Category: Politics

EconomyPolitics ITF Results: logistical ties with the EU, increased port capacity, and an infrastructure recovery fund. Monday, December 2, 2024

Deputy Prime Minister for Recovery Oleksiy Kuleba stated during the International Transport Forum (ITF) that Ukraine is doing everything necessary to integrate into the European transport space and is calling on its partners to develop logistics routes.

Prime Minister Denys Shmyhal said that the government plans to approve a strategy for the development of road and rail checkpoints and access roads. He also stressed the need to extend the Agreement on the Liberalization of Freight Transport between Ukraine and the EU.

“In the first 1.5 years of the agreement, imports to Ukraine increased by 44%, exports by 48%. The figures indicate that liberalization benefits both sides,” Shmyhal said.

To support exports, Ukraine is working on expanding capacity at its Danube ports and modernizing them, as well as restoring and optimizing operations at the Odesa ports.

ITF participants agreed to strengthen their support for Ukraine’s recovery. They declared a common desire to develop new logistics routes and strategic connections and create a fund to provide for Ukraine’s infrastructure recovery, which Ukraine’s partners will fill. Sweden will make an initial contribution of SEK8M ($733,776).

EconomyInvestmentsPolitics Ukraine has approved a state property policy to improve state asset management and attract investment. Monday, December 2, 2024

According to Minister of Economy Yulia Svyrydenko, the new property policy defines the state’s role in managing state-owned companies, outlining which are strategically crucial for the country and what tasks they should perform. This document introduces high corporate governance standards in the public sector.

Together with the state property policy, a clear and transparent remuneration policy for managers and supervisory board members of state-owned companies and a dividend policy is being introduced for the first time. These measures will increase the efficiency of state asset management and attract investment.

It is also planned to optimize the portfolio of state assets, particularly the privatization or liquidation of enterprises that are not strategically important. Modern corporate governance standards based on OECD principles will also be introduced that provide for the creation of independent supervisory boards.

Adopting a state property policy is one of the key elements of the Ukraine Plan for the Ukraine Facility and an essential component of the memorandum with the IMF.

Politics While in Kyiv, Kallas and Costa confirm the EU’s commitment to Ukraine’s victory and support for European integration. Monday, December 2, 2024

The EU’s High Representative for Foreign Affairs and Security Policy Kaja Kallas arrived on an unannounced visit to Kyiv and stressed that the EU will do everything necessary for Ukraine to win the war against Russia. President Zelenskyy discussed Ukraine’s need for air defense systems with Kallas. Following a conversation with the new President of the European Council, António Costa, who also visited Kyiv, the Ukrainian leader said that all conditions are in place to open two negotiation clusters with the EU at the beginning of next year and the rest within the year. Costa confirmed this position and announced that the EU will continue to provide Ukraine with economic, humanitarian, and military assistance. The EU will allocate €4.2B in budget support by the end of the year, and next year, it will transfer €1.5B every month. The funds will come from revenues generated by Russian assets and can be used for defense. Zelenskyy stressed that these funds will be used for weapons production.

EnergyPoliticsWar After the latest massive Russian attack on Ukraine’s energy system, Biden promises further support; Ukraine faces long power outages during winter. Monday, December 2, 2024

US President Joe Biden, after the Russian air attack on November 28, made a statement promising further support for Ukrainians. “This attack is outrageous and serves as another reminder of the urgency and importance of supporting the Ukrainian people in their defense against Russian aggression. My message is clear: the United States stands with you,” Biden said. He emphasized that earlier this year, the US prioritized the export of air defense equipment to Ukraine. As a result, the Pentagon has already provided Ukraine with hundreds of additional air defense missiles, and deliveries are ongoing. “The Department of Defense continues to provide Ukraine with other critical capabilities, including artillery, missiles, and armored vehicles as part of preparations for winter,” Biden added. According to analysts, the last two massive Russian missile attacks on Ukraine’s energy sector have increased the risk of long power outages during the winter. The Ministry of Energy of Ukraine noted that a catastrophic scenario in the energy sector has been avoided thanks to the rapid response by energy professionals.

PoliticsWar What does the peace plan from Trump’s special envoy entail? Monday, December 2, 2024

Donald Trump’s special representative for the Russia-Ukraine war, Keith Kellogg, outlined his plan for ending the war back in April in an article for the America First Policy Institute. The plan stipulates that future American aid, likely in the form of a loan, will depend on Ukraine’s negotiations with Russia and that the US will arm Ukraine sufficiently to defend itself and stop any further Russian aggression before and after the deal. The plan also calls for a tax on Russian energy exports, which will go toward rebuilding Ukraine. Kellogg believes that Ukraine’s NATO membership should be postponed indefinitely “in exchange for a comprehensive and verifiable peace agreement with security guarantees.” The plan also calls for a freeze on the front line through a ceasefire and establishing a demilitarized zone. Conversely, Russia will receive limited sanctions relief and full relief only after a peace agreement that satisfies Ukraine is signed. Ukraine will not be required to abandon its occupied territories, but it must agree to reclaim them only through diplomatic means.

PoliticsWar Zelenskyy is considering halting the war in exchange for Ukraine’s invitation to NATO, and the occupied territories will be returned diplomatically. Monday, December 2, 2024

President Zelenskyy said that the allies should offer NATO membership to the unoccupied portion of Ukraine to end the “hot phase of the war.” He believes that the occupied territories can be returned diplomatically. In exchange, Ukraine should receive a NATO invitation to NATO that extends to its internationally recognized borders, including Crimea, which was annexed in 2014. According to the Ukrainian president, NATO membership can guarantee that “Putin will not return,” and a ceasefire without security guarantees from NATO will only help Russia seize even more territory. The president believes that there are grounds for the war to end as early as 2025. Ukraine has all the necessary resources for this, but the will and decision fromits main partners are required. Meanwhile, analysts are convinced that US President-Elect Donald Trump can stop the deepening cooperation between Russia and the DPRK by ending the war in Ukraine, which will change both countries’ economic and military needs.

AgricultureEconomyPolitics The new European Commissioner for Agriculture names the Ukrainian agricultural sector the elephant in the room regarding its impact on EU agriculture. Friday, November 29, 2024

Christoph Hansen from Luxembourg has become the new European Commissioner for Agriculture and Food. Hansen comes from a family that owns a large farm in Luxembourg. Hansen has been working in the European Parliament since 2018. During the European Parliament’s introduction of the candidate for the post of Agricultural Commissioner, Christoph Hansen assessed Ukraine as the “elephant in the room” regarding its impact on EU agriculture.

“The solidarity that the EU has towards Ukraine is not something we should take for granted. We do not need to cause damage to our agricultural sector due to the accession of another country or other countries.”

He also promised to equalize subsidies for farmers from eastern and western EU member states. Now, countries contributing more to the EU budget will receive more subsidies. The EU provides €60B per year in agricultural subsidies.

PoliticsWar The head of German intelligence says Russia plans to test the effectiveness of NATO’s collective defense. Friday, November 29, 2024

Bruno Kahl, the head of Germany’s Federal Intelligence Service (BND), believes that Russia continues to prepare for an actual military confrontation with Western countries, but a full-scale attack by Russia will be preceded by local operations designed to test the strength of NATO’s charter.

The idea is that Moscow will try to undermine the obligation to provide direct military assistance to NATO members, enshrined in Article 5 of the defense alliance’s charter. Russian officials are considering creating an “emergency” for one of the NATO countries, in which other members of the Alliance would not “respond appropriately,” Kahl explained.

As examples, he cited a possible “short-term attack” on the Norwegian archipelago of Spitsbergen or a conflict with the Baltic states under the pretext of protecting local Russian-speaking minorities. If Article 5 is not invoked in such conflicts, NATO as a defensive alliance faces failure – this is the goal being pursued by the Russian Federation.

PoliticsWar South Korea decline to sell arms to Ukraine; Netherlands provides additional Patriot launchers. Friday, November 29, 2024

Seoul has rejected a Ukrainian delegation led by Defense Minister Rustem Umerov that sought to purchase South Korean weapons. The delegation met with President Yoon Suk-yeol and the South Korean defense minister. The weapons that Ukraine has been requesting are non-lethal weapons, such as the Cheongung interceptor system, a local air defense radar, and an anti-artillery radar. There was also a request for 155-caliber artillery shells. Sources said that South Korean companies have also received a request for arms sales, but the Defense Ministry has told Ukraine to refrain from contacting companies individually. The government sees difficulties in exporting weapons to Ukraine due to the high risk of violating foreign trade laws, which restrict exports to combat zones. Meanwhile, Dutch Defense Minister Ruben Brekelmans said his country had delivered three Patriot anti-aircraft missile launchers to Ukraine. He added, “it was and remains in our common interest to stop Russian aggression.”

PoliticsWar The European Parliament calls for Ukraine to be provided with Taurus missiles and additional Patriot systems amid the war’s new phase. Friday, November 29, 2024

The European Parliament has adopted a resolution on strengthening the EU’s unwavering support for Ukraine’s struggle against Russia’s aggressive war, in which it strongly criticizes the deployment of North Korean troops in support of Russia’s military operations in Ukraine. The resolution also calls on Russia to cease all forms of military and technological cooperation with the DPRK and to comply with its obligations under nuclear weapon non-proliferation treaties . MEPs ask the EU and its member states to strengthen their military support for Ukraine by providing aircraft, long-range missiles, Taurus missiles, modern air defense systems, Patriot and SAMP/T missile systems, and ammunition. The European Parliament further calls on all member states to lift their restrictions on the use of weapons to destroy military facilities in Russia. The European Parliament calls for further strengthening the sanctions against Russia, Belarus, Iran, and the DPRK. MEPs also demand that China stop providing aid to Russia, as this could further affect bilateral relations between Beijing and Brussels.