Images
Sarah Champion, chair of the international development committee, said the
ICAI’s latest report “underlines why the government should row back from its
plans to scrap the U.K.’s aid watchdog.”
She added: “At a time of brutal budget cuts, it is more important than ever that
the government spends its aid wisely and transparently.”
Fleur Anderson, a member of the foreign affairs committee, told POLITICO: “When
something works as well as ICAI, why are we even considering dismantling it?”
Beccy Cooper, a 2024 intake MP, said: “More than ever, we need to ensure
effectiveness and maximum impact of our aid funding.”
Asked about the body’s future in January, International Development Minister
Jenny Chapman said: “I have to ask myself whether that is the right use of that
money or whether we could get what we need more efficiently.”
The government is expected to prioritize multilateral aid while slashing funding
for bilateral donations and in-country projects including public health
initiatives and education for women and girls.
A Labour MP briefed on the plans, granted anonymity to speak candidly, raised
fears that some cuts would go against ministers’ own stated aims for the
remaining aid budgets.
The MP flagged proposals to reduce funds for the British International
Investment development bank, despite a stated aim to boost private investment in
development projects, and to reduce the headcount of Whitehall staff working on
ODA, despite professing a wish to focus on expertise.
Fleur Anderson, a member of the foreign affairs committee, told POLITICO: “When
something works as well as ICAI, why are we even considering dismantling it?” |
Brian Lawless/PA Images via Getty Images
Chapman held briefings on the plans last week and will hold more sessions next
week as the government tries to keep MPs onside as the details emerge of where
savings will be made.
An FCDO spokesperson said: “National security is the first duty of this
government. That’s why, to fund a necessary increase in defense spending, the
government has taken the decision to reduce the U.K. ODA budget to 0.3 percent
of [economic output] by 2027.
“We remain absolutely committed to tackling the global challenges of hunger,
disease, insecurity and conflict, but we have been clear we must modernize our
approach to development to reflect the changing global context.”
The 21st century is more likely to belong to Beijing than to Washington — at
least that’s the view from four key U.S. allies.
Swaths of the public in Canada, Germany, France and the U.K. have soured on the
U.S., driven by President Donald Trump’s foreign policy decisions, according to
recent results from The POLITICO Poll.
Respondents in these countries increasingly see China as a more dependable
partner than the U.S. and believe the Asian economic colossus is leading on
advanced technologies, including artificial intelligence. Critically, Europeans
surveyed see it as possible to reduce reliance on the U.S. but harder to reduce
reliance on China — suggesting newfound entanglements that could drastically tip
the balance of global power away from the West.
Here are five key takeaways from the poll highlighting the pivot from the U.S.
to China.
The POLITICO Poll — in partnership with U.K. polling firm Public First — found
that respondents in those four allied countries believe it is better to depend
on China than the U.S. following Trump’s turbulent return to office.
That appears to be driven by Trump’s disruption, not by a newfound stability in
China: In a follow-up question, a majority of respondents in both Canada and
Germany agreed that any attempts to get closer to China are because the U.S. has
become harder to depend on — not because China itself has become a more reliable
partner. Many respondents in France (38 percent) and the U.K. (42 percent) also
shared that sentiment.
Under Trump’s “America First” ethos, Washington has upended the “rules-based
international order” of the past with sharp-elbowed policies that have isolated
the U.S. on the global stage. This includes slow-walking aid to
Ukraine, threatening NATO allies with economic punishment and withdrawing from
major international institutions, including the World Health Organization and
the United Nations Human Rights Council. His punitive liberation day tariffs, as
well as threats to annex Greenland and make Canada “the 51st state,” have only
further strained relationships with top allies.
Beijing has seized the moment to cultivate better business ties with European
countries looking for an alternative to high U.S. tariffs on their exports. Last
October, Beijing hosted a forum aimed at shoring up mutual investments with
Europe. More recently, senior Chinese officials described EU-China ties as a
partnership rather than a rivalry.
“The administration has assisted the Chinese narrative by acting like a bully,”
Mark Lambert, former deputy assistant secretary of State for China and Taiwan in
the Biden administration, told POLITICO. “Everyone still recognizes the
challenges China poses — but now, Washington no longer works in partnership and
is only focused on itself.”
These sentiments are already being translated into action.
Canada’s Prime Minister Mark Carney declared a “rupture” between Ottawa and
Washington in January and backed that rhetoric by sealing a trade deal with
Beijing that same month. The U.K. inked several high-value export deals with
China not long after, while both French President Emmanuel Macron and German
Chancellor Friedrich Merz have returned from recent summits in Beijing
with Chinese purchase orders for European products.
Respondents across all four allied countries are broadly supportive of efforts
to create some distance from the U.S. — and say they’re also more dependent on
China. In Canada, 48 percent said it would be possible to reduce reliance on the
U.S. and believe their government should do so. In the U.K., 42 percent said
reducing reliance on the U.S. sounded good in theory, but were skeptical it
could happen in practice.
By contrast, fewer respondents across those countries believe it would actually
be possible to reduce reliance on China — a testament to Beijing’s dominance of
global supply chains.
Young adults may be drawn to China as an alternative to U.S. cultural hegemony.
Respondents between the ages of 18 and 24 were significantly more supportive
than their older peers of building a closer relationship with China.
A recent study commissioned by the Institute of European Studies at the Chinese
Academy of Social Sciences — a Beijing-based think tank — suggests most young
Europeans get their information about China and Chinese life through social
media. Nearly 70 percent of those aged 18 to 25 said they rely on social media
and other short-form video platforms for information on China.
And the media they consume is likely overwhelmingly supportive of China, as
TikTok, one of the most popular social media platforms in the world, was built
by Chinese company ByteDance and has previously been accused of suppressing
content deemed negative toward China.
According to Alicja Bachulska, a policy fellow at the European Council on
Foreign Relations, younger generations believe the U.S. has led efforts to
depict China as an authoritarian regime and a threat to democracy, while
simultaneously degrading its own democratic values.
The trend “pushes a narrative that ‘we’ve been lied to’ about what China is,”
said Bachulska, as “social sentiment among the youth turns against the U.S.”
“It’s an expression of dissatisfaction with the state of U.S. politics,” she
added.
There’s a clear consensus among those surveyed in Europe and Canada that China
is winning the global tech race — a coveted title central to Chinese leader Xi
Jinping’s grand policy vision.
China is leading the U.S. and other Western nations in the development of
electric batteries and robotics, while Chinese designs have also become the
global standard in electric vehicles and solar panels.
“There has been a real vibe shift in global perception of Chinese tech and
innovation dominance,” said Sarah Beran, who served as deputy chief of mission
in the U.S. embassy in Beijing during the Biden administration.
This digital rat race is most apparent in the fast-paced development of
artificial intelligence. China has poured billions of dollars into research
initiatives, poaching top tech talent from U.S. universities and funding
state-backed tech firms to advance its interests in AI.
The investment appears to be paying off — a plurality of respondents from
Canada, Germany, France and the U.K. believe that China is more likely to
develop the first superintelligent AI.
But these advancements have done little to change American minds. A majority of
respondents in the U.S. still see American-made tech as superior to Chinese
tech, even in the realm of AI.
As Washington and its allies grow more estranged, the perception of the U.S. as
the dominant world power is in retreat — though most Americans don’t see it that
way.
About half of all respondents in Canada, Germany, France and the U.K. believe
that China is rapidly becoming a more consequential superpower. This is
particularly true among those who say the U.S. is no longer a positive force for
the world.
By contrast, 63 percent of respondents in the U.S. believe their nation will
maintain its dominance in 10 years — reflecting major disparities in beliefs
about global power dynamics between the U.S. and its European allies.
This view of China as the world’s power center may not have been entirely
organic. The U.S. has accused Beijing of pouring billions of dollars into
international information manipulation efforts, including state-backed media
initiatives and the deployment of tools to stifle online criticism of China and
its policies.
Some fear that a misplaced belief among U.S. allies in the inevitability of
China surpassing the U.S. as a global superpower could be helping accelerate
Beijing’s rise.
“Europe is capable of defending itself against threats from China and contesting
China’s vision of a more Sinocentric, authoritarian-friendly world order,” said
Henrietta Levin, former National Security Council director for China in the
Biden administration. “But if Europe believes this is impossible and does not
try to do so, the survey results may become a self-fulfilling prophecy.”
METHOLODGY
The POLITICO Poll was conducted from Feb. 6 to Feb. 9, surveying 10,289 adults
online, with at least 2,000 respondents each from the U.S., Canada, U.K., France
and Germany. Results for each country were weighted to be representative on
dimensions including age, gender and geography, and have an overall margin of
sampling error of ±2 percentage points for each country. Smaller subgroups have
higher margins of error.
Anton, a 44-year-old Russian soldier who heads a workshop responsible for
repairing and supplying drones, was at his kitchen table when he learned last
month that Elon Musk’s SpaceX had cut off access to Starlink terminals used by
Russian forces. He scrambled for alternatives, but none offered unlimited
internet, data plans were restrictive, and coverage did not extend to the areas
of Ukraine where his unit operated.
It’s not only American tech executives who are narrowing communications options
for Russians. Days later, Russian authorities began slowing down access
nationwide to the messaging app Telegram, the service that frontline troops use
to coordinate directly with one another and bypass slower chains of command.
“All military work goes through Telegram — all communication,” Anton, whose name
has been changed because he fears government reprisal, told POLITICO in voice
messages sent via the app. “That would be like shooting the entire Russian army
in the head.”
Telegram would be joining a home screen’s worth of apps that have become useless
to Russians. Kremlin policymakers have already blocked or limited access to
WhatsApp, along with parent company Meta’s Facebook and Instagram, Microsoft’s
LinkedIn, Google’s YouTube, Apple’s FaceTime, Snapchat and X, which like SpaceX
is owned by Musk. Encrypted messaging apps Signal and Discord, as well as
Japanese-owned Viber, have been inaccessible since 2024. Last month, President
Vladimir Putin signed a law requiring telecom operators to block cellular and
fixed internet access at the request of the Federal Security Service. Shortly
after it took effect on March 3, Moscow residents reported widespread problems
with mobile internet, calls and text messages across all major operators for
several days, with outages affecting mobile service and Wi-Fi even inside the
State Duma.
Those decisions have left Russians increasingly cut off from both the outside
world and one another, complicating battlefield coordination and disrupting
online communities that organize volunteer aid, fundraising and discussion of
the war effort. Deepening digital isolation could turn Russia into something
akin to “a large, nuclear-armed North Korea and a junior partner to China,”
according to Alexander Gabuev, the Berlin-based director of the Carnegie Russia
Eurasia Center.
In April, the Kremlin is expected to escalate its campaign against Telegram —
already one of Russia’s most popular messaging platforms, but now in the absence
of other social-media options, a central hub for news, business and
entertainment. It may block the platform altogether. That is likely to fuel an
escalating struggle between state censorship and the tools people use to evade
it, with Russia’s place in the world hanging in the balance.
“It’s turned into a war,” said Mikhail Klimarev, executive director of the
internet Protection Society, a digital rights group that monitors Russia’s
censorship infrastructure. “A guerrilla war. They hunt down the VPNs they can
see, they block them — and the ‘partisans’ run, build new bunkers, and come
back.”
THE APP THAT RUNS THE WAR
On Feb. 4, SpaceX tightened the authentication system that Starlink terminals
use to connect to its satellite network, introducing stricter verification for
registered devices. The change effectively blocked many terminals operated by
Russian units relying on unauthorized connections, cutting Starlink traffic
inside Ukraine by roughly 75 percent, according to internet traffic analysis
by Doug Madory, an analyst at the U.S. network monitoring firm Kentik.
The move threw Russian operations into disarray, allowing Ukraine to make
battlefield gains. Russia has turned to a workaround widely used before
satellite internet was an option: laying fiber-optic lines, from rear areas
toward frontline battlefield positions.
Until then, Starlink terminals had allowed drone operators to stream live video
through platforms such as Discord, which is officially blocked in Russia but
still sometimes used by the Russian military via VPNs, to commanders at multiple
levels. A battalion commander could watch an assault unfold in real time and
issue corrections — “enemy ahead” or “turn left” — via radio or Telegram. What
once required layers of approval could now happen in minutes.
Satellite-connected messaging apps became the fastest way to transmit
coordinates, imagery and targeting data.
But on Feb. 10, Roskomnadzor, the Russian communications regulator, began
slowing down Telegram for users across Russia, citing alleged violations of
Russian law. Russian news outlet RBC reported, citing two sources, that
authorities plan to shut down Telegram in early April — though not on the front
line.
In mid-February, Digital Development Minister Maksut Shadayev said the
government did not yet intend to restrict Telegram at the front but hoped
servicemen would gradually transition to other platforms. Kremlin spokesperson
Dmitry Peskov said this week the company could avoid a full ban by complying
with Russian legislation and maintaining what he described as “flexible contact”
with authorities.
Roskomnadzor has accused Telegram of failing to protect personal data, combat
fraud and prevent its use by terrorists and criminals. Similar accusations have
been directed at other foreign tech platforms. In 2022, a Russian court
designated Meta an “extremist organization” after the company said it would
temporarily allow posts calling for violence against Russian soldiers in the
context of the Ukraine war — a decision authorities used to justify blocking
Facebook and Instagram in Russia and increasing pressure on the company’s other
services, including WhatsApp.
Telegram founder Pavel Durov, a Russian-born entrepreneur now based in the
United Arab Emirates, says the throttiling is being used as a pretext to push
Russians toward a government-controlled messaging app designed for surveillance
and political censorship.
That app is MAX, which was launched in March 2025 and has been compared to
China’s WeChat in its ambition to anchor a domestic digital ecosystem.
Authorities are increasingly steering Russians toward MAX through employers,
neighborhood chats and the government services portal Gosuslugi — where citizens
retrieve documents, pay fines and book appointments — as well as through banks
and retailers. The app’s developer, VK, reports rapid user growth, though those
figures are difficult to independently verify.
“They didn’t just leave people to fend for themselves — you could say they led
them by the hand through that adaptation by offering alternatives,” said Levada
Center pollster Denis Volkov, who has studied Russian attitudes toward
technology use. The strategy, he said, has been to provide a Russian or
state-backed alternative for the majority, while stopping short of fully
criminalizing workarounds for more technologically savvy users who do not want
to switch.
Elena, a 38-year-old Yekaterinburg resident whose surname has been withheld
because she fears government reprisal, said her daughter’s primary school moved
official communication from WhatsApp to MAX without consulting parents. She
keeps MAX installed on a separate tablet that remains mostly in a drawer — a
version of what some Russians call a “MAXophone,” gadgets solely for that app,
without any other data being left on those phones for the (very real) fear the
government could access it.
“It works badly. Messages are delayed. Notifications don’t come,” she said. “I
don’t trust it … And this whole situation just makes people angry.”
THE VPN ARMS RACE
Unlike China’s centralized “Great Firewall,” which filters traffic at the
country’s digital borders, Russia’s system operates internally. Internet
providers are required to route traffic through state-installed deep packet
inspection equipment capable of controlling and analyzing data flows in real
time.
“It’s not one wall,” Klimarev said. “It’s thousands of fences. You climb one,
then there’s another.”
The architecture allows authorities to slow services without formally banning
them — a tactic used against YouTube before its web address was removed from
government-run domain-name servers last month. Russian law explicitly provides
government authority for blocking websites on grounds such as extremism,
terrorism, illegal content or violations of data regulations, but it does not
clearly define throttling — slowing traffic rather than blocking it outright —
as a formal enforcement mechanism. “The slowdown isn’t described anywhere in
legislation,” Klimarev said. “It’s pressure without procedure.”
In September, Russia banned advertising for virtual private network services
that citizens use to bypass government-imposed restrictions on certain apps or
sites. By Klimarev’s estimate, roughly half of Russian internet users now know
what a VPN is, and millions pay for one. Polling last year by the Levada Center,
Russia’s only major independent pollster, suggests regular use is lower, finding
about one-quarter of Russians said they have used VPN services.
Russian courts can treat the use of anonymization tools as an aggravating factor
in certain crimes — steps that signal growing pressure on circumvention
technologies without formally outlawing them. In February, the Federal
Antimonopoly Service opened what appears to be the first case against a media
outlet for promoting a VPN after the regional publication Serditaya Chuvashiya
advertised such a service on its Telegram channel.
Surveys in recent years have shown that many Russians, particularly older
citizens, support tighter internet regulation, often citing fraud, extremism and
online safety. That sentiment gives authorities political space to tighten
controls even when the restrictions are unpopular among more technologically
savvy users.
Even so, the slowdown of Telegram drew criticism from unlikely quarters,
including Sergei Mironov, a longtime Kremlin ally and leader of the Just Russia
party. In a statement posted on his Telegram channel on Feb. 11, he blasted the
regulators behind the move as “idiots,” accusing them of undermining soldiers at
the front. He said troops rely on the app to communicate with relatives and
organize fundraising for the war effort, warning that restricting it could cost
lives. While praising the state-backed messaging app MAX, he argued that
Russians should be free to choose which platforms they use.
Pro-war Telegram channels frame the government’s blocking techniques as sabotage
of the war effort. Ivan Philippov, who tracks Russia’s influential military
bloggers, said the reaction inside that ecosystem to news about Telegram has
been visceral “rage.”
Unlike Starlink, whose cutoff could be blamed on a foreign company, restrictions
on Telegram are viewed as self-inflicted. Bloggers accuse regulators of
undermining the war effort. Telegram is used not only for battlefield
coordination but also for volunteer fundraising networks that provide basic
logistics the state does not reliably cover — from transport vehicles and fuel
to body armor, trench materials and even evacuation equipment. Telegram serves
as the primary hub for donations and reporting back to supporters.
“If you break Telegram inside Russia, you break fundraising,” Philippov said.
“And without fundraising, a lot of units simply don’t function.”
Few in that community trust MAX, citing technical flaws and privacy concerns.
Because MAX operates under Russian data-retention laws and is integrated with
state services, many assume their communications would be accessible to
authorities.
Philippov said the app’s prominent defenders are largely figures tied to state
media or the presidential administration. “Among independent military bloggers,
I haven’t seen a single person who supports it,” he said.
Small groups of activists attempted to organize rallies in at least 11 Russian
cities, including Moscow, Irkutsk and Novosibirsk, in defense of Telegram.
Authorities rejected or obstructed most of the proposed demonstrations — in some
cases citing pandemic-era restrictions, weather conditions or vague security
concerns — and in several cases revoked previously issued permits. In
Novosibirsk, police detained around 15 people ahead of a planned rally. Although
a small number of protests were formally approved, no large-scale demonstrations
ultimately took place.
THE POWER TO PULL THE PLUG
The new law signed last month allows Russia’s Federal Security Service to order
telecom operators to block cellular and fixed internet access. Peskov, the
Kremlin spokesman, said subsequent shutdowns of service in Moscow were linked to
security measures aimed at protecting critical infrastructure and countering
drone threats, adding that such limitations would remain in place “for as long
as necessary.”
In practice, the disruptions rarely amount to a total communications blackout.
Most target mobile internet rather than all services, while voice calls and SMS
often continue to function. Some domestic websites and apps — including
government portals or banking services — may remain accessible through
“whitelists,” meaning authorities allow certain services to keep operating even
while broader internet access is restricted. The restrictions are typically
localized and temporary, affecting specific regions or parts of cities rather
than the entire country.
Internet disruptions have increasingly become a tool of control beyond
individual platforms. Research by the independent outlet Meduza and the
monitoring project Na Svyazi has documented dozens of regional internet
shutdowns and mobile network restrictions across Russia, with disruptions
occurring regularly since May 2025.
The communications shutdown, and uncertainty around where it will go next, is
affecting life for citizens of all kinds, from the elderly struggling to contact
family members abroad to tech-savvy users who juggle SIM cards and secondary
phones to stay connected. Demand has risen for dated communication devices —
including walkie-talkies, pagers and landline phones — along with paper maps as
mobile networks become less reliable, according to retailers interviewed by RBC.
“It feels like we’re isolating ourselves,” said Dmitry, 35, who splits his time
between Moscow and Dubai and whose surname has been withheld to protect his
identity under fear of governmental reprisal. “Like building a sovereign grave.”
Those who track Russian public opinion say the pattern is consistent: irritation
followed by adaptation. When Instagram and YouTube were blocked or slowed in
recent years, their audiences shrank rapidly as users migrated to alternative
services rather than mobilizing against the restrictions.
For now, Russia’s digital tightening resembles managed escalation rather than
total isolation. Officials deny plans for a full shutdown, and even critics say
a complete severing would cripple banking, logistics and foreign trade.
“It’s possible,” Klimarev said. “But if they do that, the internet won’t be the
main problem anymore.”
LONDON — Keir Starmer will never persuade Donald Trump to love windmills.
But by embracing sweeping reforms of the nuclear power system, the U.K. may
finally have found an energy policy the White House likes.
Downing Street on Thursday approved the Fingleton Review, a hefty report calling
on the government to speed up building new nuclear power stations
by relaxing planning rules, merging regulators, and working more closely with
allies itching to invest in the U.K. — including the U.S.
Energy Secretary Ed Miliband touted the report as a “landmark review.”
Chancellor Rachel Reeves claimed it would usher in a “new era of global
uncertainty.”
But the real winners could be Stateside. “U.S. companies are eager to invest in
the U.K., especially in the energy sectors,” Trump’s Ambassador to London Warren
Stephens said in a newspaper column late last year.
In the documents approving the Fingleton recommendations, Starmer’s
government promised to build on existing deals with the U.S., as well as other
countries, “to establish an international regulatory strategy and delivery plan
by Autumn 2026.”
That sort of rhetoric gives Downing Street a way to sell itself as open
for exactly the sort of U.S. investment Stephens is encouraging, some insiders
believe.
“It’s something that No. 10 would probably have its eye on, [given] how much
it’s been trumpeting the amount of successful U.S. investment here,” said one
senior industry figure familiar with the government’s approach to U.S. nuclear
investment, and granted anonymity to speak candidly. They added: “It’s something
that No. 10 is very, very keen on,”
ART OF THE DEAL
Starmer’s pursuit of climate-friendly policies consistently threatens to drive a
wedge between London and Washington. But the U.K. government used Trump’s state
visit last September to announce a series of joint deals to build new nuclear.
This includes plans for British Gas owner Centrica and U.S. developer X-Energy
to collaborate building 12 nuclear reactors in Hartlepool, north-east
England, while Florida-headquartered Holtec has teamed up with EDF and Tritax to
develop data centers powered by small modular reactors at an old coal power
station in Cottam, in England’s midlands.
Those firms will “ring up the Department of Energy, they’ll ring up [Trump’s
Energy Secretary] Chris Wright … and be like: ‘This is good stuff … they put
their money where their mouth is,’” said a second senior industry figure,
familiar with talks involving U.S. developers and referencing Thursday’s
announcement.
“You might not hear Trump talk about Hartlepool … but I think you would get some
good sounds in the American administration,” they said.
The U.K. government has been wooing Trump on nuclear ever since last
summer. “Issues like nuclear cooperation are issues where we can work together
with the U.S.,” Miliband said at the time, as an alternative to U.K. policies on
fossil fuels and wind turbines, which the president openly derides.
IN HIS SITES
Since then, Miliband has been opening up private routes to market for new
nuclear, including reforms which relax siting rules so that new nukes, in
theory, could be built anywhere in the country.
He has also hinted at selling Oldbury, a plum U.K. site owned by arms-length
body Great British Energy Nuclear — with space for up to five small modular
reactors, or mini nuclear plants.
Oldbury is “an absolutely prime site” for private firms to sweep in, he told MPs
in February. “We have lots of companies from the U.S. working with U.K.
companies on these other routes to market,” he said.
Easing planning rules to build nuclear closer to
urban centers could open up another site, Heysham in north-west England, to
future development. That site is owned by French energy giant EDF but it,
too, has been eyed for potential U.S. development.
“If we have clear action, if the government were able to give clarity and
certainty on Heysham, it certainly would be a site U.S. investors would look
at,” the second industry figure said, citing technical advantages like its
proximity to grid connections and local transport access.
WARMING UP WARREN AND WHITEHALL
Any such moves could win over Stephens, the ambassador, who jumped on X last
year to express his “extreme disappointment” when Miliband’s decision to
build mini-nukes in north Wales deprived U.S. nuclear giant Westinghouse of the
chance to build a full-size nuclear power plant on the same site.
There are still hurdles to clear, insiders argued, whatever the political intent
behind Friday’s decision.
“The tricky thing with the Fingleton Review is not just the political acceptance
of it, it’s the officials’ acceptance of it,” feared a third industry figure,
citing supposed skepticism about nuclear among British civil servants.
Ministers will have to ensure the plans are not “suffocated by officials,” they
said, who could “just be slow, and delay and delay and delay.”
Labour peer and long-standing nuclear advocate Jon Spellar was more optimistic.
The bullish response from government to the Fingleton Review showed politicians
have “made clear the direction” to Whitehall, and that fears of delay would be
“much less of a problem now.”