Saturday, June 21, 2025

 

Preventing The Next War: A European Plan For Ukraine – Analysis


NESTOR MAKHNO

LONG READ


By 

By Camille Grand, Jana Kobzova, and Nicu Popescu 


A tale of two scenarios

It is 2030. Ukrainians’ valiant resistance failed to expel Russia fully from their territory. Instead, they have carved out the next-best outcome: the front line is mostly stable, despite the absence of NATO membership (as was the case for West Germany) or any final peace agreement (as is still the case for South Korea). But this situation allows the rest of the country to rebuild, recover and prosper.

In the teeth of severe adversity, Ukraine has consolidated into a stable, modernising state whose prosperity and security is underpinned by a robust web of European guarantees and the presence of reassurance troops on its territory. These European forces have warded off continued aggression and protected critical infrastructure, including Ukraine’s nuclear power plants. Years of increased EU defence spending and modernisation have made Europe a powerful security actor, with Ukraine’s defence industry helping scale up shared European capacity. This mutually beneficial cooperation has also revitalised Ukraine’s own economy; veterans returning from the front and refugees from abroad now have jobs and opportunities. International businesses flock to the country, confident Kyiv’s defences will safeguard their investments. 

Special wartime procedures enabled the EU and Ukraine to break through the leisurely pace of peacetime rules and complete five electricity interconnectors and build five major bridges and highways in just three years—a process that would normally take nearly a decade. This has created the most seamless trade relationship yet between Ukraine and the EU. Ukraine’s growing and increasingly zero-emission electricity exports, supported by the new interconnectors and protected nuclear plants, have also helped stabilise European electricity prices and made energy more affordable across the continent. While a final peace agreement with Russia remains out of reach, the front line remains stable. Even in the shadow of a conflict yet to formally end, defence protections, rapid innovation and deep European partnership have transformed Ukraine’s future. 

Yet, an alternative, bleaker, scenario could also lie ahead. Just as a “South Korea”-style armistice without a peace deal might not be the worst outcome for Europe and Ukraine itself, Russia will surely strive to achieve its own next-best outcome—turning Ukraine into a vast morass of instability, ruled half by Moscow, half by chaos.

Five years from now, Russia has managed to achieve a victory of sorts in Ukraine. It initially failed to gain control of the whole country but has since wrecked its security, governance, politics and economy. The two sides signed a periodically ignored ceasefire, but Moscow has dramatically intensified its war in the hybrid domain, while accumulating troops and weapons for the next large-scale assault. 


After the 2026 ceasefire, Western assistance proved insufficient to stabilise Ukraine and rescue its economy; investors stayed away out of fear of renewed fighting. With Ukrainians disappointed by Europeans’ ineffectual response, embittered by the indeterminate conclusion of the horrible conflict, the post-war elections became a divisive feast of recriminations. Moscow’s assets in Ukraine peppered the campaigns with Russian propaganda. National unity—so painfully forged in wartime—dissipated once the smoke cleared. Internal security became harder to preserve as criminal groups smuggled weapons or engaged in human trafficking. The country lurched into default in the absence of external financial support; millions were left jobless. More refugees made for Europe while Ukrainians living abroad chose to stay away. Russia poured all possible resources into undermining the country, exploiting domestic divisions and weakening Ukraine’s state institutions.

The EU’s efforts to stabilise its neighbour failed because Europeans welcomed a ceasefire without putting in place a proper, prepared and coordinated plan to help their neighbour. The temporary cessation in fighting also quickly led to a cessation in substantial aid, as European voters and political parties moved on to the next crisis. All the potential strengths and advantages offered by a friendly and stable Ukraine went to waste in the absence of a “beyond the horizon” plan. Europeans were not ready for how quickly that horizon drew near. Now EU member states face constant full-spectrum threats right along the bloc’s borders, continued westward migration and the legacy of billions of euros sunk into what became a weak, unstable state.

As things stand today, Ukraine is much closer to the “next best” scenario than the depressing alternative. Since Russia began its full-scale invasion of their country, the Ukrainians have achieved many extraordinary things. They have ruined Moscow’s plans to control the entire country, preserved their sovereignty and governance and galvanised global support for Ukraine’s cause. They have moved rapidly on from relying on depleted Soviet-era military stocks and Western arms donations to become nearly self-sufficient in areas of defence production such as drones and artillery. Ukraine’s state institutions have risen to the challenge—and wherever they fell short, millions of ordinary Ukrainians stepped in to sustain the armed forces and each other. None of this was a given for a country which some (and not just in Russia) considered “artificial” just a few years ago. Their successes are a source of pride—but they are also the key to unlocking the more positive future scenario when the fighting eventually ends.

Still, Russia’s sheer military heft has put Ukraine’s innovation and defiance under real strain. Since the failed Ukrainian counteroffensive of 2023, the conflict has turned into a grinding war of attrition. Media reports rightly highlight Ukraine’s ability to stall the invaders and the great costs Russia is paying for its slow progress. But the fact remains that Moscow’s troops have been making incremental gains almost on a daily basis and its summer offensive is now in full swing, compounded by intensified pummelling of Ukraine’s cities. “If the frontline is stabilised, how come we are losing territory each day?”, said one senior military official in Kyiv in May 2025.[1] 

Donald Trump’s return as president opened a new diplomatic phase, in which the US demands a ceasefire, Ukraine concurs and Russia pretends to consider it. Still, officials in the US and Ukraine remain hopeful for a temporary cessation of hostilities towards the end of this year or next.[2] And at some point, the Kremlin might well prefer to pocket its territorial gains and extract political concessions from Kyiv and Washington rather than stay bogged down in Ukraine. Doubtless, Russia would only agree a settlement either if it is stopped on the battlefield or if it concludes the benefits of a deal outweigh the drawbacks. This fact alone should alert Europeans to the vital need to plan—now—for the “day after” in Ukraine.

This paper goes beyond the ups and downs of day-to-day negotiations and battlefield fighting to counsel Europeans to look to the horizon: what lies just out of sight, and how can they shape the landscape that lies there? It examines how Europe can protect its interests in the medium to long term when a durable ceasefire (or even a peace deal) emerges, showing how to deny Moscow the possibility of launching another war on its neighbour a few years down the road.  

The choice between the two scenarios—a next-best outcome or a zone of instability?—also lies in Europeans’ hands. Here’s how to make that first future a reality.

The war ends, the struggle continues

The end of the war will not mean the end of Russian attempts to sabotage Ukraine. For decades, Russia has portrayed its neighbour as a failed state, which it hoped the rest of Europe would leave outside the club rather than integrate. It has engaged in strategic corruption, used economic and energy blackmail and deployed cyber and hybrid attacks to weaken and control the Ukrainian state. There is no reason to expect such attempts will cease once the fighting stops; quite the opposite.

The all-too-imaginable picture of a Ukraine subverted by Russia should alarm Europeans right across the continent, from Poland to Portugal. For now, a hobbled Ukraine is neither a given nor the likeliest outcome. Since the start of Russia’s full-scale aggression, Ukrainian society and Ukraine’s state structures have proved resilient and effective. All the tools are in reach to paint a sunnier picture. But it will require the right combination of policies, politics and resource from Kyiv and its Europeans partners to foresee and resolve the challenges the country will face once the war is over.

So far, Europeans’ response has—besides humanitarian aid—comprised essentially two main elements: guns and funds. In terms of the first, the volume of arms supplied by Europe exceeds that sent by the United States. Europeans have also started to discuss sending a reassurance mission. But with the American military commitment now deeply uncertain, Europeans will need to ramp up arms support yet further. In terms of funds, the most important part of Europeans’ support is the macro financial assistance the EU provides to keep Ukraine’s economy afloat. In the longer term, more EU funds could go to Ukraine via pre-accession instruments, given that it is now a candidate to join the bloc.

However, neither of these two EU responses are underpinned by a proper strategy which takes into account what kind of Ukraine there will actually be once the fighting stops. European troops and military instructors alone cannot help with the country’s reconstruction. Nor is EU accession a silver bullet: membership will take years to materialise and faces political headwinds in some member states. Alongside guns and funds, therefore, Ukraine’s European partners should, together with Kyiv, draw up a “beyond the horizon” plan. They must back this up with diligent preparation, substantial resource and political clout. This plan should comprise three broad parts: security, European integration and domestic stabilisation for Ukraine.

Security for Ukraine

The security of Ukraine is inextricably linked to the security of the rest of Europe: “assistance” given by Europeans to the country is also assistance in support of their own situation. While the war might seem distant to some in Europe, the ramifications have been felt everywhere, from steep inflation to financial outlays for Ukraine to the arrival of millions of refugees. Without long-term security, a post-war Ukraine that is weak and vulnerable will attract endless Russian aggression or destabilisation attempts; a secure, strong and capable Ukraine would be a real asset for Europeans’ security.

The Ukrainian armed forces are numerous and experienced, and they possess a unique set of advanced combat skills. Such a robust Ukrainian army, if not disarmed after a ceasefire, is a valuable asset for European security as a whole. Continued assistance to Ukraine is not about supporting an open-ended conflict to wear out Russian forces, but to acknowledge Kyiv’s future role in European security.

To hold off the Russian threat, Europeans’ strategic approach to security and Ukraine should comprise three elements. These apply whatever the latest twists and turns on the battlefield or at the negotiation table. To deliver robust security support for Ukraine, Europeans must: help Ukrainians defend themselves by providing continued military assistance and partnerships; integrate Ukraine into Europe’s security institutions, with or without full membership; and deploy a limited but credible European reassurance force.

Help Ukrainians defend themselves

The initial element is a credible Ukrainian army capable of deterring further Russian aggression and the resumption of fighting. This 900,000-strong force is now battle-hardened and possesses unique combat experience, including in the use of disruptive technologies. Indeed, without the presence of the Ukrainian army, the rest of Europe would be forced to assemble more large-formation (and extremely expensive) land forces to defend themselves. While staffing and equipping the Ukrainian army should remain a task for Kyiv, Europeans can help assure its strength and capabilities for the longer term. In the event of a ceasefire or peace deal, European leaders must resist the temptation to relax and allocate resource and attention away from Ukraine. Instead, they need to sustain this aid whatever the details of any agreement with Russia. 

In particular, Europeans should, first, provide Ukraine with more of the ammunition and capabilities that can help it counter any Russian offensives. This includes maintaining the flow of 155mm ammunition and air defence capabilities. But it also includes delivering the spare parts and support equipment that enable the Ukrainian armed forces to use donated platforms, including artillery, tanks and other armoured vehicles as well as fighter aircraft and air defence systems.

Second, Europeans must further support the growing ability of Ukrainian industry to produce much of what the country needsranging from air and sea drones to ammunition and combat platforms. This can take multiple forms. For example, the Ukrainian government lacks the funding to produce much more equipment domestically; to address this, dedicated EU financing could fill this shortfall, and it would be a cost-effective way to equip the Ukrainian armed forces. In this spirit, recent decisions by European companies appear promising, such as moves by RheinmetallSaaband KNDS to develop joint ventures in Ukraine. The Danish and Swedishgovernments have also led by example to back such partnerships financially. European industry needs to further develop this type of activity; here, the EU financial toolbox should sponsor and facilitate these partnerships. A number of European defence companies have understood this and are developing long-term business partnerships. They would be inclined to go even further down this road if the risks associated with such investment were mitigated.[3]Defence officials in Kyiv increasingly view Ukraine’s de facto integration and cooperation with European defence industry as essential to their country’s security.[4]

Finally, Europeans need to find a way to mitigate the consequences of new cuts in US military assistance to Ukraine. They should start by looking at military systems where dependency on US assistance is the heaviest, such as air and missile defence, intelligence and targeting, and secure communication systems. Europe is not always able to replace these like for like, as some assistance or systems are only delivered by the US, such as Starlink and long-range ATACMS rockets. But European decision-makers can consider how to avert the damage from a US move to further reduce assistance. This problem could come up quite quickly, as the package agreed under the Biden administration will dry out in 2025 and no replacement appears to be in development. The future of US intelligence support and equipment deliveries under more commercial arrangements—in which Ukraine would pay for the support perhaps with European financial assistance—also remains an option, but is very dependent on decisions made high up in the American administration that are yet to be fully guaranteed in the long term. Europe thus needs to examine how exactly it could step in if the US withdrew. In some instances, such as space imagery or satellite communications, the European solution might not be as efficient as the American equivalent or would have to rely on commercial services as for space imagery, but policymakers may still be able to devise other options. For some critical equipment, such as air and missile defence, the solution might be a mix of answers ranging from procuring more from European systems to buying directly from the US to building American systems under licence in Europe. In the last two cases, Europeans would need a guarantee that deliveries are authorised for delivery to Ukraine.

Integrate Ukraine into European security institutions

As Ukrainian membership of NATO requires a consensus among all allies, this prospect appears to be off the table for the moment. NATO states such as Hungary have expressed their opposition and the Trump administration has mooted the end of Ukraine’s bid to join the alliance as part of a “peace settlement” with Russia. Joining the EU remains a distinct possibility. But Ukraine will not benefit from the EU’s article 42.7 mutual assistance provision before joining the bloc However, these constraints ought not to deter Europeans from seeking other ways to further deepen ties between Ukraine and European security institutions.

NATO

Regarding NATO, Europeans should promote the extensive use of the newly established NATO Ukraine Council (NUC) framework. The NUC grants Ukraine access to numerous NATO activities by virtue of being essentially the alliance’s closest partner. This access includes participation in high-level political meetings (summits and ministerial meetings). To make the most of the opportunity the NUC offers, rather than focusing primarily on future membership. (The NUC began life as a “waiting room” for Ukraine.) The NUC should work to further improve: the interoperability of the Ukrainian armed forces with NATO forces; the implementation of NATO standards; and increased access to NATO operational awareness and active participation in NATO committees and exercises. A familiar model may be that of Finland and Sweden before they applied to join the alliance in 2022. In the years prior, Sweden and Finland drew closer to the alliance by participating ever more regularly in political and military consultations and exercises. As close partners, they did not benefit from the Article 5 mutual defence clause but were increasingly engaged in activities associated with collective defence.

The EU

Over the years, the EU has developed a security and defence relationship with Ukraine, including before the full-scale invasion of February 2022. Ukraine signed an administrative arrangement with the European Defence Agency (EDA) in 2015. Since 2022 its armed forces have benefited from EU trainingthrough the EU Military Assistance Mission in support of Ukraine (EUMAM); the largest training mission of the EU to date has trained 76,700 Ukrainian soldiers. The country has received massive financial and military assistance from the EU and member states. The European Commission and the EDA also support the development of defence industrial ties that gradually embed Ukraine in the European defence and technological industrial base.

Enlargement talks now need to cover—upfront—the further deepening of these defence, technological  and security ties, through the development of a unique and broad security partnership. It would make sense to use the model of the EU-UK security pact to develop a tailored bilateral defence and security partnership.

The EU can also directly benefit from the lessons learned during the conflict and leverage Ukrainian industrial and military know-how to agree technological priorities. The massive use (by both Ukraine and Russia) of unmanned systems and the role of electronic warfare are two immediate domains for such an effort (bearing in mind that any war between Russia and other European countries would inevitably differ from the current conflict). Furthermore, as noted, the EU needs to foster joint ventures and long-term public and private partnerships to make the Ukraine of tomorrow a full part of the European defence and technological industrial base. As one recent ECFR brief argues, this would be a mutually beneficial partnership matching Ukraine’s innovations and battle-tested technologies with Europeans’ rearmament needs.

Deploy a European reassurance force 

A European security presence based in or very close to Ukraine is the final essential security component of the shared “beyond the horizon” plan.

The European debate about future security support for Ukraine has rightly moved on from the misleading term of “peacekeepers” or the questionable concept of a small military “tripwire” force (whose real function would only be to force the Europeans to intervene in the conflict).

Interest is now coalescing around the idea of assembling a solid “reassurance” force. The role of the reassurance force would be to significantly raise the costs and risks for Russia of restarting the war. In practice, and according to current open-source military analysis, this brief could be met by combining a well-equipped land presence with armour and air defences of 15,000-20,000 European soldiers operating next to a Ukrainian army capable of defending the country on its own. Such a force would not even need to be deployed near the frontline and could also be partially based outside Ukraine, provided it is able to reinforce European and Ukrainian forces in theatre at short notice. In this context, a US or NATO backstop mechanism—whose purpose would be to signal that an attack on this reassurance force could have consequences that do not need to be specified—would enhance the force’s credibility and deterrent effect. It would also unlock the participation of a number of European countries while respecting America’s stated intent not to deploy troops in Ukraine.

A reassurance force would represent a very significant commitment on the part of European states. It would require mobilising and enabling rotating forces, along with an ability to support and reinforce the forward-deployed troops. However, it is feasible. An accompanying air operation providing cover to the force and defending Ukrainian air space would in practice be an air policing mission capable of enforcing a no-fly zone over the portion of the territory controlled by Kyiv after the ceasefire. This air component would also play a potent deterrent role. Naval assets could contribute to the operation from the Black Sea, within the constraints of the Montreux convention. The rules of engagement should be clear and allow the use of force should Russia test it.

The deployment of such a force faces stubborn political resistance. Washington remains reluctant to provide a backstop through NATO directly and fears being dragged into a conflict. Moscow has yet to concede a Western military presence in post-ceasefire Ukraine. Meanwhile, many Europeans remain hesitant to go it alone without some American involvement. Nevertheless, a reassurance force would play a powerful role in making a success of Europe’s and Ukraine’s “beyond the horizon” plan and indeed guaranteeing Ukraine’s—and the rest of Europe’s—safety and security for the years after. The three recommended approaches to enhancing European security support for peace in Ukraine are tightly intertwined: a reassurance force operating in the absence of a robust Ukrainian army would be a soft target; investing in a closer security relationship and providing assistance to a semi-failed state would fail to pay dividends. However, the success of European security support will also inescapably rely on Ukraine’s deeper integration on a broader number of fronts than security—the second part of the “beyond the horizon plan”—and drawing up the plan for supporting Ukraine internally—the third part.

EU integration and Ukraine

Since applying for EU membership in February 2022, Ukraine has made significant strides: it was granted candidate status in June 2022 and accession negotiations officially began in June 2024. However, the process is fraught with challenges. Hungary has repeatedly blocked or slowed procedural steps. Several other EU states insist that substantial internal reforms—especially to decision-making and budget frameworks—must precede any major enlargement. The sentiment among key officials across the bloc is that EU institutions and budgets can absorb a new round of enlargement to a few small countries, possibly Albania, Montenegro and Moldova.[5] However, some political EU leaders, as well as parliamentarians, trade unionists and farmers, want a deeper overhaul of the EU’s decision-making procedures, budgets and policies before enlarging beyond this handful. Countries such as Poland are particularly concerned about the impact on the common agricultural policy because of the vast size of Ukraine’s agricultural sector. 

But EU integration is not a one-off event that happens on the day of accession and then ceases. There are multiple ways to integrate prior to joining, and integration continues long afterwards—many EU members remain outside the euro zone, and it took 18 years after their accession for Romania and Bulgaria to gain admittance to the Schengen area.

There are potentially two ways to look at Ukraine’s membership journey. The first is the formal accession process, where the EU and Ukraine have little choice but to follow the standard procedural and legal route: opening and closing negotiation clusters and chapters, implementing the acquis communautaire and negotiating transition periods for the post-accession phase, and more. But integration into the EU is not just a legal and procedural process. It is also a physical one. Irrespective of the speed of formal accession, the EU and Ukraine can work together to frontload and accelerate as many “real world” integration measures as possible. These would involve accelerating practical connections in security and defence, infrastructure, energy and trade. This will hasten Ukraine’s material integration with the rest of Europe, which in turn will help drive internal Ukrainian reforms and prevent renewed conflict.

There are several concrete forms of integration to develop.

Economy

The first is economic. The harm the war has done to Ukraine’s economy is enormous, estimated at some €170bn in terms of damage to infrastructure alone. Supporting Ukraine’s economic vitality is fundamental to its ability not only to conduct the war but also then to rebuild itself, become independent of external help and remain a democracy. A dynamic Ukrainian economy is strongly in the EU’s interests too. To support it, the EU could accelerate Ukraine’s integration into the single market by establishing a single market in industrial products, deepening market integration in services and providing greater access to public procurement opportunities between the EU and Ukraine. Fuller integration into the single market for agriculture is politically awkward for many EU states and is probably beyond the bloc’s current political, economic and budgetary capabilities. But even on agricultural products there is space for greater ambition. Certainly, Ukrainian exports of cereals, sugar and poultry pose problems for some EU member states. But other products are less sensitive, such as fruit, corn and flour. The EU should look closely at greater market opening for some, less sensitive, Ukrainian agricultural products.

Infrastructure

A much faster infrastructural boost for Ukraine will also support its economy and society, and Ukraine’s neighbours to its west would also benefit from such investment. Such a boost could only be achieved if all donors to Ukraine’s reconstruction look for faster ways to help and implement project. The EU—as well as the European Investment Bank, the European for Reconstruction and Development, the Council of Europe Development Bank, the World Bank, and as government from across the EU, Britain, Canada, Japan, Norway and other partners—do not just need seamless coordination, but also much faster ways to turn projects and plans into physical realities.

Varied forms of integration with the EU can assist this. For example, since the start of the war the diversion of trade overland away from the Black Sea has placed pressure on struggling infrastructure in Poland, Slovakia, Hungary, Romania and Moldova. Fast-tracking the construction of better highway, rail and river port infrastructure within and between these countries and Ukraine would help the Ukrainian economy and smooth its integration with neighbouring economies.

The same is true for electricity interconnection. Despite massive Russian bombing of Ukraine’s energy infrastructure, not a single new electricity interconnector with Ukraine (or Moldova) has yet been completed. Some projects are under development, but they have proceeded far too slowly. The European Commission has plans to integrate Ukraine and Moldova into the single energy market, but such a measure would benefit from greater physical infrastructure as well. Policymakers should ensure physical integration between Ukraine and the EU takes place regardless of the pace of Ukraine’s procedural integration. This should include roads, bridges, access routes to border crossing points, airports, river ports on the Danube, and upgrades linking the Baltic, Black and Mediterranean seas.

Besides interconnectors, a comprehensive real-world integration process must also prioritise the rapid recovery of Ukraine’s electricity generation sector. Restoring and expanding power infrastructure is essential not only for enabling greater energy trade flows with the EU in the future; the key international donors should prioritise it. Key areas should include accelerating the green transition with large-scale investments and substantial EU support, particularly for the development of storage batteries, which would both strengthen Ukraine’s resilience against Russian attacks on its electricity sector and advance broader climate goals. Additionally, rebuilding and developing critical hydropower plants at Kakhovka and Cherkasy should be fast-tracked by donors to restore lost capacity and stabilise the grid. Looking ahead, robust military protection (by a European reassurance force) is also vital for the nuclear power plants that remain under Ukraine’s control.

Security and defence

Security and defence integration is also of shared, urgent interest. Much cooperation in this field has been taking place bilaterally between the militaries of EU member states and the Ukrainian armed forces. But the EU can speed up the integration of Ukraine into key EU security and defence policy initiatives—from the EDA, to permanent structured cooperation (PESCO) projects to EU instruments such as the EU hybrid and cyber response teams. Allowing Ukraine to join military mobility projects (such as progressing relevant dual-use infrastructure projects) is another way to strengthen Europe’s security. 

Ukraine’s domestic resilience

Even when the guns fall silent, Ukraine’s struggle will be far from over. The country’s security, economic, demographic and social challenges are stupendous. Whatever the nature of the ceasefire or peace agreement, Russia will try to exploit problems facing Ukraine by sowing instability and confusion. Ukrainians face years—if not decades—of relentless hybrid warfare from Russia, on a scale likely many times greater than similar efforts directed towards states such as Romania and others. Ukraine’s democracy will be tested by internal pressures and aggressive external operations, bribery of politicians, cover acquisition of media assets, influence campaigns in the digital realm to influence public discourse and vote-buying schemes. The EU will play a crucial role in supporting Ukraine in navigating this fraught environment, not least by continuing to work with Kyiv to bolster resilience and safeguard democratic institutions.

To help keep Ukraine on course, Europeans should prioritise the country’s urgent domestic needs. The EU does not need to completely overhaul its programming and support for Ukraine; far from it. However, it should fast-track its intervention in areas where the risk is greatest of destabilisation and spillover into the rest of Europe.

The EU and other European countries, together with Ukraine, should therefore begin—now—to work on plan to support Ukraine’s domestic resilience, capturing first-order priorities for:

  • maintaining internal security;
  • supporting a flourishing democracy;
  • helping Ukrainians return home and settle;
  • and rescuing the economy.

If the EU fails to start work on this straight away—making sure it is ready to swing into action as soon as ceasefire of sorts is achieved—Russia will be quick to take advantage and ensure Ukraine’s internal situation slips out of Kyiv’s control.

Maintaining internal security

In the aftermath of Russia’s full-scale invasion, Ukraine reported a fall in some criminal offences such as people smuggling from Asia and the Middle East; some gangs and criminal groups simply left the country. However, fighting, mobilisation and economic difficulties have all created other opportunities for illicit businesses or activities which endanger public security. It has also created more options for potential meddling by the Kremlin, both during the war and once it ends. There have already been reports of Russia’s security and intelligence services offering bribes to effectively commission arson attacks on military hardware and the vehicles of people working for Ukraine’s territorial military recruitment centres. For the moment, Kyiv has more or less risen to these challenges. But when the battlefield fighting subsides, Europeans and Ukrainians will need to work closely together to deny the Kremlin the chance to undermine the country from within by exploiting its internal security problems.  

Small arms

The possession of small arms is a looming challenge. A large but unknown number of small arms were distributed by state authorities to the population in the early days of the war. Under martial law, civilian possession of firearms has been temporarily legalised. Once the fighting ends and martial law is lifted, the law is clear that these will need to be accounted for and handed back to the state within 10 days to avert a proliferation of arms smuggling or rise in lethal criminal violence. Importantly, for now, Ukraine has been effective at keeping control of access to small arms and firearms—according to the most recent Small Arms Survey, such access has actually become harder since the full-scale invasion. Still, when some regions furthest from the frontlines have tried to collect these weapons in, they have been largely unsuccessful. In one survey, around 45% of men across age groups said they either already own (7%) a firearm or would like to own one. Ensuring that small arms and firearms are recovered and handed over to the authorities will be crucial for maintaining the future internal security of Ukraine and preventing spillover into neighbouring states through smuggling. But giving up one’s weapon is not only about enforcing the law—it is also about a person’s feeling of personal security. The longer the shadow of a resurgent war with Russia, the more likely it is that people in possession of weapons will want to hold on to their arms. The presence of a European reassurance force on the ground, as well as European investment in Ukraine’s defence capabilities, would go a long way towards shortening this shadow.

Veterans

Similarly important will be the integration of Ukraine’s growing population of veterans. Since Russia’s illegal annexation of Crimea and the beginning of the fighting in Donbas in 2014, this group has grown to approximately 1.2 millionpeople. Ukraine’s Ministry for Veteran Affairs estimates 5-6 million individuals will come under its purview once the fighting stops. (This figure also includes family members.) Kyiv began to systematically address the issue only in 2024 when it adopted new strategic policies on veterans along with an operational plan for 2025-2027 to help service personnel in their transition to civilian life. However, these nascent policies are hard to deliver in wartime, or even in the situation of an unstable ceasefire with the continued threat of remobilisation for veterans and in the context of limited public resources.

For now, many projects are delivered on a voluntary basis by civil society and veterans’ groups. In the event of a ceasefire, a whole-of-government approach will be needed instead, as in other post-conflict situations. The EU, the International Organization for Migration, the United Nations Development Programme and other agencies and donors have supported demobilisation and veterans’ reintegration in a variety of post-conflict environments across the world. These were generally much smaller in scale—and further away from the EU’s own borders. In other words, Ukraine, the EU and other partners do not need to invent a whole new toolkit to support veterans’ integration, but they will need to find substantially more funds (and ensure appropriate oversight) for its delivery. Mobilising financial instruments will be crucial. This is where creative ways of using Russia’s frozen assets, as described below, could prove especially powerful.

Reintegrating the millions of war veterans and their families into the country’s social and economic fabric will be vital not just for the future posture of Ukraine’s armed forces and its standby units, but also for economic recovery, especially in light of existing and increasingly acute labour shortages. 

Mastering internal security challenge will greatly matter for Ukraine’s politics too. After Russia began its war in Ukraine in 2014, numerous former combatants became increasingly vocal in the country’s politics. This trend will only grow—considerably so—after the war ends. Surveys consistently show Ukraine’s armed forces enjoy the highest trust among all Ukraine’s institutions, and a large number of respondents (78%) would welcome the formation of a political party led by war veterans. This only further underlines the importance of building a solid bridge to civilian life for Ukraine’s servicemen and servicewomen. It will be a factor in determining whether Ukraine’s post-war politics becomes fuelled by grievances about the past or hope and determination for a better future.

The EU and Ukraine’s domestic security

To address Ukraine’s domestic security challenges, the EU and member states should work through the European Union Assistance Mission, which is a Common Security and Defence Policy initiative already present on the ground in Ukraine. The mission currently comprises around 430 people and has been present in Ukraine since 2014 working on security sector reform and, more recently, supporting the investigation of war crimes and stabilisation policing in the liberated areas. They should be ready to boost the mission’s resources and potentially adjust its mandate if needed so its personnel can also work on other domestic challenges as they arise. Currently, it can already cover the task of assisting the Ukrainian authorities to recover small arms and firearms once a durable ceasefire is established, as well as to advise and support on the reintegration of returnees and foster societal cohesion and stabilisation in areas closer to the frontline. It can also support the future reintegration of “blue” war veterans—that is, members of law enforcement agencies who were mobilised into the army.

The mission already advises the Ukrainian government on enlargement and civilian security sector reform. To carry out most of these tasks on the scale needed once a ceasefire comes into force, the mission would need additional resources from the EU and member states. One way to achieve this is to make greater use of individual member states’ capacity to support specific tasks of the mission—for example, the Dutch government has a dedicated funding stream to support its work on the stabilisation of Ukraine’s liberated territories. Other member states could draw inspiration from this and focus, for example, on limiting the circulation of small arms or stabilising and building up the capacities of law enforcement bodies in liberated areas.

The EU also already has a Military Assistance Mission for Ukraine (EUMAM Ukraine), which provides training support to Ukraine’s armed forces. It is currently operating from EU soil and is the other main tool potentially available to address security stabilisation. Once the hostilities end,the EU should relocate EUMAM Ukraine to Ukraine itself. This would help expand mutually beneficial cooperation with the Ukrainian military and support the continued transformation of Ukraine’s armed forces, adoption of Western standards and creation of a strong reserve army. In addition, EU member states could consider deploying their own specialised teams to Ukraine to support humanitarian de-mining and soil decontamination, giving priority to areas with civilian infrastructure or arable land. 

Supporting a flourishing democracy

In the three decades after its independence, Ukraine experienced two pro-democracy revolutions, one which was a response to a rigged election in 2004. Moscow’s first military aggression against Ukraine followed immediately after pro-democracy protests swept away autocratic President Viktor Yanukovych’s regime in 2014. So, for many Ukrainians, self-defence against Russian aggression is as much about protecting their country’s right to exist as it is about protecting their democracy. Ensuring Russia fails on the battlefield is, understandably, an all-consuming preoccupation. But for Ukraine’s prosperous and stable future, safeguarding democracy at home is just as vital.  

Elections

Under martial law, parliamentary and presidential elections have been postponed and some other rights remain restricted. Once the fighting ends, holding new elections in line with democratic standards will be as important as ensuring the election campaign avoids recriminatory clashes that only benefit (admittedly rather small) extremist domestic forces or Russia itself as it promotes political friendly constituencies within Ukraine. Making sure the millions of Ukrainian refugees are able to vote will be an administrative and logistical challenge, but also a political one. The halting of USAID programming for Ukraine has impacted on this area: these funds were among major sources of support for relevant state and non-state institutions and organisations involved in elections organisation, monitoring and observation.

The matter of elections requires more donor attention than it has yet received, as well as financial support. Ukraine’s constitution prohibits a parliamentary election taking place while under martial law. However, in theory, a presidential election might be held if the law on the martial law itself is changed (that is, there is no need to change the constitution). This legal situation has fuelled endless speculation in Kyiv about the possibility of a presidential election held even before the war is over. Such a vote would entail enormous challenges as outlined above—and is still unlikely to take place as long as the war continues. Regardless, when the time comes all relevant state institutions and civil society groups will need to have sufficient capacity to ensure the integrity of the vote. The monitoring of elections by credible civil society organisations will be as important as supporting the Central Election Commission’s work, in order to ensure the result is widely accepted by the population as well as by Ukraine’s international partners. The EU and member states should therefore work to strengthen the integrity and credibility of Ukraine’s future elections. They can do this by ensuring independent election observation organisations and watchdogs will be available and capable and the Central Election Commission has sufficient capacity to organise and monitor the vote.

Media

Ukraine’s media is important for sustaining what is still a vibrant political debate, but it has been skewed by the full-scale invasion. Shortly after February 2022, Kyiv launched a pooled news service “TV marathon” run by the country’s main broadcasters. The service has attracted criticism, including from the EU, for its lack of impartiality and sidelining of opposition voices. The EU has long supported Ukraine’s public broadcasting, not just financially, but also politically, by conditioning some of its financial assistance on steps to reinforce the public broadcaster’s independence. Yet, for now, the service has limited audience reach and lags behind its commercial competitors. The EU has also supported the development of the national media regulator (the National Council of Ukraine on Television and Radio Broadcasting), which still lacks the resources and capacity to fully exercise its powers. The EU should maintain its financial and political support directly to the public broadcaster and the regulator to ensure Ukraine’s public broadcasting service is strong, non-partisan and trusted and that it commands a nationwide audience. 

Independent media in Ukraine have also been struggling: in the wake of Russia’s full-scale invasion, advertising revenue dried up and donors such as USAID stepped in. Yet the cuts to most of USAID’s media funding have caused an acute shortage of resources for many independent outlets, including in places close to the frontline. Europeans, including the European Commission, have tried to increase some of their support for the affected media organisations, but they cannot fill the entire gap. The EU and other donors need to make sure the independent media sector is properly funded to prevent the media landscape becoming recaptured by vested interests and oligarch groups, as was the case for most of Ukraine’s history since independence. 

Helping Ukrainians return home and settle

Russia’s full-scale invasion created the fastest and largest displacement of people in Europe since the second world war. Ukraine was already battling a demographic crisis prior to Russia’s illegal annexation of Crimea in 2014. Since then, the country’s population has declined by 10 million people and now stands at around 37.9 million people. On Kyiv-controlled territory, the number may be well below 30 million. This includes direct casualties from the war, but also the 6.9 million other Ukrainians who left. Some have returned already—but many may only consider coming back once they see a viable future for their country. Moreover, Russia’s recent and intensified targeting of Ukraine’s cities could prompt even more people to leave their homes.

Once the ceasefire ends, the Ukrainian authorities will face two principal tasks when it comes to people’s mobility: first, ensuring the end of martial law (and therefore restrictions on the movement of men of mobilisation age) does not spark another exodus abroad; and avoiding the risk of even more people leaving if the country faces instability or further impoverishment after the fighting ends.

The authorities in Kyiv are well aware of the challenge.[6] In the first year of the full-scale invasion, the government merged two government departments into a new Ministry for Communities, Territories and Infrastructure Development of Ukraine. One of its tasks is to support the reintegration of the country’s 3.6 million internally displaced persons (IDPs). Last year, the government also established a new Ministry of National Unity and charged it with crafting policies to attract refugees to return home. Whether this meets with success or not depends not just on the policies themselves but—much more so—on the overall security and economic situation and access to housing and employment opportunities. These areas—that is, domestic security and economic situation—should be targets for European intervention once the ceasefire is established. But preparing for such intervention, in conjunction with the Ukrainian government, should start well before the fighting stops. 

The EU and other donors already have assistance programmes aimed at refugees’ and internally displaced persons’ economic and social reintegration in a number of other post-conflict or conflict-ridden regions, especially in Africa. However, in Ukraine, the scale of the challenge—and its proximity to the EU’s own borders—is incomparable to other locations EU-funded programmes have operated in. Unlike many other post-conflict environments, Ukraine has a functioning national government as well as regional and community-level governance. International partners including the EU and civil society should therefore work closely with the Ukrainian authorities to design and deliver a common toolkit of interventions to address not just immediate relocation requirements but also the economic, social and psychological needs of the returnees. This will entail the partners coordinating at the national level and scaling up what are currently often decentralised or isolated activities.

One of the key lessons from other post-conflict situations is to focus on a small number of pilot programmes which have proven successful elsewhere but adjust them to local conditions, and then scale them up nationally. Coordinating and working together would prevent fragmentation and ensure longer-term resource commitment. To this end, the EU should start now to convene key international and local actors on a regular basis in order to come to a shared assessment of the scale of the challenge and potential solutions. This will almost certainly involve identifying how to advance Ukraine’s economic recovery and provide sufficient opportunities and sources of livelihoods for those who return. The Ukraine Donor Platformis a multi-donor forum which brings key international partners and donors together with Ukraine’s authorities to coordinate their support for the country’s budgetary and financial needs. It too could address these issues.

Repowering the economy

Before 2022, Ukraine was undergoing a quiet transition from reliance on heavy industry towards becoming a 21st century economy. Entrepreneurial activity was booming across many sectors. The full-scale invasion has wrought huge damage to Ukraine’s industrial potential, but it has also forced the country to adapt with an unprecedented speed and versatility. Thousands of new companies are working on digital or defence technologies, drone production, new logistics routes and more. This innovation drive arose out of necessity imposed by Russia’s aggression—but it has already birthed a decentralised entrepreneurial web that Ukraine can rely on to underpin its future prosperity.  

Dire straits

In the first year of Russia’s full-scale invasion, Ukraine lost nearly one-thirdof its pre-February 2022 GDP and its industry experienced a steep decline in value. As a result of Moscow’s relentless attacks on the country’s energy grid and occupation of energy production sites, Ukraine now has only one-third of its pre-war power generation capacity. Russia has also targeted district heating and natural gas infrastructure, affecting millions of civilians and further stymying economic activity. Some of the damage has been fixed, but the repair bill keeps rising as Russia pounds civilian infrastructure.

Importantly, some of the vital US funding for protection of energy infrastructure is no longer available. Overall, the latest Rapid Damage and Needs Assessment suggests the total cost of reconstruction and recovery will come to €506bn over the next decade—2.8 times’ the estimated nominal GDP of Ukraine for 2024. According to the same report, the financing gap in 2025 alone is over €9bn. Ukraine is nowhere close to being able to meet this on its own. Most of Ukraine’s state budget is already financed by the West (excluding defence and army expenditure). Mobilising external support and, even more crucially, the private sector, will be critical for Ukraine’s future economic recovery.

Russian assets and funding the “beyond the horizon” plan

The EU has already pledged €50bn for 2024-2027 under its Ukraine Facility to disburse mainly loans, as well as grants, to advance Ukraine’s reforms and transform the business environment. The facility also aims to address immediate security and economic needs, including energy grid restoration or expansion of access to economic opportunities. However, the facility alone will not be able to cover the remaining colossal financial, investment and reconstruction needs. Moreover, in contrast to past conflicts elsewhere in the world, this time, Europeans and the Ukrainians will be unable to draw on much financial help from the US, traditionally their closest ally on these issues.

Even if the EU scrabbles together a few billion extra euros, it will hardly be enough. And in an era of tight budgets and fiscal consolidation in many EU states, political leaders across Europe will find sending money to a non-EU member even harder to justify to their voters. Therefore, Western decision-makers should look again at using Russia’s foreign assets.More than €280bn worth of these are currently effectively frozen abroad, most in the EU (€200bn).

EU countries have until now to make full use of these assets, preferring to draw down only their windfall profits. Their concerns stem mostly from potential legal issues and a wariness of weakening the position of the euro as a reserve currency. Some European governments, including in Belgium, where Euroclear holds most of the relevant assets in Europe, fear making full use of Russian assets could cause other non-EU countries to think twice before transferring or keeping their assets in the euro-zone. However, besides these debates about the potential impact on the euro of such a step, decision-makers should give greater weight to what this means for Europe’s security and ability to defend it. The EU’s hesitation also poses the following question to investors: should they keep their assets in an economic area which balks at properly defending itself, including by using all means at its disposal? Using the frozen assets would also be a powerful sign that the EU, indeed, has serious cards to play vis-à-vis Moscow.

Promisingly, more member states appear to be realising that Russia’s assets will eventually have to help fund Ukraine’s financial needs and its reconstruction, especially as these needs keep growing and US financial assistance beyond 2025 is now dubious. Policymakers should not defer until the end of the war the thinking about how to do this—and how to ensure funds are eventually used without being siphoned off through corruption or misuse. One way to move forward is for the EU to consider transferring Russian assets into a joint, EU-Ukraine managed fund whose stated objective is to support Ukraine’s stabilisation, reconstruction and recovery. Individual member states could also become shareholders proportional to the contribution they make to the fund. Ukraine has recently created a fund with the US in the minerals deal (in that case, Ukraine’s mineral wealth is the collateral rather than Russia’s assets). The EU could take up this model. These resources would be dedicated solely to rebuilding Ukraine, including: underwriting the higher insurance costs for EU companies taking part in reconstruction and recovery work; or issuing preferential loans for those seeking to invest.

Alternatively, EU member states could consider using frozen Russian assets by creating a EU-Ukraine liberty bond, as recently proposed by the Egmont Institute. This would be a special purpose vehicle in which Russia retains legal title to its assets—in effect, the EU would “borrow” the approximately €200bn worth of these assets for a period of 50 years to fund Ukraine’s reconstruction. There are other possibilities beyond this for the EU and its member states. But the fundamental point is that exploring such options and taking a political decision to use Russian assets does not mean waiting until hostilities end—Ukraine’s recovery and reconstruction needs are already dire. Such an injection of funds would ensure Ukraine’s economy survives not just the hot phase of the war but also flourishes in its aftermath.

A message to Moscow

The turmoil already unleashed by the second Trump administration on the course of Russia’s war in Ukraine has led many Western leaders to devote renewed political attention to their embattled neighbour. They are now seriously re-examining their defence and Ukraine policies. European decision-makers are well aware of the need to step up, and step in, on issues such as their own security, defence investment and reinforcing Ukraine’s diplomatic, military and financial position.

However, what European leaders lack is a “beyond the horizon” plan to help secure and stabilise Ukraine once the fighting ends, boost Kyiv’s ability to resist a likely continued hybrid war waged by Moscow and consolidate its European path. This policy brief has set out the pressing need to plan for all of this now and it has suggested how to do this. The shared plan between Europeans and Ukrainians should promote the security of Ukraine and the rest of Europe; map out Kyiv’s future integration into the EU; and stabilise the country domestically. Without this plan, the effects of extra military and financial contributions from Europe will not only reach their limit, they will vanish altogether if Russia is able to exploit Ukraine’s weaknesses after the war is over.

Peace in Europe demands the EU’s longer-term engagement and investment. It should start in Ukraine: a strong and durable European commitment to Ukraine’s prosperity and security will also serve as a deterrent to Russia. The Kremlin thinks it can wait for the West to tire or get distracted by other crises. But if the EU adopts this shared three-part plan together with Kyiv and—visibly, even noisily—makes a commitment for years to come, it will be a message to Moscow that the Russians will never be able to match Europe’s resources and political will. If Europeans can demonstrate they have a solid plan in place for their neighbour, it could hasten the day it is required—and dissuade Russia from relaunching large-scale attacks on Ukraine a few years down the road.

Recommendations

Help Ukrainians defend themselves

Europeans should:

  • provide Ukraine with more of the ammunition and capabilities that can help it counter any Russian offensives.
  • further support the growing ability of Ukrainian industry to produce much of what the country needs, ranging from air and sea drones to ammunition and combat platforms.
  • find a way to mitigate the consequences of new cuts in US military assistance to Ukraine—starting by looking at military systems where dependency on US assistance is the heaviest, such as air and missile defence, intelligence and targeting, and secure communication systems.
  • promote the extensive use of the newly established NATO Ukraine Council framework.
  • ensure the enlargement processes covers—upfront—the further deepening of defence, technological  and security ties, through the development of a unique and broad security partnership.
  • foster joint ventures and long-term public and private partnerships to make the Ukraine of tomorrow a full part of the European defence and technological industrial base.
  • deploy a European security presence based in or very close to Ukraine.

Integrate Ukraine into European institutions

Europeans should:

  • accelerate Ukraine’s integration into the single market by establishing a single market in industrial products, deepening market integration in services and providing greater access to public procurement opportunities between the EU and Ukraine.
  • look closely at greater market opening for some, less sensitive, Ukrainian agricultural products, such as fruit, corn and flour.
  • drastically accelerate the implementation of infrastructure projects—especially in transport, energy and border connectivity—to rapidly boost Ukraine’s economy and support regional integration.
  • fast-track physical integration with the rest of Europe and energy recovery, including green investments and critical power infrastructure as an immediate priority, regardless of Ukraine’s procedural EU accession timeline.
  • speed up the integration of Ukraine into key EU security and defence policy initiatives—from the EDA, to PESCO projects to EU instruments such as the EU hybrid and cyber response teams.

Support Ukraine’s domestic resilience

Europeans should:

  • use the presence of a European reassurance force on the ground, as well as European investment in Ukraine’s defence capabilities, to help recover small arms.
  • avoid inventing a whole new toolkit to support veterans’ integration but find substantially more funds (and ensure appropriate oversight) in support of this.
  • once fighting stops, relocate the EU Military Assistance Mission for Ukraine to Ukraine itself and consider deploying specialised European teams to Ukraine to support humanitarian de-mining and soil decontamination.
  • work to strengthen the integrity and credibility of Ukraine’s future elections by ensuring independent election observation organisations and watchdogs are available and capable and that the Central Election Commission has sufficient capacity to organise and monitor the vote.
  • maintain EU financial and political support directly to the public broadcaster and the regulator to ensure Ukraine’s public broadcasting service is strong, non-partisan and trusted and that it commands a nationwide audience.
  • make sure the independent media sector is properly funded to prevent the media landscape becoming recaptured by vested interests and oligarch groups.
  • target domestic security and economic policies to help Ukrainians abroad feel safe to return home—and prepare such policies, in conjunction with the Ukrainian government, well before the fighting stops. 
  • work closely with the Ukrainian authorities to design and deliver a common toolkit of interventions to address not just immediate relocation requirements but also the economic, social and psychological needs of Ukrainian returnees.
  • start now to convene key international and local actors on a regular basis in order to come to a shared assessment of the scale of the challenge (and potential solutions) regarding returning refugees and IDPs.
  • look again at using Russia’s foreign assets held in Europe, including considering transferring these assets into a joint, EU-Ukraine managed fund whose stated objective is to support Ukraine’s stabilisation, reconstruction and recovery; or use frozen Russian assets to create a EU-Ukraine liberty bond.

About the authors

  • Camille Grand is a distinguished policy fellow at the European Council on Foreign Relations and head of the organisation’s defence, security and technology initiative. He previously worked as assistant secretary general for defence investment at NATO.
  • Jana Kobzova is co-director of the European Council on Foreign Relations’ European Security programme. She previously worked as diplomatic adviser to the president of Slovakia.
  • Nicu Popescu is co-director of the European Council on Foreign Relations’ European Security programme. He is a former deputy prime minister and foreign minister of Moldova.

Source: This article was published by ECFR.

Acknowledgments: The authors would like to thank all their interlocutors in Ukraine, EU and NATO member states and NATO, EU institutions and missions. These interviews and discussions have enriched our understanding, helped us gain deeper insights and tested and improved our arguments. We would like to especially acknowledge Adam Harrison’s patient editing work and thank other ECFR colleagues including Jeremy Cliffe, Mark Leonard, Marie Dumoulin, Leonid Litra, Dmytro Kuleba and Jeremy Shapiro for engaging conversations and feedback on various parts of the text. While we have benefitted from their insights, the sole responsibility for the content of the brief lies with us as authors alone. Last but not least, we would like to recognise the work of the servicemen and servicewomen of the Armed Forces of Ukraine—without their work and sacrifice, we would not be able to safely make the numerous trips to Ukraine and back.


[1] Authors’ interviews in Ukraine and the US with high-ranking diplomats and officials, April-May 2025.

[2] Authors’ interviews in Ukraine and the US with high-ranking diplomats and officials, April-May 2025.

[3] Authors’ interviews in Brussels with defence industry representatives, May-June 2025.

[4] Authors’ interview in Kyiv with a senior Ukrainian official, June 2025.

[5] Authors’ interviews with EU and member state officials, Brussels and EU capitals, April-May 2025.

[6] Authors’ interviews with Ukrainian and Western officials, Kyiv, April-June 2025.

The European Council on Foreign Relations does not take collective positions. ECFR publications only represent the views of their individual authors.

ECFR

The European Council on Foreign Relations (ECFR) is an award-winning international think-tank that aims to conduct cutting-edge independent research on European foreign and security policy and to provide a safe meeting space for decision-makers, activists and influencers to share ideas. We build coalitions for change at the European level and promote informed debate about Europe’s role in the world.

 

Ukrainian President Volodymyr Zelenskiy is set to attend a Nato summit in The Hague next week after all

Ukrainian President Volodymyr Zelenskiy is set to attend a Nato summit in The Hague next week after all
Ukrainian president Zelenskiy will attend the Nato summit in the Hague after all, but it is not clear if he will meet US president Trump, but it is clear he will not be allowed to mention Ukraine's Nato membership plans. / bne IntelliNews
By Ben Aris in Berlin June 21, 2025

Ukrainian President Volodymyr Zelenskiy is set to attend a Nato summit in The Hague next week after all, the European Council confirmed on June 20, amid uncertainty over the US role in transatlantic security commitments.

Confusion has reigned over the question of Zelenskiy participation in recent weeks. Ukraine has received an official invitation to the annual summit, the Lithuanian Foreign Minister Kęstutis Budris said last week.

"There is no such issue on Nato's agenda, and we have not heard any signal about expecting an invitation to membership, including from the Ukrainians themselves," Budris said, stressing that one should not expect "breakthrough decisions".

European Commission President Ursula von der Leyen and Nato Secretary-General Mark Rutte confirmed they are scheduled to meet Zelenskiy on June 24 at the summit, according to a schedule released by the European Council.

Zelenskiy reportedly was vacillating over attending unless there was a firm commitment by the Trump administration for a meeting between the two presidents. The Guardian reported on June 17 that Kyiv remained unsure whether Trump would participate meaningfully in the summit discussions.

Zelenskiy recently attended the failed G7 summit in Canada where a meeting between him and Trump failed to happen after Trump cut short his visit and left after only one day.

Zelenskiy has been pushing very hard for meaningful Western security guarantees, preferably Nato membership, as part of his “victory plan” that he touted in Western capitals at the end of last year. Ukraine’s western allies have remained very reluctant to agree and the lack of a Western commitment to security deals is what caused the 2022 Istanbul peace deal to collapse.

Since then Secretary of State Marco Rubio has said explicitly that Nato membership is off the table as part of the ceasefire talks that kicked off in Riyadh on February 18. Trump appears to be miffed after Zelenskiy rejected his ceasefire “final offer” in April and came back with a counteroffer that started and ended with Russia accepting an unconditional immediate ceasefire, back by Ukraine’s European allies. Since then, as bne IntelliNews opined, the ceasefire talks are dead in water.

Even if Trump turns up, the summit, scheduled for 24-25 June, will already happen in an unusually brief format, with just one meeting lasting two and a half hours. The programme has been adapted to suit the communication style of Trump, who openly dislikes lengthy diplomatic meetings, The Times reports. Summit is going to be as short as possible and focused entirely on one main topic – increasing defence spending by member countries at America’s insistence. Trump is one of 32 leaders from the Western defensive alliance who are coming, along with the heads of more than a dozen partner countries.

Scaled down participation

Ukraine’s participation has been steadily scaled down at the regular Nato summits. He caused considerable embarrassment at the Vilnius Nato summit in 2023 by aggressively demanding accelerated Nato membership for Ukraine

At the Washington Nato summit in 2024 hosted by the Biden administration Zelenskiy was told explicitly not to bring the question of Ukraine’ Nato membership up at all, according to reports, as no one wanted to address the issue. Instead, the Nato members watered down their  commitment to the empty rhetorical phrase of “Ukraine’s irreversible path” to eventual Nato membership, without committing themselves to anything concrete or a timeline.

Now with the Hague Nato summit it has not been clear until this weekend if Ukraine will be invited at all. Even then, officials have already said that mention of the Ukraine conflict will be included in the final communiqué by the members. Condemnation of Russia was already excluded from the G7 meeting and no joint communiqué was issued, thanks to an argument with the White House over what it should contain.

The draft communiqué for this summit will be no longer than one A4 page and contain just five paragraphs unlike last year’s 5,000 word document. It will largely avoid mentioning Ukraine, concentrating instead on boosting defence spending, according to reports on the preparatory work. And like the G7 meeting in Canada, according to the summit programme, Trump will not hold the conventional joint press conference with Nato Secretary General Mark Rutte.

With US military aid having already fallen to nothing since 2024, Europe’s Nato members have already taken over the lion’s share of funding Kyiv’s military efforts. Von der Leyen launched the €150bn European ReArm in March, but it is unclear if the so-called Coalition of the Willing can supply Ukraine with all it needs to prevent a military defeat at Russia’s hands.

During the recent ceasefire negotiations in Istanbul on June 3, the head of the delegation suggested that Russia could occupy up to eight new regions in addition to the five it already holds if Kyiv didn’t acquiesce to the Kremlin’s maximalist demands.

The US is demanding Nato members raise their spending from the current 2% of GDP to at least 3.5% by 2032, along with an extra 1.5% for securing infrastructure, borders, and other defence-related initiatives, including citizen preparedness for crises.

Unlike past statements, the draft communiqué does not reference last year's proposal to provide $40bn in military aid to Kyiv annually. The draft does label Russia as a "threat" to Euro-Atlantic security but refrains from designating it as an "aggressor" for waging a war in Ukraine – language the White House has shown itself particularly adverse to.

In the last days, the White House has removed all references to the Bucharest Memorandum signed in 2008 from its official website, where then president George W Bush promised Ukraine’s “eventual” membership in Nato (video), over objections from former German Chancellor Angela Merkle and French president Emmanuel Hollande.

Ukraine’s support amongst his European allies remains firm, but increasingly irrelevant as EU leaders have failed to sway Trump. Since taking office in January, the Trump administration has failed to commit to any new funding, military support or sanctions whatsoever.

 

 

Separatists in Transnistria face deep economic contraction as Russia restricts subsidies

Separatists in Transnistria face deep economic contraction as Russia restricts subsidies
Transnistria’s industrial output fell by 43% in the first five months of 2025. / bne IntelliNews



By Iulian Ernst in Bucharest June 20, 2025

The separatist region of Transnistria in Moldova is facing a deepening economic crisis following a shift in Russia’s approach to subsidising its energy needs, local authorities confirmed during a cabinet meeting convened by the region's leader on June 17.

Vadim Krasnoselsky, president of the unrecognised Pridnestrovian Moldavian Republic (PMR, also known as Transnistria), summoned executive officials in Tiraspol to discuss the worsening fiscal situation and extended the region’s state of emergency on June 12 due to ongoing uncertainties in natural gas supply. Russia, which had previously supplied the breakaway region with near-free gas, began in 2025 to impose tighter restrictions and route financing through subsidies for gas purchases instead.

According to the state news agency NovostiPMR, Minister of Economic Development Sergei Obolonik reported that Transnistria’s industrial output fell by 43% — a loss of 3bn Transnistrian rubles ($186.3mn) — in the first five months of 2025. Output in the electric power sector dropped 51.5% year-on-year, while metallurgy and chemical industries contracted by up to 68%. Only the food sector, serving the domestic market, maintained stable production.

Exports declined 31.5%, excluding electricity shipments to the rest of Moldova, which have now ceased. The region's economic deterioration has also been fuelled by unstable energy supplies. Transnistria is currently dependent on limited Russian-financed gas deliveries via a Hungarian intermediary after Russia ceased direct gas flows to Moldova at the start of 2025.

Krasnoselsky acknowledged during the meeting that “traditional approaches that previously allowed the republic's economy to be maintained are no longer sufficient in the current conditions, and the reserves used have been practically exhausted,” Newsmaker reported.

Finance Minister Alena Ruskevich said funding sources for the budget have been significantly reduced, and social spending commitments are now at risk.

Looking ahead, Obolonik projected a 12% year-on-year drop in GDP in the second half of 2025, with industrial production expected to decline a further 30%. Agricultural output may fall by 6%, foreign trade by 20%, while inflation could reach 16%.

“We can expect no real growth in the economy,” Obolonik said. “The best scenario is for indicators to remain at this year’s levels.”

Russian ghost ship towed from Gdynia for scrapping in Denmark

Russian ghost ship towed from Gdynia for scrapping in Denmark
A Google Maps view of Khatanga in Port of Gdynia / bne IntelliNews/Google Maps
By bne IntelliNews June 20, 2025

Polish authorities have begun the removal of the derelict Russian oil tanker Khatanga from the Port of Gdynia after years of abandonment, Radio Zet said on June 18.

The vessel, which arrived in Gdynia in October 2017, had remained docked for nearly seven years following a failed technical inspection. Khatanga was never repaired and, in 2020, its owner, Murmansk Shipping Company, declared bankruptcy. 

Poland later declared Khatanga a maritime safety risk after it broke free from its moorings twice within two months. It has since been classified as waste and is now being towed to a certified scrapping facility in Denmark.

The tanker, measuring 158 metres in length and weighing over 15,000 tonnes, previously served as a crude oil transport vessel. 

According to Radio Zet, the cost of hosting the vessel during its years-long stay exceeded PLN15mn (€3.51mn). The Port of Gdynia is reported to have issued a legal notice to the law firm representing the bankruptcy administrator of Murmansk Shipping Company in an effort to recover expenses.

Because of the size and condition of the vessel, the scrapping process required an EU-certified dismantling yard equipped to handle such operations. 

Danish authorities approved the Khatanga’s arrival at their facility after confirming its classification as waste under EU maritime rules, according to Radio Zet.

 


Russian economy: cooling or recession?




Russia's economy is cooling and that is bring down inflation. That was the plan, but did the CBR over do it? On the economics panel at this year's St Petersburg investment summit, they were asking: is it just cooling or is Russia going into recession? / bne IntelliNews

By Ben Aris in Berlin June 20, 2025


One of the most closely watched sessions at the annual St Petersburg International Economic Forum (SPIEF), which is underway now, is the economic panel with the heavy hitters from the Kremlin’s economic team. This year the discussion was: is Russia’s economy in recession or just cooling?

Led once again by Andrei Makarov, the wryly acerbic head of the State Duma Budget Committee, the panel featured Central Bank Governor Elvira Nabiullina, Finance Minister Anton Siluanov, and Economy Minister Maxim Reshetnikov. Russian President Vladimir Putin’s economic advisor Maxim Oreshkin, Deputy Chief of Staff to the Presidential Executive Office, who had long been a fixture in these discussions, was not present this year.

The discussion was lively. It was already clear last summer that the economy would slow this year. As reported by bne IntelliNews, the Central Bank of Russia (CBR) issued a pessimistic medium-term macroeconomic outlook at the start of August that said growth would slow sharply in the first half of this year.

Indeed, unable to curb the Kremlin’s massive military spending, Nabiullina tied up with the Ministry of Finance (MinFin) to artificially cool the economy by adopting non-traditional non-monetary policy methods to crush spending in an effort to bring down persistent inflation.

And it worked. Maybe too much. The economy has been slowing and inflation has been coming down, but after OPEC decided to increase production in April, to punish Kazakhstan, which has routinely been ignoring its agreed production quota, oil prices collapsed, falling to a low of $58, chopping Russia’s oil revenues by a third. At the same time interest rates remain very high even after a symbolic cut of 100bp to 20% last month. Russia’s economy contracted in the first quarter of this year in real terms, even though it put in a nominal 1.4% of growth. It seems that Nabiullina has overdone the slowdown.

“Based on current business sentiment and leading indicators, we are on the verge of slipping into a recession,” Economy Minister Reshetnikov told the delegates in St Petersburg during a heated exchange with the other officials. “The numbers suggest a cooling, but all data is essentially a rear-view mirror,” he said. “Based on the current feelings of business [...] we are, in general, well, it seems to me, on the verge of going into recession.”

In an interview just days earlier, Oreshkin declared that Russia’s current growth model is exhausted and needs more investment and reforms to go back to growth. Makarov seized on the opportunity to press the panel: what, then, should come next?

Nabiullina was more sanguine. The economy may be slowing more than expected, but the plan is working as after almost two years of no progress inflation has begun to fall and fall faster than expected. Characteristically cautious, she explained: “Our demand economy was growing, but the supply economy was lagging, and that’s where the overheating and inflation came from.”

The weekly Rosstat calculation of Russia's annualised inflation rate slowed to from over 10% to 9.6% as of June 16 after falling from 9.73% on June 9 and 9.88% at the end of May. However, the rate still remains well above the CBR’s target rate of 4%.

The 2025 budget assumes inflation at 7.6%, but Reshetnikov said the forecast will be revised downward in August.

Amongst the measures take, a generous mortgage subsidy programme was ended last July, state guaranteed loans to state-owned enterprises (SOEs) have been slashed, and for the first time ever Russians paid off more consumer loans than they took out over the first half of this year after the CBR hiked the macro prudential restrictions on retail borrowing. Among the knock on effects from these measures is the real estate market has been rocked and construction is one of Russia’s three big economic drivers.

"The inflation forecast is a calculation backed by our determination to achieve the target,” Nabiullina said. “Some might call this stubbornness <…>, but 'persistence' is a more accurate term. We have been striving and will continue to strive to bring inflation down to the target level of 4%," she said.

Nabiullina emphasized that reducing inflation is crucial both for individuals and for businesses, as high inflation erodes income and savings. "Low inflation is the foundation for the growth of real household incomes," she concluded.

Siluanov was also upbeat, suggesting that while the current slowdown was sharper than intended, the economy would start to recover in the second half of this year as the falling inflation and lower interest rates kick in.

“We’re going through a cold spell now,” Siluanov said during the forum session. “But after every cold spell comes summer.”

Siluanov has proven to be a prescient forecaster. In 2023 after the West imposed its twin oil sanctions, the economy received a major shock with the budget deficit in just January soaring to 1.7% of GDP. Analysts predicted a major slow down and an end of year deficit soaring to as much as 12% of GDP, with a consensus closer to 3-4%. However, Siluanov stuck to his official forecast of 2% of GDP, arguing that a deep study of the budget and projected revenue flows told him things were not as bad as they seemed. Russia's budget ended that year with a deficit of 1.9% of GDP.

Progress has finally been made in bringing down inflation, but Nabiullina was cagey on the topic of when the CBR can start cutting rates again. She said she will reduce the key rate “as inflation slows in Russia,” but was upbeat on the prospects for another cut without saying anything specific.

"We will cut rates as inflation declines. It is currently slowing down, even faster than we expected, and inflation expectations will decrease accordingly - this is how it should work," Nabiullina said.

Nevertheless, this will be a painful year for Russian business. According to bne IntelliNews sources in Moscow, all the major firms are suffering from the sky-high interest rates and debt servicing is eating into profits.

“No one has any cash,” one board member of a major conglomerate told bne IntelliNews recently. “Every spare ruble is being eaten up by debt repayments. Everyone is cancelling all non-essential investment projects and some of the oligarchs are running out of cash.”

So far the Kremlin has avoided bailouts or debt relief, but on the flip side it has also avoided hiking taxes, which remains an option to cover budget shortfalls.

MinFin has been tapping its other resources to close the circle. It is tapping the domestic bond market, which has some RUB20bn of liquidity via banking sector liquidity with more than RUB2.7 trillion ($35bn) of new Russian Finance Ministry’s OFZ treasury bill issues, or 56% of its annual borrowing plan.

And this is expensive borrowing. MinFin is paying steep yields of 15.2% on six-year bonds and 15.5% on 11-year debt, thanks to the high prime interest rates.

It is also planning to tap the National Welfare Fund (NWF) again, drawing down just under RUB500bn this year to fund the deficit. That is actually a relatively modest amount as Siluanov wants to preserve as much cash in the fund as he can for emergencies. The liquid part of the fund has fallen from around RUB8.8 trillion pre-war to only RUB2.8 trillion now, against a projected total budget deficit this year of just under RUB3.9 trillion.

What next?


So, what is the outlook for this year? In its last macroeconomic survey the CBR anticipated growth slowing for 2025 and 2026, with real GDP growth projected to be between 0.5-1.5% in 2025 and 1.0-2.0% in 2026 and inflation is expected to be around 5.3% in 2025.

Siluanov has been working hard to prune the tax code and expenditures to produce as lean a budget as he can. “What have we been doing in recent years?” he asked rhetorically. “And it is yielding results! Because some companies are leaving, some are appearing. And that means our model is working... Indeed, this year we have a planned cooling. But everything will depend on our own actions. The goal-setting is absolutely correct.”

Reshetnikov suggested incrementalism. He called for addressing long standing structural issues “without revolutions,” citing stagnant labour productivity, which is a major problem, and unpassed bills on bankruptcy and the digital platform economy.

Oreshkin’s call for a new technological and organisational leap was echoed abstractly by Siluanov, who spoke of achieving “technological sovereignty” — though specifics were lacking.

Business are unhappy with Nabiullina’s go-slow policies and want the central bank to cut rates, even if that means higher inflation. Deputy Prime Minister Alexander Novak summed up the sentiment, saying that current indicators indicate the need to reduce the Central Bank's key rate and abandon the cooling policy. He reported this at a Sberbank business breakfast as part of the St. Petersburg International Economic Forum. According to him, it is necessary to move from controlled cooling to, on the contrary, heating of the economy. “To do this, you need to not miss the moment when it needs to be done,” Novak said.

But tellingly, the panel avoided any mention of the elephant in the room: the strain of enormous and growing military spending on the war, which is not going to change.
CZAR Putin:

 'All of Ukraine is ours' in theory, eyes Sumy city
DW with AFP, AP, dpa, Reuters
20/06/2025 - 

Russian President Vladimir Putin has revived a controversial narrative, claiming that theoretically "all of Ukraine is ours." He also sparked more immediate concerns with comments about seizing Ukraine's city of Sumy.




Putin said the Russian and Ukrainian people were one and that, as such, so were both countries


Russian President Vladimir Putin has declared that Russians and Ukrainians are "one people" and that, in that sense, "all of Ukraine is ours."

The assertion underscores Moscow's continued underlying rejection of Ukrainian sovereignty and raises renewed alarm over Russia's territorial ambitions.

What did Putin say about Ukraine's sovereignty?

Speaking at the St. Petersburg International Economic Forum on Friday, Putin issued a series of provocative remarks, notably stating: "We have a saying… where the foot of a Russian soldier steps, that is ours."



He was responding to a question about Russia's objectives for its full-scale invasion of Ukraine, launched in February 2022.

The Russian leader emphasized that while Russia "never doubted" Ukraine's sovereignty after its 1991 independence, it had declared itself a neutral state — a stance he accused Ukraine of having abandoned.

Reiterating a longstanding narrative, he said Russians and Ukrainians were essentially the same nation — a position Kyiv and its Western allies categorically reject.

"I have said many times that I consider the Russian and Ukrainian peoples to be one people. In this sense, all of Ukraine is ours," Putin said.

Ukraine said Putin's comments showed his "disdain" for the peace process.

"Putin's cynical statements demonstrate complete disdain for US peace efforts," Ukrainian Foreign Minister Andriy Sybiga said in a post on X. "The only way to force Russia into peace is to deprive it of its sense of impunity."
What did Putin say about Sumy?

Among the key developments, Putin said he did not "rule out" the capture of the northeastern Ukrainian city of Sumy, which lies roughly 30 kilometers (just over 18 miles) from the Russian border.



"We have no objective to take Sumy but, in principle, I do not rule it out," he said, accusing Ukrainian forces of persistently shelling Russian border areas. He added that Russian troops had already penetrated up to 12 kilometers into Ukrainian territory in the Sumy region to create what he called a protective "buffer zone."

Sumy, though not among the five Ukrainian regions Moscow claims to have annexed — Donetsk, Luhansk, Kherson, Zaporizhzhia, and Crimea — has been a frequent target of Russian attacks. It also served as a launching point for a Ukrainian counteroffensive into Russia's western Kursk region last August, during which Kyiv's forces briefly captured dozens of settlements before being pushed back by Russian troops — bolstered by thousands of North Korean soldiers, according to reports.

Putin's remarks come amid growing skepticism over the viability of peace negotiations, with Moscow continuing to demand further Ukrainian territorial concessions as a precondition for any ceasefire.

Edited by Sean Sinico

"Ukraine is ours" Putin tells deleages at SPIEF

Russian president Putin put the cat amongst the pigeons again, by saying that anywhere a Russian soldier puts his foot belongs to Russia and on these terms "all of Ukraine is ours." / bne IntelliNews
By Ben Aris in Berlin June 21, 2025

“Ukraine is part of Russia,” Russian President Vladimir Putin said in his keynote address at this year’s St Petersburg International Economic Forum (SPIEF) plenary session on June 20, putting the cat amongst the pigeons.

Putin repeated that he considered Russians and Ukrainians to be “one people” and "in that sense the whole of Ukraine is ours" (video), causing outrage amongst Ukraine’s supporters and a round of applause from the delegates at SPIEF.

"We have a saying, or a parable," Putin said during the plenary panel session. "Where the foot of a Russian soldier steps, that is ours."

Ukrainian Foreign Minister Andrii Sybiha shot back: "Putin's cynical statements demonstrate complete disdain for U.S. peace efforts," in a post on social media. “Wherever a Russian soldier sets foot, he brings along only death, destruction, and devastation.”

The Russian president added the caveat that he was not questioning Ukraine's independence or its people's striving for sovereignty, but he went on to point out that when Ukraine declared independence as the Soviet Union fell in 1991 it had also declared itself as a neutral power. Russia’s key demand in the conflict is that Ukraine return to neutrality and give up its Nato ambitions which were written into the constitution in 2014.

After initially indicating last November there was “limited wiggle room” for concessions on the Kremlin’s maximalist demands for territorial claims to the five regions Russia has annexed, including the Crimea, Putin has since hardened his position and gone back to what is tantamount to Ukraine’s capitulation with the main points: no Nato for Ukraine and a return to neutrality; conceding Russia's de jura control over occupied territory; and strict limits on the size of Ukraine’s military.

In response to the idea that the war in Ukraine is “killing” the Russian economy, Putin quote Mark Twain, saying, “As a well-known writer once said: ‘The reports of my death are greatly exaggerated.’”

Best offer Ukraine can get

At a parallel United Nations Security Council (UNSC) meeting on June 20, Russia’s ambassador Vasily Nebenzya said the Kremlin’s current offer that “takes the realities on the ground” into account is “the best offer Ukraine can get today,” referring to the terms outlined at a meeting in Istanbul on June 3.

"During the direct Russian-Ukrainian talks that were held, we presented our memorandum on a peaceful settlement. It consists of two parts: conditions for a comprehensive long-term peace and conditions for a ceasefire," Nebenzya said. "This is the best offer Ukraine can get today. We advise accepting it as things will only get worse for Kyiv, from here on out.”

Ukrainian President Volodymyr Zelenskiy has referred to the new Istanbul terms as nothing as an “ultimatum” and rejected them out of hand, calling instead for Russia to respect the 30-day ceasefire proposal floated by the Trump administration in March.

Putin said that he is still willing to meet with Zelenskiy personally and Nebenzya noted that the two sides should resume direct peace talks in Turkey after June 22, despite Russia's intensified drone and missile attacks on Ukraine, The Kyiv Independent reports.

Other delegates at the UNSC meeting repeated calls for Russia to halt the increased missile barrage on Ukraine.

"We call on Russia to agree to an unconditional ceasefire. Russia initiated this war; we call on Russia to end it," Barbara Woodward, the UK's Permanent Representative to the UN, said.

Despite the hopes that a ceasefire deal could be done, brokered by US President Donald Trump, those hopes have been quashed by the widening positions between the two sides and as bne IntelliNews opined recently, the ceasefire talks are currently dead in the water.

Attendance down

Putin used the speech to reiterate his standard motives of restructuring the Russian economy and the creation of a multipolar world order. His speech was followed by a panel discussion with several other political leaders, including Indonesian President Prabowo Subianto, Chinese Vice Premier Ding Xuexiang, Bahraini Prince Nasser bin Hamad Al-Khalifa, and South African Deputy President Paul Mashatile, highlighting Putin’s big bet on the Global South Century where he is counting on the world’s emerging markets to replace the West as Russia’s main trading and investment partner.

The forum runs between June 18 and 21 but attendance at Russia’s premier investment confab has dropped considerably in recent years. Western guests were few and far between, replaced by delegates from the Global South and the Middle East in particular.

This year, the Kingdom of Bahrain and the Indonesian President Prabowo Subianto, who declined an invitation to this week’s G7 Summit and chose to attend SPIEF instead, were the forum’s guest of honour, with delegates mostly arriving from China, Vietnam, Saudi Arabia, African countries where Russia has a military presence, and Taliban-administered Afghanistan.

The Kremlin has expended significant diplomatic efforts to improve relations with the Trump administration, and the hope was that US guests would showcase how the country’s international isolation is easing. It didn’t happen. The head of AmCham Robert Agee was there, and a “Russia-USA” panel was organized with American participants, but no heavyweight business figures, that used to be a regular feature at SPIEF, bother to show up.

Economy in trouble?

Apart from the usual announcements of regional investment projects with the participation of state-owned companies timed to coincide with the forum, little of note was actually announced.

Foreign investment has fallen off to next to nothing and that is causing economic problems as the economic management team debated on its closely watched annual panel is Russia’s economy cooling or falling into recession.

Tellingly, a week before SPIEF kicked off presidential advisor Maxim Oreshkin, one of Russia’s economic policy leading lights, said Russia's current economic model has exhausted its capacity to drive growth and must be restructured to ensure future development.

In a bid to save money, several governors chose not to attend the forum at all and scale down their region’s representative pavilions, BMB Russia reported




“Somewhere deep in his mind, comrade Putin compares himself to Stalin

Human rights activist Oleg Orlov was arrested after he called Russia a totalitarian and fascist country. He fears that Russia is heading towards the return of the death penalty and urges European officials to support Ukraine in the war.

LONG  READ


Georgii Chentemirov
13 June 2025 - 
THE BARENTS OBSERVER

The Barents Observer met with renown human rights activist Oleg Orlov during his visit to Kirkenes, northern Norway, in May 2025. This is a translation of our original Russian-language interview.

— You ended up in a colony for an article in which you called Russia a totalitarian and fascist state. Why exactly? There is still a certain discussion, for example, about what kind of regime exists in Russia — totalitarian or authoritarian.

— First. At the moment, it is already obvious that the state interferes in all aspects of a person's life. Economy, politics, social life — of course; but now religion and art are also under the strictest control. Private life is no longer private, the state is already intruding into the citizen's bedroom — or rather, even the subject's.

When nothing is left without state control, we can already talk about totalitarianism.

Let's look further. In the Soviet period, the pioneers, the Komsomol, the school as a whole were used as mechanisms of propaganda. Now we see exactly the same thing; this is also an element of totalitarianism.

Next: what kind of totalitarianism is this? Certainly not communist. So what is it? Well, I took the formal definition of the Russian Academy of Sciences and started comparing it with what is happening.

Firstly: it is a political practice and theory that proclaims exclusivity over other ethnicities, states, nations. And they have proclaimed a separate nation, a civilisation that has priority over others. Next: suppression, discrimination against other ethnicities or nations. Well, listen, the denial of the very existence of the Ukrainian people, the Ukrainian language, Ukrainian culture — what is that? It's the same thing. Next, the cult of the leader; well, it's pointless to talk about it.

Next — suppression of political opposition and dissent (!) through state terror; there's no need to discuss it much, let's see who and for what they imprison. And finally — the justification of war as a means of resolving interstate contradictions.

And in my article, I simply suggested: let's discuss, there are other points of view, but from my point of view, this can be called fascism. Well, that's why I was imprisoned.


Oleg Orlov came to Kirkenes to speak at the Kirkenes Conference. Photo: Georgii Chentemirov

Oleg Orlov


Oleg Orlov began his public activities back in 1979. He distributed leaflets about the war in Afghanistan and the situation in Poland. Since 1988, he became a member of the initiative group "Memorial". Orlov worked during the Chechen war and participated in negotiations for prisoner exchanges. In 1995, he was part of a group that negotiated with terrorist Shamil Basayev, who had taken 1,200 residents of the town of Budyonnovsk in the Stavropol region hostage. Orlov, along with several human rights activists, deputies, officials, and journalists, surrendered as hostages to secure the release of civilians. In March 2023, a case was initiated against Oleg Orlov for repeated "discrediting" of the Armed Forces; he was sentenced to 2.5 years in prison. In August 2024, Orlov was included in a prisoner exchange group: Russian political prisoners were exchanged for spies and murderers.


— What is the secret of fearlessness?

— I don't know.

— No, you do know. You voluntarily went as a hostage to Shamil Basayev in 1995. While in Russia, you did things for which you could be imprisoned, and you were eventually imprisoned. A huge number of people would not be ready even for a tenth of what you did. Is there some kind of recipe?

— I have no recipe, and the word “fearless” doesn't fit either.

I was very scared in two instances in my life. The first was on the eve of prison: you are constantly gnawed by a worm — damn, what will happen there?.. And the second was when I was printing leaflets back in Soviet times. And I understand why I was so scared: I was alone. And from this, I think, comes some conclusion.

Firstly, there must be some sphere of tasks. You understand that you are doing some important work, necessary work. But that's not enough; secondly, you must not be alone. Even placing yourself in a line of people who were before, who are now, and who will be in the future… It's not a recipe, but it helps.

— Where were you more scared: as a hostage of Basayev or in a Russian prison?

— People don't believe me, but I wasn't scared as a hostage. On the contrary, I was inspired. We achieved what we wanted — to free the hostages and save them. And it gave a colossal sense of work done.

In prison, the hardest part was the first day. You find yourself in an absolutely incomprehensible, unfamiliar, unclear situation. I read a lot, talked to people, but still. I was riding in a prison van, alone, into complete unknown… And after entering the cell, getting to know my cellmates, prison life began. And my prison experience was much easier than many others.

— There are currently about a thousand political prisoners from Russia on Memorial's lists. By how much, in your opinion, is this figure underestimated?

— Memorial's lists are a special thing, every letter is verified, we know everything about the criminal case. But this is the lower limit. I have been in five prisons and in each I tried to find out how many political prisoners there were. [Everywhere I encountered] familiar names, but then I counted — and found out exactly as many people who are obviously imprisoned for political reasons, but nothing is known about them. Anti-war statements; someone went out on a picket; a person who was obviously framed for espionage; Jehovah's Witnesses and other religious people, no one knows anything about them at all.

And how many conscientious objectors are imprisoned? We don't know if all of them are for political reasons or not. And how many civilians have been taken from the so-called "new territories" of Russia?

Well, if you estimate, it's thousands of people.

— Are repressions an internal matter of Russia? Or not so internal?

— Any political repression is not an internal matter of a country. A country that suppresses the freedoms of its citizens and engages in political repression is very likely to pose a threat to the outside world.

The entire post-war world is built on the premise that human rights are not a domestic affair. The Soviet Union denied this, but since 1991, it seemed that everyone accepted this viewpoint.

Human rights Expert Council


In 2004, Oleg Orlov joined the Expert Council under the Commissioner for Human Rights in the Russian Federation. He was also a member of the Human Rights Council but left it after Vladimir Putin's statement that the murder of Anna Politkovskaya caused more harm to Russia than her publications.


— What has the Human Rights Council and the institution of the Human Rights Commissioner turned into? The idea is a good one.

— Figuratively speaking, it has turned into a bow on a rotten and spoiled cake. The idea you are talking about, a real bridge between the authorities and society, has long been lost.

I slammed the door and left after the murder of Anna Politkovskaya, the disgraceful words the president said about it. But many of my colleagues stayed, they were striving to save specific people. You can't achieve any systemic changes there, but you can help those sitting in one prison or another, pull someone out from under a fabricated charge.

Now even that is no longer possible.

— Why? I understand the logic of Putin's regime: they need to retain power, they have built a system for this task, and of course, they will not change it. But do they really need this specific prisoner to be tortured, or for a hundred-year-old war veteran to live in a barrack without a toilet? Are they deliberately making life difficult for people?

— It seems to me that Putin personally has sadistic tendencies. It's obvious with Aleksei Navalny: he really enjoyed [torturing Navalny], his instructions were followed. But I don't think they are all sadists. I think they have a different, also inhumane, logic: when you chop wood, chips fly. For them, people are chips.

Listen, [in the Kremlin they reason like this:] we have a colossal task — a huge empire, a multipolar world. And an individual can be sacrificed without problems. Well, what can you do? In order for us to fulfil our functions, we have to treat some people very harshly. And then the order goes down the chain, which, in the absence of any control from society, unties the hands of sadists; look at how they are now treating Ukrainian prisoners, it's pure sadism.

Oleg Orlov came to Kirkenes with his wife, human rights activist Tatyana Kasatkina. A memorial to Aleksei Navalny appeared in Kirkenes immediately after his death in the colony. The memorial is supported by local anti-war activists. Photo: Georgii Chentemirov

— Two pieces of news almost on the same day: in Komi, the only fund for preserving the memory of political repressions closed, and in the Moscow metro, they restored a bas-relief with Stalin…

— In Russia, there is a totalitarian regime, which significantly relies on people with a Stalinist mindset, on security forces where Stalinist methods are also popular. The revival of Stalinism is, to a large extent, also coming from below, from this group of people. And of course, somewhere deep in his mind, comrade Putin compares himself to Stalin.

The only initiative, it seems to me, that they do not suppress is denunciations, repressions, and new demands for repressions.

— Do they not want to create such public opinion that would allow them to bring back execution articles?

— I think that among people socially close to Putin, this is one of the main ideas. And if they push a little, I think the Putin regime will meet them halfway.

War crimes


After being released from a Russian prison, Oleg Orlov continued his human rights activities. Together with colleagues from the Human Rights Centre "Memorial" and the Kharkiv Human Rights Group, Orlov documented war crimes committed by the Russian army in Ukraine. In May 2025, Oleg Orlov spoke at the Kirkenes Conference, where he talked about repressions in Russia.


— Why did you decide to come to Kirkenes and speak at the conference?

— When connections between Norway and Russia are halted, it is very important for someone to be here and speak with the voice of at least part of Russia.

I spoke about that Russia which is not Putin's. The main goal of my speeches is, firstly, to say and show that there is another Russia, because time and again I encounter the fact that in Europe all Russians are painted with the same brush. And within Russia, there are many people who do not support Putin, but their voices are often not heard. I hope I am understood ...

My second message is the continuation of support for Ukraine. Stopping such support is very dangerous.

— Russia has unleashed a bloody war, creating tension on the border with European countries, and Russian officials and propagandists are threatening the world with nuclear weapons. And there is a great temptation to resort to rhetoric — let's surround Russia with a moat filled with crocodiles... What do you think about this?

— The threat is real, and building a defence against it is absolutely right. But to imagine that we will put up a wall with barbed wire and let the grass grow — this is, to put it mildly, unproductive and unreasonable in the long term, because the country exists, and it will not disappear. And the longer and stronger this regime lasts, and if there is a 'Putin' after Putin, it is very, very bad for everyone, not only for Russia but for all of Europe.

That is why it is necessary to know that in Russia there are not only Putinists; we must interact with these forces; and we must think about what will happen after Putin.

And the more support for Ukraine, the more hope that after Putin there will be a movement of Russia towards democracy.

Фото: Денис Загорье

— When talking about how Russia could become a normal state, one of the discussed options is the collapse of the country: so that the empire ceases to be an empire. How realistic is this and would it be beneficial?

— There is no definite answer, and any discussions about the dissolution of the state, about parts of present-day Russia gaining independence, must be approached very responsibly and very cautiously. This is exactly the case where you should measure ten times and cut once, because ill-considered steps can lead to truly horrific consequences.

For example, I have worked a lot in the North Caucasus. I have seen how what seemed like a good idea of gaining one's own state can lead to extremists seizing or attempting to seize power. I will use this word, although it has been discredited by Putin; but real extremists are people who do not want to calculate anything, but only want to cut. This is very difficult and dangerous.

Russia has almost always been an empire. And this is a very difficult question for me: can Russia exist not as an empire? I hope so. What can Russia turn into? A real federal state.

— Why has the Russian government turned against the indigenous peoples? This has always been a trump card and a propaganda cliché: Russia is the largest, we have Baikal, and also — 190 ethnic groups... And then they go and label them all as extremists!

— We must see reality behind the words. In reality, what happened to the indigenous peoples? Poverty, widespread drunkenness, dominance of industrialists. Now, when the regime has become totalitarian, the initiatives of all those who genuinely defend the indigenous peoples, who oppose the violence of the state and the monopolies behind it, are being suppressed.

The Kremlin is not so much against indigenous peoples as it is against any initiative, independence, and protection of human rights.

— We are sitting here in Kirkenes, talking; you spoke at the conference, and I will write an article. Will this have any impact?

— My teacher, Sergei Adamovich Kovalev, a Soviet dissident, a former Soviet political prisoner, the first Commissioner for Human Rights in Russia, had a motto, not invented by him, but practiced by him: "Do what you must, and let it be what it will be." So I just do what I must, and that's all.
Autonomous driving: VW wants to overtake Tesla

Insa Wrede
DW
20/06/2025 - 

VW will launch the autonomous ID. Buzz AD in 2026. With that, it's hoping to overtake Tesla in the robotaxi race. Other competitors are also getting involved in this billion-dollar market.


VW is hoping to conquer the autonomous driving market with its ID.Buzz AD electric minivan
Image: Lukas Barth/Reuters

In Germany, there are many people who cannot manage without a car, particularly in the countryside, where public transport networks can be patchy, nonexistent even. Transitioning to electric, or e-, vehicles will not solve the transportation problem on its own. Privately owned electric cars may not run on oil, but they still consume resources, take up space, require roads and parking areas.

But much could be resolved if people were able to switch to using robot taxis. For years now, countries like the USA and China have been running pilot projects with self-driving cars and driverless vans.

These vehicles are also being tested in Germany, but so far no approvals have been issued for so-called level 4 systems — completely autonomous cars with no driver at the wheel. The German Federal Motor Transport Authority (KBA) says that legally it is possible, in Germany and in the EU as a whole, but until now the general introduction of these vehicles still seems a long way off.


Robotaxis from 2026, by VW

But now VW has surged ahead with a driverless e-van: the ID. Buzz AD ("autonomous driving"), a level 4 vehicle that drives set routes. Europe's biggest car manufacturer presented the production version of the self-driving electric van in Hamburg on June 17. It is scheduled to go on the road in 2026. Initially, it will only be deployed in Hamburg and Los Angeles, but the intention is for it then to be rolled out more widely.

"This certainly has not been set up as a small series production," says Christian Senger, a member of the board of management of VW Commercial Vehicles, who is responsible for its autonomous driving sector. The vans will be manufactured in very large numbers. The Hannover VW factory is set to produce more than 10,000 commercial vehicles. "We believe we can be the leading supplier in Europe," Senger says.

VW already has a buyer, the Uber taxi service company. The two firms signed an agreement in April for cooperation in the US. According to Senger, Uber plans to purchase up to 10,000 VW e-vans over the next ten years.


The ID Buzz AD has 13 cameras, five radars, and nine LiDARs (pictured), which use lasers to calculate distance
Image: Lukas Barth/Reuters

Overtaking Tesla

VW has jumped ahead of Tesla with its ID. Buzz AD presentation. Earlier this month, Elon Musk "tentatively" announced June 22 — this Sunday — as the date for the launch of his own robotaxi, based on the Model Y SUV, but this is still unconfirmed. "We are being super paranoid about safety, so the date could shift," Musk said at the time on his social media platform, X.

Tesla's initial plans are for just 10 to 20 Model Y SUVs to operate as public robotaxis in one area of Austin, Texas, the city where Tesla is headquartered. But, as usual, Musk is thinking big. In an interview with US broadcaster CBS, he announced that there would be some 1,000 Tesla robotaxis on the road within months, and hundreds of thousands by the end of 2026.

Musk also announced in May that several US cities would be approved for autonomous driving for private Tesla owners before the end of the year. This promise is not new: Back in 2017, he promised that this function would be activated within two years.

Waymo: Google robotaxis miles ahead

Right now, Google affiliate Waymo is streets ahead when it comes to autonomous driving. Waymo's driverless robotaxis are already on the road in several US cities, making more than 250,000 paid journeys with passengers every week. The vehicles are mostly converted electric cars made by Jaguar. Waymo also announced in May that it planned to more than double the number of vehicles by the end of 2026.

Tech giant Amazon is also in the running for the emerging market in autonomous driving. Amazon's robotaxi company Zoox plans to put cars on the road in Las Vegas and San Francisco without steering wheels or pedals, with space for up to four passengers.

Competition from China


China is also looking to solve its transport problems through autonomous driving. The Google rival Baidu runs a fleet of around 1,000 Apollo Go robotaxis, which completed more than 1.4 million journeys in the first quarter of this year. The Chinese company Pony.ai has a fleet of more than 300 robotaxis, and it wants to increase this to as many as 3,000 by the end of next year. WeRide, meanwhile, has around 400 vehicles.

Autonomous vehicles are already on the road in China, like this Apollo Go self-driving taxi
Image: Johannes Neudecker/dpa/picture alliance

Goldman Sachs estimates that by 2030 there will be about half a million robotaxis in service in more than 10 Chinese cities. In China, the question is no longer whether autonomous driving is possible, but how companies will make commercial use of the sector's rapid development.

Projections for the future are very promising. The investment bank puts the total sales potential of the Chinese robotaxi sector at around $54 million (€47 million) this year but expects that figure to increase exponentially by 2035, to around $47 billion.
VW focused on fleets, transport associations

VW's new e-van is not aimed at private customers. Instead it hopes to supply business customers, fleet operators and transport associations, providing a package to include total software solutions, a booking app, fleet management and maintenance. In Hamburg, for example, the company has established cooperation with the local transport association, HVV. A declaration of intent has also been agreed with the Berlin transport authority, the BVG.

VW hopes to gain approval to operate driverless cars in Europe and the US by the end of 2026. This would mean they would no longer need a safety driver, currently a mandatory requirement. VW says it would be the first such approval for level 4 autonomous driving in Europe.

If level 4 self-driving vehicles are approved, a safety driver would no longer be required to sit behind the wheel
Image: Lukas Barth/Reuters

There is a catch though. VW's Senger does not expect the top dog of Germany's beleaguered auto industry to make any money, at least at first. In the long term, though, he explains that autonomous driving is the lucrative field of the future, one that promises to be much more profitable than the traditional automotive industry. "This is our big chance to establish a future opportunity for the VW Group," he says.

The exact price has not yet been announced but the ID. Buzz AD is unlikely to come cheap. According to Senger, buyers will have to pay a low six-figure sum (in euros) per vehicle.


Public funding is needed


That means it's going to be expensive for transport companies. The Association of German Transport Companies or VDV, is calling for a nationally coordinated strategy of long-term financing, and a market launch supported by public funding, to establish the country's supremacy in this market.
An autonomous shuttle bus in Germany, part of a pilot project that local public transport operators want to see more ofImage: Swen Pförtner/dpa/picture alliance

The current government's coalition agreement declares: "Germany is to become the leading market for autonomous driving, developing and co-financing model regions with the federal states." Ingo Wortmann from the VDV comments that start-up funding of around €3 billion is needed to take this idea from pilot project to standrad operating procedure.

This article was originally published in German.