Tag - Kremlin

US promises Ukraine ‘Article 5-like’ security, but it’s a limited time offer
The U.S. is offering Ukraine security guarantees similar to those it would receive as part of NATO, American officials said Monday. The offer is the strongest and most explicit security pledge the Trump administration has put forward for Ukraine, but it comes with an implicit ultimatum: Take it now or the next iteration won’t be as generous. The proposal of so-called Article 5-like guarantees comes amid marathon talks among special envoy Steve Witkoff, President Donald Trump’s son-in-law and adviser Jared Kushner and Ukrainian and European officials in Berlin as Washington tries to pressure Kyiv into accepting terms that will end the war. Ukrainian President Volodymyr Zelenskyy and many European leaders have been reluctant to reach a deal without an explicit U.S. security guarantee, fearful that Russia, after a period of time, would attack again. This latest U.S. offer appears to be an effort to assuage those concerns but also to push Zelenskyy to act quickly. “The basis of that agreement is basically to have really, really strong guarantees, Article 5-like,” a senior U.S. official said. “Those guarantees will not be on the table forever. Those guarantees are on the table right now if there’s a conclusion that’s reached in a good way.” President Donald Trump said later Monday that he had spoken with Zelenskyy and European leaders by phone. Trump also said he had spoken to Russian President Vladimir Putin, but did not say when. “I think we’re closer now than we have been ever, and we’ll see what we can do,” Trump told reporters at the White House. Asked if the offer for security guarantees had a time limit, he said “the time limit is whenever we can get it done.” The discussions over the weekend largely focused on detailing the security guarantees that the U.S. and Europe would provide Ukraine, but they also included territory and other matters. Witkoff and Kushner were joined by Gen. Alexus Grynkewich, head of U.S. European Command as well as the top commander for NATO. The U.S. expects that Russia would accept such an arrangement in a final deal, as well as permit Ukraine to join the European Union. That could prove to be an overly optimistic assessment, given the Kremlin’s refusal to give ground in peace talks so far. And Moscow has yet to weigh in on any of the new agreements being worked out in Europe over the last few days. “We believe the Russians, in a final deal, will accept all these things which allow for a strong and free Ukraine. Russia, in a final deal, has indicated they were open to Ukraine joining the EU,” a second U.S. official said. Both officials were granted anonymity because of the sensitive nature of the negotiations. It was not clear when or how the Trump administration would bring the new details to Moscow. Russia expects the U.S. side will update it on the talks, Kremlin spokesperson Dmitry Peskov said. He added Putin “is open to peace, to a serious peace and serious decisions. He is absolutely not open to any tricks aimed at stalling for time.” The Kremlin said Monday it expected to be updated on the Berlin talks by the U.S. side. Asked whether the negotiations could be over by Christmas, Peskov said trying to predict a potential time frame for a peace deal was a “thankless task.” The second U.S. official said the Ukrainian delegation was pleasantly “surprised” by Trump’s willingness to agree to firmer security guarantees and to have them ratified by Congress so that they will endure beyond his presidency. The U.S. side also spoke highly of its European counterparts, who have been worried for months that the Trump team would force Ukraine to agree to unfavorable conditions. European officials also sounded upbeat. “The legal and material security guarantees that the U.S. has put on the table here in Berlin are remarkable,” German Chancellor Friedrich Merz told reporters during a press conference after the talks Monday. Merz, along with his counterparts from Denmark, Finland, France, Italy, the Netherlands, Norway, Poland, U.K., Sweden and the EU put out a statement welcoming “significant progress” in the U.S. effort and committing to helping Ukraine to end the war and deter Russian aggression, including through a European-led multinational force for Ukraine supported by the U.S. Over the weekend Zelenskyy conceded that Ukraine would not seek NATO membership, a condition that Russia has repeatedly sought. Trump, who skipped this week’s meetings in Berlin but has been briefed twice by Witkoff and Kushner, planned to call into a dinner Monday for attending heads of state, foreign ministers and security officials, the U.S. officials said. “He’s really pleased with where [things] are,” the first U.S. official said. Witkoff and Kushner also sought to narrow disputes between Ukraine and Russia over what territory Moscow would control in a final deal. Russia has so far insisted on controlling Ukraine’s eastern Donbas region, even parts that Moscow hasn’t captured. One of the U.S. officials said the talks focused on many of the specific territorial considerations, stating that there is a proposal in the works but yet to be finalized for Russia and Ukraine to split control of the Zaporizhzhia nuclear power plant with each country having access to half of the energy produced by the plant. But the American officials mostly avoided specifics on how they aimed to bridge other gaps on territorial disputes. They said they left Zelenskyy with “thought-provoking ideas” on how to do so. After Zelenskyy responds to the proposals, Witkoff and Kushner will discuss the matter with Russia. “We feel really good about the progress that we’ve made, including on territories,” the first official said. Next the U.S. will convene working groups, likely in Miami this weekend, where military officials will pore over maps to solve the remaining territorial issues. “We believe that we have probably solved for … 90 percent of the issues between Ukraine and Russia, but there’s some more things that have to be worked out,” the first U.S. official said. Hans Joachim Von Der Burchard in Berlin contributed to this report.
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EU leaders won’t leave for Christmas until Ukraine funds agreed, says incoming Council presidency
BRUSSELS — EU leaders meeting this week will remain locked in talks until they find a solution to Ukraine’s funding crisis, Cyprus said, insisting the issue won’t be kicked to Jan. 1 when it takes over the EU’s legislative agenda. Cypriot Deputy EU Minister Marilena Raouna told POLITICO on Monday that leaders have “a critical decision to make at the upcoming European Council,” which begins Thursday. Discussions over how to ensure Kyiv does not run out of money by the middle of next year have been “challenging,” she went on, but “there is a readiness by all to stay in Brussels until we are able to have a decision on this issue of financing.” European officials have repeatedly warned Thursday’s negotiations could take hours, or even days, to produce a result and may run into the weekend despite pressures on leaders’ schedules. The alternative, officials say, is Ukraine running out of money — which will not be allowed to happen. The EU is working to agree on a plan to use frozen Russian assets to underwrite a €210 billion loan to support Kyiv’s state budget and help repair the damage done by Russia’s full-scale invasion. However, Belgium — which hosts the bulk of the funds — has been joined by Italy, Malta and Bulgaria in raising legal questions over the proposals, which are already opposed on principle by Kremlin-friendly countries Hungary and Slovakia. “A number of member states have said we need to ensure there is legal certainty; I think safeguards are being put in place in this regard. And that will pave the way, I hope, for a decision,” said Raouna. “I think we need to exhaust all possibilities … We also need to be aware of what message it would send if we don’t reach a decision.” Talks between ambassadors on the technical framework behind the move were canceled on Sunday and will run late into the night on Monday instead, ahead of a summit of leaders under the auspices of the European Council on Thursday. Four diplomats told POLITICO they remain convinced the plan is workable and no alternative exists given capitals’ opposition to borrowing the money directly. Despite that, there are growing concerns that failing to consider other options would mean major delays if the assets plan is rejected. “I think we are on the right path. I am cautiously optimistic that we will be able to deliver at the European Council,” Raouna said. Cyprus takes over the six-month rotating presidency of the Council of the European Union from the beginning of next year, giving one of the smallest countries in the bloc an influential role overseeing diplomatic talks. Along with Ireland, it is one of two militarily neutral countries to take on the role in 2026.
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Ukraine blows up Russian submarine using underwater drone
KYIV — In another deep-strike attack against Russia, Ukraine blew up a Russian submarine docked in a secure naval base, Ukrainian counterintelligence agency Security Service of Ukraine (SBU) said Monday. The SBU said it critically damaged the Class 636.3 submarine “Varshavyanka” (NATO reporting name: Kilo) in its home base at the port of Novorossiysk on the Black Sea. “Ukraine’s underwater drone Sub Sea Baby attacked a Russian submarine. The explosion critically damaged the submarine and effectively disabled it. The submarine was carrying four Kalibr cruise missile launchers, which Russia uses to strike at the territory of Ukraine,” the SBU’s press service said, providing video of the blast as evidence. POLITICO could not independently verify the video. The Russian ministry of defense so far has not issued any statements about the attack on Novorossiysk, but Russian military bloggers claim the damage was insignificant as the drone hit a nearby pier, nevertheless stating that such a close call attack is a wake-up call. The attack, if it was as destructive as the SBU claims, will be financially costly for the Russian military. “The cost of a Varshavyanka-class submarine is about $400 million. Given the international sanctions imposed, the construction of a similar submarine could currently cost up to $500 million,” the SBU’s press service said. It’s not known if any personnel were harmed. The attack on Novorossiysk has become the latest in Ukraine’s deep-strike campaign inside Russia against military and energy targets, now happening every day. Earlier today, the SBU hit Russia’s oil rigs in the Caspian Sea for the third time, days after Ukraine’s drones hit Russia’s oil refineries and several cargo ships of the Russian shadow fleet. “While diplomatic processes and negotiations are underway that could bring the end of the war closer, we must not forget that Russian strikes continue every day. [Vladimir] Putin is using the brutality of the strikes as leverage in negotiations,” Ukrainian President Volodymyr Zelenskyy said in a statement at the German-Ukrainian economic forum on Monday. “Our ability to recover from strikes, our ability to produce weapons and strike back, our ability to shoot down Russian missiles and drones — are our leverage in negotiations,” Zelenskyy added, urging partners to keep supporting Ukraine’s ability to resist Russian invasion.
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On Ukraine, everyone’s trying to stay in Trump’s good books
Jamie Dettmer is opinion editor and a foreign affairs columnist at POLITICO Europe. Over the past few days, Ukraine has been hitting Russia back as hard as it can with long-range drone strikes, and it has three objectives in mind: lifting Ukrainian spirits as the country suffers blackouts from Russia’s relentless air attacks; demonstrating to Western allies that it has plenty of fight left; and, finally, cajoling Moscow into being serious about peace negotiations and offering concessions. However, the latter is likely to be a forlorn endeavor. And at any rate, amid the ongoing diplomatic chaos, which negotiations are they aiming for? U.S. President Donald Trump’s negotiators have been talking up the prospects of a peace deal — or at least being closer to one than at any time since Russia’s invasion began nearly four years ago. But few in either Kyiv or Europe’s other capitals are persuaded the Kremlin is negotiating in good faith and wants a peace deal that will stick. German Chancellor Friedrich Merz certainly doesn’t think so. Last week, he argued that Russian President Vladimir Putin is just spinning things out, “clearly playing for time.” Many Ukrainian politicians are also of a similar mind, including Yehor Cherniev, deputy chairman of the Committee on National Security, Defense and Intelligence of Ukraine’s Rada: “We see all the signals they’re preparing to continue the war, increasing arms production, intensifying their strikes on our energy infrastructure,” he told POLITICO.  “When it comes to the talks, I think the Russians are doing as much as they can to avoid irritating Donald Trump, so he won’t impose more sanctions on them,” he added. Indeed, according to fresh calculations by the German Institute for International and Security Affairs’ Janis Kluge, Russia has increased its military spending by another 30 percent year-on-year, reaching a record $149 billion in the first nine months of 2025. The war effort is now eating up about 44 percent of all Russian federal tax revenue — a record high. And as social programs are gutted to keep up, some Western optimists believe that Russia’s anemic growing economy and the staggering cost of war mean Putin soon won’t have any realistic option but to strike an agreement. But predictions of economic ruin forcing Putin’s hand have been made before. And arguably, Russia’s war economy abruptly unwinding may pose greater political and social risks to his regime than continuing his war of attrition, as Russian beneficiaries — including major business groups, security services and military combatants — would suffer a serious loss of income while seeking to adapt to a postwar economy. The war also has the added bonus of justifying domestic political repression. War isn’t only a means but an end in itself for Putin, and patriotism can be a helpful tool in undermining dissent. Nonetheless, the introduction of Trump’s son-in-law Jared Kushner as a key negotiator is significant — he is “Trump’s closer” after all, and his full engagement suggests Washington does think it can clinch a deal with one last heave. Earlier this month, U.S. Special Envoy Gen. Keith Kellogg had indicated a deal was “really close,” with a final resolution hanging on just two key issues: the future of the Donbas and the Zaporizhzhia nuclear power plant. The negotiations are in the “last 10 meters,” he said. But again, which negotiations? Those between Washington and Moscow? Or those between Washington and Kyiv and the leaders of Europe’s coalition of the willing? Either way, both have work to do if there is to be an end to the war. Putin has refused to negotiate with Kyiv and Europe directly, in effect dispatching Trump to wring out concessions from them. And no movement Trump’s negotiators secure seems to satisfy a Kremlin that’s adept at dangling the carrot — namely, a possible deal to burnish the U.S. president’s self-cherished reputation as a great dealmaker, getting him ever closer to that coveted Nobel Peace Prize. Of course, for Putin, it all has the added benefit of straining the Western alliance, exploiting the rifts between Washington and Europe and widening them. All the frenzied diplomacy underway now seems more about appeasing Trump and avoiding the blame for failed negotiations or for striking a deal that doesn’t stick — like the Minsk agreements. For example, longtime Putin opponent Mikhail Khodorkovsky’s New Eurasian Strategies Center believes the Russian president remains “convinced that Russia retains an advantage on the battlefield,” and therefore “sees no need to offer concessions.” “He prefers a combination of military action and diplomatic pressure — a tactic that, in the Kremlin’s view, the West is no longer able to resist. At the same time, any peace agreement that meets Russia’s conditions would set the stage for a renewed conflict. Ukraine’s ability to defend itself would be weakened as a result of the inevitable political crisis triggered by territorial concessions, and the transatlantic security system would be undermined. This would create an environment that is less predictable and more conducive to further Russian pressure,” they conclude. Indeed, the only deal that might satisfy Putin would be one that, in effect, represents Ukrainian capitulation — no NATO membership, a cap on the size of Ukraine’s postwar armed forces, the loss of all of the Donbas, recognition of Russia’s annexation of Crimea, and no binding security guarantees. But this isn’t a deal Ukrainian President Volodymyr Zelenskyy can ink — or if he did, it would throw Ukraine into existential political turmoil. “I don’t see the Parliament ever passing anything like that,” opposition lawmaker Oleksandra Ustinova told POLITICO. And if it did, “it might lead to a civil war” with many patriots who have fought, seeing it as a great betrayal, she added. “Everybody understands, and everybody supports Zelenskyy in doing what he’s doing in these negotiations because we understand if he gives up, we’re done for.” Not that she thinks he will. So, don’t expect any breakthroughs in the so-called peace talks this week. Putin will maintain his maximalist demands while sorrowfully suggesting a deal could be struck if only Zelenskyy would be realistic, while the Ukrainian leader and his European backers will do their best to counter. And they will all be performing to try and stay in Trump’s good books.  
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EU starts crucial week with Zelenskyy talks and bid to save €210B loan
BRUSSELS — The European Union faces a critical week as it seeks to shield Ukraine from a humiliating peace deal carved out by the U.S. and Russia while attempting to salvage an agreement to fund a multi-billion euro loan to keep Kyiv afloat. After a series of stinging attacks from Washington ― including Donald Trump telling POLITICO that European leaders are “weak” ― the coming days will be a real test of their mettle. On Monday leaders will attempt to build bridges and use their powers of persuasion over the peace agreement when they meet Ukraine President Volodymyr Zelenskyy and U.S. officials in Berlin. At the same time in Brussels, EU foreign ministers and diplomats will battle to win over a growing number of European governments that oppose the loan plan. By Thursday, when all 27 leaders gather in the Belgian capital for what promises to be one of the most pivotal summits in years, they’ll hope to have more clarity on whether the intense diplomacy has paid off. With Trump’s stinging put-downs ― Europe’s leaders “talk, but they don’t produce” ― and NATO chief Mark Rutte’s stark warnings about the the threat from Russia ringing in their ears, they’re taking nothing for granted. “We are Russia’s next target, and we are already in harm’s way,” Rutte said last week. “Russia has brought war back to Europe and we must be prepared for the scale of war our grandparents and great grandparents endured.” Little wonder then that European officials are casting the next few days as existential. The latest shot of 11th-hour diplomacy will see the leaders of the U.K., Germany and possibly France, potentially with Trump’s son-in-law Jared Kushner and his special envoy Steve Witkoff, meeting with Zelenskyy in Berlin. As if to underscore the significance of the meeting, “numerous European heads of state and government, as well as the leaders of the EU and NATO, will join the talks” after the initial discussion, said Stefan Kornelius, spokesperson for German Chancellor Friedrich Merz. French President Emmanuel Macron hasn’t confirmed his attendance but spoke to Zelenskyy by telephone on Sunday. The discussion will represent Europe’s attempt to influence the final settlement, weeks after a 28-point peace plan drafted by Witkoff  — reportedly with the aid of several Kremlin officials — provoked a furious backlash in both Kyiv and European capitals. They’ve since scrambled to put together an alternative. Further European disunity this week would send a “disastrous signal to Ukraine,” said one EU official. That outcome wouldn’t just be a hammer blow to the war-struck nation, the official added: “It’s also fair to say that Europe will then fail as well.” EMPTYING TERRITORIES This time the focus will be on a 20-point amendment to the plan drafted by Kyiv and its European allies and submitted to Washington for review last week. The contents remain unclear, and nothing is decided, but the fate of the Ukrainian territories under Russian occupation is particularly thorny. Trump has pitched emptying out the territories of Ukrainian and Russian troops and establishing a demilitarized “free economic zone” where U.S. business interests could operate. Ukraine has rejected that proposal, according to a French official, who was granted anonymity because of the sensitivity of the negotiations. The U.S. has insisted on territorial concessions despite fierce European objections, the official added, creating friction with the Trump administration. Leaders will attempt to build bridges and use their powers of persuasion over the peace agreement when they meet Ukraine President Volodymyr Zelenskyy and U.S. officials in Berlin. | Antonio Masiello/Getty Images Europe’s leaders insist there can be no progress on territory before Ukraine is offered security guarantees. In a sign of movement toward some kind of deal, Zelenskyy said over the weekend he was willing to “compromise” and not demand NATO membership for Ukraine. Instead, the country should be afforded an ad-hoc collective defense arrangement, he told journalists in a WhatsApp conversation. “The bilateral security guarantees between Ukraine and the United States … and the security guarantees from our European colleagues for us, as well as from other countries such as Canada and Japan ― these security guarantees for us provide an opportunity to prevent another outbreak of Russian aggression,” he said. REPEATED SETBACKS Europe will have further opportunities to discuss the way forward after Monday. EU affairs ministers will continue on Tuesday in Brussels to thrash out plans for Thursday’s summit. In between, Wednesday will see the leaders of Europe’s “Eastern flank” ― with countries including the Baltics and Poland represented ― huddle in Helsinki. The EU has been trying for months to convince Belgian Prime Minister Bart De Wever to consent to a plan to use the cash value of the €185 billion in Russian state assets held in Brussels-based depository Euroclear to fund and arm Ukraine. (The remainder of the total €210 billion financial package would include €25 billion in frozen Russian assets held across the bloc.) In a sign the chances of a deal at Thursday’s summit are worsening rather than improving, Italy — the EU’s third-largest country — sided with Belgium’s demands to look for alternative options to finance Ukraine in a letter on Friday that was also signed by Malta and Bulgaria. Czechia’s new Prime Minister Andrej Babiš also rejected the plan on Sunday. “The more such cases we have the more likely it is that we will have to find other solutions,” an EU diplomat said. The five countries — even if joined by pro-Kremlin Hungary and Slovakia — would not be able to build a blocking minority, but their public criticism erodes the Commission’s hopes of striking a political deal this week. A meeting of EU ambassadors originally planned for Sunday evening was postponed until Monday. While the last-minute diplomatic effort has left many concerned the money might not be approved before the end of the year, with Ukraine in desperate need of the cash, three diplomats insisted they were sticking to the plan and that no alternatives were yet being considered. Belgium is engaging constructively with the draft measures, actively making suggestions and changes in the document to be considered when ambassadors meet on Monday, one of the diplomats and an EU official said. The decision on the Russian assets is “a decision on the future of Europe and will determine whether the EU is still a relevant actor,” a German official said. “There is no option B.” Bjarke Smith-Meyer, Nick Vinocur, Victor Jack and Zoya Sheftalovich in Brussels, Veronika Melkozerova in Kyiv, Clea Caulcutt and Laura Kayali in Paris and Nette Nöstlinger in Berlin contributed to this report.
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EU heavyweight Italy joins Belgium in opposing Russian frozen assets plan
BRUSSELS — Italy is throwing its weight behind Belgium in opposing the EU’s plan to send €210 billion of Russia’s frozen state assets to Ukraine, according to an internal document seen by POLITICO. The intervention by Rome, the EU’s No.3 in terms of population and voting power — less than a week before a crucial meeting of EU leaders in Brussels — undermines the European Commission’s hopes of finalizing a deal on the plan. The Commission is pushing for EU member countries to reach an agreement in a European Council summit on Dec.18-19 so that the billions of euros in Russian reserves held in the Euroclear bank in Belgium can be freed up to support Kyiv’s war-battered economy.  Belgium’s government is holding out over fears it will be on the hook to repay the full amount if Russia claws back the money, but has so far lacked a heavyweight ally ahead of the December summit. Now Italy has shaken up the diplomatic dynamics by drafting a document with Belgium, Malta and Bulgaria urging the Commission to explore alternative options to using the Russian assets to keep Ukraine afloat over the coming years. The four countries said they “invite the Commission and the Council to continue exploring and discussing alternative options in line with EU and international law, with predictable parameters, presenting significantly less risks, to address Ukraine’s financial needs, based on an EU loan facility or bridge solutions.” The four countries are referring to a Plan B to issue joint EU debt to finance Ukraine over the coming years. However, this idea has its own problems. Critics note it will add to the high debt burdens of Italy and France, and requires unanimity — meaning it can be vetoed by Hungary’s Kremlin-friendly Prime Minister Viktor Orbán. The four countries — even if joined by pro-Kremlin Hungary and Slovakia — would not be able to build a blocking minority but their public criticism erodes the Commission’s hopes of striking a political deal next week. While Italy’s right-wing Prime Minister Giorgia Meloni has always supported sanctions against Russia, the government coalition she leads is divided over supporting Ukraine. Hard-right Deputy Prime Minister Matteo Salvini has embraced a Russia-friendly stance and endorsed U.S. President Donald Trump’s plan to end the war in Ukraine. EMERGENCY RULE Offering a further criticism, the four countries expressed skepticism toward the Commission seizing on emergency powers to overhaul the current sanctions rules and keep Russia’s assets frozen in the long-term. Despite voting in favor of this move to preserve EU unity, they said they were wary of then progressing to use the Russian assets themselves. “This vote does not pre-empt in any circumstances the decision on the possible use of Russian immobilised assets that needs to be taken at Leaders’ level,” the four countries wrote. The legal mechanism for long-term freeze is meant to reduce the chance that pro-Kremlin countries in Europe, such as Hungary and Slovakia, will hand back the frozen funds to Russia. Officials claim this workaround undermines the Kremlin’s chances of liberating its assets as part of a post-war peace settlement — and therefore strengthens the EU’s separate plan to make use of that money.   However, the four countries wrote that the legal clause “implies very far reaching legal, financial, procedural, and institutional consequences that might go well beyond this specific case.”
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Russia files lawsuit against Euroclear as Europe bickers over frozen assets
Russia’s central bank on Friday filed a lawsuit in Moscow against Brussels-based Euroclear, which houses most of the frozen Russian assets that the EU wants to use to finance aid to Ukraine. The court filing comes just days before a high-stakes European Council summit, where EU leaders are expected to press Belgium to unlock billions of euros in Russian assets to underpin a major loan package for Kyiv.   “Due to the unlawful actions of the Euroclear depository that are causing losses to the Bank of Russia, and in light of mechanisms officially under consideration by the European Commission for the direct or indirect use of the Bank of Russia’s assets without its consent, the Bank of Russia is filing a claim in the Moscow Arbitration Court against the Euroclear depository to recover the losses incurred,” the central bank said in a statement. Belgium has opposed the use of sovereign Russian assets over concerns that the country may eventually be required to pay the money back to Moscow on its own. Some €185 billion in frozen Russian assets are under the stewardship of Euroclear, the Brussels-based financial depository, while another €25 billion is scattered across the EU in private bank accounts. With the future of the prospective loan still hanging in the air, EU ambassadors on Thursday handed emergency powers to the European Commission to keep Russian state assets permanently frozen. Such a solution would mean the assets remain blocked until the Kremlin pays post-war reparations to Ukraine, significantly reducing the possibility that pro-Russian countries like Hungary or Slovakia would hand back the frozen funds to Russia. While Russian courts have little power to force the handover of Euroclear’s euro or dollar assets held in Belgium, they do have the power to take retaliatory action against Euroclear balances held in Russian financial institutions. However, in 2024 the European Commission introduced a legal mechanism to compensate Euroclear for losses incurred in Russia due to its compliance with Western sanctions — effectively neutralizing the economic effects of Russia’s retaliation. Euroclear declined to comment.
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Alexei Navalny’s wife and political heir still has ‘big hopes’ for Russia
The exiled widow of Russia’s late opposition leader Alexei Navalny told POLITICO on Thursday that remaining hopeful about her home country is part of her job. “I really have big hopes for Russia,” Yulia Navalnaya said in an interview at this year’s POLITICO 28 event. “I understand that it’s very difficult moment. It’s very difficult, difficult moment for the world. It’s very difficult moment for Europe, and, of course, it’s awful time for Russia.” “But still, as I said, it’s very important for me to continue my husband’s work … He every day showed me, for many years, that never give up.” Navalnaya, who lives in exile, has become a prominent voice for anti-Kremlin Russians since the sudden and mysterious death of her husband in a prison camp north of the Arctic Circle in February 2024.  Even after Navalny’s death, Russian authorities have continued to crack down on associates of the late politician. In November, a Russian court designated Navalny’s Anti-Corruption Foundation a “terrorist organization,” exposing anyone associated with the group to a potential life sentence. Navalnaya said Russians who opposed the Kremlin’s full-scale invasion of Ukraine or the country’s President Vladimir Putin were “living in fear.”  Invoking her husband’s legacy, however, she called on her fellow citizens and people elsewhere to “be resistant, to believe in their beliefs, to believe in their values.”
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EU approves legal workaround to sideline Orbán, keep Russian assets frozen forever
BRUSSELS — Russian state assets in Europe could remain permanently frozen under a legal mechanism approved by EU capitals on Thursday. The EU’s ambassadors handed emergency powers to the European Commission to keep €210 billion in Russian state assets blocked until the Kremlin pays post-war reparations to Ukraine, the Danish Council presidency announced on Thursday. It said that ambassadors had “agreed on a revised version of the Art. 122-proposal and approved the launch of a written procedure for formal Council decision by tomorrow around 5 pm.” The decision was taken by a “very clear majority.” The legal mechanism deals a major blow to the Kremlin’s hopes of unfreezing its money as part of a post-war peace settlement — an idea that has been championed by U.S. President Donald Trump but remains unpopular in Europe. The EU’s new emergency powers will remain in place until “Russia ceases its war of aggression against Ukraine, and provides reparations to Ukraine,” according to a legal text, seen by POLITICO, that was backed by the EU’s 27 ambassadors on Thursday afternoon. In a major boost to Ukraine, the legal workaround significantly reduces the chance that pro-Kremlin countries in Europe, such as Hungary and Slovakia, will hand back the frozen funds to Russia. The emergency clause effectively overhauls the current rules, which compel EU countries to unanimously reauthorize the sanctions every six months.  Kremlin-friendly countries are thereby set to lose their power to release the sanctioned money simply by voting “no” on sanctions renewal. Were that to happen after the EU provided an assets-backed loan to Kyiv, the EU’s 27 capitals would be on the hook to repay the loan to Russia. The EU justified the seismic legal change on the grounds that handing back the assets to Russia would wreak havoc on the EU economy — and potentially fuel hybrid attacks by the Kremlin across the bloc. Keeping the assets frozen “is a measure that is appropriate in order to avoid further repercussions of unprecedented magnitude on the economic situation of the Union caused by Russia’s actions,” the Commission wrote in the legal text. The EU executive initially proposed the legal mechanism to strengthen a separate plan to mobilize €210 billion in frozen Russian assets for Ukraine — most of which are held by the Belgian-based Euroclear.  Belgium, however, is opposed to the plan over fears that it will be on the hook to repay the loan if Russia claws back the money. In order to allay Belgium’s concerns, the Commission stripped references to the loan from the legal proposal that was approved Thursday. Giovanna Faggionato contributed to this report.
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NATO’s Rutte says Europe must prepare for ‘scale of war our grandparents’ endured
NATO Chief Mark Rutte urged member countries to do more to prepare for the possibility of large-scale war, warning that Russia may be ready to attack the alliance within five years. “We are Russia’s next target. And we are already in harm’s way,” Rutte said on Thursday during a speech in Berlin. “Russia has brought war back to Europe, and we must be prepared for the scale of war our grandparents and great grandparents endured.” Although he welcomed the decision by NATO members to increase overall military spending to 5 percent of gross domestic product annually by 2035, Rutte argued more needed to be done, saying alliance members must shift to a “wartime mindset.” “This is not the time for self-congratulation,” Rutte said. “I fear that too many are quietly complacent. Too many don’t feel the urgency. And too many believe that time is on our side. It is not. The time for action is now.” Rutte warned Russia may be strong enough to attack NATO territory sooner than many assume. “NATO’s own defenses can hold for now, but with its economy dedicated to war, Russia could be ready to use military force against NATO within five years,” he said. Rutte underscored his plea for urgency by arguing that Russian President Vladimir Putin had already exhibited a willingness to sacrifice the lives of Russian soldiers in large numbers, claiming that over one million Russian troops had been killed since the Kremlin launched its full-scale invasion of Ukraine in 2022. “Putin is paying for his pride with the blood of his own people,” Rutte said. “And if he is prepared to sacrifice ordinary Russians in this way, what is he prepared to do to us?” Rutte also said the Kremlin would not be able to sustain its war on Ukraine without help from China. “China is Russia’s lifeline,” he said. “Without China’s support, Russia could not continue to wage this war,” he said, “About 80 percent of critical electronic components in Russian drones and other systems are made in China. So, when civilians die in Kyiv or Kharkiv, Chinese technology is often inside the weapons that kill them.”
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