Category: Ukraine

  • MIL-OSI Asia-Pac: Leaders’ Statement: Visit of Ms. Ursula von der Leyen, President of the European Commission and EU College of Commissioners to India (February 27-28, 2025)

    Source: Government of India (2)

    Posted On: 28 FEB 2025 6:05PM by PIB Delhi

    Prime Minister Shri Narendra Modi and President of the European Commission Ms. Ursula von der Leyen affirmed that the EU-India Strategic Partnership has delivered strong benefits for their peoples and for the larger global good. They committed to raise this partnership to a higher-level, building upon 20 years of India-EU Strategic Partnership and over 30 years of India-EC Cooperation Agreement.

    President von der Leyen was on her landmark official visit as she led the European Union College of Commissioners to India on 27-28 February 2025. This is the first visit of the College of Commissioners outside the European continent since the start of their new mandate and also the first such visit in the history of India-EU bilateral ties.

    As the two largest democracies and open market economies with diverse pluralistic societies, India and EU underscored their commitment and shared interest in shaping a resilient multipolar global order that underpins peace and stability, economic growth and sustainable development.

    The leaders agreed that shared values and principles including democracy, rule of law, and the rules-based international order in line with the purposes and principles of the UN Charter make India and the EU like-minded and trusted partners. The India-EU Strategic partnership is needed now, more than ever, to jointly address global issues, foster stability, and promote mutual prosperity.

    In this context, they stressed the importance of intensifying cooperation between India and Europe in trade and de-risking of supply chains, investment, emerging critical technologies, innovation, talent, digital and green industrial transition, space and geospatial sectors, defence and people-to-people contacts. They also highlighted the need to cooperate on tackling common global challenges, including climate change, the governance of Artificial Intelligence, development finance, and terrorism in an interdependent world.

    The two leaders welcomed the progress made by the second ministerial meeting of the India-EU Trade and Technology Council (TTC) that took place during the visit in fostering deeper collaboration and strategic co-ordination at the intersection of trade, trusted technology, and green transition.

    They also welcomed the specific outcomes emerging from deliberations conducted between the EU College of Commissioners and their Indian counterpart Ministers.

    The leaders committed to as follows:

    i. Task their respective negotiating teams to pursue negotiations for a balanced, ambitious, and mutually beneficial FTA with the aim of concluding them within the course of the year, recognizing the centrality and importance of growing India EU trade and economic relations. The leaders asked the officials to work as trusted partners to enhance market access and remove trade barriers. They also tasked them to advance negotiations on an Agreement on Investment Protection and an Agreement on Geographical Indications.

    ii. Direct the India-EU Trade and Technology Council to further deepen its engagement to shape outcome-oriented cooperation in areas of economic security and supply chain resilience, market access and barriers to trade, strengthening of semiconductor ecosystems, trustworthy and sustainable Artificial Intelligence, high-performance computing, 6G, Digital Public Infrastructure, joint research and innovation for green and clean energy technologies with a focus on trusted partnerships and industry linkages across these sectors, including the recycling of batteries for electric vehicles (EVs), marine plastic litter, and waste to green/renewable hydrogen. In this context, they welcomed the progress in the implementation of MoU on semiconductors for boosting the semiconductor supply chains, leveraging complementary strengths, facilitating talent exchanges and fostering semiconductor skills among students and young professionals; as well as the signing of MoU between Bharat 6G alliance and the EU 6G Smart Networks and Services Industry Association for creating secured and trusted telecommunications and resilient supply chains.

    iii. Further expand and deepen cooperation under India-EU partnerships in areas of connectivity, clean energy and climate, water, smart and sustainable urbanization, and disaster management as well as work to intensify cooperation in specific areas such as clean hydrogen, offshore wind, solar energy, sustainable urban mobility, aviation, and railways. In this context, they welcomed the agreement on holding an India-EU Green Hydrogen Forum and the India-EU Business Summit on Offshore Wind Energy.

    iv. Develop new specific areas of co-operation identified during the bilateral discussions between the EU Commissioners and Indian Ministers to be reflected in the future joint Strategic Agenda to drive mutual progress.

    v. Undertake concrete steps for the realization of the India-Middle East-Europe Economic Corridor (IMEC) announced during the G20 Leaders’ Summit in New Delhi, deepen their cooperation in the framework of the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), Leadership Group for Industry Transition (LeadIT 2.0), and Global Biofuels Alliance.

    vi. Strengthen people-to-people ties especially in the areas of higher education, research, tourism, culture, sports, and between their youths, and create an enabling environment for enhancing such exchanges. Also to promote legal, safe and orderly migration in areas of skilled workforce and professionals in view of India’s growing human capital and taking into account EU member states’ demographic profile and labour market needs.

    The leaders reaffirmed their commitment to promote a free, open, peaceful and prosperous Indo-Pacific built on international law and mutual respect for sovereignty and peaceful resolution of disputes underpinned by effective regional institutions. India welcomed the EU joining the Indo-Pacific Oceans Initiative (IPOI). Both sides also committed to explore trilateral co-operation including in Africa and the Indo-Pacific.

    The two leaders expressed satisfaction at growing cooperation in the defence and security domain, including joint exercises and collaboration between Indian Navy and EU Maritime security entities. The EU side welcomed India’s interest in joining the projects under the EU’s Permanent Structured Cooperation (PESCO) as well as to engage in negotiations for a Security of Information Agreement (SoIA). The leaders also committed to explore a security and defence partnership. They reiterated their commitment to international peace and security, including maritime security by tackling traditional and non-traditional threats to safeguard trade & sea lanes of communication. They emphasised the need to deepen collaboration in counter terrorism and to strengthen international cooperation to combat terrorism, including cross-border terrorism and terrorism financing in a comprehensive and sustained manner.

    The two leaders also discussed key international and regional issues, including on the situation in the Middle-East and the war in Ukraine. They expressed support for a just and lasting peace in Ukraine based on respect for international law, principles of the UN charter and territorial integrity and sovereignty. They also reiterated their commitment to the vision of the two-State solution with Israel and Palestine living side by side in peace and security within recognized borders, consistent with international law.

    The Leaders recognized the productive and forward-looking nature of the discussions and agreed on the following concrete steps:

    (i) Expedite the conclusion of the FTA by the end of the year.

    (ii) Further focused discussions on defence industry and policy to explore opportunities from new initiatives and programmes.

    (iii) A review meeting with partners to take stock on the IMEC initiative.

    (iv) Engage on maritime domain awareness with a view to promoting shared assessment, coordination and interoperability.

    (v) Convene the next meeting of the TTC at an early date to deepen cooperation in semiconductors and other critical technologies.

    (vi) Enhance the dialogue on clean and green energy between governments and industry, with a focus on green hydrogen.

    (vii) Strengthening collaboration in the Indo-Pacific including through trilateral cooperation projects.

    (viii) Strengthen cooperation on Disaster Management through the development of appropriate arrangements including on policy and technical level engagement for preparedness, response capacities and coordination.

    Both leaders expressed confidence that this momentous visit will mark the beginning of a new chapter in the history of relations and reaffirmed their commitment to further expand and deepen the India-EU Strategic Partnership. They looked forward to the next India EU Summit being organized in India at the earliest mutually convenient time and to the adoption of a new joint Strategic Agenda on that occasion. President von der Leyen thanked Prime Minister Modi for his warm hospitality.

    *****

    MJPS/ST

    (Release ID: 2107015) Visitor Counter : 10

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Written question – EU strategic autonomy and fertilisers – P-000834/2025

    Source: European Parliament

    Priority question for written answer  P-000834/2025
    to the Commission
    Rule 144
    Esther Herranz García (PPE)

    The latest sanctions announced against Russia in response to its invasion of Ukraine impose higher tariffs on nitrogen fertiliser imports into the EU from Russia and Belarus. As a result, the price of such fertilisers is expected to rise, increasing pressure on EU farmers.

    In light of both this and the fact that farmers are already facing challenges and are expressing their dissatisfaction at not being considered when such decisions are made, as well as in view of the need to continue to support Ukraine:

    • 1.What action does the Commission plan on taking to compensate EU farmers once these measures enter into force in July 2025?
    • 2.As one of the steps it could take, does the Commission intend to grant derogations under the Nitrates Directive to allow the current limit of 170 kg N/ha to be exceeded when using organic fertilisers (RENURE)?

    Submitted: 25.2.2025

    Last updated: 28 February 2025

    MIL OSI Europe News

  • MIL-OSI USA: President Trump, VP Vance Are Standing Up for Americans

    US Senate News:

    Source: The White House
    President Donald J. Trump and Vice President JD Vance will always stand up for the interests of the American people and those who respect the United States’ position in the world — and will never allow the American people to be taken advantage of.
    President Trump: “Let me tell you, you don’t have the cards. With us, you have the cards — but without us, you don’t have any cards.”
    More than half (52%) of Ukrainians want a quick end to the war and believe Ukraine “should be open to ceding some territory in exchange for peace,” according to a November Gallup poll.
    Since martial law was declared in Ukraine, 1,000,050 Ukrainians have been drafted into military service. In October 2024, Ukraine announced it would be drafting another 160,000 — bringing the total number of conscripted Ukrainians to 1,160,050.
    The average age of Ukrainian troops is 43 years old.
    “Even if the West did come through with all the weapons they have pledged, ‘we don’t have the men to use them,’ one of Ukrainian president Volodymyr Zelensky’s close aides told Time’s Simon Shuster, revealing that the average age of a Ukrainian soldier has already reached 43.”

    One of Zelenskyy’s closest aides told TIME in 2023 that he is “[deluding] himself … We’re out of options. We’re not winning. But try telling him that.”
    The Ukrainian army is facing rising desertions as “ill-trained and exhausted soldiers [go] AWOL,” with the military further strained by struggles in recruiting and the “arrests of respected and popular combat officers.”
    President Trump: “You’re gambling with World War III.”
    Zelesnkyy himself has acknowledged that the situation in Ukraine could lead to WWIII, and that without U.S. aid, they would lose: “A third world war could start in Ukraine, continue in Israel, and move on from there to Asia, and then explode somewhere else.”
    President Trump: “I gave you the javelins to take out all those tanks. Obama gave you sheets.”
    President Trump gave anti-tank javelin missiles to Ukraine, while Obama gave non-lethal aid only, including blankets.
    EURACTIV: “Poroshenko asks Obama for weapons, obtains blankets”
    President Trump approved lethal weapons sales to Ukraine in 2017: “The new arms include American-made Javelin anti-tank missiles, U.S. officials said.”
    President Trump approved a $39 million sale of defensive lethal weapons to Ukraine in 2019: “The new package will include Javelin anti-tank weapons, with one U.S. official saying it includes 150 missiles and two launchers.”

    Vice President Vance: “You went to Pennsylvania and campaigned for the opposition in October.”
    Zelenskyy was called out for campaigning against President Trump in Pennsylvania.
    “Zelenskyy was flown to Pennsylvania in an Air Force C-17 plane.”

    MIL OSI USA News

  • MIL-OSI Video: EU Leaders meeting on Ukraine and Security in London, UK

    Source: European Commission (video statements)

    EU Leaders meeting on Ukraine and Security in London, UK
    Commission President von der Leyen, and European Council President, António Costa.

    Follow us on:
    -X: https://twitter.com/EU_Commission
    -Instagram: https://www.instagram.com/europeancommission/
    -Facebook: https://www.facebook.com/EuropeanCommission
    -LinkedIn: https://www.linkedin.com/company/european-commission/
    -Medium: https://medium.com/@EuropeanCommission

    Visit our website: http://ec.europa.eu

    https://www.youtube.com/watch?v=ySIW0kFf9JA

    MIL OSI Video

  • MIL-OSI Economics: IMF and Ukrainian Authorities Reach Staff Level Agreement on the Seventh Review of the Extended Fund Facility (EFF) Arrangement

    Source: International Monetary Fund

    February 28, 2025

    • International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff level agreement (SLA) on the Seventh Review of the 4-year, $15.5 billion Extended Fund Facility (EFF) Arrangement. Subject to approval by the IMF Executive Board and consistent with its balance-of-payments needs, Ukraine would be expected to draw about US$0.4 billion (SDR 0.3 billion), bringing total disbursements under the program to US$10.1 billion.
    • Program performance remains strong. All end-December quantitative performance criteria (QPCs) have been met and understandings were reached on a set of policies and reforms to sustain macroeconomic stability. The structural reform agenda continues to make progress, with seven structural benchmarks met, another benchmark implemented with delay, and strong commitments to advance other key reforms.
    • The outlook remains exceptionally uncertain as the war continues to take a heavy toll on Ukraine’s people, economy, and infrastructure. Despite the challenging environment, the program remains on track on the back of critical external support.

    Warsaw, Poland: An International Monetary Fund (IMF) team led by Mr. Gavin Gray held discussions with the Ukrainian authorities in Kyiv, Ukraine and Warsaw, Poland during February 20-28 on the Seventh Review of the country’s 4-year Extended Fund Facility (EFF) Arrangement. Upon the conclusion of the discussions, Mr. Gray issued the following statement:

    “IMF staff and the Ukrainian authorities have reached staff-level agreement on the Seventh Review of the EFF, subject to approval by the IMF Executive Board, with Board consideration expected in coming weeks.

    Ukraine’s four-year EFF Arrangement with the IMF continues to provide a strong anchor for the authorities’ economic program in times of exceptionally high uncertainty. Program performance remains strong with all quantitative performance criteria for end-December met, and important progress on the structural agenda due for this review. Reflecting a revised profile of balance of payments needs in 2025, Ukraine has requested to rephase access under its EFF program, shifting IMF financing to future reviews while the overall size of the program remains unchanged.

    “The economy has continued to show resilience despite the challenges arising from three years of war in Ukraine. Real GDP growth is estimated at 3.5 percent for 2024, but is expected to moderate to 2-3 percent in 2025, reflecting headwinds from labor constraints, damage to energy infrastructure, and the persistence of Russia’s war in Ukraine. Inflation has continued to rise, reaching 12.9 percent y/y in January, mainly due to rising food and labor costs. The National Bank of Ukraine (NBU) raised the policy rate by a cumulative 150 bps since December in response. Gross international reserves reached US$43 billion as of January 2025, reflecting continued large external official support. Risks remain exceptionally high given uncertainty on the war and the prospects for peace and recovery.

    “The 2025 budget targets a deficit (excluding grants) of 19.6 percent of GDP and remains the anchor for fiscal policy this year. It incorporates the additional revenue derived from the increase in tobacco excise taxes and enactment of this tax policy change is a requirement for completion of the review. Financing the large fiscal deficit will require significant and timely external support, notably from the G7’s ERA initiative, to support macroeconomic stability. Responding to high budget risks will require preparedness with offsetting measures; in particular broad-based, durable, and efficient revenue measures and accelerated implementation of Ukraine’s National Revenue Strategy (NRS)

    Restoring medium-term fiscal sustainability requires determined implementation of reforms to mobilize domestic revenues, tackle tax evasion and avoidance, and improve the investment climate. Tax policy reforms need also to be coupled with improvements in tax administration with continued reforms to the state customs service (SCS) and state tax service (STS). Restoring debt sustainability hinges on this revenue-based fiscal adjustment and continued implementation of the authorities’ debt restructuring strategy (where completing the treatment of the GDP warrants remains important). The upcoming 2026-2028 budget declaration that is to be submitted to Parliament in June will be an important opportunity to provide both the context and strategic objectives of the medium-term fiscal strategy.

    “Given the risks from rising inflation, the recent increases in the policy rate by the NBU are appropriate. Further action would be warranted if inflation accelerates further or inflation expectations deteriorate. The exchange rate should increasingly act as a shock absorber. Maintaining adequate reserves is a priority, particularly in view of risks to the outlook.

    “The independence, competence, and credibility of anti-corruption and judicial institutions should continue to be enhanced. Parliamentary adoption this week of the law establishing the High Administrative Court, a benchmark under the program, is a landmark step in this direction. Swift enactment of the law would pave the way for prompt establishment of the court.

    “Effective public investment management (PIM) is critical for post-war recovery, reconstruction, and growth against a backdrop of limited fiscal space and tough demographic realities. To tackle these challenges, the government of Ukraine is implementing a comprehensive PIM framework that is in line with best international practices. A strategy-driven and transparent approach is essential to overcome absorption capacity constraints and allocate scarce resources efficiently.

    “The financial sector remains stable, but continued vigilance is warranted given elevated risks. Developing financial markets infrastructure will be critical to support prompt reconstruction and recovery by facilitating much needed private investment, including attracting foreign capital. Comprehensive consultation and collaboration with financial market participants is essential to facilitate preparation of a prioritized reform agenda, which the NBU has begun in collaboration with other relevant stakeholders.

    “The mission met with Finance Minister Marchenko, National Bank of Ukraine Governor Pyshnyy, other government ministers, public officials, and civil society. The mission thanks them and their technical staff for the excellent collaboration and constructive discussions.”

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics

  • MIL-OSI Global: Raised voices and angry scenes at the White House as Trump clashes with Zelensky over the ‘minerals deal’

    Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

    The visit of Ukrainian president Volodymyr Zelensky to the White House has not gone to plan – at least not to his plan. There were [extraordinary scenes] as a press conference between Zelensky and Trump descended into acrimony, with the US president loudly berating his opposite number, who he accused of “gambling with world war three”.

    “You either make a deal or we’re out,” Trump told Zelensky. His vice-president, J.D.Vance, also got in on the act, accusing the Ukrainian president of “litigating in front of the American media”, and saying his approach was “disrespectful”. At one point he asked Zelensky: “Have you said thank you even once?”

    Reporters present described the atmosphere as heated with voices raised by both Trump and Vance. The New York Times said the scene was “one of the most dramatic moments ever to play out in public in the Oval Office and underscored the radical break between the United States and Ukraine since Mr Trump took office”.

    Underlying the angry exchanges were differences between the Trump administration and the Ukrainian government over the so-called “minerals deal” that Zelensky was scheduled to sign. But any lack of Ukrainian enthusiasm for the deal is understandable.

    In its present form, it looks more like a memorandum of understanding that leaves several vital issues to be resolved later. The deal on offer is the creation of will be called a “reconstruction investment fund”, to be jointly owned and managed by the US and Ukraine.

    Into the proposed fund will go 50% of the revenue from the exploitation of “all relevant Ukrainian government-owned natural resource assets (whether owned directly or indirectly by the Ukrainian government)” and “other infrastructure relevant to natural resource assets (such as liquified natural gas terminals and port infrastructure)”.

    This means that private infrastructure – much of it owned by Ukraine’s wealthy oligarchs – is likely to become part of the deal. This has the potential of further increasing friction between Zelensky and some very powerful Ukrainians.

    Meanwhile, US contributions are less clearly defined. The preamble to the agreement makes it clear that Ukraine already owes the US. The very first paragraph notes that “the United States of America has provided significant financial and material support to Ukraine since Russia’s full-scale invasion of Ukraine in February 2022”.

    This figure, according to Trump, amounts to US$350 billion (£278 billion). The actual amount, according to the Ukraine Support Tracker of the Kiel Institute for the World Economy, is about half that.

    Western and Ukrainian analysts have also pointed out that there may be fewer and less accessible mineral and rare earth deposits in Ukraine than are currently assumed. The working estimates have been based mostly on Soviet-era data.

    Since the current draft leaves details on ownership, governance and operations to be determined in a future fund agreement, Trump’s very big deal is at best the first step. Future rounds of negotiations are to be expected.

    Statement of intent

    From a Ukrainian perspective, this is more of a strength than a weakness. It leaves Kyiv with an opportunity to achieve more satisfactory terms in future rounds of negotiation. Even if any improvements will only be marginal, it keeps the US locked into a process that is, overall, beneficial for Ukraine.

    Take the example of security guarantees. The draft agreement offers Ukraine nothing anywhere near Nato membership. But it notes that the US “supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace”, adding that: “Participants will seek to identify any necessary steps to protect mutual investments.”

    The significance of this should not be overstated. At its bare minimum, it is an expression of intent by the US that falls short of security guarantees but still gives the US a stake in the survival of Ukraine as an independent state.

    But it is an important signal both in terms of what it does and does not do – a signal to Russia, Europe and Ukraine.

    Trump does not envisage that the US will give Ukraine security guarantees “beyond very much”. He seems to think that these guarantees can be provided by European troops (the Kremlin has already cast doubts on this idea).

    But this does not mean the idea is completely off the table. On the contrary, because the US commitment is so vague, it gives Trump leverage in every direction.

    He can use it as a carrot and a stick against Ukraine to get more favourable terms for US returns from the reconstruction investment fund. He can use it to push Europe towards more decisive action to ramp up defence spending by making any US protection for European peacekeepers contingent on more equitable burden-sharing in Nato.

    And he can signal to the Russian president, Vladimir Putin, that the US is serious about making a deal stick – and that higher American economic stakes in Ukraine and corporate presence on the ground would mean US-backed consequences if the Kremlin reneges on a future peace agreement and restarts hostilities.

    That these calculations will ultimately lead to the “free, sovereign and secure Ukraine” that the agreement envisages is not a given.

    For now, however, despite all the shortcomings and vagueness of the deal on key issues –– and the very public argument between the parties – it still looks like it serves all sides’ interests in moving forward in this direction.

    This article has been updated with details of the meeting between Volodymyr Zelensky and Donald Trump.

    Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

    Tetyana Malyarenko does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Raised voices and angry scenes at the White House as Trump clashes with Zelensky over the ‘minerals deal’ – https://theconversation.com/raised-voices-and-angry-scenes-at-the-white-house-as-trump-clashes-with-zelensky-over-the-minerals-deal-250855

    MIL OSI – Global Reports

  • MIL-OSI Russia: IMF and Ukrainian Authorities Reach Staff Level Agreement on the Seventh Review of the Extended Fund Facility (EFF) Arrangement

    Source: IMF – News in Russian

    February 28, 2025

    • International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff level agreement (SLA) on the Seventh Review of the 4-year, $15.5 billion Extended Fund Facility (EFF) Arrangement. Subject to approval by the IMF Executive Board and consistent with its balance-of-payments needs, Ukraine would be expected to draw about US$0.4 billion (SDR 0.3 billion), bringing total disbursements under the program to US$10.1 billion.
    • Program performance remains strong. All end-December quantitative performance criteria (QPCs) have been met and understandings were reached on a set of policies and reforms to sustain macroeconomic stability. The structural reform agenda continues to make progress, with seven structural benchmarks met, another benchmark implemented with delay, and strong commitments to advance other key reforms.
    • The outlook remains exceptionally uncertain as the war continues to take a heavy toll on Ukraine’s people, economy, and infrastructure. Despite the challenging environment, the program remains on track on the back of critical external support.

    Warsaw, Poland: An International Monetary Fund (IMF) team led by Mr. Gavin Gray held discussions with the Ukrainian authorities in Kyiv, Ukraine and Warsaw, Poland during February 20-28 on the Seventh Review of the country’s 4-year Extended Fund Facility (EFF) Arrangement. Upon the conclusion of the discussions, Mr. Gray issued the following statement:

    “IMF staff and the Ukrainian authorities have reached staff-level agreement on the Seventh Review of the EFF, subject to approval by the IMF Executive Board, with Board consideration expected in coming weeks.

    Ukraine’s four-year EFF Arrangement with the IMF continues to provide a strong anchor for the authorities’ economic program in times of exceptionally high uncertainty. Program performance remains strong with all quantitative performance criteria for end-December met, and important progress on the structural agenda due for this review. Reflecting a revised profile of balance of payments needs in 2025, Ukraine has requested to rephase access under its EFF program, shifting IMF financing to future reviews while the overall size of the program remains unchanged.

    “The economy has continued to show resilience despite the challenges arising from three years of war in Ukraine. Real GDP growth is estimated at 3.5 percent for 2024, but is expected to moderate to 2-3 percent in 2025, reflecting headwinds from labor constraints, damage to energy infrastructure, and the persistence of Russia’s war in Ukraine. Inflation has continued to rise, reaching 12.9 percent y/y in January, mainly due to rising food and labor costs. The National Bank of Ukraine (NBU) raised the policy rate by a cumulative 150 bps since December in response. Gross international reserves reached US$43 billion as of January 2025, reflecting continued large external official support. Risks remain exceptionally high given uncertainty on the war and the prospects for peace and recovery.

    “The 2025 budget targets a deficit (excluding grants) of 19.6 percent of GDP and remains the anchor for fiscal policy this year. It incorporates the additional revenue derived from the increase in tobacco excise taxes and enactment of this tax policy change is a requirement for completion of the review. Financing the large fiscal deficit will require significant and timely external support, notably from the G7’s ERA initiative, to support macroeconomic stability. Responding to high budget risks will require preparedness with offsetting measures; in particular broad-based, durable, and efficient revenue measures and accelerated implementation of Ukraine’s National Revenue Strategy (NRS)

    Restoring medium-term fiscal sustainability requires determined implementation of reforms to mobilize domestic revenues, tackle tax evasion and avoidance, and improve the investment climate. Tax policy reforms need also to be coupled with improvements in tax administration with continued reforms to the state customs service (SCS) and state tax service (STS). Restoring debt sustainability hinges on this revenue-based fiscal adjustment and continued implementation of the authorities’ debt restructuring strategy (where completing the treatment of the GDP warrants remains important). The upcoming 2026-2028 budget declaration that is to be submitted to Parliament in June will be an important opportunity to provide both the context and strategic objectives of the medium-term fiscal strategy.

    “Given the risks from rising inflation, the recent increases in the policy rate by the NBU are appropriate. Further action would be warranted if inflation accelerates further or inflation expectations deteriorate. The exchange rate should increasingly act as a shock absorber. Maintaining adequate reserves is a priority, particularly in view of risks to the outlook.

    “The independence, competence, and credibility of anti-corruption and judicial institutions should continue to be enhanced. Parliamentary adoption this week of the law establishing the High Administrative Court, a benchmark under the program, is a landmark step in this direction. Swift enactment of the law would pave the way for prompt establishment of the court.

    “Effective public investment management (PIM) is critical for post-war recovery, reconstruction, and growth against a backdrop of limited fiscal space and tough demographic realities. To tackle these challenges, the government of Ukraine is implementing a comprehensive PIM framework that is in line with best international practices. A strategy-driven and transparent approach is essential to overcome absorption capacity constraints and allocate scarce resources efficiently.

    “The financial sector remains stable, but continued vigilance is warranted given elevated risks. Developing financial markets infrastructure will be critical to support prompt reconstruction and recovery by facilitating much needed private investment, including attracting foreign capital. Comprehensive consultation and collaboration with financial market participants is essential to facilitate preparation of a prioritized reform agenda, which the NBU has begun in collaboration with other relevant stakeholders.

    “The mission met with Finance Minister Marchenko, National Bank of Ukraine Governor Pyshnyy, other government ministers, public officials, and civil society. The mission thanks them and their technical staff for the excellent collaboration and constructive discussions.”

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/02/28/pr25052-ukraine-imf-and-ukrainian-authorities-reach-sla-on-the-7th-review-of-the-eff-arrangement

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  • MIL-OSI Global: Keir Starmer at the White House: what ‘progressive realism’ now means in relation to Ukraine and Donald Trump

    Source: The Conversation – UK – By Jason Ralph, Professor of International Relations, University of Leeds

    Flickr/Number 10, CC BY-NC-ND

    Since the Labour government came to power in the UK past year, its international relations have been pursued under the banner of what foreign secretary David Lammy calls “progressive realism”. This involves “using realist means to pursue progressive ends”, including taking “pragmatic steps” to improve relations with other states.

    Lammy rejects the notion that “idealism has no place in foreign policy” but also argues that the UK should be “realistic about the state of the world and the country’s role in it”.

    The visit of the UK prime minister, Keir Starmer, to the White House to meet US president Donald Trump has been the biggest test of this approach. Outlining a set of foreign policy principles is one thing, acting on them is another.


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    In practice, progressive and realist foreign policies can pull in different directions. Combining them might be a form of “cakeism” – you usually can’t be a realist and have your progressivism too. Sometimes, however, clever diplomacy can find a way.

    Did Starmer find that way in his response to Trump’s ideas on negotiating with Russia without a defined role for Ukraine?

    Progressive realism in action

    Progressivism is associated with a commitment to the rule of international law. In the case of Ukraine, that would mean opposing any peace deal that rewarded Russia’s aggression or the concession of land to Russia.

    Progressivism is also associated with a support for international criminal law. The progressive in this case might be opposed to any peace deal that did not see Russian president Vladimir Putin hauled before the International Criminal Court (the same court that Trump has sanctioned).

    An invitation from the king.
    Flickr/Number 10, CC BY-NC-ND

    Realism, on the other hand, is sometimes associated with a foreign policy committed to the promotion of self-interest, defined narrowly as the material wellbeing of the nation. Faced with the threat of further US tariffs, and the impact they would have on the government’s economic priorities, the realist would probably recommend that the UK do absolutely nothing to upset Trump.

    Starmer has so far managed to walk this particular tightrope with a “pragmatic” form of progressivism. He remains committed to the vision of a world order based on international law and so is not realist in that sense. He was not willing to betray Ukraine just to be friends with Trump and avoid US tariffs, for instance.

    But he was pragmatic because he realised the only way to advance progressive principles was to persuade Trump that they set out the path to a sustainable peace. For this reason, my colleague Jamie Gaskarth and I have argued UK policy might better be described as “progressive pragmatism”.

    Starmer has a broader definition of the national interest than that sometimes associated with realism. It is in the UK’s interest to maintain an international order based on laws that codify the progressive principles of national self-determination and international justice.

    From this perspective, the UK is right not to turn its back on Ukrainian self-determination by jumping on Trump’s bandwagon. That is a slippery slope. It can lead to a world order that is unstable because it is dictated by the great powers. Ukraine today, Greenland, Palestine, Taiwan tomorrow.

    His pragmatism was very much on display in Washington, however. It meant staying close to the US not just to avoid tariffs, which Starmer appears to have done with the help of an invitation from King Charles for a state visit to the UK. It meant working with Trump’s ideas on Russia to persuade him that supporting Ukraine is the way to a “durable” peace.

    Starmer and Trump give a joint press conference.
    Flickr/Number 10, CC BY-NC-ND

    Durable peace here is not simply a question of satisfying Russia and having sufficient military force on the ground (the so-called US “backstop”) to deter future Russian aggression. It must also respect the political power of a progressive principle: national self-determination.

    To conclude a peace that does not include the Ukrainian people is not just a moral betrayal, it is politically imprudent because it creates grievances, which become causes of conflict. That does not mean the only way forward is to return to the pre-2014 status quo, but it does mean Kyiv’s involvement in peace negotiations has to be meaningful, not symbolic.

    In 1990 the transatlantic positions were reversed. UK prime minister Margaret Thatcher was troubled by the fall of Berlin wall. She proposed that the occupying powers that had divided Germany in 1945 decide the terms of reunification.

    The administration of the then US president, George Bush senior, had a broader understanding of history and the future. They realised that a dictated peace after the first world war contributed to the grievances that led to the second.

    On that occasion the US approach prevailed. Germany was allowed to reunify on its own terms and choose its own alliances. It was a progressive and pragmatic solution that was committed to national self-determination and it set the foundations for the durable peace that self-described realists thought would never happen.

    Starmer made a point in Washington of congratulating Trump for breaking the impasse. He was rewarded when the president suggested that a trade deal is now on the table. As he flies back across the Atlantic, Starmer might continue the flattery by comparing Trump’s actions to the way Ronald Reagan sowed the seeds of the new world order in the 1980s.

    He should recall, however, that the details of that new order were subsequently worked out by the administration of George Bush Snr., which had a pragmatic respect for national self-determination. That now means supporting Ukraine in any upcoming negotiation.

    Jason Ralph has in the past received funding from Research Councils UK and the EU. He does not currently hold a research grant. He is a member of the UK Labour Party.

    ref. Keir Starmer at the White House: what ‘progressive realism’ now means in relation to Ukraine and Donald Trump – https://theconversation.com/keir-starmer-at-the-white-house-what-progressive-realism-now-means-in-relation-to-ukraine-and-donald-trump-250722

    MIL OSI – Global Reports

  • MIL-OSI Global: Keir Starmer meets Donald Trump: assiduous planning results in deft diplomacy

    Source: The Conversation – UK – By Martin Farr, Senior Lecturer in Contemporary British History, Newcastle University

    Flickr/Number 10, CC BY-NC-ND

    Keir Starmer was only the second European leader to visit Donald Trump’s second White House. The first, France’s Emmanuel Macron, had barely taken off when Starmer touched down, but had already raised the bar by behaving regally in front of the world’s media alongside his fellow president in the Oval Office.

    In manner, Macron manifested his eight years in office (four of which were already spent with Trump in the White House). Starmer has had a mere eight months. But it was a challenge, judged in its own immediate terms, that the prime minister met.

    Raising the curtain, in a highly untypical coup de théâtre, Starmer flourished – as few can – a letter from the King to give to the president, and then effectively forced Trump to read it on camera and agree to the invitation enclosed within.


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    Starmer of course knew he was nudging an open door: much came down to assiduous preparation. The British Embassy, under a finally confirmed ambassador Peter Mandelson, worked overtime to choreograph and lubricate.

    Starmer had been wise in contradicting Trump only indirectly. Nothing could be gained – as president Zelenskyy already demonstrated – from doing so publicly. So early an offer of a state visit to the UK ran the risk of appearing desperate, but was mitigated by its also being “unprecedented” as the second to be offered to Trump. A word recently worn smooth by over-use, there was nevertheless another precedent set in the suggestion of a pre-state visit visit between Trump and the king. With this president, more than any other, royal diplomacy is a critical national asset.

    Starmer’s announcement of an increase in defence spending to 2.5% of GDP by 2027 worked similarly well. That funds are to be diverted from foreign aid for that purpose the Labour leadership deemed as being politically cost-free – or at least good value – politically. It was, indeed, almost Trumpian. The relevant minister disagreed.

    It is hard to recall greater shifts in a country’s foreign policy in so short a space of time. Insofar as one can discern Trump’s purposefulness, it is to create pandemonium, which has the secondary effect of galvanising actors to act – not least for fear of further pandemonium.

    Thus last week the US voting with Russia, Iran and North Korea, and not with Britain, at the UN. The Trump administration’s designation of choice is now “the Russia-Ukraine conflict”, as if it were merely a border dispute.

    Therefore, ahead of Starmer’s arrival in Washington, he was faced with the US apparently aligning itself with a country his describes as “the most acute threat” to the UK. “Jaw-dropping” was the adjective of choice for more than a few informed observers who had thought themselves prepared for whatever may transpire.

    The actors Trump primarily wishes to galvanise are European leaders, recalcitrants he thinks should do more to keep their own peace. For Macron to have been told that Putin would accept Nato forces policing the peace was scene-changing, but the only witness to the veracity of that news was Trump, who exhales untruths as easily as he breathes. The Russians soon denied it.

    A very special man.
    Flickr/Number 10, CC BY-NC-ND

    Macron’s offer of France’s (non-Nato) airborne nuclear force complemented Starmer’s commitment to British boots on the ground and helped him elicit Trump’s commitment to mutual defence.

    But Trump guaranteeing the peace that Starmer and Macron are willing to police was the cherry conspicuously missing from the cake. The suggestion was subject to a classic Trump equivocation (we’ll always support the Brits, but they won’t need our support).

    For the British government, July’s election already resembles a hospital pass. The effect of 20% tariffs on GDP growth could be catastrophic. Trump’s talk of tariff-free trade deals was more than expected, but one such was offered last time without much being doing about, before it was cancelled by President Biden. This time, Trump has said his vice president is drawing up a plan, even that being absent before.

    And in a categorical demonstration of the benefits of lobbying there was effective presidential approval of the Chagos islands deal, simultaneously shooting one of Conservative leader Kemi Badenoch’s few foxes stone dead.

    Warm words

    Thus has passed the most potentially difficult meeting of a prime minister and a president since Suez. Nothing else comes close. Cliche – eggshells, tightropes – proliferated in previews.

    When Starmer was last at the White House, in September, he had asked Biden for a meeting about Ukraine and received it. However unsatisfactory the outcome, public face was maintained. Trump has the ability – and the form – to have humiliated in a way which would permanently have scarred Starmer. That he did the opposite ought not to distract from the vulnerability of the supplicant.

    ‘Go on, open it’.
    Number 10/Flickr, CC BY-NC-ND

    Instead there were encomia from Trump as to the two countries – “special relationship”, “unique friendship”, “fantastic country”, “I’ve always cared” – and of Starmer – “a special man”, “a very special person”. And in describing Starmer’s accent as “beautiful”, the president revealed the hitherto unknown allure of the adenoidal.

    Power plays sit ill with Starmer, but he nonetheless ventured two corrections from his armchiar, one to a statement made by the president and another to one made by the vice-president. The subsequent praise for Starmer’s negotiating tenacity from Trump, that much-vaunted artist of the deal, was as priceless – and unfamiliar – as the following morning’s front pages.

    However successful this visit, however, nothing can be assumed, still less guaranteed. That the British government would so extensively war-game a meeting with its closest ally tells its own tale, or, rather a tale perhaps yet to be told. At this moment, for the next four years the relationship at least feels more secure than it did a few days before the trip. By such diurnal turns are the affairs of allies now measured.

    Martin Farr does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Keir Starmer meets Donald Trump: assiduous planning results in deft diplomacy – https://theconversation.com/keir-starmer-meets-donald-trump-assiduous-planning-results-in-deft-diplomacy-251178

    MIL OSI – Global Reports

  • MIL-OSI Global: Zelensky flies to Washington but his dream of a ‘just peace’ deal is unlikely to come true as things stand

    Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

    Ukraine’s president, Volodymyr Zelensky, has arrived in Washington for talks with his US counterpart, Donald Trump. One of the key issues on their agenda is the “very big deal” announced by the US president on February 25. This deal would give the United States access to Ukraine’s critical mineral and rare earth deposits in return for continuing US support.

    Trump has made sure his domestic audience understands that – as he told his first cabinet meeting on February 26 – in contrast to his Democratic predecessor, Joe Biden, he’s getting something out of Kyiv in return for the support the US has given Ukraine in the past.

    The message coming from the Ukrainian side was a bit more circumspect. Zelensky took pains to emphasise that the deal was still a draft and that its successful conclusion would depend on the outcome of talks with Trump.

    The lack of Ukrainian enthusiasm for the deal is justified. In its present form, it looks more like a memorandum of understanding that leaves several vital issues to be resolved later. The deal on offer is the creation of will be called a “reconstruction investment fund”, to be jointly owned and managed by the US and Ukraine.

    Into the proposed fund will go 50% of the revenue from the exploitation of “all relevant Ukrainian government-owned natural resource assets (whether owned directly or indirectly by the Ukrainian government)” and “other infrastructure relevant to natural resource assets (such as liquified natural gas terminals and port infrastructure)”.

    This means that private infrastructure – much of it owned by Ukraine’s wealthy oligarchs – is likely to become part of the deal. This has the potential of further increasing friction between Zelensky and some very powerful Ukrainians.

    Meanwhile, US contributions are less clearly defined. The preamble to the agreement makes it clear that Ukraine already owes the US. The very first paragraph notes that “the United States of America has provided significant financial and material support to Ukraine since Russia’s full-scale invasion of Ukraine in February 2022”.

    This figure, according to Trump, amounts to US$350 billion (£278 billion). The actual amount, according to the Ukraine Support Tracker of the Kiel Institute for the World Economy, is about half that.

    Western and Ukrainian analysts have also pointed out that there may be fewer and less accessible mineral and rare earth deposits in Ukraine than are currently assumed. The working estimates have been based mostly on Soviet-era data.

    Since the current draft leaves details on ownership, governance and operations to be determined in a future fund agreement, Trump’s very big deal is at best the first step. Future rounds of negotiations are to be expected.

    Statement of intent

    From a Ukrainian perspective, this is more of a strength than a weakness. It leaves Kyiv with an opportunity to achieve more satisfactory terms in future rounds of negotiation. Even if any improvements will only be marginal, it keeps the US locked into a process that is, overall, beneficial for Ukraine.

    Take the example of security guarantees. The draft agreement offers Ukraine nothing anywhere near Nato membership. But it notes that the US “supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace”, adding that: “Participants will seek to identify any necessary steps to protect mutual investments.”

    The significance of this should not be overstated. At its bare minimum, it is an expression of intent by the US that falls short of security guarantees but still gives the US a stake in the survival of Ukraine as an independent state.

    But it is an important signal both in terms of what it does and does not do – a signal to Russia, Europe and Ukraine.

    Trump does not envisage that the US will give Ukraine security guarantees “beyond very much”. He seems to think that these guarantees can be provided by European troops (the Kremlin has already cast doubts on this idea).

    But this does not mean the idea is completely off the table. On the contrary, because the US commitment is so vague, it gives Trump leverage in every direction.

    He can use it as a carrot and a stick against Ukraine to get more favourable terms for US returns from the reconstruction investment fund. He can use it to push Europe towards more decisive action to ramp up defence spending by making any US protection for European peacekeepers contingent on more equitable burden-sharing in Nato.

    And he can signal to the Russian president, Vladimir Putin, that the US is serious about making a deal stick – and that higher American economic stakes in Ukraine and corporate presence on the ground would mean US-backed consequences if the Kremlin reneges on a future peace agreement and restarts hostilities.

    That these calculations will ultimately lead to the “free, sovereign and secure Ukraine” that the agreement envisages is not a given.

    For now, however, despite all its shortcomings and vagueness on key issues, it looks like it serves all sides’ interests in moving forward in this direction, albeit at a snail’s pace.

    Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

    Tetyana Malyarenko does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Zelensky flies to Washington but his dream of a ‘just peace’ deal is unlikely to come true as things stand – https://theconversation.com/zelensky-flies-to-washington-but-his-dream-of-a-just-peace-deal-is-unlikely-to-come-true-as-things-stand-250855

    MIL OSI – Global Reports

  • MIL-OSI United Nations: US aid cuts will make world ‘less healthy, less safe and less prosperous’: Guterres

    Source: United Nations 2

    Humanitarian Aid

    UN Secretary-General António Guterres warned on Friday that severe cuts to humanitarian and development funding by the United States will have devastating consequences for millions of vulnerable people worldwide.

    “These cuts impact a wide range of critical programmes,” he told reporters at the UN Headquarters in New York, highlighting the potential disruption to lifesaving humanitarian work, development projects, counterterrorism efforts and initiatives to combat drug trafficking.

    He expressed the UN’s gratitude “for the leading role” the US has played over decades providing overseas aid, highlighting that thanks to US taxpayers’ dollars and other donors, over 100 million people each year receive humanitarian support through UN programmes.

    However, the cuts come at a time when global crises are intensifying, leaving millions at risk of hunger, disease and displacement, he said.

    The consequences will be especially devastating for vulnerable people around the world,” Mr. Guterres said.

    Millions at risk

    In Afghanistan, more than nine million people could lose access to health and protection services, as hundreds of mobile health teams and other critical programmes face suspension. 

    In northeast Syria, where 2.5 million people require humanitarian assistance, the absence of US funding will have a major impact.

    The cuts have been felt already in Ukraine, where cash-based aid that supported one million people in 2024 has been suspended. In South Sudan, funding has run out for programmes assisting refugees fleeing conflict in neighbouring Sudan, creating overcrowded and unsanitary conditions at border areas.

    Beyond direct humanitarian relief, the cuts will also severely affect global health and security efforts.

    The UN Office on Drugs and Crime (UNODC) will be forced to halt many counter-narcotics operations, including those targeting the fentanyl crisis and dramatically scale back its activities against human trafficking.

    “And funding for many programmes combatting HIV/AIDS, tuberculosis, malaria and cholera have stopped,” Mr. Guterres said.

    A vital partnership

    Mr. Guterres emphasized that US support has long been central to global humanitarian efforts.

    The generosity and compassion of the American people have not only saved lives, built peace and improved the state of the world. They have contributed to the stability and prosperity that Americans depend on,” he added.

    Think again

    The Secretary-General urged the US Government to reconsider the funding cuts, warning that reducing America’s humanitarian role would have far-reaching consequences, not only for those in need but also for global stability.

    “Going through with these cuts will make the world less healthy, less safe, and less prosperous,” he said, stating that UN agencies stand ready to provide the necessary information and justification for its projects.

    We look forward to working with the United States in this regard,” he added.

    Mr. Guterres said the UN would continue to do everything possible to provide lifesaving assistance and diversify funding sources.

    “Our absolute priority remains clear. We will do everything we can to provide life-saving aid to those in urgent need,” he said.

    We remain committed to making the global humanitarian effort as efficient, accountable and innovative as possible while continuing to save lives.”

    Soundcloud

    Full audio of Secretary-General Guterres remarks to the press.

    MIL OSI United Nations News

  • MIL-OSI Europe: Rare Disease Day: How the European Reference Networks are tackling rare diseases

    Source: European Union 2

    Rare diseases represent a major health challenge for healthcare systems due to the limited knowledge available to diagnose them, the limited number of  treatment options (95% of the known rare diseases still lack an approved treatment) and their low prevalence*. That is why rare diseases have been a priority for the European Union over the past two decades, resulting in collective action to facilitate knowledge sharing and access to specialised care for patients. 

    The EU’s strategic objective for rare diseases is to improve patient access to diagnosis, information and care. It assists in pooling scarce resources spread across the EU, enabling patients and professionals to share expertise and information.

    The European response can be characterised by a combination of key elements:

    • Setting up and supporting European Reference Networks (ERNs);
    • Supporting the definition, codification and inventory of rare diseases;
    • Supporting the designation and authorisation of orphan medicinal products;
    • Building and broadening the knowledge base, also through research;
    • Empowering patient organisations.

    ERNs are cross-border networks that bring together European centres of expertise and hospitals to tackle rare, low prevalence and complex diseases and conditions requiring highly specialised healthcare.  

    ERNs enable specialists in Europe to discuss cases of patients affected by rare, low-prevalence and complex diseases, providing advice on the most appropriate diagnosis and the best treatment available. 

    On Rare Disease Day, HaDEA interviewed Professor Luca Sangiorgi, Coordinator of ERN BOND, the European Reference Network of Rare Bone Disorders, and Chair of the ERN Coordinators Group, which is the governing board of the 24 ERNs. 

    1. Can you explain the relevance of ERNs in the field of rare diseases? 

    ERNs gather over 1600 European centres of expertise dealing with rare, low prevalence and complex diseases and conditions which require highly specialised healthcare. Their relevance in the rare disease field resides in the possibility of enabling knowledge exchange and creating common patient pathways and guidelines, which will then be shared with the entire healthcare community. Patient representatives are involved and engaged in all ERNs’ processes, to ensure that their perspective is taken into account in the work of the ERNs.

    1. The ERNs have been funded by the EU since 2017. What do you consider their main successes?  

    The main success of ERNs is that they allow patients with a rare disease to have a proper harmonised pathway for diagnosis and treatment. Moreover, ERNs are favouring more homogeneous treatment of patients across participating countries.  This is done, for instance, through the ERNs’ virtual discussion tool (CPMS) that allows clinicians to discuss the most challenging cases.  

    Furthermore, ERN registries, which collect pseudo-anonymised data on patients with rare diseases, are helping to develop a clear picture of the natural history of the various disorders treated by the ERNs. This may one day make it possible to find new treatments for disorders that are currently untreatable. Very few rare diseases have a therapeutic option available and the ERNs registries make a real contribution to the discovery of new treatments. 

    ERNs have also helped the EU respond to different crises in recent years, such as the COVID-19 pandemic and the Russian’s war of aggression against Ukraine. A framework has been put in place by the Commission for Ukrainian healthcare providers to seek advice from members of the European Reference Networks on Ukrainian rare or complex disease patients. Moreover, the ERNs undertake collaboration activities, capacity building and best practice sharing for competent Ukrainian authorities and healthcare units. 

    1. What are the main objectives and expectations for the ongoing grants?  

    The main objectives are to stabilise and further increase the opportunities that ERNs are creating for the treatment of patients. We also expect to explore future possibilities for better therapeutic and better care options, such as the use of artificial intelligence. 

    1. What are the main challenges to cross-border cooperation for rare diseases in Europe, and how do the ERN grants help to face these?  

    There are still some obstacles which hinder effective cross-border cooperation. To face these limits, the ERN coordinators’ group has recently set up specific working groups. At the same time, support to Ukrainian patients has given us a clear example that cross-border cooperation is working. ERNs are not only providing treatments to those patients in countries where they are not available, but are also training referral doctors in order to facilitate knowledge transfer and the implementation of new procedures. 

    For instance, my hospital, which is part of ERN BOND and is located in Italy, will operate on a patient from another country where the surgical expertise is not currently available. Surgeons from the clinical centre which referred the patient will participate in the surgery after following a specific training. This will allow them to repeat this therapeutic strategy in their home country.

    1. How important is the support of EU funding for ERNs? 

    EU funding is essential: without this support, many of the activities I have mentioned would not be feasible. ERNs have received EU funding since their creation in 2017 and a direct grant of more than €77 million is covering their activities for the period 2023-2027. 

    There are ongoing actions aimed to raise awareness in EU countries of the importance of ERNs as a strategic initiative  to support rare diseases patients. This is one of the main objectives of the Joint Action on integration of ERNs into national healthcare systems (JARDIN). The support of the EU to ERNs, by facilitating interaction between EU countries, is essential for the existence of ERNs and for the rare disease community. 

    * Prevalence: the proportion of a particular population found to be affected by a medical condition at a specific time

    Background 

    European Reference Networks  

    HaDEA manages the 24 ERN grants running from 2023 to 2027 with a total EU contribution of €77.4 million. HaDEA also manages the Joint Action on integration of ERNs into national healthcare systems (JARDIN), for a total EU contribution of €15 million. 

    HaDEA has also managed the contract on the independent evaluation of ERNs: ERNs evaluation results report – Independent Evaluations of European Reference Networks and of Healthcare Providers – European Commission 

    EU4Health is the fourth and largest of the EU health programmes. The programme provides funding to national authorities, health organisations and other bodies through grants and public procurement, contributing to a healthier Europe. 

    HaDEA manages the vast majority of the total EU4Health budget and implements the programme by managing calls for proposals and tenders from 2021 to 2027. 

    MIL OSI Europe News

  • MIL-OSI United Nations: Secretary-General’s remarks to the press [please scroll down for Arabic]

    Source: United Nations secretary general

    Ladies and gentlemen of the media,  

    I want to start by expressing my deep concern about information received in the last 48 hours by UN agencies — as well as many humanitarian and development NGOs — regarding severe cuts in funding by the United States. 

    These cuts impact a wide range of critical programmes.

    From lifesaving humanitarian aid, to support for vulnerable communities recovering from war or natural disaster.

    From development, to the fight against terrorism and illicit drug trafficking.  

    The consequences will be especially devastating for vulnerable people around the world. 

    In Afghanistan, more than 9 million people will miss out on health and protection services, with hundreds of mobile health teams and other services suspended. 

    In north-east Syria, where 2.5 million people need assistance, the absence of US funding means programmes are leaving large populations even more vulnerable.

    In Ukraine, cash-based programming — a key feature of the humanitarian response, reaching 1 million people in 2024 — has been suspended in key regions.

    In South Sudan, funding has run out for programmes to support people who have fled the conflict in neighbouring Sudan, leaving border areas dangerously overcrowded.

    Meanwhile, the United Nations Office on Drugs and Crime will be forced to stop many of its counter-narcotics programmes, including the one fighting the fentanyl crisis, and dramatically reduce activities against human trafficking. 

    And funding for many programmes combatting HIV/AIDS, tuberculosis, malaria and cholera have stopped. 

    We have been extremely grateful for the leading role the United States has provided over the decades. 

    For example, thanks to the generosity of donors — led by the United States — the UN assists and protects more than 100 million people every year through our humanitarian programming.

    From Gaza to Sudan, Afghanistan, Syria, Ukraine and beyond. 

    American funding directly supports people living through wars, famines and disasters, providing essential health care, shelter, water, food and education — the list goes on. 

    The message is clear. 

    The generosity and compassion of the American people have not only saved lives, built peace and improved the state of the world. 

    They have contributed to the stability and prosperity that Americans depend on.  

    United Nations staff members around the world are deeply proud of what we’ve accomplished together — as partners. 

    Now going through with these cuts will make the world less healthy, less safe and less prosperous. 

    The reduction of America’s humanitarian role and influence will run counter to American interests globally. 

    I can only hope that these decisions can be reversed based on more careful reviews, and the same applies to other countries that have recently announced reductions in humanitarian and development aid. 

    In the meantime, every United Nations agency stands ready to provide the necessary information and justification for its projects.

    And we look forward to working with the United States in this regard.  

    All humanitarian coordinators in the field are urgently updating strategies on how to protect as much lifesaving work as possible. 

    The Inter-Agency Standing Committee, which brings together UN humanitarian agencies and our partners, has agreed on an ambitious plan for efficiency and prioritization.

    Our absolute priority remains clear. 

    We will do everything we can to provide life-saving aid to those in urgent need.

    And we will continue our efforts to diversify the pool of generous donors who support our work.  

    We remain committed to making the global humanitarian effort as efficient, accountable and innovative as possible while continuing to save lives. 

    Dear ladies and gentlemen of the media, 

    Next Tuesday, I will be in Cairo to join the Extraordinary Summit of the League of Arab States to discuss the reconstruction of Gaza. 

    Since the horrific attacks of terror by Hamas in Israel on October 7, the ensuing hostilities have unleashed an unprecedented level of death and destruction in Gaza. 

    Gaza has become a nexus of death, displacement, hunger and disease. 

    Hospitals, schools and water facilities have been destroyed and reduced to rubble.  

    And the risk of further destruction looms over the population. 

    Tuesday’s Summit is an opportunity for leaders across the Arab world to come together and discuss the elements required to deliver peace and stability in Gaza. 

    Their unified position will help guide the way forward. 

    I will outline key priorities. 
     
    First — the ceasefire and hostage release deal must hold. 

    The coming days are critical. 

    The parties must spare no effort to avoid a breakdown of this deal. 

    I urge them to uphold their commitments and implement all of them in full. 

    All hostages must be released immediately, unconditionally and in a dignified manner.

    The parties must ensure humane treatment for all those held under their power. 

    All transfers must be carried out in a dignified way and as per the terms of the deal. 

    Humanitarian aid must be maintained, protected and funded, flowing without impediment to reach people in desperate need. 

    Each moment the ceasefire holds means more people reached and more lives saved.  

    Time and again, we’ve shown what we can deliver. 

    Since the ceasefire, humanitarians have been able to scale-up and expand operations in Gaza, including to areas that were unreachable during the fighting. 

    Together with our partners, we’ve reached hundreds of thousands of people…

    Providing food to nearly everyone in Gaza.

    Delivering shelter kits, clothing and other essential items to tens of thousands of displaced people.

    And doubling the amount of clean water available to people in Gaza.  

    Meanwhile, our partners have distributed medical supplies reaching some 1.8 million people, helping health facilities continue their lifesaving work. 

    The message is clear. 

    With the right conditions and access, we can do far more.  

    The ceasefire must hold. We must keep the humanitarian lifeline open. 

    As part of this, I will once again appeal for the urgent and full support of UNRWA’s work.

    UNRWA’s unique role must be maintained. 

    Second — ending the immediate crisis is only a first step.  

    There must be a clear political framework that lays the groundwork for Gaza’s recovery, reconstruction and lasting stability. 

    This framework must be based on clear principles. 

    This means staying true to the bedrock of international law. 

    It means preventing any form of ethnic cleansing. 

    It means there should be no long-term Israeli military presence in Gaza. 

    It means addressing Israel’s legitimate security concerns. 

    It means accountability for violations of international law. 

    And it means Gaza remains an integral part of an independent, democratic and sovereign Palestinian state, with no reductions in its territory or forced transfer of its population. 

    Both Gaza and the occupied West Bank — including East Jerusalem — must be treated as one — politically, economically and administratively.

    And governed by a Palestinian government that is accepted and supported by the Palestinian people.  

    And any transitional arrangements must be designed to achieve a unified Palestinian government within a precise and limited timeframe.

    I will also call for an urgent de-escalation of the alarming situation in the West Bank.   

    Unilateral actions, including settlement expansion and threats of annexation, must stop.

    I call for an end to attacks on civilians and their property. 

    Finally, we must take tangible steps — now — towards the realization of a two-State solution.

    The Palestinian people must have the right to govern themselves, to chart their own future, and to live on their land in freedom and security. 

    The only path to lasting peace is one where two states — Israel and Palestine — live side by side in peace and security, in line with international law and relevant UN resolutions, with Jerusalem as the capital of both states.

    Palestinians deserve lasting stability and a just and principled peace. 

    And the people of Israel deserve to live in peace and security. 

    At this fragile moment, we must avoid a resumption of hostilities that would deepen the suffering and further destabilize a region that is already perched on a knife’s edge. 

    We need sustainable reconstruction and a unified, clear and principled political solution. 

    That’s what I will call for in Cairo next week. 

    Thank you.
    ******************

    حضرات السيدات والسادة الإعلاميين،

    أود أن أبدأ بالإعراب عن قلقي العميق إزاء المعلومات التي وردت في الساعات الـ 48 الماضية من قبل وكالات الأمم المتحدة – وكذلك العديد من المنظمات غير الحكومية الإنسانية والمعنية بالتنمية – بشأن التخفيضات الحادة في التمويل من قبل الولايات المتحدة.

    وتؤثر هذه التخفيضات على مجموعة واسعة من البرامج الحاسمة…

    من المساعدات الإنسانية المنقذة للحياة، إلى دعم المجتمعات الهشة التي تتعافى من الحروب أو الكوارث الطبيعية…

    ومن التنمية إلى مكافحة الإرهاب والاتجار غير المشروع بالمخدرات.

    ستكون العواقب مدمرة بشكل خاص على الفئات الضعيفة في جميع أنحاء العالم.

    ففي أفغانستان، سيُحرم أكثر من تسعة ملايين شخص من الخدمات الصحية وخدمات الحماية، مع تعليق الخدمات التي تقدمها مئات الفرق الصحية المتنقلة.

    أما في شمال شرق سوريا، حيث يحتاج 2.5 مليون شخص إلى المساعدة، فإن غياب التمويل الأمريكي يعني أن البرامج ستترك أعدادا كبيرة من السكان أكثر عرضة للخطر.

    في أوكرانيا، تم تعليق البرامج القائمة على النقد في مناطق رئيسية – وهذه البرامج تُعدّ سمة رئيسية للاستجابة الإنسانية وقد وصلت إلى مليون شخص في عام 2024.

    أما في جنوب السودان، فقد نفد التمويل المخصص لبرامج دعم الأشخاص الذين فروا بسبب النزاع في السودان المجاور، مما ترك المناطق الحدودية مكتظة بشكل خطير.

    وفي الوقت نفسه، سوف يضطر مكتب الأمم المتحدة المعني بالمخدرات والجريمة إلى وقف العديد من برامجه لمكافحة المخدرات، بما في ذلك برنامج مكافحة أزمة الفنتانيل، وتقليص أنشطة مكافحة الاتجار بالبشر بشكل كبير.

    وتوقف تمويل العديد من برامج مكافحة فيروس نقص المناعة البشرية/الإيدز والسل والملاريا والكوليرا.

    وأعربنا عن امتناننا للغاية للدور الرائد الذي قدمته الولايات المتحدة على مدى عقود.

    فعلى سبيل المثال، وبفضل سخاء المانحين – وعلى رأسهم الولايات المتحدة – تساعد الأمم المتحدة وتحمي أكثر من 100 مليون شخص كل عام من خلال برامجنا الإنسانية…

    من غزة إلى السودان وأفغانستان وسوريا وأوكرانيا وغيرها.

    يدعم التمويل الأمريكي بشكل مباشر الناس الذين يعيشون في الحروب والمجاعات والكوارث، ويوفر لهم الرعاية الصحية الأساسية والمأوى والمياه والغذاء والتعليم – والقائمة تطول.

    الرسالة واضحة.

    إن سخاء الشعب الأمريكي وتعاطفه لم ينقذ الأرواح ويبني السلام ويحسّن حالة العالم فحسب.

    لقد ساهم في تحقيق الاستقرار والازدهار الذي يعتمد عليه الأمريكيون.

    إن موظفي الأمم المتحدة حول العالم فخورون للغاية بما أنجزناه معا – كشركاء.

    إن المضي قدماً في هذه الاقتطاعات سيجعل العالم أقل صحة وأقل أمناً وأقل ازدهاراً.

    وسيتعارض تقليص دور أمريكا الإنساني ونفوذها مع المصالح الأمريكية على الصعيد العالمي.

    لا يسعني إلا أن آمل في أن يتم التراجع عن هذه القرارات بناء على مراجعات أكثر دقة، وينطبق الأمر نفسه على الدول الأخرى التي أعلنت مؤخرا عن تخفيضات في المساعدات الإنسانية والإنمائية.

    وفي غضون ذلك، تقف كل وكالة من وكالات الأمم المتحدة على أهبة الاستعداد لتقديم المعلومات والمبررات اللازمة لمشاريعها.

    ونحن نتطلع إلى العمل مع الولايات المتحدة في هذا الصدد.

    يقوم جميع منسقي الشؤون الإنسانية في الميدان بتحديث الاستراتيجيات على وجه السرعة حول كيفية توفير حماية بأكبر قدر ممكن من العمل المنقذ للحياة.

    وقد اتفقت اللجنة الدائمة المشتركة بين الوكالات، التي تجمع بين وكالات الأمم المتحدة الإنسانية وشركائنا، على خطة طموحة لتحقيق الكفاءة وتحديد الأولويات.

    وتبقى أولويتنا المطلقة واضحة.

    سنبذل كل ما في وسعنا لتقديم المساعدات المنقذة للحياة لمن هم في حاجة ماسة إليها.

    وسنواصل جهودنا لتنويع مجموعة المانحين الأسخياء الذين يدعمون عملنا.

    وسنظل ملتزمين بجعل الجهود الإنسانية العالمية فعالة وخاضعة للمساءلة ومبتكرة قدر الإمكان مع الاستمرار في إنقاذ الأرواح.

    حضرات السيدات والسادة الإعلاميين،

    سأكون يوم الثلاثاء المقبل في القاهرة للمشاركة في مؤتمر القمة الاستثنائي لجامعة الدول العربية لمناقشة إعادة إعمار غزة.

    ومنذ الهجمات الإرهابية المروعة التي شنتها حماس في إسرائيل في 7 تشرين الأول/أكتوبر، جرّت الأعمال العدائية التي أعقبت ذلك مستويات غير مسبوقة من الموت والدمار في غزة.

    فأصبحت غزة بؤرة للموت والنزوح والجوع والمرض.

    ودُمّرت المستشفيات والمدارس ومرافق المياه وتحولت إلى أنقاض.

    ويحدق بالسكان خطر التعرض للمزيد من الدمار.

    ويمثل مؤتمر القمة الذي سيُعقد الثلاثاء فرصة ليجتمع قادة العالم العربي ويناقشوا العناصر المطلوبة لتحقيق السلام والاستقرار في غزة.

    وسيساعد موقفهم الموحد في توجيه سُبل المضي قدما.

    وسأحدد فيما يلي الأولويات الرئيسية.

    أولا – يجب أن يصمد اتفاق وقف إطلاق النار وإطلاق سراح الرهائن.

    الأيام القادمة حاسمة.

    ولا يجب على الطرفين ادّخار أي جهد لتجنب انهيار هذا الاتفاق.

    وأحثهما على الوفاء بالتزاماتهما وتنفيذها بالكامل.

    ويجب إطلاق سراح جميع الرهائن فورا ودون شروط وبطريقة تصون كرامتهم.

    ويجب على الطرفين ضمان المعاملة الإنسانية لجميع المحتجزين تحت سلطتهم.

    ويجب الاستمرار في تقديم المساعدات الإنسانية وحمايتها وتمويلها والسماح بإيصالها دون عوائق إلى الأشخاص الذين هم في أمس الحاجة إليها.

    وكل لحظة يصمد فيها وقف إطلاق النار تعني الوصول إلى عدد أكبر من الأشخاص وإنقاذ المزيد من الأرواح.

    لقد بيّنا مرارا وتكرارا ما يمكننا تقديمه.

    ومنذ وقف إطلاق النار، تمكّن العاملون في المجال الإنساني من تكثيف عملياتهم في غزة وتوسيع نطاقها، بما في ذلك إلى المناطق التي تعذّر الوصول إليها أثناء القتال.

    وبالتعاون مع شركائنا، وصلنا إلى مئات الآلاف من الأشخاص…

    ووفّرنا الغذاء لجميع السكان في غزة تقريبا…

    وأوصلنا مستلزمات الإيواء والملابس وغيرها من المواد الأساسية لعشرات الآلاف من النازحين…

    وضاعفنا كمية المياه النظيفة المتاحة للناس في غزة.

    وفي الوقت نفسه، قام شركاؤنا بتوزيع الإمدادات الطبية لتصل إلى حوالي 1,8 مليون شخص، مما ساعد المرافق الصحية على مواصلة عملها المنقذ للحياة.

    رسالتنا واضحة.

    إذا ما توفرت لنا الظروف المناسبة وأُتيح لنا الوصول، يمكننا القيام بأكثر من ذلك بكثير.

    ويجب أن يصمد وقف إطلاق النار. ويجب أن نُبقي شريان الحياة الإنساني مفتوحا.

    وفي هذا الإطار، إنني أناشد مرة أخرى من أجل تقديم الدعم العاجل والكامل لعمل الأونروا.

    ويجب الحفاظ على دور الأونروا الفريد من نوعه.

    ثانيا – إنهاء الأزمة الآنية ليس سوى الخطوة الأولى.

    يجب أن يكون هناك إطار سياسي واضح يُرسي الأسس اللازمة للتعافي وإعادة الإعمار وتحقيق الاستقرار الدائم في غزة.

    ويجب أن يستند هذا الإطار إلى مبادئ واضحة.

    وهذا يعني الالتزام بأسس القانون الدولي.

    وهذا يعني منع أي شكل من أشكال التطهير العرقي.

    وهذا يعني أنه ينبغي ألا يكون هناك وجود عسكري إسرائيلي طويل الأمد في غزة.

    وهذا يعني معالجة الشواغل الأمنية المشروعة لإسرائيل.

    وهذا يعني المساءلة عن انتهاكات القانون الدولي.

    وهذا يعني بقاء غزة جزءا لا يتجزأ من دولة فلسطينية مستقلة وديمقراطية وذات سيادة، دون أي انتقاص من أراضيها أو نقل قسري لسكانها.

    ويجب التعامل مع قطاع غزة والضفة الغربية المحتلة – بما في ذلك القدس الشرقية – ككيان واحد – سياسيا واقتصاديا وإداريا…

    تحكمهما حكومة فلسطينية يقبلها الشعب الفلسطيني ويدعمها.

    ويجب أن تصمم أي ترتيبات انتقالية بهدف التوصّل إلى حكومة فلسطينية موحدة في إطار زمني دقيق ومحدود.

    وسأدعو كذلك إلى تهدئة عاجلة للوضع المثير للجزع في الضفة الغربية.

    فالمنازل والبنية التحتية المدنية تُدمّر.

    والمدنيون يُقتلون.

    والمجتمعات المحلية تُهجّر وتُمنع من العودة.

    ويُمنع الوصول إلى الرعاية الصحية.

    ويجب أن تتوقف الأعمال أحادية الجانب، بما في ذلك التوسع الاستيطاني والتهديدات بالضم.

    وأدعو إلى وضع حد للهجمات على المدنيين وممتلكاتهم.

    وأخيرا، يجب أن نتخذ خطوات ملموسة – الآن – نحو تحقيق حل الدولتين.

    يجب أن يتمتع الشعب الفلسطيني بالحق في أن يحكم نفسه بنفسه، وأن يرسم مستقبله بنفسه، وأن يعيش على أرضه في حرية وأمان.

    والطريق الوحيد لتحقيق السلام الدائم هو الطريق الذي تعيش فيه دولتان – إسرائيل وفلسطين – جنبا إلى جنب في سلام وأمن، بما يتماشى مع القانون الدولي وقرارات الأمم المتحدة ذات الصلة، وتكون القدس عاصمة للدولتين.

    يستحق الفلسطينيون الاستقرار الدائم والسلام العادل والقائم على المبادئ.

    ويستحق شعب إسرائيل أن يعيش في سلام وأمن.

    وفي هذه اللحظة الهشة، يجب أن نتجنب استئناف الأعمال العدائية التي من شأنها أن تعمّق المعاناة وتزيد من زعزعة الاستقرار في منطقة هي أصلا على شفا هاوية.

    نحن بحاجة إلى إعادة إعمار مستدامة وحل سياسي موحد وواضح وقائم على المبادئ.

    هذا ما سأدعو إليه في القاهرة الأسبوع المقبل.

    شكرا لكم.

    MIL OSI United Nations News

  • MIL-OSI Security: Digital sprint to disrupt sexual exploitation of Ukrainian nationals

    Source: Europol

    In a coordinated effort to combat human trafficking, Europol hosted an international operational action between 25 and 28 February 2025, bringing together analytical, OSINT and investigative experts from 12 countries, including Ukraine*. The action took place at Europol’s headquarters in The Hague, coinciding with the third anniversary of the start of the Russian war of aggression against Ukraine.The operational action…

    MIL Security OSI

  • MIL-OSI Global: As the Kremlin eyes a thaw with the White House, Russia’s pro-war hawks aren’t too happy

    Source: The Conversation – USA – By Adam Lenton, Assistant Professor of Politics & International Affairs, Wake Forest University

    Russian President Vladimir Putin attends a wreath-laying ceremony at the Tomb of the Unknown Soldier in Moscow on Feb. 23, 2025. Sergei Bobylyov/AFP via Getty Images

    At face value, the Kremlin has plenty to celebrate after U.S. and Russian officials held high-level bilateral talks on the war in Ukraine for the first time since the full-scale conflict began in 2022.

    Russian delegates at the meeting, which took place on Feb. 18 in Saudi Arabia, struck an ebullient tone. Foreign Minister Sergey Lavrov concluded that “the American side has begun to better understand our position,” while Kirill Dmitriev, the head of Russia’s sovereign wealth fund and an envoy for Moscow, noted that the delegates managed to loosen up enough to laugh and joke. President Vladimir Putin did not attend the meeting, but he characterized it the following day as “very friendly,” going as far as to describe the American delegation as “completely different people” who were “ready to negotiate with an open mind and without any judgment over what was done in the past.”

    And the talks are far from the only reason for optimism in Moscow. In statements that echoed Kremlin propaganda, U.S. President Donald Trump blamed Ukraine for being invaded and described Ukrainian President Volodymyr Zelenskyy as a “dictator.” The U.S. then sided with Russia in two United Nations votes on the conflict and opposed language describing Russia as the aggressor in a draft G7 statement marking the anniversary of the war.

    This perceived rapprochement between Washington and Moscow has many critics on both sides of the Atlantic.

    Within Russia the reaction has been mixed. And not everybody in Moscow is celebrating the apparent shift in U.S. policy.

    Favoring pragmatism

    Of course, many Russians would welcome a thaw in relations. In January, Russia’s leading independent polling group found that 61% of Russians favored peace talks over continuing the war in Ukraine – the highest level yet. Meanwhile, the number of web searches for “When will the ‘Special Military Operation’ end?” on Yandex, a Russian tech firm, reached its highest-ever weekly total in the wake of the U.S.-Russia talks.

    While public opinion is unlikely to shape the Kremlin’s approach given Putin’s sole control over major foreign policy decisions, evidence suggests that a rapprochement with the United States could also be a boon for Putin at home.

    In a recently published article in the peer-reviewed journal International Security, my co-author Henry Hale and I found that while most Russians view the U.S. and NATO as threats, they largely prefer a pragmatic, measured response from the Kremlin – an approach they believed Putin delivered prior to the war in 2022.

    High-level summits between Russia and the U.S. have tended to be well received, we found. This is because they tap into a widely held preference for cooperation as well as depicting Russia as a geopolitical “equal” to the U.S.

    Pro-war hardliners speak out

    Yet not everyone is pleased with the prospect of closer U.S. ties. Russia’s vocal minority of tub-thumping war supporters is already angry.

    This loose community of so-called “Z-patriots” – a reference to the large “Z” letters marking Russian military equipment at the beginning of the war – has been a double-edged sword for the Kremlin.

    While they have been helpful in mobilizing grassroots support for the war, they have also lambasted Moscow’s execution and made pointed criticisms of top military brass. Such attacks are, in effect, a way of making veiled attacks on Putin himself.

    And we are talking about a sizable minority. Estimates indicate that Z-patriots – the more hawkish and ideologically committed segment of war supporters – represent 13% to 27% of the Russian population.

    One of this group’s most prominent ideologues, Zakhar Prilepin, didn’t pull any punches in a recent interview. He described as “humiliating” the fact that “the Russian media community, political scientists and politicians are dancing with joy and telling us how wonderful everything is (now that) Trump has arrived.”

    There are reasons to take this group seriously. According to Marlène Laruelle, an expert on nationalism and ideology in Russia, the Z-patriots are emerging as key opinion leaders.

    Unlike other ideological camps in Russia, the Z-patriots are very much a product of the war, having emerged from the popular military blogging community and with deep connections to paramilitary and veterans organizations. Indeed, many sympathized with former mercenary Wagner Group chief Yevgeny Prigozhin’s anti-elite rants, while Igor Girkin, a former Donbas warlord who claimed to have sparked the initial war in eastern Ukraine in 2014, openly mocked Putin to his almost million-strong Telegram followers.

    The Kremlin partially cracked down on some of the Z-patriots in 2023. Prigozhin’s ill-fated mutiny in June was followed by his suspicious death in a plane crash later that summer, while Girkin was jailed and handed a four-year prison sentence for “inciting extremism.”

    Yet the Z-patriots remain a force. Girkin, commenting on the U.S.-Russia talks from prison, lamented the “egregious managerial and command failure” over the past three years and sarcastically concluded that Moscow’s political elites, aware of their own weakness, are likely to “‘drag their heels’ in their inimitable style – and with their well-known genius.”

    Other pro-war voices expressed skepticism about the information communicated by the Russian delegation and ironically said they expected the Kremlin would pass a law against “discrediting Russia-American relations,” a play on the March 2022 law against “discrediting” Russia’s military.

    Sanctions relief a concern

    Some of the sharpest criticisms of the Kremlin have been about the economy.

    Recent weeks have seen renewed optimism among many in Russia that sanctions relief is on the horizon and that sought-after Western brands may return. Russia – since 2022 the most sanctioned country in the world – had previously appeared to accept that sanctions would remain for decades to come.

    The Russian delegation at the recent talks emphasized the prospect of economic cooperation with the United States, no doubt believing Trump to be receptive to such mercantile framings.

    A few days later, Putin announced a willingness to develop Russia’s rare earth minerals with foreign partners, including the United States, in what appeared to be an attempt to outbid Zelenskyy.

    This, too, provoked a populist backlash among Z-patriots.

    “Grampa’s lost it,” one wrote in a thinly veiled swipe at Putin.

    Another displayed dismay that “stealing Russia’s natural resources once again became a prospect for mutually beneficial cooperation with American partners.”

    “We’ve barely begun to develop small and medium businesses,” Prilepin noted, deriding the “unbearable” excitement around the possibility of Western brands returning.

    These sentiments have struck a chord with other parts of society. After all, some Russian businesses have benefited from Western brands’ exit from the Russian market. The government is attempting to fend off these criticisms with a new bill proposed to Russia’s parliament on Feb. 27 calling to ban Western companies that had financially supported Ukraine.

    What to do about veterans?

    Perhaps most consequential will be what happens to the hundreds of thousands of Russian soldiers currently on the front lines.

    While runaway military spending and lavish payouts to soldiers continue to strain the Russian economy, demobilization also poses risks.

    A report from the Institute for the Study of War recently concluded that demobilization would be politically risky for the Kremlin, fearful that masses of disgruntled veterans might constitute a potential challenge.

    That said, many of the estimated 700,000 Russian troops in Ukraine will eventually return to civilian life and likely become an important constituency in Russian politics moving forward.

    The Z-patriots may be a product of war, but they will have an afterlife beyond it. Meanwhile, regardless of any Russian rapprochement with the White House – or perhaps because of it – Russia’s hawks won’t be turning into doves anytime soon.

    Adam Lenton does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. As the Kremlin eyes a thaw with the White House, Russia’s pro-war hawks aren’t too happy – https://theconversation.com/as-the-kremlin-eyes-a-thaw-with-the-white-house-russias-pro-war-hawks-arent-too-happy-250716

    MIL OSI – Global Reports

  • MIL-OSI Global: Emmanuel Macron used every diplomatic trick in the book at the White House – but Trump writes his own rules

    Source: The Conversation – UK – By Helen Drake, Professor of French and European Studies and Director of Loughborough University London’s Institute for Diplomacy and International Affairs, Loughborough University

    If there was a book of diplomacy, then French president Emmanuel Macron threw it at US president Donald Trump in their joint press conference in Washington DC. Macron delivered quite the masterclass in the diplomatic arts. Unthreatening body language and public displays of affection? Check.

    Meeting your interlocutor on any and every inch of common ground? Check. Macron’s willing use of fluent English was a key tactic here. Other than when answering French-language questions (when to have responded in English would have brought Macron yet more domestic grief), he adapted to the language of his hosts.

    Macron and Trump’s press conference.

    Recalling shared memories of happier, shared times? Check. It was smart to remind Trump of his time as a guest at the reopening of Notre Dame cathedral in Paris just a few months previously.

    Gently correcting a friend in danger of veering too far from reality (here, regarding the extent and type of European aid to Ukraine) as you would expect from a true ally? Again, check.

    These are the soft skills of diplomacy as communication between human beings to which Macron typically brings his heart, body and soul. On this occasion and on this criterion he outperformed even himself, and outclassed his host by some degree.

    At times, Trump looked enraptured by this performance from such an interesting specimen of utter Europeanness. At others, the host fidgeted and listened stony-faced to the halting interpretation of Macron’s rapid-fire French. He tried a few gauche niceties of his own (“say hello to your beautiful wife”) and dialled up to the max his personal brand of touchy-feely diplomacy.

    Behind the scenes

    Beyond the memorable set pieces of diplomatic theatre lies, of course, the message itself. This must represent the voice, the interests and the concerns of the state or other diplomatic actor. But it may well go against the flow, disrupting the smooth surface of diplomatic pleasantries.

    Former French president Charles de Gaulle notoriously ruffled cold-war feathers in the 1960s with rousing speeches to stir non-aligned countries and French-speaking people to contest the existing world order. Former foreign minister Dominique de Villepin will be remembered for his eloquent, impassioned plea to the United Nations security council in 2003 against the allied invasion of Iraq.

    Macron has dabbled in free-wheeling diplomacy himself. He claimed in 2019 that Nato was close to “brain death” and maintained a dialogue with Russia’s president Vladimir Putin after the 2022 Russian invasion of Ukraine. In Macron’s account at the press conference with Trump, he closed this line of communication when he learned of the atrocities being perpetrated by Russian forces.

    Articulating France’s global, strategic interests is where Macron feels most comfortable and probably where he is best suited (judged by the standards of his domestic political failings). His trip to Washington at such a pivotal moment in Trump’s second presidency, with the fate of Ukraine in the balance, was a natural move for a leader who, since the beginning of his first mandate in 2017, has sought to lead the European conversation about the continent’s security.

    His sense of urgency to secure greater European autonomy and capacity in its defence lies behind his willingness to talk to all parties. France does, after all, go by the fiendishly untranslatable label of a “puissance d’équilibres” (which means an actor with the power to strike a balance but also perhaps to bring others into balance or even, simply, to keep the peace).

    Macron’s readiness to confront the cold, hard facts of contemporary international relations – he has already told the French they need to put themselves on a wartime footing in economic terms – gives him a track record of sorts in the diplomatic negotiations now to come: between Europeans themselves, and between Europe and the US.

    But facing down Macron’s fancy optics is one particularly awkward fact – namely that Trump does not do diplomacy by the book, or at least not the one he was metaphorically gifted by president Macron. Where the point of diplomacy is to establish a common language with shared codes and expectations in order to ease tensions and bridge differences between parties, Trump’s diplomatic how-to guide boasts new chapters on the arts of bullying, harassment, gaslighting and, of course, the deal.




    Read more:
    Trump and Europe: US ‘transactionalism on steroids’ is the challenge facing leaders now


    For now, the US president is tolerating the quaint diplomatic overtures of these curious Europeans and given the ultra-high stakes of what couldn’t be further from a game, that is diplomacy itself.

    Helen Drake does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Emmanuel Macron used every diplomatic trick in the book at the White House – but Trump writes his own rules – https://theconversation.com/emmanuel-macron-used-every-diplomatic-trick-in-the-book-at-the-white-house-but-trump-writes-his-own-rules-250832

    MIL OSI – Global Reports

  • MIL-OSI Global: The UK’s food system is broken. A green new deal for agriculture could be revolutionary

    Source: The Conversation – UK – By Benjamin Selwyn, Professor of International Relations and International Development, Department of International Relations, University of Sussex

    William Edge/Shutterstock

    The UK’s food system was described as broken in a recent parliamentary report – and it’s not hard to see why. High living costs, a health crisis of diet-related chronic disease, farmers’ incomes squeezed and low pay across the agricultural sector all play their parts.

    And these elements are underpinned by an environmentally destructive mode of agricultural production – the longer the livestock-intensive system prevails, the greater the environmental, economic and social costs.

    The opportunity cost of not dealing with the food crisis is severe. The Food, Farming and Countryside Commission found that the price of the UK’s unhealthy food system is around £268 billion a year – almost equivalent to the government’s entire expenditure on health. And farmers are also worried about the sector as they face an unpredictable climate, smaller profits and changes to tax relief policies.

    I have researched how a green new deal for agriculture – namely a food system that complements rather than undermines the environment, while tackling social inequities – could begin to address these problems.

    In 2024 the UK’s farming sector experienced its second-worst harvest on record. Huge levels of rain last winter disrupted farmers’ ability to grow crops and reduced yields.

    The UK’s population faces a significant health crisis, exacerbated by the high cost of living. In 2022, around two-thirds of the population across all four nations were either overweight or obese.

    Retailers, processors and distributors grab an exorbitant share of the final value of many agricultural products. Sometimes farmers make as little as 1p profit for each item they produce. And farm workers’ earnings can sometimes leave them facing absolute poverty.

    What’s more, the UK farming sector is systemically inefficient. Dairy and meat products provide about 32% of calories consumed in the UK, and less than half (48%) of the protein. At the same time, livestock and their feed make up 85% of the UK’s total land use for agriculture.

    To make matters worse, land ownership is highly concentrated – about 25,000 landowners, typically corporations and members of the aristocracy, own about 50% of England, for example.

    What would change look like?

    A green new deal for agriculture would require a significant reorientation of policy, akin to the 1945 Labour government’s establishment of the welfare state. Critics might decry the costs and difficulties – but the longer the government waits, the greater the economic and environmental costs are likely to be.




    Read more:
    Britain’s unearned wealth has ballooned – a modest capital tax could help avoid austerity and boost the economy


    The government could introduce compulsory sale orders to spread land ownership more evenly. These would enable public bodies to obtain land that has been left derelict, vacant or that has been used in environmentally damaging ways. These measures could be supported by the establishment of community land trusts – non-profit, democratic organisations that own and work land for the benefit of local people.

    And a green new deal for agriculture could start with the government using its ecosystems service payments, where farmers and landowners are paid to manage their land in an environmentally beneficial way, to stimulate a transition to more plant-based proteins. This could combat hardship among farmers and agricultural workers, and tackle food poverty and ill health in the population. It would also establish the basis for a more sustainable agricultural system.




    Read more:
    Subsidised community restaurants could help tackle the UK’s broken food system – here’s how


    The UK think tank Green Alliance has mapped a green protein transition. It would entail an increase in “agro-ecologically” farmed land – that is, methods that bring a more ecological approach to farming. At present, this is about 3% of UK land, and it would have to rise to 60% by 2050. Under the plan, by 2030 10% of farmland would become semi-natural habitat, rising to one-third by 2050. This would protect land and facilitate natural restoration, and would also support agro-ecological farming methods.

    In this scenario, Britons would be projected to eat 45% less meat and dairy, replacing them with alternative proteins – plants and synthetic foods such as those made from precision fermentation. This is a revolutionary technology producing proteins that can be used in new alternatives to meat and dairy.

    Many conceptions of the protein transition from animal sources to more plant products ignore the necessity of improving farmers’ and agricultural workers’ incomes. But this will be crucial.

    Ecosystems service payments should be broadened to include a focus on sustainable incomes. Farms can be paid directly by government for sustainable production to combat farmer poverty. And the real living wage of £12.60 an hour should be compulsory for agricultural workers.

    As land use shifts from livestock grazing and feed crop production, more ground could be used for food crops for human consumption. There would then be more scope to change which food crops are produced – from wheat to legumes, for example.

    Flour made from broad beans – which can be grown in the UK – packs a bigger protein punch than traditional wheat flour.
    Narsil/Shutterstock

    Research has shown that flour made from broad beans is higher in key nutrients – protein, iron and fibre – than wheat flour. Bread, pasta, pizza, cakes and biscuits could increasingly be produced using broad bean flour, underpinning a shift towards more nutritious diets.

    A protein transition would also free up land for fruit and vegetable production for domestic consumption, reducing the UK’s heavy import dependence by using polytunnels and environmentally sustainable greenhouses.

    Climate breakdown means that the frequency of poor harvests will increase. And the volatile economic and political global picture means that affordable food imports cannot be taken for granted.

    A green new deal for agriculture could begin to remedy many of the problems the UK faces due to its broken food system. What’s needed is a coalition including courageous political parties, farmers, and workers within and beyond food production. Working together, these groups would be well placed to withstand the economic, political and environmental shocks that are on the horizon.

    Benjamin Selwyn does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. The UK’s food system is broken. A green new deal for agriculture could be revolutionary – https://theconversation.com/the-uks-food-system-is-broken-a-green-new-deal-for-agriculture-could-be-revolutionary-250565

    MIL OSI – Global Reports

  • MIL-OSI Video: Secretary-General/Bangladesh, Ramadan, Türkiye & other topics – Daily Press Briefing (27 February)

    Source: United Nations (Video News)

    Noon Briefing by Stéphane Dujarric, Spokesperson for the Secretary-General.

    Highlights:
    Secretary-General/Bangladesh
    Secretary-General/Ramadan Message
    Türkiye
    Haiti
    Ukraine
    Sudan
    Democratic Republic of the Congo/Jean-Pierre Lacroix
    Democratic Republic of the Congo
    Occupied Palestinian Territory
    Lebanon
    Staff Security

    SECRETARY-GENERAL/BANGLADESH
    Every year, the Secretary-General does a Ramadan solidarity visit, where he likes to visit and fast with a Muslim community, which is facing distress. He began this tradition when he was High Commissioner for Refugees. In his own words, the Secretary-General said that Ramadan embodies the values of compassion, empathy and generosity. It is an opportunity to reconnect with family, with community and a chance to remember those less fortunate. These missions are to remind the world of the true face of Islam.
    This year, the Secretary-General will be going to Bangladesh from the 13-16 March. He will travel to Cox’s Bazaar to join an Iftar and meet with Rohingya refugees who have been forcibly displaced from their homes in Myanmar, and also, of course, with the host Bangladeshi communities who have been generously in hosting the refugees from Myanmar.
    During his visit, he will also be in the capital of Bangladesh, Dhaka, where he will meet with the Chief Adviser for the interim government, Professor Muhammed Yunus, as well as with young women and men and representatives from civil society.

    SECRETARY-GENERAL/RAMADAN MESSAGE
    In his annual message at the start of Ramadan, the Secretary-General expressed a special message of support to all those who will spend this sacred time in displacement and violence. From Gaza and the wider region, to Sudan, the Sahel and beyond.
    The Secretary-General stands with all those who are suffering and joins those observing Ramadan to call for peace and mutual respect.

    TÜRKIYE
    On the reports coming out of Türkiye regarding Abdullah Öcalan, the imprisoned leader of the Kurdistan Workers Party, the PKK, and his message calling for fighters to lay down their arms and the PKK to dissolve itself, the spokesperson said that the Secretary-General welcomes this important development. This represents a glimmer of hope, which would lead to the resolution of a long-standing conflict.

    HAITI
    The World Food Programme (WFP) today said that, as part of their emergency response in Haiti, they continue to provide critical food assistance, cash-based transfers, and hot meals across the Artibonite, Nord, and Ouest departments. This includes $1.2 million in cash assistance, as well as nearly 3,000 meals distributed in border regions to Haitians deported back to their country.
    Last week, the WFP organized the first of two humanitarian cargo flights from Panama City to Port-au-Prince. This was the first humanitarian cargo flight to land at the Port-au-Prince airport since its closure lastNovember.
    The flight carried medicines, vaccines, and medical supplies for eight humanitarian organizations. A second flight is scheduled in about one month.

    Full highlights: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=27%20February%202025

    https://www.youtube.com/watch?v=nX1Wlh5xwHk

    MIL OSI Video

  • MIL-OSI: MWC 2025: Innovations to increase engagement and efficiency in telecom business

    Source: GlobeNewswire (MIL-OSI)

    MWC 2025: Innovations to increase engagement and efficiency in telecom business

    In the highly competitive telecom and service provider markets worldwide, companies face equally complex challenges: attracting new customers, retaining existing ones, and increasing their engagement. Innovative solutions such as gamification and reward systems, are becoming powerful tools to achieve these goals, allowing companies not only to maintain customer interest but also to significantly improve their loyalty. In this context, at MWC 2025 in Barcelona, QazCode will present its solutions designed to help overcome these challenges across different markets.

    Gamification as an easy way to increase loyalty

    The global gamification market is growing rapidly, from $9.1 billion in 2020 to a projected $30.7 billion in 2025. Already, 70% of global Global 2000 companies are using game elements to engage customers. In addition, data shows that products with thoughtful interaction design retain customers three times better than those using basic gamification.

    Gamification can increase user engagement by 25% or more and build the habit of using services regularly, which also helps to reduce customer churn and increase customer loyalty. As a result, companies can increase profitability and improve their position in competitive markets.

    Real case study: how gamification helps businesses grow

    On the image: Gamification and reward systems for users

    QazCode, one of the leaders in developing solutions for the telecom and IT sectors, has demonstrated successful examples of gamification implementation in CIS countries. For example, in Kazakhstan, the introduction of gamification in the “Janymda” superapp (formerly “My Beeline”) made games the second most popular domain after telecom services, and every fifth user became an active gamer. Gamification not only helps attract and retain users but also positively influences their perception of the brand, driving both direct and indirect revenue growth. It is important to note that user retention among those who actively engage with games and rewards is 25% higher than among those who do not use these features.

    To make the games engaging and profitable, QazCode established its own game development team, which created its own gaming platform, portfolio, and services. However, in other markets such as Ukraine and Kyrgyzstan, companies had to tailor their offerings, including games, to better suit local cultural differences, user behaviour, and market trends.

    Another opportunity that gamification offers businesses is the rewards system. The decline in conversion rates of traditional communication channels, alongside the growing product portfolio of service providers, necessitates the search for new, effective methods to raise awareness among the audience about products and services, as well as attract and retain customers.

    By completing various tasks, users can strengthen their emotional connection with the brand, earning bonuses or achievements. For example, in the case of the “Janymda” superapp in Kazakhstan, the rewards system helped organically boost user engagement and increased revenue per user by 7%, directly impacting the company’s financial performance and customer satisfaction.

    “Our experience working with various regions of the CIS has given us a clear understanding of how important it is to consider the cultural and economic characteristics of users when implementing gamification and reward systems. We are confident that our solutions can be adapted to meet the needs and requirements of other markets. For example, more complex user interaction systems may be in demand in Western markets, while in the Middle East, the focus may be on specific values and habits. We are ready to offer flexible solutions that can meet the needs of clients in any market,” commented Alexey Sharavar, CEO of QazCode”, –  commented Oleksii Sharavar, CEO at QazCode.

    The company has successful experience working in Central Asia, Europe, and the Middle East, and continues to actively expand its presence in international markets. Participation in MWC 2025 in Barcelona (stand 6F12) will provide a unique opportunity for knowledge exchange and discussions on advanced technologies in the field of gamification and reward systems.

    About QazCode
    QazCode is an IT company and exclusive digital partner of Beeline Kazakhstan. The company is part of the VEON group listed on the NASDAQ and Euronext stock exchanges.
    The company has over 750 employees with 8 years of experience in software development for the telecom and IT markets with a deep understanding of business and technology. The solution portfolio includes the development of private Large Language Models (LLM) with a focus on data security, game development, and reward systems, process optimization through Agile methodologies, full-cycle implementation of Business Support Systems (BSS), and IT outsourcing for effective product development, team expansion, and project management to help accelerate time to market. 

    About VEON 
    VEON is a digital operator providing converged communications and digital services to nearly 160 million customers. Operating in six countries with over 7% of the world’s population – Pakistan, Ukraine, Bangladesh, Kazakhstan, Uzbekistan, and Kyrgyzstan – VEON transforms people’s lives through technology services that empower people and drive economic growth. VEON is headquartered in Dubai.

    The MIL Network

  • MIL-OSI Economics: BSTDB Strengthens Partnership with Hayat Kimya in Türkiye

    Source: Black Sea Trade and Development Bank

    Press Release | 17-Dec-2024

    New Financing to Boost Capacity and Energy Efficiency

    Hayat Kimya Sanayi A.Ş., a leading Turkish manufacturer of detergents, hygiene products, and tissue paper, will advance its investment plans with the support of a €25 million loan from the Black Sea Trade and Development Bank (BSTDB). The agreement marks an important milestone in a partnership that began nine years ago.

    The BSTDB financing will back Hayat Kimya’s investment program, focusing on expanding production capacity, introducing new product lines, and enhancing energy efficiency. This initiative is also expected to bolster regional trade, as a significant portion of the company’s exports targets BSTDB member countries.

    Commenting on the agreement, BSTDB President Dr. Serhat Köksal said: “We are pleased to support Hayat Kimya, a leading manufacturer and major employer in Türkiye, as it pursues its ambitious growth plans. Our new financing underlines BSTDB’s commitment to sustainable industrial development and regional integration. By prioritizing energy efficiency and environmentally conscious practices, Hayat Kimya’s investment programme aligns with our mission to support projects that drive long-term economic and environmental benefits. Our support will help modernize Türkiye’s industrial capacity and strengthen trade ties within the Black Sea region, advancing shared prosperity and sustainable development.”

    “As part of our collaboration with the Black Sea Trade and Development Bank, we will increase the production capacity of our home care category at our facilities in Mersin and Kocaeli, Turkey. Today, at least one Hayat product can be found in 9 out of 10 households in Turkey. Globally, our export penetration ranges between 60% and 80% across more than 100 countries. With this new investment in the home care category, we aim to further strengthen our leadership, particularly in the detergent product segment.” said Ayla Hacıahmetoğlu, the Global Treasury Director of Hayat Kimya.

     

    Founded in 1937, Hayat Kimya is a leading global manufacturer and exporter of detergents, hygiene products, and tissue paper. The company operates 26 state-of-the-art production facilities across 8 countries, employing over 10,000 people. All products are produced in a fully automated, hands-free environment, meticulously designed and managed in compliance with the ISO 9001 Quality Assurance System.

     

    The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. For information on BSTDB, visit www.bstdb.org.

     

    Contact: Haroula Christodoulou

    : @BSTDB

    MIL OSI Economics

  • MIL-OSI Economics: BSTDB, TBC Bank to Boost Local Currency Financing in Georgia

    Source: Black Sea Trade and Development Bank

    Press Release | 11-Feb-2025

    New Partnership to Strengthen SMEs in the Country

    The Black Sea Trade and Development Bank (BSTDB) has extended a GEL 135 million local-currency loan to TBC Bank Georgia. The financing will be on-lent to small and medium-sized enterprises (SMEs) to support their investment programmes, working capital needs, and expansion into domestic and international markets, thus enhancing SMEs’ competitiveness and export capacity.

    In addition, the funding will boost local-currency financing opportunities for private companies while reducing their dependence on foreign currency borrowings and protecting business owners from direct exposure to exchange rate risk.

    “Our new agreement with TBC Bank reinforces our commitment to fostering long-term partnerships while advancing access to local currency financing for Georgian small businesses,” said Dr. Serhat Köksal, BSTDB President. “By boosting lending in Georgian Lari, we aim to support economic growth, create jobs, and strengthen businesses’ ability to succeed in their domestic markets. This initiative also enhances the resilience and competitiveness of Georgia’s banking sector by mitigating currency risks.”

    Vakhtang Butskhrikidze, CEO, TBC Bank, commented: “We are delighted to continue and further strengthen our cooperation with BSTDB. This transaction reflects both institutions’ strong commitment to support Georgian MSMEs, which are key contributors to economic growth and job creation in the country. On the back of supporting de-dollarisation of the financial sector, this facility will further strengthen TBC’s position as a leading local currency provider on the market. I would like to thank BSTDB for being a long-standing supporter of TBC and look forward to executing many more successful deals in the future”.

    BSTDB has been cooperating with TBC Group since 2003, providing over USD 192 million in revolving trade finance, SME finance, and leasing facilities.

     

    TBC Bank Group PLC (“TBC PLC”) is a public limited company registered in England and Wales and is the parent company of TBC Bank Georgia and TBC Uzbekistan. TBC Bank Georgia, together with its subsidiaries, is the leading financial services group in Georgia, with a total market share of 38.7% of customer loans and 38.4% of customer deposits as of 30 September 2024, according to data published by the National Bank of Georgia. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of the FTSE 250 Index. It is also a member of the FTSE4Good Index Series and the MSCI United Kingdom Small Cap Index.

    The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. For information on BSTDB, visit www.bstdb.org.

     

    Contact: Haroula Christodoulou

    : @BSTDB

    MIL OSI Economics

  • MIL-OSI Economics: BSTDB Clarifies No Affiliation with the Black Sea Bank for Reconstruction and Development

    Source: Black Sea Trade and Development Bank

    Press Release | 25-Feb-2025

    Reaffirmation of our Distinct Identity as a Multilateral Financial Institution

    Following the announcement of EU sanctions concerning the Black Sea Bank for Reconstruction and Development (ChBRR, in Russian – ЧБРР, based in Simferopol, Crimea), the Black Sea Trade and Development Bank (BSTDB) is issuing this public clarification to unequivocally state that BSTDB has no (no) affiliation, connection, or dealings with the Black Sea Bank for Reconstruction and Development.

    BSTDB is an International Financial Institution established by an intergovernmental treaty, comprising eleven Member States from the Black Sea region. Headquartered in Thessaloniki, Greece, the Bank was established under an intergovernmental treaty registered with the United Nations (Multilateral, No. 36909) and operates in accordance with international standards.

    BSTDB remains committed to its mission of promoting economic development and regional cooperation across the Black Sea region and underscores its distinct and separate identity from any similarly named organizations.

    To avoid any misrepresentation, BSTDB also urges all media outlets and stakeholders to ensure the correct use of its official logo and branding in any related reporting.

     

    The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. For information on BSTDB, visit www.bstdb.org.

     

    Contact: Haroula Christodoulou

    : @BSTDB

    MIL OSI Economics

  • MIL-OSI Economics: BSTDB and TuranBank Partner to Boost Small Businesses in Azerbaijan

    Source: Black Sea Trade and Development Bank

    Press Release | 28-Feb-2025

    Promoting Sustainable Growth and Trade in the Country

    To facilitate development and growth in Azerbaijan, the Black Sea Trade and Development Bank (BSTDB) has extended the Azeri Manat equivalent of a USD 6 million loan to TuranBank. The funds will be channeled to domestic small and medium-sized enterprises (SMEs) to meet their investment programmes and working capital needs, as well as enhance their trade activity.

    In addition, the funding will also expand access to local-currency financing for private companies, further reducing their reliance on foreign currency borrowings and protecting business owners from direct exposure to exchange rate risks.

    “BSTDB is pleased to continue its partnership with TuranBank to empower SMEs in the country, giving them access to resources they need to grow, innovate and drive inclusive economic progress. This will help unlock employment opportunities and foster sustainable development both within the country and across the region. We are confident that our joint efforts will continue to deliver meaningful results in the future.”, said Dr. Serhat Köksal, BSTDB President.

    “The funds raised in local currency will be allocated to financing the real sector, particularly micro, small, and medium-sized enterprises, which are the primary focus of the bank’s strategic objectives. This will also help support entrepreneurs operating in the regions. This agreement further underscores international financial institutions’ confidence in the long-term stability and sustainable development of our bank as a reliable partner,” said Orkhan Garayev, Chairman of the Management of TuranBank OJSC.

    BSTDB has been cooperating with TuranBank since 2011, having provided revolving trade finance and SME finance facilities that have benefited dozens of beneficiaries.

    Established in 1992 and headquartered in Baku, TuranBank OJSC is a mid-sized bank expanding to 22 sales points across the country. The bank is one of the key participants in the country’s financial sector, distinguished by its stability and reliability. For detailed information about the products and services offered by TuranBank, visit https://www.turanbank.az/en/pages/1, or follow its social media pages.

    The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. For information on BSTDB, visit www.bstdb.org.

     

    Contact:
    Haroula Christodoulou
    E-mail: cchristodoulou@bstdb.org
    Phone: +30 2310 290533
    Twitter: @BSTDB; @Haroulax 

    MIL OSI Economics

  • MIL-OSI: DIGITALIST GROUP’S FINANCIAL STATEMENT RELEASE, 1 JANUARY–31 DECEMBER 2024

    Source: GlobeNewswire (MIL-OSI)

    DIGITALIST GROUP’S FINANCIAL STATEMENT RELEASE, 1 JANUARY–31 DECEMBER 2024 
    (Not audited)

    DIGITALIST 2024 

    SUMMARY

    October–December 2024 (comparable figures for 2023 in parentheses):

    • Turnover: EUR 4.7 million (EUR 4.2 million), change 12.9%. 
    • EBITDA: EUR -0.2 million (EUR -0.4 million*), -4.3% of turnover (-9.1%).
    • EBIT: EUR -0.3 million (EUR -0.6 million*), -7.1% of turnover (-14.4%). 
    • Net income: EUR -1.0 million (EUR -1.6 million*), -21.3% of turnover (-38.9%).
    • Earnings per share EUR -0.00 (EUR -0.00).

    January–December 2024 (comparable figures for 2023 in parentheses): 

    • Turnover: EUR 16.2 million (EUR 16.7 million), change -3.1%. 
    • EBITDA: EUR -1.5 million (EUR -0.9 million**), -9.4% of turnover (-5.2%). 
    • EBIT: EUR -2.0 million (EUR -1.7 million**), -12.3% of turnover (-10.2%). 
    • Net income: EUR -5.0 million (EUR -4.1 million**), -31.0% of turnover (-24.5%). 
    • Earnings per share: EUR -0.01 (EUR -0.01). 
    • Earnings per share (diluted): EUR -0.01 (EUR -0.01). 
    • Cash flow from operations EUR -1.4 million (EUR -2.9 million). 
    • Number of employees at the end of the review period: 122 (126), decrease of 3.2%.

    *) EBIT, EBITDA, and net income for the comparison period were affected by a recorded gain of EUR 0.3 million, resulting from the write-down of Turret accounts payable and an additional purchase price related to the Ticknovate divestment.

    **) EBIT, EBITDA, and net income for the period were affected by a one-time gain of EUR 1.0 million, which includes a recorded gain of EUR 0.6 million from the FutureLab Share transaction, EUR 0.3 million from the write-down of Turret accounts payable and an additional purchase price adjustment related to the Ticknovate divestment.

    CEO’s review 

    As we close the year 2024, Digitalist Group stands at the intersection of ongoing market challenges and promising opportunities. While the Finnish economy remained weak, causing clients to hesitate in initiating new projects, we observed steady growth in Sweden. We are committed to coping with the challenges in the Finnish market, but we have increased focus on exploiting opportunities in the Swedish market and have expanded our offering with new applied AI services.

    Despite the turnover growth in the last quarter, the Group’s turnover in 2024 slightly declined to EUR 16.2 million (from EUR 16.7 million in 2023) and EBITDA ended at EUR -1.5 million (EUR -0.9 million in 2023 including a one-time gain of EUR 1.0 million). This outcome mirrors both the current market conditions and the positive but not sufficient impact of the strategic measures we implemented throughout the year.

    A key driver of our performance has been the Swedish market, where demand remained robust enough to offset weaker activity in Finland. In 2024 Sweden contributed around 70% of our total turnover, up from 61% in the same period last year. We also intensified our cost-saving efforts, reducing personnel costs and streamlining our organizational structure to create a stronger foundation for future improvements.

    This year, we enhanced our service portfolio through the full launch of Digitalist Open Cloud AB and the introduction of Digitalist Private AI Hub, offering secure and GDPR-compliant AI capabilities. These new solutions cater to the rising demand for data privacy and advanced digital services, attracting clients who recognize the value of our approach.

    Looking ahead, we remain focused on driving operational efficiency, sharpening our service offerings, and capitalizing on growth opportunities. Although the market may remain challenging in the near term, our product innovation and constant focus on cost management, positions Digitalist Group for long-term success.

    I extend my sincere gratitude to our employees for their commitment and to our clients for their trust. Together, we have navigated a demanding year, and together we will seize the opportunities that lie ahead.

    Magnus Leijonborg
    CEO, Digitalist Group

    Future prospects

    In 2025, it is expected that turnover and EBITDA will improve in comparison with 2024.

    SEGMENT REPORTING

    Digitalist Group reports its business in a single segment.

    TURNOVER

    In the fourth quarter, the Group’s turnover was EUR 4.7 million (EUR 4.2 million), reflecting a 12.9% increase compared to the previous year. The increase was due to the strengthening of the Swedish business.

    The Group’s turnover for the period totalled EUR 16.2 million (EUR 16.7 million), which is 3.1% lower than the previous year, as a result of the weak market situation in Finland. The turnover for the whole year fell short of the targets, as the economic slowdown and uncertainty have made customers more cautious when starting new projects.

    Market conditions in Finland have been challenging. The share of turnover outside Finland rose to 70 percent (61 %), and the increase was mainly due to the strengthening of the Swedish business. The net impact on turnover from the divestment of FutureLab and the acquisition of Open Communications for the review period is EUR 0.1 million compared to the comparison period.

    RESULT

    In the fourth quarter, EBITDA was EUR -0.2 million (EUR -0.4 million), EBIT was EUR -0.3 million (EUR -0.6 million) and profit before taxes was EUR -0.9 million (EUR -1.6 million). EBITDA was positively affected by improved sales and a EUR 0.3 million reduction in personnel and operating expenses. Net income for the final quarter amounted to EUR -1.0 million (EUR -1.6 million), earnings per share were EUR -0.00 (EUR -0.00).

    EBITDA for the financial period amounted to EUR -1.5 million (EUR -0.9 million), EBIT was EUR -2.0 million (EUR -1.7 million) and profit before taxes was EUR -4.9 million (EUR -4.0 million). Expenses were EUR 0.7 million lower compared to the previous year, of which operating expenses were EUR 0.3 million lower and personnel expenses EUR 0.4 million lower. Cost savings improved EBITDA, but the decline in sales weakened the overall impact.

    The EBIT was influenced by the decrease of depreciations of balance sheet items by EUR 0.4 million. EBIT, EBITDA and net income of the comparison period were impacted by a booked gain of EUR 0.6 million from the FutureLab Share transaction and EUR 0.3 million is attributed to the write-down of Turret accounts payable and an additional purchase price related to the Ticknovate divestment.

    Net financial items amounted to EUR -3.0 million (EUR -2.3 million), mainly comprising external interest expenses related to loans from financial institutions and related parties. External interest expenses were EUR -2.2 million (EUR -2.1 million). Financial items in the comparison period were positively impacted by Business Finland’s non-collection decision on a EUR 0.3 million part of the product development loan and unrealized exchange gains. Net income for the financial period amounted to EUR -5.0 million (EUR -4.1 million), earnings per share totalled EUR -0.01 (EUR -0.01).

    RETURN ON EQUITY

    The Group’s shareholders’ equity amounted to EUR -37.7 million (EUR -32.7 million). The Group’s equity considering the capital loans was EUR -13.8 million (EUR -15.8 million). Return on equity (ROE) was negative. Return on investment (ROI) was -161.9% (-27.8%).

    BALANCE SHEET AND FINANCING

    The balance sheet total was EUR 10.1 million (EUR 11.4 million). The solvency ratio was -379.1% (-285.9%). 

    At the end of the period, the Group’s liquid assets totalled EUR 0.9 million (EUR 0.9 million).

    At the end of the financial period the Group’s interest-bearing liabilities amounted to EUR 38.2 million (EUR 35.7 million). The Group’s balance sheet recognised EUR 11.0 million (EUR 11.4 million) in loans from financial institutions, including the overdrafts in use. IFRS 16 leasing debts were EUR 0.6 million (EUR 1.0 million). 

    In addition, the company has loans from its main owners. The loans from related parties amount to EUR 26.6 million (EUR 23.4 million). EUR 23.9 million (EUR 16.9 million) related party loans were capital loans, EUR 0 million (EUR 5.8 million) were convertible bonds, EUR 2.8 million (EUR 0.8 million) were other related party loans, of which EUR 2.0 million were short term. The changes result from the conversion of convertible bonds into capital loans in accordance with Chapter 12 of the Limited Liability Companies Act and from the new loan installments from Turret. More information about the arrangements can be found in the section of the review: Related party transactions.

    CASH FLOW

    The Group’s cash flow from operating activities during the review period was EUR -1.4 million (EUR -2.9 million), a change of EUR 1.5 million. The development of the company’s liquid assets was influenced by improved working capital. In order to reduce the rate of turnover of trade receivables, the Group sells part of its trade receivables from Finnish customers. In addition, some Swedish trade receivables are financed through factoring arrangements.

    GOODWILL

    On 31 December 2024, the Group’s balance sheet included goodwill of EUR 5.2 million (EUR 5.4 million). The company tested goodwill in accordance with IAS 36 on 31 December 2024 and no need for an impairment charge was detected. 

    PERSONNEL

    During the financial period, the Group had an average of 123 employees (139). At the end of the financial period, the total number of employees was 122 (126), with 52 (52) working for the Group’s Finnish companies and 70 (74) employed by its foreign subsidiaries.

    SHARES AND SHARE CAPITAL

    Share turnover and price

    During the financial period, the company’s share price hit a high of EUR 0.02 (EUR 0.03) and a low of EUR 0.01 (EUR 0.01), and the closing price on 31 December 2024 was EUR 0.01 (EUR 0.02). The average price in the financial period was EUR 0.01 (EUR 0.02). During the financial period 78,321,067 (40,711,793) shares were traded, corresponding to 11.3% (6.0%) of the number of shares in circulation at the end of the period. The Group’s market capitalisation at the closing share price on 31 December 2024 was EUR 9,985,399 (EUR 10,236,341).
         
    Share capital

    At the beginning of the period under review, the company’s registered share capital was EUR 585,394.16, and there were 693,430,455 shares. At the end of the period, the share capital was EUR 585,394.16, and there were 693,430,455 shares. The company has one class of shares. At the end of the reporting period, the company held a total of 7,664,943 treasury shares corresponding to 1.1% of the total shares. 

    Option plan 2019 and 2021

    The option plan 2019 has expired.

    The option rights belonging to the company’s option program 2021 are marked as series 2021A1, 2021A2, 2021B1, 2021B2 and 2021C1. A maximum of 60,000,000 stock options can be issued and they entitle to subscribe for a maximum of 60,000,000 new shares of the Company. A total of 38,450,000 options belonging to the 2021A1 and 2021A2 series have been distributed among the options included in the option program. The last exercise date for the series 2021A1 was 31.12.2024. 28,650,000 of the distributed options have expired, so based on the terms of the option program, it is possible to subscribe for a maximum of 9,800,000 new shares of the Company.

    The theoretical market value of the options allocated by the end of the financial period is approximately EUR 0.8 million, which is recognised as an expense in accordance with IFRS 2 for the years 2021-2025. The expense recognition for 2024 is EUR 0.1 million. The expense recognition does not have cash flow impact.

    Terms and conditions of option programs can be found at the Company’s web site https://investor.digitalistgroup.com//investor

    Shareholders

    The number of shareholders on 31 December 2023 was 5,705 (5,578). Private individuals owned 11.8% (10.4%) of the shares, and institutions held 78.4% (79.5%). Foreign nationals or entities held 9.8% (10.0%) of the shares. Nominee-registered shares accounted for 12.6% (6.3%) of the total.

    AUTHORIZATIONS OF THE BOARD OF DIRECTORS

    Annual General Meeting 25 April 2024

    The company held its Annual General Meeting on 25 April 2024. The minutes of the Annual General Meeting and the decisions made are on the company’s website at https://investor.digitalistgroup.com/investor/governance/annual-general-meeting

    The financial statements and consolidated financial statements for the financial year ended December 31, 2023, were approved as presented.

    The Annual General Meeting resolved that the loss EUR 4,575,895.22 indicated by the financial statements for 2023 be recorded in the Company’s profit and loss account, and that no dividend be paid to shareholders for the financial period 2023.

    The Annual General Meeting elected Johan Almquist, Paul Ehrnrooth, Peter Eriksson, Esa Matikainen, and Andreas Rosenlew as ordinary members of the Board of Directors, and Magnus Wetter as a new member of the Board of Directors. At the Board meeting held on 25 April 2024 after the Annual General Meeting, the Board of Directors elected Esa Matikainen as the Chair of the Board and Andreas Rosenlew as the Deputy Chair of the Board. The Board resolved to continue with the Audit Committee. Esa Matikainen was elected as a chairman and Peter Eriksson and Magnus Wetter as members of the Audit Committee.

    The Board of Directors evaluated on the date of the financial statement release the independence of the Committee members in compliance with the recommendations of the Finnish Corporate Governance Code 2020 as follows. Esa Matikainen and Magnus Wetter are independent of the company and independent of a significant shareholder. Peter Eriksson is independent of the company and dependent on a significant shareholder.

    Audit firm KPMG Oy Ab was appointed as the company’s auditor.

    Authorisation of the Board of Directors to decide on share issues and on granting special rights entitling to shares

    The Annual General Meeting authorised the Board to decide on a paid share issue and on granting option rights and other special rights entitling to shares that are set out in Chapter 10 Section 1 of the Finnish Limited Liability Companies Act, or on the combination of all or some of the aforementioned instruments in one or more tranches on the following terms and conditions:

    The total number of the Company’s treasury shares and new shares to be issued under the authorisation may not exceed 346,715,227, which corresponds to approximately 50 per cent of all the Company’s shares at the time of convening the Annual General Meeting.

    Within the limits of the aforementioned authorisation, the Board of Directors may decide on all terms and conditions applied to the share issue and to the special rights entitling to shares, such as that the payment of the subscription price may take place not only by cash but also by setting off receivables that the subscriber has from the Company.

    The Board of Directors shall be entitled to decide on crediting the subscription price either to the Company’s share capital or, entirely or in part, to the invested unrestricted equity fund.

    The share issue and the issuance of special rights entitling to shares may also take place in a directed manner in deviation from the pre-emptive rights of shareholders if there is a weighty financial reason for the Company to do so, as set out in the Limited Liability Companies Act. In such a case, the authorisation may be used to finance corporate acquisitions or other investments related to the operations of the Company as well as to maintain and improve the solvency of the Group and to carry out an incentive scheme.

    The authorisation is proposed to be effective until the Annual General Meeting held in 2025, yet no further than until 30 June 2025.

    Authorising the Board of Directors to decide on the acquisition and/or on the acceptance as pledge of the Company’s treasury shares

    The Annual General Meeting authorised the Board to decide on acquiring or accepting as pledge, using the Company’s distributable funds, a maximum of 69,343,000 treasury shares, which corresponds to approximately 10 per cent of the Company’s total shares at the time of convening the Annual General Meeting. The acquisition may take place in one or more tranches. The acquisition price shall not exceed the highest market price of the share in public trading at the time of the acquisition.

    In executing the acquisition of treasury shares, the Company may enter into derivative, share lending or other contracts customary in the capital market, within the limits set out in laws and regulations. The authorisation entitles the Board to decide on an acquisition in a manner other than in a proportion to the shares held by the shareholders (directed acquisition).

    The Company may acquire the shares to execute corporate acquisitions or other business arrangements related to the Company’s operations, to improve its capital structure, or to otherwise further transfer the shares or cancel them.

    The authorisation is proposed to include the right for the Board of Directors to decide on all other matters related to the acquisition of shares. The authorisation is proposed to be effective until the Annual General Meeting held in 2025, yet no further than until 30 June 2025.

    The Annual General Meeting approved the Board’s proposals to change the terms of the Convertible Bonds 2021/1, 2021/3, and 2022/1 issued to Turret Oy Ab without modifications.

    The Annual General Meeting approved the Board’s proposals to change the terms of the Convertible Bonds 2021/2 and 2021/4 issued to Holdix Oy Ab without modifications.

    It was noted that the following measures have been taken in the Company after the end of the fiscal year on December 31, 2023:

    ●     Convertible bonds 2021/3 and 2021/4 were partially converted into capital loans as per Chapter 12 of the Companies Act, as announced on March 22, 2024; and
    ●     the General Meeting has decided, following the board’s proposals, to change the terms of the Convertible Bonds 2021/1, 2021/2, 2021/3, 2021/4, and 2022/1, including their maturity extensions until September 30, 2026.

    It was noted that these actions have supported and will support the Company’s balance sheet and solvency.

    It was resolved to accept the proposition of the Board of Directors of the Company not to implement immediate additional measures to rectify the Company’s financial position, but the Company will actively evaluate other possibilities and means to support the Company’s financial standing.

    The stock exchange releases are on the company’s website at https://investor.digitalistgroup.com/investor/releases

    CHANGES IN THE GROUP STRUCTURE

    Digitalist Open Tech AB sold part of its IT and SaaS business to the newly established Digitalist Open Cloud AB through an internal business transfer agreement 1 April 2024. Digitalist Open Cloud AB is now a subsidiary of Digitalist Open Tech AB, with a 15% minority stake held by the subsidiary management.

    Digitalist Group divested its fully-owned subsidiary Open Communications International AB 31 May 2024 to its subsidiary Grow AB, in which it holds a 90% ownership. Sales price was EUR 0.9 million.

    In addition, Digitalist Group has closed non-operative companies. Digitalist USA Ltd was formally dissolved in 2024. Grow Finland Oy and Ixonos Estonia have been removed from the trade register in 2024.

    EVENTS SINCE THE FINANCIAL PERIOD

    There have been no significant events since the end of the financial period.

    RELATED-PARTY TRANSACTIONS 

    Financing arrangements with related parties:

    Strengthening Digital Group Plc’s equity, conversion of convertible bonds partly into capital loans

    In order to strengthen the Company’s equity, Digital Group decided on 22 March 2024 to utilize the right provided by Turret Oy Ab and Holdix Oy Ab to convert a total of 1,907,175.40+interest 334,513.29 euros of the principal and interest of the convertible bonds 2021/3 and 2021/4 subscribed by Turret and Holdix into a capital loan in accordance with Chapter 12 of the Limited Liability Companies Act.

    Amendment of the terms concerning Convertible Bonds 2021/1, 2021/2, 2021/3, 2021/4 and 2022/1 issued by Digitalist Group Plc

    Convertible Bonds 2021/1, 2021/3 and 2022/1 directed to Turret Oy Ab

    The Annual General Meeting of Digitalist Group 25 April 2024 resolved on the amendments to the Terms of the Convertible Bonds 2021/1, 2021/3, and 2022/1 issued to Turret.

    Digitalist Group Plc and Turret Oy Ab signed agreements April 26 2024 to amend the terms of the Convertible Bonds 2021/1, 2021/3, and 2022/1 and the option rights and other special rights pursuant to Chapter 10 section 1(2) of the Limited Liability Companies Act attached to them issued to Turret.

    The maturity of the Convertible Bonds was extended to 30 September 2026.

    Convertible Bonds 2021/2 and 2021/4 directed to Holdix Oy Ab

    The Annual General Meeting of Digitalist Group 25 April 2024 resolved on the amendments to the Terms of the Convertible Bonds 2021/2 and 2021/4 issued to Holdix.

    Digitalist Group and Holdix Oy Ab signed agreements April 26 2024 to amend the terms of the Convertible Bonds 2021/2 and 2021/4 and the option rights and other special rights pursuant to Chapter 10 section 1(2) of the Limited Liability Companies Act attached to them issued to Holdix.

    The maturity of the Convertible Bonds was extended to 30 September 2026.

    Digitalist Group structures its financing

    Digitalist Group Plc’s agreed 28.10.2024 with Turret Oy Ab on a loan amounting to EUR 1,000,000 in order to strengthen the Company’s working capital. The Company has the right to withdraw the Loan in instalments by 31 December 2025 at the latest. The Loan was granted on market terms and it will fall due on 31 December 2026.

    Strengthening Digitalist Group Plc’s balance sheet position and conversion of convertible bonds 2021/1, 2021/2, 2021/3 and 2021/4 into capital loans

    Digitalist Group Plc decided 30.12.2024, in order to strengthen the Company’s balance sheet position, to utilize the right offered by Turret Oy Ab and Holdix Oy Ab to convert a total of 3,860,763.40 + interest 861,271.93 euros of the principal and interest of the convertible bonds 2012/1, 2021/2, 2021/3 and 2021/4 subscribed by Turret and Holdix into a capital loan in accordance with Chapter 12 of the Limited Liability Companies Act.

    OTHER EVENTS DURING THE FINANCIAL PERIOD

    Digitalist Group decreased its earlier guidance regarding future prospects 17.10.2024. The new guidance was: In 2024, turnover and EBITDA are expected to decrease in comparison with 2023.

    Operationally, not including the impact of other operating income (EUR 1.0 million), the current financial year was expected to be stronger than the previous year.

    The stock exchange releases for the review period are on the company’s website at https://investor.digitalistgroup.com/investor/releases

    RISK MANAGEMENT AND SHORT-TERM UNCERTAINTIES

    The objectives of Digitalist Group Plc’s risk management are to ensure the undisrupted continuity and development of the company’s operations, support the achievement of the company’s business objectives and increase the company’s value. For more details about the organisation of risk management, processes and identified risks, see the company’s website at https://investor.digitalistgroup.com/investor

    The company has been making a loss despite the efficiency measures it has taken. The company’s loss-making performance directly affects its working capital and the sufficiency of its financing. This risk is managed by maintaining the capacity to use different financing solutions. The company aims to continuously assess and monitor the amount of necessary business financing to ensure that it has sufficient liquid assets to finance its operations and repay maturing loans. Any disruptions in the financial arrangements would weaken Digitalist Group’s financial position.

    The company is currently dependent on external financing, most of which has been obtained from related-party companies and financial institutions. Digitalist Group’s ability to finance its operations and reduce the amount of its debt depends on several factors, such as the cash flow from operations and the availability of debt and equity financing, and there is no certainty that such financing will be available in the future. Similarly, there can be no certainty in the long term that Digitalist Group will be able to obtain additional debt or refinance its current debt on acceptable terms, if at all.

    During 2024, negotiations regarding the restructuring of maturing convertible bonds held by related parties were concluded, and the maturity date was extended until autumn 2026. The convertible bonds were converted into capital loans in two tranches in accordance with Chapter 12 of the Limited Liability Companies Act in 2024, strengthening the company’s balance sheet.

    Any changes to key client accounts could have a substantial impact on Digitalist Group’s operations, earning potential and financial position. If one of Digitalist Group’s largest clients decided to switch to a competing company or drastically altered its operating model, the chances of finding client volumes to replace the shortfall in the near term would be limited.

    The Group’s business consists mainly of individual client agreements, which are often relatively short-term. Forecasting the start dates and scopes of new products is occasionally challenging, while the cost structure is largely fixed. The aforementioned aspects can lead to unpredictable fluctuations in turnover and, thereby, in profitability. The Group’s business consists of some fixed-price deliveries (65%). Fixed-price client deliveries carry risks related to timing and content. The company endeavours to manage these risks through contractual and project management measures.

    Irrespective of the market situation, there is a shortage of certain experts in the Group’s business sector. Although the aggressive recruitment policies that occasionally arise in the Group’s business sector have decreased significantly, there is still a risk of personnel moving to competitors. There are no guarantees that the company will be able to retain its current personnel and recruit new employees to enable growth. If Digitalist Group loses a significant number of its current personnel, it would be more difficult to complete existing projects and acquire new ones. This could have an adverse impact on Digitalist Group’s business, earnings and financial position.

    The cost inflation has decreased significantly but can still exert pressure to raise salaries, so the importance of cost monitoring is emphasised further. Variation in interest rates do not have a significant direct impact on financing costs because most of the company’s debts have fixed interest rates. If the interest rates on the company’s loans from financial institutions rose by 1 per cent, the company’s annual interest costs would rise by approximately EUR 0.1 million.

    Part of the Group’s turnover is invoiced in currencies other than the euro – mainly in the Swedish krona. The risk associated with changes in exchange rates can be managed in various ways, including net positioning and currency hedging contracts. In 2024 and 2023, the Group had no hedging contracts.

    The Group’s balance sheet contains goodwill that is subject to impairment risk in the event that the Group’s future yield expectations decrease due to internal or external factors. The goodwill is tested for impairment every six months and whenever the need arises.

    General economic uncertainty and low growth forecasts in the company’s key markets affected the Group’s business during the financial period, but the future impact is difficult to estimate. Geopolitical uncertainty may affect the business activities of some of the Group’s clients, thereby indirectly affecting the Group’s business. The Group has no business activities in Russia or Ukraine.

    LONG-TERM GOALS AND STRATEGY

    Digitalist Group aims to achieve a profit margin of at least 10% over the long term. In order to achieve its long-term goals, Digitalist Group strives for profitable, international growth by shaping new forms of thinking, services and technological solutions for a variety of sectors. These sectors include, among others, the technology industry, energy industry, transport and logistics, as well as consumer services in both the public and private sectors. Digitalist Group’s strategy focuses on enhancing its service and solution business and seamlessly integrating user and operational research, branding, design and technology.

    PROPOSAL BY THE BOARD OF DIRECTORS TO THE ANNUAL GENERAL MEETING

    The Board of Directors of Digitalist Group Plc proposes to the Annual General Meeting that the distributable funds be retained in shareholders’ equity and that no dividend be distributed to shareholders for the 2024 financial period. On 31 December 2024, the parent company’s distributable assets were negative.

    Digitalist Group Plc’s Annual General Meeting will be held on 29 April 2025. 
    Digitalist Group’s Financial Statements 2024 will be published and posted on the company’s website on 28 March 2025. Digitalist Group Plc’s Financial Statements will be published in Finnish and English and they are available on the Group’s website https://investor.digitalistgroup.com/investor immediately after publication.

    NEXT REVIEW

    The Business review for January–March 2025 will be published on Friday 25 April 2025.

    DIGITALIST GROUP PLC
    Board of Directors

    Further information:
    Digitalist Group Plc
    CEO Magnus Leijonborg, tel. +46 76 315 8422, magnus.leijonborg@digitalistgroup.com
    Chairman of the Board Esa Matikainen, tel. +358 40 506 0080, esa.matikainen@digitalistgroup.com

    Distribution:
    NASDAQ Helsinki

    Key media
    https://investor.digitalistgroup.com/investor

    DIGITALIST GROUP 

    SUMMARY OF THE FINANCIAL STATEMENTS AND NOTES, 1 JANUARY–31 DECEMBER 2024

    CONSOLIDATED INCOME STATEMENT, EUR THOUSAND 

      1 Oct – 31 Dec 24 1 Oct – 31 Dec 23 Change (%) 1 Jan – 31 Dec 24 1 Jan – 31 Dec 23 Change (%)
    Turnover 4,698.85 4,160.22 12,9 % 16,164.54 16,680.74 -3,1 %
    Other operating income -41.02 280.21 -114,6 % 50.00 1,006.67 -95,0 %
                 
    Materials and services -932.52 -639.82 -45,7 % -3,102.99 -3,202.01 3,1 %
    Expenses from employee benefits -3,251.70 -3,331.27 2,4 % -11,874.22 -12,269.02 3,2 %
    Depreciation and impairment -132.28 -218.14 39,4 % -469.53 -834.41 43,7 %
    Other operating expenses -673.33 -848.57 20,7 % -2,750.27 -3,077.67 10,6 %
    Total expenses -4,989.83 -5,037.80 1,0 % -18,197.01 -19,383.11 6,1 %
                 
    EBIT -331.99 -597.37 44,4 % -1,982.47 -1,695.70 -16,9 %
                 
    Financial income 78.27 4.17 1779,2 % 155.41 752.50 -79,3 %
    Financial expenses -695.08 -1,021.72 32,0 % -3,103.37 -3,026.21 -2,5 %
    Total financial income and expenses -616.81 -1,017.55 39,4 % -2,947.96 -2,273.71 -29,7 %
                 
    Profit before taxes -948.80 -1,614.92 41,2 % -4,930.43 -3,969.41 -24,2 %
    Income taxes -50.82 -3.87 -1214,3 % -87.04 -115.46 24,6 %
    PROFIT/LOSS FOR FINANCIAL PERIOD -999.62 -1,618.78 38,2 % -5,017.47 -4,084.87 -22,8 %
                 
    Distribution:            
    Parent company shareholders -875.12 -1,557.64 43,8 % -4,707.38 -4,042.14 -16,5 %
    Non-controlling interests -124.50 -61.15 -103,6 % -310.09 -42.73 -625,8 %
    Earnings per share:            
    Undiluted (EUR) 0.00 0.00   -0.01 -0.01  
    Diluted (EUR) 0.00 0.00   -0.01 -0.01  

    COMPREHENSIVE INCOME STATEMENT, EUR THOUSAND

      1 Oct – 31 Dec 24 1 Oct – 31 Dec 23 Change (%) 1 Jan – 31 Dec 24 1 Jan – 31 Dec 23 Change (%)
    Profit/loss for the financial period -999.62 -1,618.78 38,2% -5,017.47 -4,084.87 -22,8%
    Other items of comprehensive income            
    Translation difference -140.67 663.20 -121,2% -67.99 229.71 -129,6%
    TOTAL COMPREHENSIVE INCOME FOR THE YEAR -1,140.29 -955.58 -19,3% -5,085.47 -3,855.45 -31,9%
    Parent company shareholders -1,006.68 -869.23 -15,8% -4,759.00 -3,807.09 -25,0%
    Non-controlling interests -133.61 -86.35 -54,7% -327.00 -48.06 -580,4%

    CONSOLIDATED BALANCE SHEET, EUR THOUSAND

    ASSETS 31 December 2024 31 December 2023
    NON-CURRENT ASSETS    
    Intangible assets 313.78 422.06
    Goodwill 5,244.98 5,444.44
    Tangible assets 569.43 916.99
    Buildings and structures, rights-of-use 528.59 867.73
    Machinery and equipment 27.55 34.52
    Other tangible assets 13.29 14.74
    Investments 6.23 6.28
    Other non-current financial assets 88.02 24.35
    NON-CURRENT ASSETS 6,222.44 6,814.12
         
    CURRENT ASSETS    
    Trade and other receivables 2,612.34 3,508.10
    Income tax asset 320.88 228.46
    Cash and cash equivalents 943.53 893.65
    CURRENT ASSETS 3,876.75 4,630.21
    ASSETS 10,099.19 11,444.12
         
    SHAREHOLDERS’ EQUITY AND LIABILITIES    
    SHAREHOLDERS’ EQUITY    
    Parent company shareholders    
    Share capital 585.39 585.39
    Share premium account 218.73 218.73
    Invested non-restricted equity fund 73,916.78 73,916.78
    Retained earnings -107,368.76 -103,343.29
    Profit/loss for the financial period -4,707.38 -4,042.14
    Non-controlling interests -311.28 -53.08
    Parent company shareholders -37,355.24 -32,664.53
    SHAREHOLDERS’ EQUITY -37,666.53 -32,717.43
    NON-CURRENT LIABILITIES 25,438.08 3,748.88
    CURRENT LIABILITIES 22,327.73 40,412.84
    SHAREHOLDERS’ EQUITY AND LIABILITIES 10,099.29 11,444.28

    CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY, EUR THOUSAND
    A:   Share capital
    B:   Share premium account
    C:  Invested unrestricted equity fund
    D:  Translation difference
    E:   Retained earnings
    F:   Total shareholders’ equity attributable to the parent company’s
    G: Non-controlling interests
    H:  Total shareholders’ equity

      A B C D E F G H
    Shareholders’ equity 1 Jan 2023 585.39 218.73 73,662.55 -1,197.92 -104,545.23 -31,276.47 503.13 -30,773.34
    Other changes                
    Profit/loss for the financial period         -4,042.14 -4,042.14 -42.73 -4,084.87
    Purchase of own shares       235.05   235.05 -5.33 229.72
    Other items of comprehensive income           -3,807.09    
    Paid in capital     253.98     253.98   253.98
    Translation difference         176.44 176.44   176.44
    Share-based remuneration         0.00 0.00   0.00
    Transactions with non-controlling interests             -508.15 1,480.52
    Shareholders’ equity 31 December 2023 585.00 219.00 73,916.78 -1,192.36 -106,192.89 -32,664.35 -53.08 -32,717.43
                     
      A B C D E F G H
    Shareholders’ equity 1 Jan 2024 585.00 219.00 73,916.78 -1,192.36 -106,192.89 -32,664.35 -53.08 -32,717.43
    Other changes       0.00 0.00      
    Profit/loss for the financial period         -4,707.38 -4,707.38 -310.09 -5,017.47
    Purchase of own shares       -51.33   -51.33 -16.66 -67.99
    Other items of comprehensive income           -4,758.71    
    Translation difference         54.23 54.23   54.23
    Share-based remuneration         -14.40 -14.40   -14.40
    Sale of subsidiary         13.81 13.81   13.81
    Transactions with non-controlling interests         14.18 14.18 68.55 82.73
    Shareholders’ equity 31 December 2024 585.00 219.00 73,916.78 -1,243.69 -110,832.45 -37,355.23 -311.29 -37,666.52

    CONSOLIDATED CASH FLOW STATEMENT, EUR THOUSAND 

      1 Jan – 31 Dec 24 1 Jan – 31 Dec 23 1 Jul – 31 Dec 24 1 Jul – 31 Dec 23
    Cash flow from operations        
    Earnings before taxes in the period -5,017.47 -4,084.87 -2,461.65 -2,094.96
    Adjustments to cash flow from operations:        
    Other income and expenses with no payment -235.55 -76.63 -261.44 -174.25
    Depreciation, impairment 469.53 834.41 265.81 417.90
    Income taxes 87.04 115.46 42.16 31.37
    Unrealised foreign exchange gains and losses -85.26 -255.59 124.47 -296.11
    Financial income and expenses 3,057.58 2,273.71 1,655.67 1,704.54
    Other adjustments 4.81 -561.90 3.25 -576.30
    Cash flow financing before changes in working capital -1,719.32 -1,755.41 -631.73 -987.82
             
    Change in working capital 1,290.45 -262.04 936.75 -313.93
    Interest received 47.37 0.72 10.04 3.07
    Interest paid -883.89 -710.82 -395.39 -333.90
    Taxes paid -133.04 -149.35 -40.34 -46.81
    Net cash flow from operations -1,398.42 -2,876.89 -120.68 -1,679.39
             
    Cash flow from investments        
    Acquisition of shares in group companies 0.00   0.00  
    Proceeds from disposal of shares in group companies 0.00   0.00  
    Investments in tangible and intangible assets -15.42 -22.33 -6.49 -9.95
    Proceeds from repayment of loans 0.00      
    Interest received on investments 0.00      
    Taxes paid on investments 0.00      
    Cash flow from investments -15.42 2,447.66 -6.49 1,049.09
             
    Net cash flow before financial items -1,413.84 -429.23 -127.18 -630.30
             
    Cash flow from financing activities        
    Transactions with non-controlling interests 19.53 136.18 -6.25 -12.17
    Drawdown of long-term loans 2,025.00 750.00 1,275.00 750.00
    Drawdown of short-term loans 0.00 736.90 -212.58  
    Repayment of short-term loans -129.07   -105.31 -1.81
    Repayment of lease liabilities -429.40 -697.51 -184.02 -354.56
    Net cash flow from financing 1,486.06 423.76 766.83 441.83
             
    Change in cash and cash equivalents 72.22 -5.46 639.66 -188.47
    Liquid assets, beginning of period 893.44 898.55 308.06 1,041.04
    Impact of changes in exchange rates -22.14 0.36 -4.20 40.88
    Liquid assets, end of period 943.53 893.44 943.53 893.44

    Accounting principles

    This release has been prepared in accordance with IAS 34 – Interim Financial Reporting. The interim report release complies with the same accounting principles and calculation methods as the annual financial statements. The updates to the IFRS standards that entered into force on 1 January 2024 do not have a significant impact on the figures presented.

    The preparation of a financial statement release in accordance with IFRS requires the management to use certain estimates and assumptions that affect the amounts recognised in assets and liabilities when the balance sheet was prepared, as well as the amounts of income and expenses in the period. In addition, discretion must be used in applying the accounting policies. As the estimates and assumptions are based on outlooks on the balance sheet date, they contain risks and uncertainties. The realised values may deviate from the original assessments and assumptions.

    The original release is in Finnish. The English release is a translation of the original.

    Going concern

    The Group’s result has remained negative, and the financial situation has been challenging at times but the financial statement release has been prepared in accordance with the principle of the business as a going concern. The assumption of continuity is based management assumptions on several factors, including the following:

    • The cost-saving programs have improved the Group’s profitability in 2023 and 2024. Operating expenses and personnel expenses have decreased by EUR 0.7 million in comparison with the review period and the cost structure is now lighter.
    • Additional cost-saving programs started in 2024 will have nearly full effect in 2025.
    • The Group is finding new growth areas and reinforcing its market position in Sweden, which is expected to have a positive impact on sales trends.
    • Negotiations regarding the arrangements for related party convertible bonds maturing in 2024 were successfully completed in 2024, resulting in the extension of their maturity to the autumn 2026.

    EUR 2.0 million of the Group’s financial institution loans are set to begin repayment on April 30, 2025. As of the publication date of the financial statement release, negotiations to extend the loan’s maturity date are still ongoing. However, management is confident that the outcome will be favorable for the company.

    At the time of the financial statement release, the company expects its working capital to be sufficient to cover its requirements over the next 12 months based on the financing support provided by the main owner if needed. Negotiations with the main owner to secure financing for the next 12 months are ongoing and are expected to be completed before the publication of the financial statements and based on this the financial statement release has been prepared in accordance with the going concern principle.

    Goodwill impairment testing and recognised impairment

    Digitalist Group tested its goodwill for impairment on 30 June 2024 and 31 December 2024. The goodwill is allocated to one cash-generating unit. No need to write down goodwill was identified.

    The value in use of the tested property exceeded the tested amount by EUR 9.0 million. The tested amount of goodwill in the balance sheet at the end of the review period is EUR 4.9 million.

    The company tests its goodwill based on the utility value of the assets. In the testing conducted on 31 December 2024 in conjunction with the financial statements, the cash flow forecasting period was from 2025 to 2029. During the forecast period, average growth in revenue of 15% is expected to be achieved which is supported by the market growth of the group’s industries and the increasingly extensive impact of digitalization in business life. In addition, the rapid development of artificial intelligence (AI) and its integration into service offerings will accelerate growth by offering more efficient and innovative solutions to customers. The efficiency measures and strategic recruitment carried out provide a solid basis for growth. EBITDA is projected to rise to 7% in 2026 and to 12% by the end of the forecasting period, being 9% on average.

    The method involves comparing the tested assets with their cash flow over the selected period, taking into account the discount rate and the growth factor of the cash flows after the forecast period. The discount rate is 11.4% (11.4%). The growth factor used to calculate the cash flows after the forecast period is 2.35%.

    The average EBITDA margin for the forecast period was used to calculate the value of the terminal period. A significant negative change in individual assumptions used in the calculations can necessitate a goodwill impairment charge. The sensitivity analysis indicates that an impairment charge may be necessary if the average growth in turnover is below 14% in the forecasting period and the fixed cost structure does not change. If the EBITDA falls below 6% in the forecasting period or the WACC surpasses 28%, all else equal, impairment charges may become necessary.

    CONSOLIDATED INCOME STATEMENT BY QUARTER, EUR THOUSAND

      Q4/2024 Q3/2024 Q2/2024 Q1/2024 Q4/2023
      1.10.-31.12.24 1.7.-30.9.24 1.4.-30.6.24 1.1.-31.3.24 1.10.-31.12.21
    Turnover 4,698.85 3,585.61 4,021.60 3,858.48 4,160.22
    Other operating income and expenses -5,031.05 -3,898.35 -4,749.35 -4,468.49 -4,757.59
    EBIT -331.99 -312.54 -727.84 -610.10 -597.37
    Financial income and expenses -616.81 -1,158.14 -783.20 -389.80 -1,017.55
    Profit before taxes -948.80 -1,470.68 -1,511.03 -999.91 -1,614.92
    Income taxes -50.64 8.66 -1.20 -43.68 -3.87
    PROFIT/LOSS FOR COMPARISON PERIOD -999.62 -1,462.03 -1,512.24 -1,043.59 -1,618.78

    CHANGES IN INTANGIBLE AND TANGIBLE ASSETS, EUR THOUSAND
      

      Goodwill Intangible assets Tangible fixed assets Right-of-use assets Other investments Total
    Carrying value 1 Jan 2023 4,677.98 109.82 65.08 1,135.06 101.76 6,090.22
    Increases   462.69 26.56 416.91 4.70 2,059.07
    Decreases            
    Changes in exchange rates 43.80 6.30 -0.40 -5.85   43.85
    Depreciation for the review period   -156.59 -37.63 -640.18   -834.47
    Carrying value 31 Dec 2023 5,444.44 422.53 48.47 867.05 6.27 6,789.76
                 
                 
      Goodwill Intangible assets Tangible fixed assets Right-of-use assets Other investments Total
    Carrying value 1 Jan 2024 5,444.44 422.53 48.47 867.05 6.27 6,789.76
    Increases 0.00 0.42 15.97 482.60 0.00 498.99
    Decreases 0.00   0.00 -462.23 0.00 -462.23
    Changes in exchange rates -199.68 -22.70 -1.35 -12.90   -236.64
    Depreciation for the review period   -85.57 -22.18 -344.61   -452.36
    Carrying value 31 Dec 2024 5,244.75 314.67 40.91 529.90 6.27 6,137.51

    KEY INDICATORS

      1 Jan – 31 Dec 2024 1 Jan – 31 Dec 2023
    Earnings per share (EUR) diluted -0.01 0.00
    Earnings per share (EUR) -0.01 -0.01
    Shareholders’ equity per share (EUR) -0.05 -0.05
    Cash flow from operations per share (EUR) diluted 0.00 0.00
    Cash flow from operations per share (EUR) 0.00 0.00
    Return on capital employed (%) -161.86 -27.8
    Return on equity (%) neg. neg.
    Operating profit/turnover (%) -12.27 -10.2
    Gearing as a proportion of shareholders’ equity (%) -99.00 -106.5
    Equity ratio as a proportion of shareholders’ equity (%) -379.11 -285.9
    EBITDA (EUR thousand) -1,512.94 -861.30

    MATURITY OF FINANCIAL LIABILITIES AND INTEREST ON LOANS

    31 December 2023 Balance sheet value Cash flow Under 1 year 1-5 years Over 5 years
    Loans from financial institutions 2,865.85 3,067.25 340.83 2,726.43  
    Credit limits 8,525.07 8,525.07 8,525.07    
    Convertible bonds 5,767.94 6,849.62   0.00  
    Capital loans 16,865.42 19,265.00   0.00  
    Other related-party loans 750.00 876.00 0.00    
    Lease liabilities IFRS 16 973.00 961.00 701.00 260.00  
    Accounts payable 864.66 864.66 864.66    
               
    31 December 2024 Balance sheet value Cash flow Under 1 year 1-5 years Over 5 years
    Loans from financial institutions 2,783.19 2,828.47 2,362.78 465.69  
    Credit limits 8,258.19 8,258.19 8,258.19    
    Capital loans 23,867.82 29,233.30   29,233.30  
    Other related-party loans 2,775.00 3,191.33   907.67  
    Lease liabilities IFRS 16 555.71 562.27 298.30 264.32  
    Accounts payable 1,124.07 1,124.07 1,124.07 0.00  

    Credit limits are valid until further notice.

    OTHER INFORMATION

      1 Jan – 31 Dec 2024 1 Jan – 31 Dec 2023
    NUMBER OF EMPLOYEES, average 123 139
    Personnel at the end of the period 122 126
         
    LIABILITIES, EUR THOUSAND    
    Pledges made for own obligations    
    Corporate mortgages 13,300.00 13,300.00
         
    Total interest-bearing liabilities    
    Long-term loans from financial institutions 458.98 2,659.11
    Other long-term liabilities 24,902.02 1,007.67
    Short-term loans from financial institutions 2,221.92 414.39
    Other short-term interest-bearing liabilities 10,657.00 31,665.62
    Total 38,239.92 35,746.80
         

    CALCULATION OF KEY FINANCIAL FIGURES

    EBITDA = earnings before interest, tax, depreciation and amortisation

    Diluted earnings per share = Profit for the financial period / Average number of shares, adjusted for share issues and for the effect of dilution

    Earnings per share = Profit for the financial period / Average number of shares adjusted for share issues

    Shareholders’ equity per share = Shareholders’ equity / Number of undiluted shares on the balance sheet date

    Cash flow from operations per share (EUR) diluted = Net cash flow from operations / Average number of shares, adjusted for share issues and for the effect of dilution

    Return on investment (ROI) =
    (Profit before taxes + Interest expenses + Other financial expenses) /
    (Balance sheet total – non-interest-bearing liabilities (average)) x 100

    Return on equity (ROE) = Net income / Total shareholders’ equity (average) x 100

    Gearing = interest-bearing liabilities – liquid assets / total shareholders’ equity x 100

    Attachment

    The MIL Network

  • MIL-OSI: FRO – Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    FRONTLINE PLC REPORTS RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2024

    Frontline plc (the “Company”, “Frontline,” “we,” “us,” or “our”), today reported unaudited results for the three and twelve months ended December 31, 2024:

    Highlights

    • Profit of $66.7 million, or $0.30 per share for the fourth quarter of 2024.
    • Adjusted profit of $45.1 million, or $0.20 per share for the fourth quarter of 2024.
    • Declared a cash dividend of $0.20 per share for the fourth quarter of 2024.
    • Reported revenues of $425.6 million for the fourth quarter of 2024.
    • Achieved average daily spot time charter equivalent earnings (“TCEs”)1 for VLCCs, Suezmax tankers and LR2/Aframax tankers in the fourth quarter of $35,900, $33,300 and $26,100 per day, respectively.
    • Fully drew down a sale-and-leaseback agreement in an amount of $512.1 million to refinance 10 Suezmax tankers, which generated net cash proceeds of $101.0 million in the fourth quarter of 2024.
    • Sold its oldest Suezmax tanker, built in 2010, for a net sales price of $48.5 million and delivered the vessel to its new owner in October 2024. The transaction generated net cash proceeds of $36.5 million after repayment of existing debt and a gain of $17.9 million in the fourth quarter of 2024.
    • Repaid the remaining $75.0 million outstanding under the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen Holding Limited, the Company’s largest shareholder (“Hemen”) in the fourth quarter of 2024.
    • Entered into three senior secured credit facilities for a total amount of up to $239.0 million to refinance outstanding debt on three VLCCs and one Suezmax tanker and, in addition, to provide revolving credit capacity in a total amount of up to $91.9 million.

    Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:

    “The fourth quarter of 2024 came in unusually soft compared to previous years. Global oil demand was up marginally as the year came to an end, but global seaborne exports slowed in the fourth quarter. During the quarter we saw positive developments in the enforcement of sanctions against Iran and Russia in particular, but we could not escape the fact that these two countries represent a material part of the supply to Asia, at cost to demand for the vessels Frontline operates. For 2025 we have already seen broader sanctions with a wider scope, at the same time as key importers of exposed crude are diversifying away from the mentioned suppliers. Compliant fleet growth for the asset classes we deploy peaked a few years back, making the outlook very constructive as Frontline sail into the new year with our cost-efficient operations and modern fleet.”

    Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:

    ”In February 2025 we entered into three senior secured credit facilities for a total amount of up to $239.0 million to refinance three existing term loan facilities, with total balloon payments of $142.0 million maturing during 2025, leaving the Company with no debt maturities until the end of 2026 and, in addition, to provide revolving credit capacity in a total amount of up to $91.9 million. Through these new financings we further strengthen our strong liquidity and reduce our borrowing costs and cash break even rates. We continue to focus on maintaining our competitive cost structure, breakeven levels and solid balance sheet to ensure that we are well positioned to generate significant cash flow and create value for our shareholders.”

    Average daily TCEs and estimated cash breakeven rates

    ($ per day) Spot TCE Spot TCE currently contracted % Covered Estimated average daily cash breakeven rates for 2025
      2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 2023 Q1 2025 2025
    VLCC 43,400 35,900 39,600 49,600 48,100 50,300 43,700 80% 29,200
    Suezmax 41,400 33,300 39,900 45,600 45,800 52,600 35,400 77% 24,000
    LR2 / Aframax 42,300 26,100 36,000 53,100 54,300 46,800 29,700 64% 22,200

    We expect the spot TCEs for the full first quarter of 2025 to be lower than the spot TCEs currently contracted, due to the impact of ballast days during the first quarter of 2025. See Appendix 1 for further details.

    The Board of Directors
    Frontline plc
    Limassol, Cyprus
    February 27, 2025

    Ola Lorentzon – Chairman and Director
    John Fredriksen – Director
    James O’Shaughnessy – Director
    Steen Jakobsen – Director
    Cato Stonex – Director
    Ørjan Svanevik – Director
    Dr. Maria Papakokkinou – Director

    Questions should be directed to:

    Lars H. Barstad: Chief Executive Officer, Frontline Management AS
    +47 23 11 40 00

    Inger M. Klemp: Chief Financial Officer, Frontline Management AS
    +47 23 11 40 00 

    Forward-Looking Statements

    Matters discussed in this report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

    Frontline plc and its subsidiaries, or the Company, desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance and are not intended to give any assurance as to future results. When used in this document, the words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect” and similar expressions, terms or phrases may identify forward-looking statements.

    The forward-looking statements in this report are based upon various assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include:

    • the strength of world economies;
    • fluctuations in currencies and interest rates, including inflationary pressures and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates;
    • the impact that any discontinuance, modification or other reform or the establishment of alternative reference rates have on the Company’s floating interest rate debt instruments;
    • general market conditions, including fluctuations in charter hire rates and vessel values;
    • changes in the supply and demand for vessels comparable to ours and the number of newbuildings under construction;
    • the highly cyclical nature of the industry that we operate in;
    • the loss of a large customer or significant business relationship;
    • changes in worldwide oil production and consumption and storage;
    • changes in the Company’s operating expenses, including bunker prices, dry docking, crew costs and insurance costs;
    • planned, pending or recent acquisitions, business strategy and expected capital spending or operating expenses, including dry docking, surveys and upgrades;
    • risks associated with any future vessel construction;
    • our expectations regarding the availability of vessel acquisitions and our ability to complete vessel acquisition transactions as planned;
    • our ability to successfully compete for and enter into new time charters or other employment arrangements for our existing vessels after our current time charters expire and our ability to earn income in the spot market;
    • availability of financing and refinancing, our ability to obtain financing and comply with the restrictions and other covenants in our financing arrangements;
    • availability of skilled crew members and other employees and the related labor costs;
    • work stoppages or other labor disruptions by our employees or the employees of other companies in related industries;
    • compliance with governmental, tax, environmental and safety regulation, any non-compliance with U.S. or European Union regulations;
    • the impact of increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our ESG policies;
    • Foreign Corrupt Practices Act of 1977 or other applicable regulations relating to bribery;
    • general economic conditions and conditions in the oil industry;
    • effects of new products and new technology in our industry, including the potential for technological innovation to reduce the value of our vessels and charter income derived therefrom;
    • new environmental regulations and restrictions, whether at a global level stipulated by the International Maritime Organization, and/or imposed by regional or national authorities such as the European Union or individual countries;
    • vessel breakdowns and instances of off-hire;
    • the impact of an interruption in or failure of our information technology and communications systems, including the impact of cyber-attacks upon our ability to operate;
    • potential conflicts of interest involving members of our Board of Directors and senior management;
    • the failure of counter parties to fully perform their contracts with us;
    • changes in credit risk with respect to our counterparties on contracts;
    • our dependence on key personnel and our ability to attract, retain and motivate key employees;
    • adequacy of insurance coverage;
    • our ability to obtain indemnities from customers;
    • changes in laws, treaties or regulations;
    • the volatility of the price of our ordinary shares;
    • our incorporation under the laws of Cyprus and the different rights to relief that may be available compared to other countries, including the United States;
    • changes in governmental rules and regulations or actions taken by regulatory authorities;
    • government requisition of our vessels during a period of war or emergency;
    • potential liability from pending or future litigation and potential costs due to environmental damage and vessel collisions;
    • the arrest of our vessels by maritime claimants;
    • general domestic and international political conditions or events, including “trade wars”;
    • any further changes in U.S. trade policy that could trigger retaliatory actions by the affected countries;
    • potential disruption of shipping routes due to accidents, environmental factors, political events, public health threats, international hostilities including the ongoing conflict between Russia and Ukraine, the conflict between Israel and Hamas and related conflicts in the Middle East, the Houthi attacks in the Red Sea and the Gulf of Aden, acts by terrorists or acts of piracy on ocean-going vessels;
    • the impact of the U.S. presidential and congressional election results affecting the economy, future government laws and regulations, trade policy matters, such as the imposition of tariffs, the amendment, termination or any other material change to a relationship governed by a treaty and other import restrictions;
    • the length and severity of epidemics and pandemics and their impacts on the demand for seaborne transportation of crude oil and refined products;
    • the impact of port or canal congestion;
    • business disruptions due to adverse weather, natural disasters or other disasters outside our control; and
    • other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.

    We caution readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are no guarantee of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

    This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.


    1 This press release describes Time Charter Equivalent earnings and related per day amounts and spot TCE currently contracted, which are not measures prepared in accordance with IFRS (“non-GAAP”). See Appendix 1 for a full description of the measures and reconciliation to the nearest IFRS measure.

    Attachment

    The MIL Network

  • MIL-OSI Asia-Pac: President Lai presides over third meeting of Healthy Taiwan Promotion Committee

    Source: Republic of China Taiwan

    Details
    2024-11-28
    President Lai presides over second meeting of Healthy Taiwan Promotion Committee
    On the afternoon of November 28, President Lai Ching-te presided over the second meeting of the Healthy Taiwan Promotion Committee. In his opening statement, the president said that we are implementing mental health support programs this year to provide more support for young and middle-aged people, pointing out that the policy has served over 20,000 people since it was implemented just over three months ago. In terms of bolstering mental health resiliency, the president said we still have much to do, our government must lead by example, and the public and private sectors must work together, making every effort to ensure that no one is left behind. Noting that our goal is to reduce the standardized cancer mortality rate by one-third by the year 2030, President Lai stated that next year’s budget for cancer screening will be increased to NT$6.8 billion. He also stated that plans are in the works to establish a fund for new cancer drugs, adding that in the general budget we will allocate NT$5 billion, which will gradually rise to NT$10 billion. At the same time, he said, we are also actively promoting genetic testing and precision medicine. He expressed confidence that expanding preventive screening at the front end and providing advanced treatments at the back end will effectively fight cancer and improve the overall health of our citizens. A translation of President Lai’s opening statement follows: Today is the second meeting of the Healthy Taiwan Promotion Committee. First, I want to thank our two deputy conveners, our advisors and committee members, and our friends online for their enthusiastic participation. I also want to welcome Committee Member Chien Wen-jen (簡文仁), who was on leave for the previous meeting. I would also like to introduce three new committee members: Let’s welcome Committee Member Huang Chin-shun (黃金舜), president of the Federation of Taiwan Pharmacists Associations. During the pandemic, he led the nation’s pharmacists in promoting services including name-based distribution systems for masks and rapid-test kits and home delivery of medications. I am sure that he will be able to provide many valuable views regarding pharmaceutical safety and supply resilience.    Let’s also welcome Committee Member Ko Fu-yang (柯富揚). During his time as secretary-general of the National Union of Chinese Medical Doctors’ Association, he led the Chinese medicine community in the transition from experience-based medicine to evidence-based medicine, and promoted the modernization of traditional Chinese medicine. With his participation, the committee will be able to spur research and development in both modern and traditional medicine. Our third new committee member is Liao Mei-nan (廖美南), president of the Taiwan Nurses Association, who was unable to be here today. She has long been dedicated to raising the quality of nursing care and actively promoting a high-quality, friendly work environment for nurses. The committee will rely on her experience to strengthen the link between policy and practice in nursing care. I want to thank all the members of the committee once again for working together with the government. Since the last committee meeting, under the guidance of Minister without Portfolio Chen Shih-chung (陳時中), the Ministry of Health and Welfare (MOHW) has implemented various policies. At the beginning of October, for example, three major AI centers were set up to resolve three key AI application issues: implementation, certification, and reimbursement, helping advance Taiwan’s smart healthcare ecosystem. At today’s meeting, the MOHW will first deliver a report on the progress of certain items listed in the first committee meeting, followed by a joint report by the MOHW and Ministry of Education on bolstering public mental health resilience and a report by the MOHW on enhancing cancer prevention and treatment strategies.  The World Health Organization has affirmed that “there is no health without mental health.” In a fast-changing, fast-paced society, the government should invest more resources in the field of mental health to safeguard the people’s overall health. We are therefore implementing mental health support programs this year and expanding the range of eligibility, from 15 to 30, to 15 to 45 years old, to provide more support for young and middle-aged people. That policy has served over 20,000 people since it was implemented just over three months ago. In terms of bolstering mental health resiliency, we still have much to do. From the workplace to the campus and every corner of society, our government must lead by example, and the public and private sectors must work together, making every effort to ensure that no one is left behind.    Aside from mental health, in view of cancer being the leading cause of death in Taiwan for 42 consecutive years, our goal is to reduce the standardized cancer mortality rate by one-third by the year 2030. And so we must expand screening and advance treatment. Last year, the government subsidized screenings for five types of cancer, providing a total of 4.87 million screenings and detecting 11,000 cases of cancer and 52,000 cases of precancerous conditions. We have allocated an additional NT$4 billion beginning next year, bringing the total budget for cancer screening to NT$6.8 billion, to expand the scope of cancer screening eligibility and services.  Plans are also in the works to establish a fund for new cancer drugs. In next year’s general budget we will allocate NT$5 billion, which will gradually rise to NT$10 billion, to provide reimbursement funding for a variety of new cancer drugs and reduce the economic burden on patients. These new measures will be reported on in detail moments from now by the MOHW. At the same time, we are also actively promoting genetic testing and precision medicine. Next generation sequencing, for example, has already been included in National Health Insurance coverage, which will help provide patients with precise, individualized treatment strategies. I am confident that expanding preventive screening at the front end and providing advanced treatments at the back end will effectively fight cancer and improve the overall health of our citizens. Today’s meeting will help the government understand viewpoints from many perspectives so we can promote policies that more closely meet the public’s needs. Let’s keep working hard together. Thank you.  Following his statement, President Lai heard a report on the progress of certain items listed in the first committee meeting from deputy executive secretary and National Health Insurance Administration Director General Shih Chung-liang (石崇良), a joint report on bolstering public mental health resilience from Deputy Minister of Health and Welfare Lin Ching-yi (林靜儀) and Deputy Minister of Education Lin Teng-chiao (林騰蛟), and a report on enhancing cancer prevention and treatment strategies from Deputy Minister of Health and Welfare Chou Jih-haw (周志浩). Afterward, President Lai exchanged views with the committee members regarding the content of the reports.  

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    2024-11-28
    President Lai presides over first meeting of Healthy Taiwan Promotion Committee
    On the afternoon of August 22, President Lai Ching-te presided over the first meeting of the Healthy Taiwan Promotion Committee. As the committee’s convener, the president presented committee members with their letters of appointment, and explained that the Healthy Taiwan Promotion Committee is not just about promoting a Healthy Taiwan, but also achieving a Balanced Taiwan. The president stated that the committee spans various areas of expertise, and also considers the balance of Taiwan’s northern, central, southern, and eastern regions. The president expressed confidence that by soliciting a wide range of suggestions, engaging in diverse dialogue, and forging a consensus, the committee can help to realize health equality and further elevate the standard of medical care in Taiwan. President Lai indicated that next year, the Ministry of Health and Welfare’s total budget will be increased, along with expanded investment in medical treatment and care. In addition, he reported that the central government budget has also added a National Health Insurance (NHI) financial assistance program, which will help to enhance the work environments of healthcare professionals. The president stated that we will also launch the Healthy Taiwan Cultivation Plan to help rear talent and develop smart medicine. These budgets and programs, President Lai stated, reflect the government’s determination to create a Healthy Taiwan, and prove that “Healthy Taiwan” is not just a slogan, and has already been turned into concrete action. A translation of President Lai’s opening statement follows: At the end of my first month in office, I announced that the Presidential Office will establish three committees in response to three major global issues of nationwide concern: climate change, health promotion, and social resilience. These committees will consolidate forces from different sectors to strategize on national development. At the beginning of this month, we convened the first meeting of the National Climate Change Committee. Today, we convene the first meeting of the Healthy Taiwan Promotion Committee. I would like to thank the three deputy conveners and all advisors and committee members for making a commitment to the Healthy Taiwan Promotion Committee. I also want to thank our fellow citizens and friends joining us online to follow the committee’s proceedings. During my campaign, I was constantly thinking about what I could contribute to our people that is different from past presidents if I were fortunate enough to be elected. After a lot of thought, I felt that as a physician, I should utilize my professional background in health care and work together with people from all sectors of society to help create a Healthy Taiwan. Healthy Taiwan is our goal, and health is both a basic human right and a universal value. Health promotion not only involves the well-being of a nation’s people, but is also of great concern to humankind so that we may survive and thrive. Taiwan is a responsible member of the international community. Amid the challenges of the pandemic over the past few years, we have shared disease prevention supplies, technology, and experience with countries around the world, and have continued to contribute to the global public health system. Going forward, Taiwan must actively address critical health-related challenges, including cancer, transnational communicable diseases of unknown origin, antibiotic-resistant superbugs, a low birth rate, and an aging society. We are confident that, sharing countermeasures and experience with countries around the world, we can keep people healthy and make the nation stronger so that the world embraces Taiwan. I want to thank former Superintendent of National Cheng Kung University Hospital Chen Jyh-hong (陳志鴻), who is also a mentor of mine, for organizing five regional forums and a national forum for the Healthy Taiwan Promotion Alliance this past March and April. Over 1,200 healthcare professionals from all over the country attended the forums and shared their views. Premier Cho Jung-tai (卓榮泰), Vice Premier Cheng Li-chiun (鄭麗君), and I were also invited to attend the national forum and participate in full. I also want to thank the experts from various fields for their suggestions throughout this process, which became key reference points for promoting policies after we took office on May 20. The position paper on the table in front of you is a compilation of those valuable insights, which will be the foundation of our future actions. To implement the Healthy Taiwan initiative, we must also achieve a Balanced Taiwan. Therefore, the Healthy Taiwan Promotion Committee established today not only spans various areas of expertise, but also considers the balance of Taiwan’s northern, central, southern, and eastern regions to achieve nationwide health equality. I want to thank the nine advisors here with us today: Superintendent Wu Ming-shiang (吳明賢), Superintendent Chen Wei-ming (陳威明), Chairman Cherng Wen-jin (程文俊), President Chiu Kuan-ming (邱冠明), and Chairman Chang Hong-jen (張鴻仁) from northern Taiwan; Superintendent Chen Mu-kuan (陳穆寬) from central Taiwan; Superintendent Lin Sheng-che (林聖哲) and President Yu Ming-lung (余明隆) from southern Taiwan; and Superintendent Lin Shinn-zong (林欣榮) from eastern Taiwan. Your participation will give us a better understanding of viewpoints from around the country. The objective of Healthy Taiwan is to raise the population’s average life expectancy while simultaneously reducing time spent living with illness or disability, while also caring for physical, mental, and spiritual health. The 20 members of the committee are therefore drawn from a variety of fields of professional expertise. We have Superintendent Chen Shih-ann (陳適安) in the field of smart medicine, Vice-Superintendent Susan Shur-fen Gau (高淑芬) in pediatric psychiatry, medical and long-term care service integration specialist Superintendent Chan Ding-cheng (詹鼎正), and emerging infectious disease specialist Director Shen Ching-fen (沈靜芬). We have also invited Professor Tsai Sen-tien (蔡森田) to provide suggestions on optimizing healthcare services and health insurance sustainability, and invited President Chou Ching-ming (周慶明) and President Huang Cheng-kuo (黃振國) to continue promoting the Family Medicine Plan and report on primary care issues. We have also recruited President Li Yi-heng (李貽恒), who put forward the 888 Program for prevention and treatment of the “three highs” (high blood pressure, high cholesterol, and high blood sugar) and kidney disease, pediatric health specialist President Ni Yen-hsuan (倪衍玄), women’s health care specialist Secretary-General Huang Jian-pei (黃建霈), and President Hung Te-jen (洪德仁), who is focused on community development. We also have Dean Shan Yan-shen (沈延盛) from the field of cancer prevention and treatment, psychiatric and mental health specialist Professor Su Kuan-pin (蘇冠賓), epidemiology expert and Emeritus Research Fellow Ho Mei-shang (何美鄉), and biomedicine and regenerative medicine specialist Professor Patrick Ching-ho Hsieh (謝清河). The committee also includes specialist in nutrition and health for all ages President Kuo Su-e (郭素娥), and expert in the promotion of physical activity and health Vice Chairman Chien Wen-jen (簡文仁). I also want to thank Chairman Lin De-wen (林德文) for participating as we work together to enhance the health and well-being of indigenous peoples. In addition, public sector participants include Minister of National Development Liu Chin-ching (劉鏡清) and Minister of Education Cheng Ying-yao (鄭英耀), as well as Minister of Health and Welfare Chiu Tai-yuan (邱泰源), who is serving as executive secretary, and NHI Administration Director General Shih Chung-liang (石崇良) serving as deputy executive secretary. Over 80 percent of the committee’s members are from the private sector, and I will take advantage of this opportunity to continue to combine the strengths of all stakeholders throughout society to promote a healthy lifestyle for one and all, and enhance medical care for all ages. At today’s first meeting of the committee, the Ministry of Health and Welfare will brief us on two topics: the first is the Healthy Taiwan vision plan, illustrating Taiwan’s current challenges and opportunities, as well as an action blueprint. The second issue is reform and optimization for NHI sustainability. Next year will mark the 30th anniversary of our NHI system. NHI is the pride of Taiwan, because health insurance can free citizens from the vicious cycle of poverty caused by illness, or illness caused by poverty. Since 2020, the NHI system has achieved a public satisfaction rate of over 90 percent. Next year, Taiwan will also become a “super-aged society,” which means that one of every five people will be a senior citizen 65 or older. Due to new pharmaceuticals of all kinds, the development of new technologies, and citizen expectations for an optimized medical practice environment, many aspects of health insurance operations will face an increasing number of challenges. The NHI system’s core values are health equality and mutual assistance for all. Better care for everyone, however, depends on sustainable NHI operations. We closely monitor NHI system point values, but also want to embody the greater values of the system. The government will continue to refine the budget system and management, rationally distribute medical resources and stabilize point values, and continue to optimize NHI finances to enhance the efficiency and quality of services. We also look forward to working with everyone to achieve sustainable NHI development, enhance health equality, and further elevate the standard of medical care in Taiwan. I also want to report that next year, the Ministry of Health and Welfare’s total budget will reach NT$370.2 billion, an increase of NT$31.8 billion over this year. The total budget is expected to allocate NT$60.7 billion to expand investment in medical treatment and care to create a Healthy Taiwan. The central government budget has also added an NHI financial assistance program that includes incentives for maintaining specified nurse-patient ratios across all three shifts and rotating night-shift nursing staff, and promoting smart information upgrades at medical facilities to enhance the work environments of healthcare professionals. We will also launch the Healthy Taiwan Cultivation Plan, investing funds to support medical institutions at all levels nationwide, rear talent, and develop smart medicine. Regarding the fund for new cancer drugs that many cancer patients care deeply about, in next year’s general budget we will allocate NT$5 billion for health insurance funding. In 2026, that figure is expected to reach NT$10 billion. We will also promote the fifth-stage national plan for cancer prevention and treatment, and beginning next year the budget for cancer screening will be increased by NT$4 billion, reaching NT$6.8 billion, to boost screening rates. I want everyone to know that these budgets and programs reflect the government’s determination to create a Healthy Taiwan. Since I took office, the government has created plans and programs to increase nursing staff levels and promote public mental health. We also launched an Acute Hospital Care at Home pilot project to provide integrated long-term and medical care services. Once again, I would like to thank everyone here today for participating, and thank our fellow citizens for their support. I also want our fellow citizens to know that Healthy Taiwan is not just a slogan, and has already been turned into concrete action. These are all concrete, substantive actions by a government team that has been in office for less than 100 days. I am confident that with the support and participation of our committee members and advisors, and through soliciting a wide range of suggestions, engaging in diverse dialogue, and forging a consensus, our actions to create a Healthy Taiwan will more closely align with society’s expectations, and we will move more quickly and steadily toward realizing our vision. Thank you. Following his statement, President Lai presented letters of appointment to the committee members, heard a report from Minister Chiu illustrating the Healthy Taiwan vision plan, and heard a report from Director General Shih on reform and optimization for NHI sustainability. Afterward, President Lai exchanged views with the committee members regarding the content of the two reports and the Rules of Procedure for Meetings of the Office of the President Healthy Taiwan Promotion Committee.

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    2024-11-28
    President Lai attends opening of International Conference on Emergency Medicine 2024
    On the morning of June 20, President Lai Ching-te attended the opening ceremony of the International Conference on Emergency Medicine (ICEM) 2024. In remarks, President Lai stated that one goal of his administration is to create an even healthier Taiwan and that we will continue to strengthen our capabilities in medicine and public health to enhance health for all and help make the world a better place. The president emphasized that the global disease prevention network is something every country should be a part of, and that if any country is missing from this network, the rest of the world will be at a disadvantage. The president then asked for the participants’ support for Taiwan to participate in the World Health Organization so that we may contribute even more to the global public health system. A transcript of President Lai’s remarks follows: I would like to begin by welcoming all guests from overseas to Taiwan. ICEM is the world’s largest conference on emergency medicine. Over 2,500 experts and academics from home and abroad have gathered here for this year’s conference. This not only underlines the importance of emergency medicine, but is also a testament to global cooperation in medicine. This year also marks TSEM’s [Taiwan Society of Emergency Medicine] 30th anniversary. I would like to thank Chairperson Ng Chip-jin (黃集仁), President Hsu Chien-chin (許建清), and everyone who helped bring ICEM to Taiwan. This conference will help expand people-to-people diplomacy, showing Taiwan’s development and contributions in emergency medicine to the world. I am confident that everyone here shares my belief that health is a basic human right. And to ensure this right, emergency medical professionals are indispensable. Before entering politics, I myself worked as a clinician. I know well that emergency rooms are at the frontline of hospitals, and often the last hope for those who need lifesaving care. Especially during the COVID-19 pandemic, we all witnessed the rapid response and important support of emergency medical professionals, who gave their all for the health of others. I want to take this opportunity to express my utmost respect for your work. The theme of ICEM 2024 is Glocalization of Emergency Medicine: Global Wisdom and Local Solution. With that in mind, I hope that through clinical research, public health, smart tech, and other strategies, we can help reduce disparities in emergency medicine around the world. Here in Taiwan, we have made major progress in emergency medicine, from developing a cutting-edge trauma care system to implementing advanced strategies for disaster response. We are also committed to training highly skilled professionals in the field, as well as developing an advanced medical infrastructure. This conference will give Taiwan the opportunity to share our experience, and allow everyone to exchange best practices, engage in discussions, and promote the global development of emergency medicine. One goal of my administration is to create an even healthier Taiwan. We will continue to strengthen our capabilities in medicine and public health to enhance health for all and help make the world a better place. A healthier Taiwan also means a booming medical sector, and an even higher quality and diversity of medical services. Taiwan has had, and will continue to have, many medical accomplishments to share with the world. Today, all of you gather here to continue making global contributions through emergency medicine. The mission of IFEM [International Federation for Emergency Medicine] is to create a world where all people, in all countries, have access to high quality emergency medical care. On this point, the global disease prevention network is something every country should be a part of. If any country is missing from this network, the rest of the world will be at a disadvantage. I would like to ask for your support for Taiwan to participate in the World Health Organization, so that we may contribute even more to the global public health system. And as President Hsu Chien-chin has said, although the road is long, if we travel together, we can travel far. With this vision as our guide, alongside our friends from around the world, Taiwan will strive to achieve our common goals and realize quality healthcare for all. I wish ICEM 2024 great success, and all participants a rewarding experience. I also invite you to travel around Taiwan during your stay, and get to know our beautiful nation. Following his remarks, President Lai and the distinguished guests took part in the kick-off ceremony for the conference. IFEM President Ffion Davies was also in attendance at the event.

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    2024-11-28
    President Lai meets WHA action team
    On the morning of June 1, President Lai Ching-te met with members of Taiwan’s World Health Assembly (WHA) action team. In remarks, President Lai stated that standing on the front lines, the team fought for the human right to health for both Taiwan and the world. He also thanked the international community for their support for Taiwan. The president said that Taiwan is an indispensable member of the international community when it comes to ensuring global health security. In addition, he said that one of the new government’s goals is to create a healthier Taiwan, as we want our people to live longer and healthier, and that we want to leverage Taiwan’s strengths in public health and medicine. He said we will continue to deepen our partnerships with other countries as we build an even more resilient global public health system, and that a healthy Taiwan will help make the world a better place. A translation of President Lai’s remarks follows: I would like to warmly welcome our partners from the WHA action team back from Geneva, and express my appreciation for your hard work and efforts. Standing on the front lines, you fought for the human right to health for both Taiwan and the world, and we thank you for giving it your all. Your flight only just arrived at 7 a.m., but I can see that everyone is still in high spirits. You have truly put in your heart for Taiwan, and once again, I thank you all. It is regrettable that at this year’s WHA, constrained by political factors, a proposal item for Taiwan to join as an observer was not included in the agenda yet again. However, the hard work of our WHA action team over the years has already borne fruit. Last year, the Ministry of Health and Welfare signed MOUs with the public health agencies of the Czech Republic, Canada, and the United Kingdom, and bilateral talks this year included discussion on substantive cooperation. The bilateral talks carried out by our action team in Geneva were not only more numerous this year, but also involved officials of even higher level. The team also held professional forums addressing important issues of the WHA in cooperation with various medical and health organizations. This is all proof of Taiwan’s contribution toward global public health and the human right to health. The steps we take for Taiwan to participate in world health affairs will not falter. Support for Taiwan from the international community grows stronger year by year. This year, 26 member states of the World Health Organization and the European Union, which is an observer, directly or indirectly voiced their support for Taiwan’s participation in the WHA. Their support reaffirms that Taiwan is an indispensable member of the international community when it comes to ensuring global health security. Health knows no borders. Health is a basic human right. One of the new government’s goals is to create a healthier Taiwan. We want our people to live longer and healthier. And we also want to leverage Taiwan’s strengths in public health and medicine, as we deepen our cooperation with other countries and work together to advance the health of humankind and global sustainable development. I want to thank the member states for their support for Taiwan. I also want to once again thank the members of the WHA action team and our many friends, both here and outside of Taiwan, for their hard work on this issue. Moving forward, we will continue to deepen our partnerships with other countries as we build an even more resilient global public health system. So just as democratic Taiwan continues to shine its light upon the world, a healthy Taiwan will help make the world a better place. On that note, let us keep working together toward these goals. After President Lai concluded his remarks, Minister of Health and Welfare Chiu Tai-yuan (邱泰源) presented a photo collage to show President Lai some of the highlights of the action team’s activities in Geneva.

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    2024-11-28
    President Tsai meets World Medical Association President Lujain Alqodmani
    On the morning of December 11, President Tsai Ing-wen met with a delegation led by World Medical Association (WMA) President Dr. Lujain Alqodmani. In remarks, President Tsai thanked the WMA for its many years of speaking up for Taiwan on the international stage. President Tsai emphasized that we will continue to show how Taiwan can help by actively contributing to global health security. The president expressed her belief that with Taiwan’s achievements and capabilities in medicine and public health, we can join forces with many more countries to optimize the medical environment and make a more positive impact on the health of humankind. A translation of President Tsai’s remarks follows: I extend a warm welcome to President Alqodmani, who is visiting Taiwan once again. I am also glad to see WMA Secretary General Dr. Otmar Kloiber. Both of you are well acquainted with Taiwan and are our close friends. You have demonstrated your support through concrete actions. I would like to express my deepest thanks. The WMA is the largest international NGO that represents physicians. You staunchly defend health security and the rights and interests of physicians around the world with professionality and impartiality. I want to take this opportunity to thank the WMA on behalf of the Taiwanese people for its longstanding support of our participation in the World Health Organization (WHO) and World Health Assembly (WHA). This May, for example, our WHA action team collaborated with the WMA to hold a forum on emergency medicine in Geneva in the lead-up to the WHA. We will continue to show how Taiwan can help by actively contributing to global health security. During the COVID-19 pandemic, Taiwan demonstrated the resilience of its public healthcare system and shared its experiences in combating the pandemic with the world. We have also shared our medical services and construction capabilities, two areas in which we excel, with our diplomatic allies to help enrich the lives of their people and enhance the quality and environment of healthcare. We hope that President Alqodmani and Secretary General Kloiber will continue to speak up for Taiwan on the international stage. I believe that with Taiwan’s achievements and capabilities in medicine and public health, we can join forces with many more countries to optimize the medical environment. Together, we can make a more positive impact on the health of humankind. I also want to thank the Taiwan Medical Association (TMA) for serving as a bridge of communication between the government and the medical community, which helps us in implementing many of our policies. We look forward to the TMA further expanding exchanges and cooperation between the medical and international communities. I am looking forward to exchanging ideas with you today. Your visit to Taiwan will no doubt lay the groundwork for further cooperation. I wish you all a successful trip.

    Details
    2025-02-14
    President Lai holds press conference following high-level national security meeting
    On the morning of February 14, President Lai Ching-te convened the first high-level national security meeting of the year, following which he held a press conference. In remarks, President Lai announced that in this new year, the government will prioritize special budget allocations to ensure that Taiwan’s defense budget exceeds 3 percent of GDP. He stated that the government will also continue to reform national defense, reform our legal framework for national security, and advance our economic and trade strategy of being rooted in Taiwan while expanding globally. The president also proposed clear-cut national strategies for Taiwan-US relations, semiconductor industry development, and cross-strait relations. President Lai indicated that he instructed the national security and administrative teams to take swift action and deliver results, working within a stable strategic framework and according to the various policies and approaches outlined. He also instructed them to keep a close watch on changes in the international situation, seize opportunities whenever they arise, and address the concerns and hope of the citizens with concrete actions. He expressed hope that as long as citizens remain steadfast in their convictions, are willing to work hand in hand, stand firm amidst uncertainty, and look for ways to win within changing circumstances, Taiwan is certain to prevail in the test of time yet again. A translation of President Lai’s remarks follows: First, I would like to convey my condolences for the tragic incident which occurred at the Shin Kong Mitsukoshi department store in Taichung, which resulted in numerous casualties. I have instructed Premier Cho Jung-tai (卓榮泰) to lead the relevant central government agencies in assisting Taichung’s municipal government with actively resolving various issues regarding the incident. It is my hope that these issues can be resolved efficiently. Earlier today, I convened this year’s first high-level national security meeting. I will now report on the discussions from the meeting to all citizens. 2025 is a year full of challenges, but also a year full of hope. In today’s global landscape, the democratic world faces common threats posed by the convergence of authoritarian regimes, while dumping and unfair competition from China undermine the global economic order. A new United States administration was formed at the beginning of the year, adopting all-new strategies and policies to address challenges both domestic and from overseas. Every nation worldwide, including ours, is facing a new phase of changes and challenges. In face of such changes, ensuring national security, ensuring Taiwan’s indispensability in global supply chains, and ensuring that our nation continues to make progress amidst challenges are our top priorities this year. They are also why we convened a high-level national security meeting today. At the meeting, the national security team, the administrative team led by Premier Cho, and I held an in-depth discussion based on the overall state of affairs at home and abroad and the strategies the teams had prepared in response. We summed up the following points as an overall strategy for the next stage of advancing national security and development. First, for overall national security, so that we can ensure the freedom, democracy, and human rights of the Taiwanese people, as well as the progress and development of the nation as we face various threats from authoritarian regimes, Taiwan must resolutely safeguard national sovereignty, strengthen self-sufficiency in national defense, and consolidate national defense. Taiwan must enhance economic resilience, maintain economic autonomy, and stand firm with other democracies as we deepen our strategic partnerships with like-minded countries. As I have said, “As authoritarianism consolidates, democratic nations must come closer in solidarity!” And so, in this new year, we will focus on the following three priorities: First, to demonstrate our resolve for national defense, we will continue to reform national defense, implement whole-of-society defense resilience, and prioritize special budget allocations to ensure that our defense budget exceeds 3 percent of GDP. Second, to counter the threats to our national security from China’s united front tactics, attempts at infiltration, and cognitive warfare, we will continue with the reform of our legal framework for national security and expand the national security framework to boost societal resilience and foster unity within. Third, to seize opportunities in the restructuring of global supply chains and realignment of the economic order, we will continue advancing our economic and trade strategy of being rooted in Taiwan while expanding globally, strengthening protections for high-tech, and collaborating with our friends and allies to build supply chains for global democracies. Everyone shares concern regarding Taiwan-US relations, semiconductor industry development, and cross-strait relations. For these issues, I am proposing clear-cut national strategies. First, I will touch on Taiwan-US relations. Taiwan and the US have shared ideals and values, and are staunch partners within the democratic, free community. We are very grateful to President Donald Trump’s administration for their continued support for Taiwan after taking office. We are especially grateful for the US and Japan’s joint leaders’ statement reiterating “the importance of maintaining peace and stability across the Taiwan Strait as an indispensable element of security and prosperity for the international community,” as well as their high level of concern regarding China’s threat to regional security. In fact, the Democratic Progressive Party government has worked very closely with President Trump ever since his first term in office, and has remained an international partner. The procurement of numerous key advanced arms, freedom of navigation critical for security and stability in the Taiwan Strait, and many assisted breakthroughs in international diplomacy were made possible during this time. Positioned in the first island chain and on the democratic world’s frontline countering authoritarianism, Taiwan is willing and will continue to work with the US at all levels as we pursue regional stability and prosperity, helping realize our vision of a free and open Indo-Pacific. Although changes in policy may occur these next few years, the mutual trust and close cooperation between Taiwan and Washington will steadfastly endure. On that, our citizens can rest assured. In accordance with the Taiwan Relations Act and the Six Assurances, the US announced a total of 48 military sales to Taiwan over the past eight years amounting to US$26.265 billion. During President Trump’s first term, 22 sales were announced totaling US$18.763 billion. This greatly supported Taiwan’s defensive capabilities. On the foundation of our close cooperation with the past eight years’ two US administrations, Taiwan will continue to demonstrate our determination for self-defense, accelerate the bolstering of our national defense, and keep enhancing the depth and breadth of Taiwan-US security cooperation, along with all manner of institutional cooperation. In terms of bilateral economic cooperation, Taiwan has always been one of the US’s most reliable trade partners, as well as one of the most important cooperative partners of US companies in the global semiconductor industry. In the past few years, Taiwan has greatly increased both direct and indirect investment in the US. By 2024, investment surpassed US$100 billion, creating nearly 400,000 job opportunities. In 2023 and 2024, investment in the US accounted for over 40 percent of Taiwan’s overall foreign investment, far surpassing our investment in China. In fact, in 2023 and 2024, Taiwanese investment in China fell to 11 percent and 8 percent, respectively. The US is now Taiwan’s biggest investment target. Our government is now launching relevant plans in accordance with national development needs and the need to establish secure supply systems, and the Executive Yuan is taking comprehensive inventory of opportunities for Taiwan-US economic and trade cooperation. Moving forward, close bilateral cooperation will allow us to expand US investment and procurement, facilitating balanced trade. Our government will also strengthen guidance and support for Taiwanese enterprises on increasing US investment, and promote the global expansion and growth of Taiwan’s industries. We will also boost Taiwan-US cooperation in tech development and manufacturing for AI and advanced semiconductors, and work together to maintain order in the semiconductor market, shaping a new era for our strategic economic partnership. Second, the development of our semiconductor industry. I want to emphasize that Taiwan, as one of the world’s most capable semiconductor manufacturing nations, is both willing and able to address new situations. With respect to President Trump’s concerns about our semiconductor industry, the government will act prudently, strengthen communications between Taiwan and the US, and promote greater mutual understanding. We will pay attention to the challenges arising from the situation and assist businesses in navigating them. In addition, we will introduce an initiative on semiconductor supply chain partnerships for global democracies. We are willing to collaborate with the US and our other democratic partners to develop more resilient and diversified semiconductor supply chains. Leveraging our strengths in cutting-edge semiconductors, we will form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips. Through international cooperation, we will open up an entirely new era of growth in the semiconductor industry. As we face the various new policies of the Trump administration, we will continue to uphold a spirit of mutual benefit, and we will continue to communicate and negotiate closely with the US government. This will help the new administration’s team to better understand how Taiwan is an indispensable partner in the process of rebuilding American manufacturing and consolidating its leadership in high-tech, and that Taiwan-US cooperation will benefit us both. Third, cross-strait relations. Regarding the regional and cross-strait situation, Taiwan-US relations, US-China relations, and interactions among Taiwan, the US, and China are a focus of global attention. As a member of the international democratic community and a responsible member of the region, Taiwan hopes to see Taiwan-US relations continue to strengthen and, alongside US-China relations, form a virtuous cycle rather than a zero-sum game where one side’s gain is another side’s loss. In facing China, Taiwan will always be a responsible actor. We will neither yield nor provoke. We will remain resilient and composed, maintaining our consistent position on cross-strait relations: Our determination to safeguard our national sovereignty and protect our free and democratic way of life remains unchanged. Our efforts to maintain peace and stability in the Taiwan Strait, as well as our willingness to work alongside China in the pursuit of peace and mutual prosperity across the strait, remain unchanged. Our commitment to promoting healthy and orderly exchanges across the strait, choosing dialogue over confrontation, and advancing well-being for the peoples on both sides of the strait, under the principles of parity and dignity, remains unchanged. Regarding the matters I reported to the public today, I have instructed our national security and administrative teams to take swift action and deliver results, working within a stable strategic framework and according to the various policies and approaches I just outlined. I have also instructed them to keep a close watch on changes in the international situation, seize opportunities whenever they arise, and address the concerns and hope of the citizens with concrete actions. My fellow citizens, over the past several years, Taiwan has weathered a global pandemic and faced global challenges, both political and economic, arising from the US-China trade war and Russia’s invasion of Ukraine. Through it all, Taiwan has persevered; we have continued to develop our economy, bolster our national strength, and raise our international profile while garnering more support – all unprecedented achievements. This is all because Taiwan’s fate has never been decided by the external environment, but by the unity of the Taiwanese people and the resolve to never give up. A one-of-a-kind global situation is creating new strategic opportunities for our one-of-a-kind Taiwanese people, bringing new hope. Taiwan’s foundation is solid; its strength is great. So as long as everyone remains steadfast in their convictions, is willing to work hand in hand, stands firm amidst uncertainty, and looks for ways to win within changing circumstances, Taiwan is certain to prevail in the test of our time yet again, for I am confident that there are no difficulties that Taiwan cannot overcome. Thank you.

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Government provides SEK 9 million in support to Ukrainian Institute in Sweden to promote cultural heritage

    Source: Government of Sweden

    The Government is providing SEK 9 million in support to the Ukrainian Institute in Sweden over a period of three years. The support will contribute to preserving and enhancing Ukrainian cultural heritage and provide a platform for Ukrainian culture outside Ukraine. The funding will enable Ukrainian artists to continue to work beyond the reach of Russian attacks.

    MIL OSI Europe News

  • MIL-OSI Europe: EU adopts 16th sanctions package against Russia on third anniversary of full-scale invasion of Ukraine

    Source: Government of Sweden

    On the third anniversary of Russia’s war of aggression against Ukraine, the EU has adopted the 16th sanctions package since the launch of the full-scale invasion in February 2022. The new sanctions package includes additional measures targeting the ‘shadow fleet’ and expanded import and export bans on Russian natural resources such as primary aluminium. The package also includes additional anti-circumvention measures.

    MIL OSI Europe News

  • MIL-OSI Europe: Swedish Civil Contingencies Agency to cooperate with Ukraine to improve protection of critical infrastructure

    Source: Government of Sweden

    On 27 February 2025, the Government instructed the Swedish Civil Contingencies Agency to enter into a cooperation agreement with Ukraine on critical infrastructure. This cooperation lays the groundwork for exchanges of experience between Sweden and Ukraine to better protect critical infrastructure.

    MIL OSI Europe News

  • MIL-OSI USA: ICYMI—Hagerty Joins The Story With Martha MacCallum on Fox News to Discuss Trump’s Peace Negotiations

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty

    WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Foreign Relations Committee and former U.S. Ambassador to Japan, today joined The Story With Martha MacCallum on Fox News to discuss President Donald Trump’s peace negotiations to end the war between Russia and Ukraine.

    *Click the photo above or here to watch*

    Partial Transcript

    Hagerty on Trump’s peace negotiations between Russia and Ukraine: “I think what President Trump has done in many ways is completely shift the dynamic, Martha. He’s finding a new place and frankly, giving [President] Vladimir Putin more room to negotiate, to get to a place where President Trump wants him to be […] One thing I’d point out, Martha, is that Trump’s relationship with Putin has been quite different. You recall during Trump’s first Administration; Putin did not take aggressive actions like this. It was under [Former President Barack] Obama that Putin came in and took Crimea. It was under [Former President Joe] Biden when he came in and had the most recent invasion and launched the war in Ukraine. Things will be very different with President Trump, and I think he’s setting up the circumstances so that they will be. So, I won’t be surprised at all to see President Trump and President Putin talk. I’ve been with the two of them before, and I can say this, Martha: there’s a great deal of respect from President Putin toward President Trump. And I think President Trump is going to leverage that respect to get to a deal that’s going to be better off for all concerned. He’s been clear at the outset; he wants this carnage to come to an end in Ukraine. Ukrainian people have died. Their country has been decimated. He wants it to end. He wants it to end under terms that are more favorable to the U.S. taxpayer. I think that’s going to come clear tomorrow, and by having more U.S. investment in Ukraine, Ukraine will be more secure and in a better place going forward.”

    Hagerty on U.S. competitive advantage with a strong economic foundation: “It certainly is a way that I look at it, and I think President Trump has a similar view. A strong economic foundation is at the core of our diplomacy, a strong military presence to top that. And [when] we have [a] strong economic relationship, a strong military posture, then diplomacy is effective and it’s possible. That’s the approach that President Trump is taking. In terms of comparing it to the [Chinese Communist Party] and their Belt and Road initiative, I might take a different tack there. The CCP uses what they call Debt-trap diplomacy. They come in making very strategic investments, often ones that countries can’t handle. They often use corruption as a tool, as a weapon. I think when you look at the United States and particularly conversations President Trump and I have had directly, what we look at is providing, for example, clean U.S. LNG to other parts of the world. That is a geostrategic tool that we can use that makes everyone better off economically and also aligns our economic interests, our energy interests, and our national security interests at the same time.”

    Hagerty on economic opportunities in a deal that could benefit the U.S.: “President Trump, if anything, is a world-class negotiator. And as I said, he tries to find a position to get on different footing. He’s been trying to get President [Volodymyr] Zelensky to the table on this critical minerals deal. We had him very close, then suddenly he wasn’t there. Now we’re back where we need him to be again. And on Friday, I look forward to [seeing] this deal come forward. It may be even more than just a critical minerals deal, but President Trump has been negotiating in his own style to get Zelensky back here in the United States, signing up to a deal that’s going to be better for all parties.”

    Hagerty on the importance of U.S. production of aluminum: “Aluminum is a critical national security interest for the United States. We have aluminum interest in my home state of Tennessee. I want to see the industry stronger here. And from a national security standpoint, I’m very focused on maintaining U.S. production of aluminum.”

    MIL OSI USA News