Category: Ukraine

MIL-OSI: Wix Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Capping off a year of sustained growth acceleration and stronger than expected FCF generation – surpassing Rule of 40 in 2024 and on track to achieve Rule of 45 in 2025

Culminated a year of accelerated growth and innovation with Q4 bookings of $465 million, up 18% y/y, and Q4 revenue of $460 million, up 14% y/y
- Steady growth acceleration in Self Creators coupled with continued strength in high-growth Partners, demonstrated by Partners revenue growth of 30% y/y in FY2024
- Strong momentum across key product focus areas, including Studio, AI and commerce as well as solid business fundamentals and price increase benefit
Robust growth and a stable operating cost base drove FCF¹ generation to nearly double in 2024 compared to previous year, resulting in continued profitability improvement with Q4 FCF margin of 29% and full year FCF¹ margin of 28%
- Achieved first year of positive GAAP operating income in Wix history
On track to achieve Rule of 45 in 2025 at high end of outlook through continued innovation-powered growth and further FCF margin expansion
Completed $200 million share repurchase plan in January, totaling $725 million in aggregate repurchases since August 2023

NEW YORK — Wix.com Ltd. (Nasdaq: WIX), the leading SaaS website builder platform², today reported financial results for the fourth quarter and full year 2024. In addition, the Company provided its initial outlook for the first quarter and full year 2025. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q4’24 Shareholder Update and other materials.

“Wix sets a high standard for innovation and creativity, and we’re constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,” said Avishai Abrahami, Wix Co-founder and CEO. “2025 is poised to reimagine and expand the Self Creator experience with the launch of two transformative products planned for the spring and early fall. I strongly believe that these will deliver immense value to users and, in turn, accelerate Self Creator growth to double-digits in the years to come. We’re thrilled about these strategic enhancements, which are set to propel our business forward and establish a powerful foundation for the years ahead.”

“We wrapped 2024 with accelerated growth and profitability, driven by successful execution of our product roadmap and pricing strategy as well as strong business fundamentals,” added Lior Shemesh, CFO at Wix. “With AI usage ramping from our growing suite of innovations and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond. Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records. The high end of our outlook puts us at Rule of 45 in 2025 as we continue to prioritize balancing profitable growth through best-in-class innovation and steadfast execution.”

Q4 2024 Financial Results

Total revenue in the fourth quarter of 2024 was $460.5 million, up 14% y/y
- Creative Subscriptions revenue in the fourth quarter of 2024 was $329.7 million, up 11% y/y
- Creative Subscriptions ARR increased to $1.343 billion as of the end of the quarter, up 13% y/y
Business Solutions revenue in the fourth quarter of 2024 was $130.7 million, up 21% y/y
- Transaction revenue³ was $57.1 million, up 23% y/y
Partners revenue⁴ in the fourth quarter of 2024 was $168.1 million, up 29% y/y
Total bookings in the fourth quarter of 2024 were $464.6 million, up 18% y/y
- Total bookings on a y/y constant currency basis were $466.2 million
- Creative Subscriptions bookings in the fourth quarter of 2024 were $325.2 million, up 15% y/y
- Business Solutions bookings in the fourth quarter of 2024 were $139.4 million, up 25% y/y
Total gross margin on a GAAP basis in the fourth quarter of 2024 was 69%
- Creative Subscriptions gross margin on a GAAP basis was 84%
- Business Solutions gross margin on a GAAP basis was 30%
Total non-GAAP gross margin in the fourth quarter of 2024 was 70%
- Creative Subscriptions gross margin on a non-GAAP basis was 85%
- Business Solutions gross margin on a non-GAAP basis was 32%
GAAP net income in the fourth quarter of 2024 was $48.0 million, or $0.86 per basic share or $0.80 per diluted share
Non-GAAP net income in the fourth quarter of 2024 was $117.1 million, or $2.10 per basic share or $1.93 per diluted share
Net cash provided by operating activities for the fourth quarter of 2024 was $133.7 million, while capital expenditures totaled $2.0 million, leading to free cash flow of $131.8 million

FY 2024 Financial Results

Total revenue for the full year 2024 was $1.761 billion, up 13% y/y
- Creative Subscriptions revenue for the full year 2024 was $1.265 billion, up 10% y/y
- Business Solutions revenue for the full year 2024 was $495.7 million, up 21% y/y
  - Transaction revenue³ was $214.9 million, up 21% y/y
Partners revenue⁴ for the full year 2024 was $610.1 million, up 30% y/y
Total bookings for the full year 2024 were $1.830 billion, up 15% y/y
- Creative Subscriptions bookings for the full year 2024 were $1.315 billion, up 12% y/y
- Business Solutions bookings for the full year 2024 were $514.6 million, up 22% y/y
Total gross margin on a GAAP basis for the full year 2024 was 68%
- Creative Subscriptions gross margin on a GAAP basis was 83%
- Business Solutions gross margin on a GAAP basis was 29%
Total non-GAAP gross margin for the full year 2024 was 69%
- Creative Subscriptions gross margin on a non-GAAP basis was 84%
- Business Solutions gross margin on a non-GAAP basis was 30%
GAAP net income for the full year 2024 was $138.3 million, or $2.49 per basic share or $2.36 per diluted share
Non-GAAP net income for the full year 2024 was $383.3 million, or $6.90 per basic share or $6.39 per diluted share
Net cash provided by operating activities for the full year 2024 was $497.4 million, while capital expenditures totaled $19.3 million, leading to free cash flow of $478.1 million
Excluding the capex investment associated with our new headquarters office build out, free cash flow¹ for the full year 2024 would have been $488.4 million, or 28% of revenue
Executed $466 million in repurchases of ordinary shares in 2024 as we remained committed to share count management and returning value to shareholders
Finished full year 2024 with 6.2 million total premium subscriptions as of December 31, 2024
Registered users as of December 31, 2024 were over 282 million
Total employee count as of December 31, 2024 was 5,283

____________________
^{1 Free cash flow excluding expenses associated with the buildout of our new corporate headquarters.}
^{2 Based on number of active live sites as reported by competitors’ figures, independent third-party data and internal data as of Q3 2024.}
^{3 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments, as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions.}
^{4 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users (“Agencies”) as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint (“Resellers”). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses.}

Financial Outlook

We expect another year of robust bookings and revenue growth powered by existing key growth initiatives and ongoing product enhancements against a stable and positive demand environment:

With Studio continuing to outperform and AI usage and conversion benefits ramping, we anticipate these initiatives to be even bigger growth engines in 2025
We are continuously testing and rolling out product enhancements as well as new strategic initiatives, which are driving demonstrable added value to users. As a result, we expect incremental ARPS and conversion improvements.
We expect top-line contribution from those enhancements and initiatives already rolled out and underway to layer in as we progress through the year, resulting in accelerated growth in 2H. This acceleration is anticipated for both revenue and bookings, even as bookings fully laps pricing tailwinds in mid-Q1’25.

While confident the new products in our pipeline, particularly the meaningful Self Creator offerings coming this year, will drive medium-term growth, we are incorporating almost no contribution from new products into our 2025 forecast.

As a global company with ~40% of revenue derived in non-US dollar currencies, we began to experience adverse effects from outsized changes in FX rates beginning mid-Q4 and continuing YTD, particularly the US dollar to Euro and British pound exchange rates. Assuming late January spot rates, we anticipate strong FX headwinds to 2025 outlook.

As such, we provide outlook for the year and the first quarter on both as-reported and constant currency bases.

	As-reported	As-reported growth y/y	FX impact	Constant currency growth y/y
Full year 2025
Bookings	$2,025 – 2,060 million	11 – 13%	~$45 million	13 – 15%
Revenue	$1,970 – 2,000 million	12 – 14%	~$34 million	14 – 16%
Free cash flow	$590 – 610 million	30 – 31% margin	~$25 million	31 – 32% margin
Q1’25
Revenue	$469 – 473 million	12 – 13%	~$6 million	13 – 14%

With a meaningful portion of our operating expenses denominated in non-US currencies, the strengthening US dollar is expected to drive a modest benefit to 2025 expenses. As a result, the net FX impact on free cash flow is expected to be smaller than the anticipated top-line headwinds.

We believe our strong commitment to sustained top-line momentum and translating growth into additional operating leverage puts us on track to achieve Rule of 45 in 2025 at the high end of our outlook.

Conference Call and Webcast Information

Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, February 19, 2025. A live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at https://investors.wix.com/.

About Wix.com Ltd.

Wix is the leading SaaS website builder platform¹ to create, manage and grow a digital presence. Founded in 2006, Wix is a comprehensive platform providing users – self-creators, agencies, enterprises, and more – with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients.

For more about Wix, please visit our Press Room
Media Relations Contact: PR@wix.com

Non-GAAP Financial Measures and Key Operating Metrics

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow on a constant currency basis, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the “Non-GAAP financial measures”). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, bookings, cumulative cohort bookings, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company’s control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners.

Forward-Looking Statements

This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like “anticipate,” “assume,” “believe,” “aim,” “forecast,” “indication,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “outlook,” “future,” “will,” “seek” and similar terms or phrases. The forward-looking statements contained in this document, including the quarterly and annual guidance, are based on management’s current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our expectation that we will be able to attract and retain registered users and partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence (“AI”), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Israel-Hezbollah hostilities and/or the Ukraine-Russia war and any escalations thereof and potential for wider regional instability and conflict; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities, including through the adoption of our Wix Studio product, with these customer types as anticipated and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on March 22, 2024. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

Wix.com Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS – GAAP
(In thousands, except loss per share data)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Revenues
Creative Subscriptions	$	329,732	$	296,154	$	1,264,975	$	1,152,007
Business Solutions	130,723		107,617		495,675		409,658
	460,455		403,771		1,760,650		1,561,665

Cost of Revenues
Creative Subscriptions	52,671		52,794		213,422		215,515
Business Solutions	90,965		73,319		351,213		297,013
	143,636		126,113		564,635		512,528

Gross Profit	316,819		277,658		1,196,015		1,049,137

Operating expenses:
Research and development	127,186		125,743		495,281		481,293
Selling and marketing	106,629		103,642		425,457		399,577
General and administrative	46,984		43,401		175,136		160,033
Impairment, restructuring and other costs	–		3,103		–		32,614
Total operating expenses	280,799		275,889		1,095,874		1,073,517
Operating income (loss)	36,020		1,769		100,141		(24,380)
Financial income, net	16,355		6,461		51,820		62,474
Other income (expenses), net	(94)		44		(36)		(255)
Income before taxes on income	52,281		8,274		151,925		37,839
Income tax expenses	4,257		5,320		13,603		4,702
Net income	$	48,024	$	2,954	$	138,322	$	33,137

Basic net income per share	$	0.86	$	0.05	$	2.49	$	0.58
Basic weighted-average shares used to compute net income per share	55,786,201		57,317,815		55,579,368		56,829,962

Diluted net income per share	$	0.80	$	0.05	$	2.36	$	0.57
Diluted weighted-average shares used to compute net income per share	60,648,791		59,085,757		59,953,371		58,403,037

Wix.com Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)


	December 31,		December 31,
	2024		2023
Assets	(unaudited)		(audited)
Current Assets:
Cash and cash equivalents	$	660,939	$	609,622
Short-term deposits		106,844		212,709
Restricted deposits		773		2,125
Marketable securities		338,593		140,563
Trade receivables		46,166		57,394
Prepaid expenses and other current assets		126,887		47,792
Total current assets		1,280,202		1,070,205

Long-Term Assets:
Prepaid expenses and other long-term assets		27,021		34,296
Property and equipment, net		128,155		136,928
Marketable securities		6,135		64,806
Intangible assets, net		22,141		28,010
Goodwill		49,329		49,329
Operating lease right-of-use assets		399,861		420,562
Total long-term assets		632,642		733,931

Total assets	$	1,912,844	$	1,804,136

Liabilities and Shareholders’ Deficiency
Current Liabilities:
Trade payables	$	48,003	$	38,305
Employees and payroll accruals		142,007		56,581
Deferred revenues		661,171		592,608
Current portion of convertible notes, net		572,880		–
Accrued expenses and other current liabilities		63,246		76,556
Operating lease liabilities		27,907		24,981
Total current liabilities		1,515,214		789,031
Long Term Liabilities:
Long-term deferred revenues		89,271		83,384
Long-term deferred tax liability		1,965		7,167
Convertible notes, net		–		569,714
Other long-term liabilities		16,021		7,699
Long-term operating lease liabilities		369,159		401,626
Total long-term liabilities		476,416		1,069,590

Total liabilities		1,991,630		1,858,621

Shareholders’ Deficiency
Ordinary shares		107		110
Additional paid-in capital		1,840,574		1,539,952
Treasury Stock		(1,025,167)		(558,875)
Accumulated other comprehensive loss		7,242		4,192
Accumulated deficit		(901,542)		(1,039,864)
Total shareholders’ deficiency		(78,786)		(54,485)

Total liabilities and shareholders’ deficiency	$	1,912,844	$	1,804,136

Wix.com Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
OPERATING ACTIVITIES:
Net income	$	48,024	$	2,954	$	138,322	$	33,137
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		6,278		6,725		25,246		20,492
Amortization		1,460		1,488		5,869		5,954
Share based compensation expenses		61,801		58,195		240,721		224,625
Amortization of debt discount and debt issuance costs		793		789		3,166		4,194
Changes in accrued interest and exchange rate on short term and long term deposits		(635)		(586)		852		(2,415)
Non-cash impairment, restructuring and other costs		–		3,567		–		26,699
Amortization of premium and discount and accrued interest on marketable securities, net		(7,838)		4,237		(13,381)		8,346
Remeasurement loss (gain) on Marketable equity		–		(10,296)		(3,367)		(30,608)
Changes in deferred income taxes, net		(7)		(2,035)		(5,196)		(8,784)
Changes in operating lease right-of-use assets		4,351		7,174		24,246		27,231
Changes in operating lease liabilities		(2,821)		16,701		(33,086)		(31,333)
Loss on foreign exchange, net		2,471		–		3,906		–
Decrease (increase) in trade receivables		4,058		(2,794)		11,228		(15,308)
Decrease in prepaid expenses and other current and long-term assets		(63,684)		(10,845)		(76,963)		(20,105)
Increase (decrease) in trade payables		17,329		15,120		12,893		(52,455)
Increase (decrease) in employees and payroll accruals		66,407		(8,307)		85,426		(29,532)
Increase in short term and long term deferred revenues		1,609		2,788		74,450		76,193
Increase (decrease) in accrued expenses and other current liabilities		(5,860)		5,505		3,083		11,915
Net cash provided by operating activities		133,736		90,380		497,415		248,246
INVESTING ACTIVITIES:
Proceeds from short-term deposits and restricted deposits		97,051		131,754		276,697		625,495
Investment in short-term deposits and restricted deposits		(25,540)		(99,725)		(170,332)		(297,917)
Investment in marketable securities		–		(2,607)		(267,209)		(6,732)
Proceeds from marketable securities		15,000		33,690		125,176		250,960
Purchase of property and equipment and lease prepayment		(1,562)		(9,582)		(17,813)		(63,021)
Capitalization of internal use of software		(401)		(408)		(1,523)		(3,028)
Investment in other assets		–		–		–		(111)
Proceeds from investment in other assets	$	–		–	$	550		–
Proceeds from sale of equity securities		–		19,203		22,148		68,671
Purchases of investments in privately held companies		(1,000)		(76)		(3,160)		(7,603)
Net cash provided by investing activities		83,548		72,249		(35,466)		566,714
FINANCING ACTIVITIES:
Proceeds from exercise of options and ESPP shares		6,692		898		59,576		39,660
Purchase of treasury stock		–		(58,698)		(466,302)		(127,017)
Repayment of convertible notes		–		–		–		(362,667)
Net cash provided by (used in) financing activities		6,692		(57,800)		(406,726)		(450,024)
Effect of exchange rates on cash, cash equivalent and restricted cash		(2,471)		–		(3,906)		–
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		221,505		104,829		51,317		364,936
CASH AND CASH EQUIVALENTS—Beginning of period		439,434		504,793		609,622		244,686
CASH AND CASH EQUIVALENTS—End of period	$	660,939	$	609,622	$	660,939	$	609,622

Wix.com Ltd.
KEY PERFORMANCE METRICS
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Creative Subscriptions		329,732		296,154		1,264,975		1,152,007
Business Solutions		130,723		107,617		495,675		409,658
Total Revenues	$	460,455	$	403,771	$	1,760,650	$	1,561,665

Creative Subscriptions		325,203		283,501		1,315,445		1,174,776
Business Solutions		139,389		111,503		514,607		422,727
Total Bookings	$	464,592	$	395,004	$	1,830,052	$	1,597,503

Free Cash Flow	$	131,773	$	80,390	$	478,079	$	182,197
Free Cash Flow excluding HQ build out and restructuring costs	$	131,773	$	90,125	$	488,404	$	246,058
Creative Subscriptions ARR	$	1,343,070	$	1,192,814	$	1,343,070	$	1,192,814


Wix.com Ltd.
RECONCILIATION OF REVENUES TO BOOKINGS
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Revenues	$	460,455	$	403,771	$	1,760,650	$	1,561,665
Change in deferred revenues		1,609		2,788		74,450		76,193
Change in unbilled contractual obligations		2,528		(11,555)		(5,048)		(40,355)
Bookings	$	464,592	$	395,004	$	1,830,052	$	1,597,503

Y/Y growth		18%				15%


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Creative Subscriptions Revenues	$	329,732	$	296,154	$	1,264,975	$	1,152,007
Change in deferred revenues		(7,057)		(1,098)		55,518		63,124
Change in unbilled contractual obligations		2,528		(11,555)		(5,048)		(40,355)
Creative Subscriptions Bookings	$	325,203	$	283,501	$	1,315,445	$	1,174,776

Y/Y growth		15%				12%

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Business Solutions Revenues	$	130,723	$	107,617	$	495,675	$	409,658
Change in deferred revenues		8,666		3,886		18,932		13,069
Business Solutions Bookings	$	139,389	$	111,503	$	514,607	$	422,727

Y/Y growth		25%				22%


Wix.com Ltd.
RECONCILIATION OF COHORT BOOKINGS
(In millions)
					Year Ended
					December 31,
					2024		2023
					(unaudited)
Q1 Cohort revenues					$	45	$	45
Q1 Change in deferred revenues						16		15
Q1 Cohort Bookings					$	61	$	60


Wix.com Ltd.
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT
(In thousands)
					Three Months Ended
					December 31,
					2024		2023
					(unaudited)
Revenues					$	460,455	$	403,771
FX impact on Q4/24 using Y/Y rates						(110)		–
Revenues excluding FX impact					$	460,345	$	403,771

Y/Y growth						14%

					Three Months Ended
					December 31,
					2024		2023
					(unaudited)
Bookings					$	464,592	$	395,004
FX impact on Q4/24 using Y/Y rates						1,600		–
Bookings excluding FX impact					$	466,192	$	395,004

Y/Y growth						18%


Wix.com Ltd.
TOTAL ADJUSTMENTS GAAP TO NON-GAAP
(In thousands)


	Three Months Ended				Year Ended
	December 31,				December 31,
		2024		2023		2024		2023
(1) Share based compensation expenses:	(unaudited)				(unaudited)
Cost of revenues	$	3,466	$	3,675	$	14,146	$	15,013
Research and development		32,320		31,982		126,462		119,482
Selling and marketing		9,625		11,232		38,755		41,277
General and administrative		16,390		11,306		61,358		48,853
Total share based compensation expenses		61,801		58,195		240,721		224,625
(2) Amortization		1,834		1,488		6,243		5,954
(3) Acquisition related expenses		–		9		6		472
(4) Amortization of debt discount and debt issuance costs		793		789		3,166		4,194
(5) Impairment, restructuring and other costs		–		3,103		–		32,614
(6) Sales tax accrual and other G&A expenses		881		137		1,464		748
(7) Unrealized loss (gain) on equity and other investments		–		(10,296)		(2,536)		(30,608)
(8) Non-operating foreign exchange income		3,767		15,287		(4,703)		1,499
(9) Provision for income tax effects related to non-GAAP adjustments		–		2,368		583		(4,337)
Total adjustments of GAAP to Non GAAP	$	69,076	$	71,080	$	244,944	$	235,161



Wix.com Ltd.
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
(In thousands)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Gross Profit	$	316,819	$	277,658	$	1,196,015	$	1,049,137
Share based compensation expenses		3,466		3,675		14,146		15,013
Acquisition related expenses		–		5		–		229
Amortization		667		667		2,669		2,669
Non GAAP Gross Profit		320,952		282,005		1,212,830		1,067,048

Non GAAP Gross margin		70%		70%		69%		68%


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Gross Profit – Creative Subscriptions	$	277,061	$	243,360	$	1,051,553	$	936,492
Share based compensation expenses		2,482		2,695		10,232		11,081
Non GAAP Gross Profit – Creative Subscriptions		279,543		246,055		1,061,785		947,573

Non GAAP Gross margin – Creative Subscriptions		85%		83%		84%		82%


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Gross Profit – Business Solutions	$	39,758	$	34,298	$	144,462	$	112,645
Share based compensation expenses		984		980		3,914		3,932
Acquisition related expenses		–		5		–		229
Amortization		667		667		2,669		2,669
Non GAAP Gross Profit – Business Solutions		41,409		35,950		151,045		119,475

Non GAAP Gross margin – Business Solutions		32%		33%		30%		29%


Wix.com Ltd.
RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024			2023
	(unaudited)				(unaudited)
Operating income (loss)	$	36,020	$	1,769	$	100,141	$	(24,380)
Adjustments:
Share based compensation expenses		61,801		58,195		240,721		224,625
Amortization		1,834		1,488		6,243		5,954
Impairment, restructuring and other charges		–		3,103		–		32,614
Sales tax accrual and other G&A expenses		881		137		1,464		748
Acquisition related expenses		–		9		6		472
Total adjustments	$	64,516	$	62,932	$	248,434	$	264,413

Non GAAP operating income	$	100,536	$	64,701	$	348,575	$	240,033

Non GAAP operating margin		22%		16%		20%		15%


Wix.com Ltd.
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE
(In thousands, except per share data)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Net income	$	48,024	$	2,954	$	138,322	$	33,137
Share based compensation expenses and other Non GAAP adjustments		69,076		71,080		244,944		235,161
Non-GAAP net income$	$	117,100	$	74,034	$	383,266	$	268,298

Basic Non GAAP net income per share	$	2.10	$	1.29	$	6.90	$	4.72
Weighted average shares used in computing basic Non GAAP net income per share		55,786,201		57,317,815		55,579,368		56,829,962

Diluted Non GAAP net income per share	$	1.93	$	1.22	$	6.39	$	4.39
Weighted average shares used in computing diluted Non GAAP net income per share		60,648,791		60,512,505		59,953,371		61,106,462


Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Net cash provided by operating activities	$	133,736	$	90,380	$	497,415	$	248,246
Capital expenditures, net		(1,963)		(9,990)		(19,336)		(66,049)
Free Cash Flow	$	131,773	$	80,390	$	478,079	$	182,197

Restructuring and other costs		–		1,411		–		5,915
Capex related to HQ build out		–		8,324		10,325		57,946
Free Cash Flow excluding HQ build out and restructuring costs	$	131,773	$	90,125	$	488,404	$	246,058

Attachments

The MIL Network –

February 19, 2025

MIL-OSI Economics: Trump 2.0 is shaking up the world

Source: GlobalData

Join GlobalData’s webinar to explore the impact of disruptive shifts in geopolitics

Which parts of the US President Donald Trump’s geopolitical agenda matters most for global business risks and opportunities? Trump’s bid to settle the Russia-Ukraine war without including Ukrainian or European officials in discussions is the latest in a series of foreign policy moves that include moves to annex Greenland, reclaim the Panama Canal, and “clear out” the Gaza Strip. GlobalData’s latest Strategic Intelligence webinar will focus on the Trump administration’s policies towards US adversaries, including China, Russia, and Iran.

This insightful webinar from the Strategic Intelligence team at GlobalData, a leading data and analytics company, takes place on Thursday, 20 February 2025 at 4pm GMT/11am EST. You can register here

Our panel of experts for this webinar are Carolina Pinto, Analyst in the Strategic Intelligence team; Christopher Granville, Managing Director, Global Political & Policy Research, TS Lombard; and Grace Fan, Managing Director, Global Policy Research and Disruptive Themes Research, TS Lombard.

Granville and Fan say: “Trump’s first month back in the White House has opened a disruptive new chapter in global geopolitics, with shockwaves from his early moves on trade to foreign policy already rippling across borders and industries. This indispensable webinar will offer our incisive analysis of Trump 2.0’s initial geopolitical gambits, framed within the intricate web of the US’s three traditional adversaries (China, Russia, Iran, and proxies) and amid the powder keg of two live conflicts. We will examine the complex interplay of these issues not only from a bilateral perspective (US versus adversary country) but also touching on their profound reverberations on the wider US alliance network (from Europe to Asia) as well as the global economy, with high-stakes ramifications ahead for investors, capital markets and global supply chains.”

Pinto adds: “Supply chain disruptions are becoming worse and more frequent. Geopolitical fractures are a leading cause of this trend. This webinar will explore whether Trump’s America First agenda will raise or ease geopolitical tensions.”

Register now for GlobalData’s Trump shaking up the world webinar on Thursday 20 February 2025 at 4pm GMT/11am EST.

MIL OSI Economics –

February 19, 2025
MIL-OSI USA: ICYMI—Hagerty Joins Squawk Box on CNBC to Discuss Budget Resolution, DOGE

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty

WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined Squawk Box on CNBC to discuss the negotiations between the White House and Congress on the Budget Resolution, along with the Department of Government Efficiency (DOGE) uncovering wasteful and fraudulent spending.

*Click the photo above or here to watch*

Partial Transcript

Hagerty on the Budget Resolution negotiations: “There’s been a lot that’s been done by executive order, but in this case, we’re working very closely, again, with the House and the Senate together, and we’ll work closely with the White House as well. We’re coming up into a point where the American public really expects us to deliver. It’s about energy independence. It’s about our national defense. It’s about bringing inflation down. All of this has to be addressed, also in the context of the broader tax cuts that President Trump wants to see in place, because that will have long-term positive implications for the economy. So, it’s a complex process. The House is working at pace on its product. We’re moving forward in the Senate, and I’m certain the White House is going to step in, and we’re going to have to bring all of this together pretty soon […] I think the conversations are on a regular basis between Leader [John] Thune, and also Budget [Committee Chairman Lindsey] Graham, as well as with [the Speaker of] the House, Mike Johnson. I think they’re working very closely. Mike Johnson obviously has a higher hurdle. He’s got a very narrow margin to navigate with. They put a product together right now, a larger product. Senator Graham, the Budget Committee [Chairman], who put something together, that would be a little bit slimmer, really focused just on energy independence, national defense, and the Coast Guard. But what we’re trying to do is keep things moving forward and make certain that we’ve got options as we come into the spring here. But what I want to do, and I’m setting process aside, I’m not too hung up on whether it’s one bill, two bills, or three bills. I think President Trump feels the same way. We just need to deliver on what the American public has asked us to do. And that is to step up, bring inflation under control, get energy independence back on the forefront, and get our southern border corrected and fixed once and for all when it’s all said and done.”

Hagerty on DOGE’s discoveries of wasteful spending: “The critical aspect of it here is that DOGE has been underway for three weeks. We’ve got to start moving in the right direction. We’re looking at a situation now where we’ve got a thirty-seven trillion-dollar budget deficit that is so significant, and we’ve got to begin moving again in the right direction to become more fiscally responsible. I think what DOGE is uncovering is the fact that there’s a considerable amount of waste, fraud, and abuse that’s in the system. If we go about the process of systematically uncovering that, two things will happen. One is that there’ll be immediate opportunities that DOGE will uncover that they can address. The other more significant component is that they’re going to be signaling back to the legislative branch that we’ve got major areas that we can come in, reform, modify, and cut, but the whole streamlining process ought to have, in the long run, not only the impact of reducing the deficit spending, but also increasing our efficiency as a nation. Both of those things combined, I think, will have very positive implications for our deficit, for our fiscal situation, in the long run. And I think it’s something that we’ve absolutely got to get started on. I think the American public are ready for it.”

Hagerty on the success of confirming Trump’s cabinet nominees: “In terms of President Trump’s influence, the American public spoke loud and clear. We’re cognizant of that here in the Senate. The point is President Trump is entitled to his team. He’s put together an incredible team. They’re very disruptive. I think what we want to see, what the American public wants to see, is real change, and you’ve got people coming into office to do that.”

Hagerty on the Democrats in disarray: “The Democrat party is coming unraveled. And I think frankly, a lot of their allies in the media are as well, because I’ve heard the term ‘constitutional crisis’ over and over again. And now that we’re presiding in the United States Senate, because the Republicans have taken the majority, I’ve had the benefit of sitting there on the Senate floor listening to, time and again, my Democrat colleagues coming in saying that if, for example, Russ Vought, who is now our OMB Director, were he to be confirmed as OMB Director, millions of people would die, that we’re in a constitutional crisis. This isn’t happening. There are not people piling up dead on the streets. And this crying wolf constantly, I think, just discredits the Democrat party. They need to figure out where their core is. They need to get back to the basics and join us in governing, rather than just these shrill cries, again, because I think people are just becoming numb to it.”

Hagerty on negotiations to end the Russia-Ukraine war: “You’ve heard a lot of speculation about what’s taking place. One thing I want to be careful to do, Joe, is not get ahead of the negotiating team. Last night in Riyadh, they agreed to put a high-level team together to focus on bringing this to resolution. I think what we all want to see is an end to the death, to the carnage. What’s happened in Ukraine has been absolutely awful. I think we’d all like to see that come to an end. President Trump has clearly been focused on that. I’ll let that team get to the point of negotiating the details, and the last thing I’m going to do is try to get ahead of them and start speculating right now. But I think one thing is clear: the American public wants to see this come to an end. I think the world needs to see this come to an end as well, and I’m hopeful that that’s going to happen post haste.”

Hagerty on the transparency of the Trump Administration: “In terms of bringing the country along, I’d go back to election day where seventy-five percent of the American public said that we were on the wrong track. They want to see change. I think that opens the opportunity for us. And if you look at what’s happening right now, President Trump is holding daily press conferences. That’s transparency that we’ve not seen in the past four years, and I think that’s refreshing to the American people. As you say, they may or may not agree with a particular policy point, but what we’ve seen is transparency at a level that we have not for many years.”

Hagerty on resignations within the federal government: “This is disruption. Look, I’m from a corporate background, when you’ve got a situation like we’re facing right now, with amounts of debt and deficit spending that we’re dealing with, you’ve got to come in and deal with it in a very rapid pace. Some people are uncomfortable with that; I get it. They can find another place to work. I also lived in the first Administration; I served in President Trump’s first Administration. There were a number of people that resigned for high sounding reasons, but I think it really was having to do with their own career and where they hope to land next. So, I think we should just let this move forward. Again, it’s early in the process. There’s going to be disruption; there’s going to be change, but I think overall we’re moving the direction that the American public wants to see us move.”

MIL OSI USA News –

February 19, 2025
MIL-OSI Global: Trump wants to do a deal for Ukraine’s critical minerals. Will Zelensky give him what he wants – or will Putin?
Source: The Conversation – Global Perspectives – By Alexander Korolev, Senior Lecturer in Politics and International Relations, UNSW Sydney

The United States and Russia agreed to work on a plan to end the war in Ukraine at high-level talks in Saudi Arabia this week. Ukrainian and European representatives were pointedly not invited to take part.

US President Donald Trump seemingly entered into these negotiations prepared to capitulate on two main points that Russian President Vladimir Putin has been seeking. Russia is opposed to Ukraine joining NATO and wants to retain Ukrainian territory captured since its invasion of Crimea in 2014.

Such a dramatic shift in Washington’s approach to Ukraine’s sovereignty and security has undermined Western-Ukrainian unity on the acceptable parameters around ending the war.

Ukrainian President Volodymyr Zelensky said Ukraine won’t accept a deal negotiated without them. Former US National Security Adviser John Bolton said Trump “effectively surrendered” to Putin.

European leaders, too, are concerned after they were excluded from the Saudi talks. German Chancellor Olaf Scholz said:

This does not mean that peace can be dictated and that Ukraine must accept what is presented to it.

Many believe Trump’s moves to splinter this trans-Atlantic front against Russia send a signal that Washington is
abandoning its commitment to European security.

However, there’s another important factor at play in Trump’s actions: the intensifying global competition over critical minerals. Trump wants to secure access to Ukraine’s vast reserves of these minerals, even if it means breaking with the US’ traditional allies in the European Union.

Why are Ukraine’s minerals so valuable

According to some reports, Ukraine has deposits of 22 of the 34 minerals identified as critical by the EU. These include:
- lithium and cobalt, used in rechargeable battery production
- scandium, used for aerospace industry components
- tantalum, used for electronic equipment
- titanium, used in the aerospace, medical, automotive and marine industries
- nickel ore, manganese, beryllium, hafnium, magnesium, zirconium and others, used in the aerospace, defence and nuclear industries.
China currently dominates the world’s supply chains of these minerals – it is the largest source of US imports of 26 of the 50 minerals classified as critical by the United States Geological Survey.

This is the reason behind Trump’s suggestion last week that the US be granted 50% of Ukraine’s rare earth minerals as reimbursement for the billions of dollars in weapons and support it has provided to Kyiv since the war began.

The problem, however, is that at least 40% of Ukraine’s minerals are currently under Russian occupation in the eastern Donetsk and Luhansk regions of the country. (Other sources put this figure as high as 70%.)

Concerned about Ukraine’s territorial integrity, Zelensky has publicly rejected the US demand for half of Ukraine’s mineral resources, because the proposal does not include security guarantees. It only vaguely referred to payment for future aid, according to reports.

In response, the White House National Security Council spokesperson Brian Hughes said:

President Zelensky is being short-sighted about the excellent opportunity the Trump administration has presented the Ukraine.

What kind of deal could be made?

A big question ahead of any peace negotiations over Ukraine is whether commercially-minded Trump would be willing to accept a counter-proposal from Putin.

Since Russia currently controls large swathes of mineral-rich eastern Ukraine, Putin may be willing to offer Trump an exclusive critical minerals deal in exchange for the US formally committing to not restoring Ukraine’s pre-2014 borders and not letting the country into NATO.

Ukraine, meanwhile, may be angling for its own minerals deal with European countries in exchange for their continued support. Prime Minister Denys Shmyhal expressed his country’s willingness to set up joint ventures with the EU in this area:

We could replace Russian titanium on the European market, contributing to the development of both the EU’s civilian industry and advanced military technologies.

He also said the project of rebuilding Ukraine could be a boon for the entire bloc.

The European Commission has recommended a policy of encouraging Ukraine to export these materials to the EU. In response, authorities in Kyiv started working out the necessary regulatory and legal measures to integrate Ukraine into the EU’s resource strategy.

With so many powers keen to access its minerals, Ukraine is in an extremely complex and hard-to-navigate geopolitical situation.

Zelensky’s bet on the EU, instead of the US, might be right, given the growing rift between Brussels and Washington over Ukraine’s future. But as Thucydides, the ancient Greek historian, once said, the odds may be stacked against it:

Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.

Alexander Korolev 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. Trump wants to do a deal for Ukraine’s critical minerals. Will Zelensky give him what he wants – or will Putin? – https://theconversation.com/trump-wants-to-do-a-deal-for-ukraines-critical-minerals-will-zelensky-give-him-what-he-wants-or-will-putin-250064
MIL OSI – Global Reports –
February 19, 2025
MIL-Evening Report: Trump wants to do a deal for Ukraine’s critical minerals. Will Zelensky give him what he wants – or will Putin?
Source: The Conversation (Au and NZ) – By Alexander Korolev, Senior Lecturer in Politics and International Relations, UNSW Sydney

The United States and Russia agreed to work on a plan to end the war in Ukraine at high-level talks in Saudi Arabia this week. Ukrainian and European representatives were pointedly not invited to take part.

US President Donald Trump seemingly entered into these negotiations prepared to capitulate on two main points that Russian President Vladimir Putin has been seeking. Russia is opposed to Ukraine joining NATO and wants to retain Ukrainian territory captured since its invasion of Crimea in 2014.

Such a dramatic shift in Washington’s approach to Ukraine’s sovereignty and security has undermined Western-Ukrainian unity on the acceptable parameters around ending the war.

Ukrainian President Volodymyr Zelensky said Ukraine won’t accept a deal negotiated without them. Former US National Security Adviser John Bolton said Trump “effectively surrendered” to Putin.

European leaders, too, are concerned after they were excluded from the Saudi talks. German Chancellor Olaf Scholz said:

This does not mean that peace can be dictated and that Ukraine must accept what is presented to it.

Many believe Trump’s moves to splinter this trans-Atlantic front against Russia send a signal that Washington is
abandoning its commitment to European security.

However, there’s another important factor at play in Trump’s actions: the intensifying global competition over critical minerals. Trump wants to secure access to Ukraine’s vast reserves of these minerals, even if it means breaking with the US’ traditional allies in the European Union.

Why are Ukraine’s minerals so valuable

According to some reports, Ukraine has deposits of 22 of the 34 minerals identified as critical by the EU. These include:
- lithium and cobalt, used in rechargeable battery production
- scandium, used for aerospace industry components
- tantalum, used for electronic equipment
- titanium, used in the aerospace, medical, automotive and marine industries
- nickel ore, manganese, beryllium, hafnium, magnesium, zirconium and others, used in the aerospace, defence and nuclear industries.
China currently dominates the world’s supply chains of these minerals – it is the largest source of US imports of 26 of the 50 minerals classified as critical by the United States Geological Survey.

This is the reason behind Trump’s suggestion last week that the US be granted 50% of Ukraine’s rare earth minerals as reimbursement for the billions of dollars in weapons and support it has provided to Kyiv since the war began.

The problem, however, is that at least 40% of Ukraine’s minerals are currently under Russian occupation in the eastern Donetsk and Luhansk regions of the country. (Other sources put this figure as high as 70%.)

Concerned about Ukraine’s territorial integrity, Zelensky has publicly rejected the US demand for half of Ukraine’s mineral resources, because the proposal does not include security guarantees. It only vaguely referred to payment for future aid, according to reports.

In response, the White House National Security Council spokesperson Brian Hughes said:

President Zelensky is being short-sighted about the excellent opportunity the Trump administration has presented the Ukraine.

What kind of deal could be made?

A big question ahead of any peace negotiations over Ukraine is whether commercially-minded Trump would be willing to accept a counter-proposal from Putin.

Since Russia currently controls large swathes of mineral-rich eastern Ukraine, Putin may be willing to offer Trump an exclusive critical minerals deal in exchange for the US formally committing to not restoring Ukraine’s pre-2014 borders and not letting the country into NATO.

Ukraine, meanwhile, may be angling for its own minerals deal with European countries in exchange for their continued support. Prime Minister Denys Shmyhal expressed his country’s willingness to set up joint ventures with the EU in this area:

We could replace Russian titanium on the European market, contributing to the development of both the EU’s civilian industry and advanced military technologies.

He also said the project of rebuilding Ukraine could be a boon for the entire bloc.

The European Commission has recommended a policy of encouraging Ukraine to export these materials to the EU. In response, authorities in Kyiv started working out the necessary regulatory and legal measures to integrate Ukraine into the EU’s resource strategy.

With so many powers keen to access its minerals, Ukraine is in an extremely complex and hard-to-navigate geopolitical situation.

Zelensky’s bet on the EU, instead of the US, might be right, given the growing rift between Brussels and Washington over Ukraine’s future. But as Thucydides, the ancient Greek historian, once said, the odds may be stacked against it:

Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.

Alexander Korolev 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. Trump wants to do a deal for Ukraine’s critical minerals. Will Zelensky give him what he wants – or will Putin? – https://theconversation.com/trump-wants-to-do-a-deal-for-ukraines-critical-minerals-will-zelensky-give-him-what-he-wants-or-will-putin-250064
MIL OSI Analysis – EveningReport.nz –
February 19, 2025
MIL-OSI China: US, Russia agree to improve ties, work on ending Ukraine conflict

Source: China State Council Information Office

A soldier of the motorized rifle battalion of the 93rd brigade shows an anti-drone shotgun at a position in Donetsk on Aug. 15, 2024. [Photo/Xinhua]

The United States and Russia have agreed to work on a path to ending the conflict in Ukraine and improve bilateral ties during extensive high-level talks in Saudi Arabia on Tuesday.

In the first face-to-face interactions between senior U.S. and Russian officials since the outbreak of the Russia-Ukraine conflict in February 2022, the Russian delegation, led by Russian Foreign Minister Sergei Lavrov and the Kremlin’s foreign affairs adviser Yuri Ushakov, met with U.S. Secretary of State Marco Rubio, who was accompanied by National Security Adviser Mike Waltz and U.S. special envoy to the Middle East Steve Witkoff.

Serious discussion

Following the four-and-a-half-hour talks, Witkoff described the Riyadh talks as “positive, upbeat, constructive.” Ushakov said it was a “very serious discussion of all the issues we wanted to touch upon,” noting the two sides agreed to take into account each other’s interests and develop bilateral relations.

The United States and Russia agreed to “establish a consultation mechanism to address irritants to our bilateral relationship with the objective of taking steps necessary to normalize the operation of our respective diplomatic missions,” according to a statement by the U.S. Department of State.

Washington and Moscow will “appoint respective high-level teams to begin working on a path to ending the conflict in Ukraine as soon as possible in a way that is enduring, sustainable, and acceptable to all sides,” the statement said.

The two sides agreed to “lay the groundwork for future cooperation on matters of mutual geopolitical interest and historic economic and investment opportunities which will emerge from a successful end to the conflict in Ukraine,” the statement added.

In a press conference following the meeting, Lavrov described the discussions as “very useful,” emphasizing Russia’s firm stance that the deployment of NATO troops in Ukraine is unacceptable.

This meeting is the latest indication of a thaw in the previously frosty relations between Washington and Moscow since U.S. President Donald Trump took office in January.

Last week, Trump had a phone call with Russian President Vladimir Putin that lasted nearly an hour and a half, during which the Russian president extended an invitation for Trump to visit Moscow.

Kremlin spokesperson Dmitry Peskov said in an interview with local media following the phone call that Putin and Trump “agreed quite quickly to coordinate and hold a working meeting somewhere in a third country.”

Echoing the Kremlin’s comments, Trump said that the call, which focused on negotiations to end the Ukraine crisis, is “lengthy and highly productive.”

The phone call between the two presidents has set the wheels in motion for further official exchanges between the two countries.

In a phone call on Saturday, Lavrov and Rubio also agreed to maintain regular contact.

Both sides pledged to keep communication channels open to address accumulated issues in bilateral relations, particularly to “eliminate unilateral obstacles inherited from the previous U.S. administration that hinder mutually beneficial cooperation in trade, economy, and investment,” the Russian Foreign Ministry said in a statement.

“The Trump administration is trying to reset tense relations with Moscow,” The Wall Street Journal stated in an opinion piece while commenting on the U.S.-Russia meeting in Saudi Arabia.

Mixed reactions

After the large-scale conflict between Russia and Ukraine erupted, the U.S. government under Joe Biden took a firm stance alongside its European allies, throwing its full support behind Ukraine by providing substantial military aid and isolating Russia on the international stage.

When it comes to potential negotiations between Russia and Ukraine, the mantra once shared by the United States and Europe has been “nothing about Ukraine without Ukraine,” emphasizing Ukraine’s leading role in any future talks.

The change in the United States’ stance on the Ukraine-Russia conflict is occurring against a backdrop of increasing divergence in the understanding of defense cooperation between the United States and Europe.

Washington has repeatedly expressed dissatisfaction with its European allies for not pulling their weight in defense spending.

“The United States will no longer tolerate an imbalanced relationship which encourages dependency,” U.S. Secretary of Defense Pete Hegseth declared during the meeting with NATO defense ministers last week, calling on Europe to assume its “own responsibility for its own security.”

What has further unsettled the European countries and Ukraine is that the high-profile talks between the United States and Russia excluded both Europe and Ukraine.

In an emergency meeting hastily convened in Paris on the eve of the U.S.-Russia talks, a dozen European leaders reaffirmed their commitment to supporting Ukraine as the United States warms its ties with Russia.

Meanwhile, some European leaders have voiced their frustration regarding their exclusion from the dialogue between the United States and Russia.

“There can be no negotiation about Ukraine without Ukraine. The same is true for Europe,” said Dutch Defense Minister Ruben Brekelmans on social media platform X. “Europe must be involved in the negotiations.”

Following the Riyadh meeting, Ukrainian President Volodymyr Zelensky, who is in Türkiye for a visit, said that the Russia-U.S. talks were “a surprise” to Kiev, which it “found out through the media.”

Zelensky stressed that Türkiye and Europe should be involved in discussions about ending the Russia-Ukraine conflict. “Negotiations should not take place behind our backs,” he said, announcing the cancellation of his scheduled visit to Saudi Arabia.

The Ukrainian president has said before that Kiev would not participate in the U.S.-Russia negotiation and his country will not accept the results of the negotiations that do not involve Ukraine.

MIL OSI China News –

February 19, 2025
MIL-OSI China: Chinese FM chairs UN debate

Source: China State Council Information Office

Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, chairs an open debate of the Security Council on “Practicing Multilateralism, Reforming, and Improving Global Governance” under the agenda item “Maintenance of International Peace and Security” on Feb. 18, 2025. [Photo/Chinese Ministry of Foreign Affairs]

On Tuesday, Feb. 18, Chinese Minister for Foreign Affairs Wang Yi chaired an open debate of the Security Council on “Practicing Multilateralism, Reforming, and Improving Global Governance” under the agenda item “Maintenance of International Peace and Security.”

The year 2025 marks the eightieth anniversary of the founding of the United Nations and the victory in the World Anti-Fascist War. The ministerial-level meeting, held under China’s presidency of the Council, provided an opportunity for Member States to review the history of the United Nations, reaffirm their commitment to multilateralism, and jointly build a just and equitable global governance system.

Wang Yi noted that over the past 80 years, the world has witnessed accelerated multi-polarization and economic globalization. People around the world have forged ahead together to overcome challenges. It has been a time of the Global South’s rise and growing strength, as well as a period when societies have emerged from the shadow of the Cold War and moved beyond bipolar confrontation. However, true global peace and common prosperity have yet to be fully realized.

“The international community drew painful lessons from the scourge of two world wars, and the United Nations was founded,” Wang Yi said at the UN Security Council meeting, stressing the need to “reinvigorate true multilateralism, and speed up efforts to build a more just and equitable global governance system” in the face of global crises.

Wang Yi reiterated China’s support for all efforts conducive to peace talks in Ukraine. On the Middle East, he emphasized the importance of upholding the two-state solution. “Gaza and the West Bank are the homeland of the Palestinian people, not a bargaining chip in political trade-offs. The Palestinians governing Palestine is an important principle that must be followed in the post-conflict governance of Gaza,” he said.

Wang Yi also emphasized that UN Security Council resolutions are legally binding and must be upheld by all countries.

MIL OSI China News –

February 19, 2025
MIL-OSI USA: Durbin Condemns President Trump’s Art Of Appeasement To Russian President Vladimir Putin

US Senate News:

Source: United States Senator for Illinois Dick Durbin

February 18, 2025

Durbin: President Trump has always had a strange affinity for assorted autocrats and dictators—a troubling stain and liability for the leader of the free world

WASHINGTON – In a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL) condemned President Trump’s appeasement to Russian President Vladimir Putin—where Trump announced key concessions to Putin regarding Ukraine, while apparently ignoring Ukraine’s key demands. Durbin began his speech by recounting history in which British Prime Minister Neville Chamberlain touted the now infamous Munich Agreement as the way to stave off Hitler’s Nazi Germany. One year later, Hitler invaded Poland and triggered World War II.

“Over time, Chamberlain’s name became synonymous with the term ‘appeasement.’ And for good reason. You see, while Chamberlain’s goal of peace may have been honorable, he was dangerously naïve about the human nature of a tyrant in Germany who was bent on territorial and maniacal ambitions—pursuits that could only be thwarted with strength,” said Durbin. “Well, President Trump’s ‘art of the deal’ opening negotiation with Vladimir Putin has the same naïve odor of appeasement.”

Durbin continued, “Trump and his fledgling Defense Secretary publicly gave away huge concessions at the start—signaling they would not insist on a return to Ukraine’s sovereign 2014 borders or future NATO membership. It’s also not clear from the Administration’s bewildering Munich Security Conference remarks if Trump plans to even include Ukraine, or our European allies, in the negotiations over its own future. It is no wonder that in the UK—where they remember Chamberlain’s folly all too well—Donald Trump’s early pronouncements were lambasted for their misreading of history by leaders across the political spectrum.”

Members of the UK Parliament are speaking out against President Trump’s attempt to work with Putin. One Member of Parliament lamented that the West now “might be facing the worse betrayal of a European ally since Poland in 1945.” Another stated, “This is less the Art of a Deal and more a charter for Appeasement.”

Durbin concluded, “President Trump has always had a strange affinity for autocrats and dictators—a troubling stain and liability for the leader of the free world. He almost seems to want their adoration and admiration—especially compared to the clear-eyed leadership of Ronald Reagan in his dealing with the Soviets. But there are real consequences to Trump’s autocrat liaisons for American and allied security—ones Republicans in the Senate must take more seriously. His crazy rants about Greenland, Canada as a 51^st state, Panama, and the Gulf of Mexico may be amusing to some including himself, but it certainly does not portend well for the foreign policy of the United States. Simply caving to Putin and walking away from Ukraine—just as Chamberlain did to Hitler—is an invitation for more confrontations in the future.”

Video of Durbin’s remarks on the Senate floor is available here.

Audio of Durbin’s remarks on the Senate floor is available here.

Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.

-30-

MIL OSI USA News –

February 19, 2025
MIL-OSI United Nations: In Day-Long Security Council Debate, Speakers Offer Divergent Views on ‘New’ Global Order, Stress Need to Update Global Governance

Source: United Nations General Assembly and Security Council

During a day-long Security Council debate on practicing multilateralism and reforming global governance today, speakers stressed the urgent need to update the United Nations — founded 80 years ago — including reforms to the Council itself and to the global economic order to better address twenty-first-century challenges.

“One can draw a direct line between the creation of the United Nations and the prevention of a third world war,” said António Guterres, Secretary-General of the United Nations, recalling that the UN was “born out of the ashes” of the second. The UN remains the “essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights”, he said. However, “eight decades is a long time”, he said, emphasizing that while the “hardware” for international cooperation exists, “the software needs an update”.

As global challenges demand multilateral solutions, he pointed out that the Pact for the Future puts forward concrete solutions to strengthen the machinery of peace, advance coordination with regional organizations and includes the first multilateral agreement on nuclear disarmament in more than a decade. It also includes efforts to prevent an arms race in outer space, advance discussions on lethal autonomous weapons and recognizes the UN’s role in preventive diplomacy.

“But the Pact does even more for peace,” he said, as it recognizes that the international community must address the root causes of conflict and tension and that the Council “must reflect the world of today”. Guided by the Pact, he said that multilateralism — “the beating heart of the United Nations” — can became an even more powerful instrument of peace. “But multilateralism is only as strong as each and every country’s commitment to it,” he added, urging all Member States to continue updating global problem-solving mechanisms to “make them fit for purpose, fit for people and fit for peace”.

Shift of Power to Global South

Wang Yi, Minister for Foreign Affairs of China — Council President for February — then spoke in his national capacity to recall that representatives of his country were the first to sign the Charter of the United Nations, “writing with the Chinese calligraphy brush an important chapter in world history”. Now, though, comprehensive peace and shared prosperity remain elusive. Noting the rise of the Global South on the world stage, he insisted that “international affairs should no longer be monopolized by a small number of countries” and the fruits of global development should not be enjoyed by only a few countries. China, as the world’s largest developing country, has become the major trading partner of more than 150 countries and regions and is promoting high-quality Belt and Road cooperation to contribute to global prosperity and development.

“The continuing inequalities of the global financial system have further aggravated today’s crises,” said Mohammad Ishaq Dar, Deputy Prime Minister and Minister for Foreign Affairs of Pakistan, adding that “the very fabric of the world order established under the UN Charter is in danger of being torn apart”. Urging reform of the International Monetary Fund (IMF) and the World Bank, he pointed out that the current system favours the rich, while developing nations are trapped in a cycle of poverty and debt.

Also underlining the need to reform the global economic order, Selma Bakhta Mansouri, Secretary of State to the Minister for Foreign Affairs of Algeria, said that current financial arrangements are largely led by developed States. It is necessary to ensure a “flexible and sustainable financing mechanism for African States and to work towards improving or easing their debt burden,” she stressed. She also noted that Africa represents more than a quarter of UN Member States, but continues to be deprived of permanent representation on the Council.

Similarly, Francess Piagie Alghali, Deputy Minister for Foreign Affairs and International Cooperation of Sierra Leone, said that Africa remains the most glaring victim of inequitable Council composition. Without structural reform, the organ’s performance and legitimacy will continue to be questioned, she said, also highlighting Africa’s exclusion from multilateral development banks. Highlighting the African Union’s theme of the year — Justice for Africans and People of African Descent through Reparations — she stressed the need to urgently rectify the historical injustices perpetuated against the continent.

Push for Two Permanent Security Council Seats for Africa

Ahmed Moallim Fiqi, Minister for Foreign Affairs and International Cooperation of Somalia, also reiterated the need for a “deep-rooted reform” of the Council, stressing that African States should be granted two permanent seats that include the right to veto. Stating that the UN Charter must be the “linchpin” and “our lodestar” as the international community embarks on reforming the multilateral system, he also noted that Council resolutions are being trampled upon, calling for effective mechanisms to bolster the UN’s capacity to guarantee international peace and security.

“It is illogical that Africa does not feature among permanent members,” observed France’s representative, underscoring: “That must change.” Two African States must hold permanent seats on the Council, and he added that Africa’s demand for veto power is “legitimate”. The representative of Denmark, in that vein, stated that the world needs a more-representative Council — “one which redresses the historical injustice done to the African continent”. She added: “We cannot seriously tackle the issues facing multilateralism when the Security Council continues to operate in a reality of yesteryear.”

“The Security Council is arguably the least representative and most undemocratic of global institutions,” added Guyana’s representative, pointing out that the Council faces the risk of becoming irrelevant. “We have seen repeatedly how the current structure and decision-making format — particularly the use of the veto — have thwarted the will” of the wider membership, she said. Greece’s representative, for his part, expressed support for “any model of reform that is fair, strengthens the UN as a whole and transforms the Security Council into a more democratic, efficient, representative and accountable body”.

Russian Federation, China Accused of Being Drivers of Instability

Meanwhile, the representative of the United States said that “two of the greatest drivers of instability in the world today hold veto power”, spotlighting the Russian Federation’s bloody war in Ukraine and China’s exploitation of its developing-nation status. “We need to take a close look at where this institution is falling short,” she added. Therefore, the United States is currently reviewing its support to the UN, and she said that “we will consider whether actions of the Organization are serving American interests, and whether it can be reformed”.

As to why the UN is falling short of its ambitions, the representative of the United Kingdom observed that “there is more to this than the often-mentioned liquidity crisis”. While the Organization’s membership has increased, it is not fully representative of today’s “multipolar world”, she said. Further, the Council is often characterized as “ineffective geopolitical theatre”, and she added that — while reform is needed — “this body has the tools to implement its peace and security mandate”.

“It is time to rescue multilateralism from ruinous mistrust,” stressed Panama’s representative, urging States to ensure that, rather that floundering, the system flourishes and prospers. Observing that his country has been reaping the rewards of multilateralism since its independence, he said that diplomatic efforts lead to the end of the colonial enclave and to the recovery of “our Canal”.

BRICS Surpasses G7 in Gross Domestic Product

The representative of the Russian Federation noted that developed countries have siphoned off $62 trillion in resources from the Global South since 1960, highlighting Moscow’s efforts to advance anti-colonial agendas at the UN. And “there have been tectonic shifts in the global economy”, with BRICS (Brazil, Russian Federation, India, China, South Africa) accounting for 37 per cent of the global gross domestic product (GDP), surpassing 29 per cent represented by the Group of 7 (G7) countries, he added, stressing the need for a more equitable global financial architecture. Rejecting the West’s domination at the Security Council as “a relic of the past”, he said that his country advocates for indivisible security in Eurasia without infringing on others’ interests.

“It is extraordinary that 193 Member States — with each of us at different stages of political and economic development, like-minded or even antagonistic — gather every day in this very building to discuss and solve current and future issues,” observed the representative of the Republic of Korea. “This should not be taken for granted,” he stressed, stating that the UN’s convening role is the “driving engine of multilateralism”. Slovenia’s representative, similarly, noted that the UN “enabled the power of rules to replace the rule of power”. Citing former Secretary-General Dag Hammarskjöld, he said: “It is not big Powers who need the UN for their protection. It is all the others.”

Unilateralism Versus Multilateralism

As the floor opened to the wider membership, Celinda Sosa Lunda, Minister for Foreign Affairs of Bolivia, pointed to the need for radical change within the UN structure in view of the myriad threats to the planet’s very existence. “We are fighting for the transition towards a multipolar world,” she stressed. “Today the world is in a state of flux,” said Jeje Odongo Abubakhar, Minister for Foreign Affairs of Uganda, pointing to the “palpable loss of trust” in age-old institutions and mechanisms. Observing that many world leaders now favour unilateralism, he stressed: “The future of multilateralism depends on the willingness of State and non-State actors to re-imagine and revitalize the system.”

On that, Carlos Fernández de Cossío, Vice Minister for Foreign Affairs of Cuba, said that it has become crucial to defend multilateralism given “the withdrawal of the world’s greatest Power from international bodies”. He also opposed “trends towards the privatization of the Organization, turning it into a tool that represents the interests of major Powers and large transnational capital”. Meanwhile, Péter Szijjártó, Minister for Foreign Affairs and Trade of Hungary, said that, during the “global dictatorship of the international liberal mainstream”, the UN has failed to be a platform for peace. He therefore stressed that the UN must adjust itself to the new global political reality or “lose its significance”.

Waleed Abdul Karim El-Khereiji, Vice Minister for Foreign Affairs of Saudi Arabia, also said that the increasing crisis of confidence in the UN demands reform. Further, “current bloody incidents” call for firm responses from the multilateral system. “No people should feel abandoned by the international community,” stressed Fedor Rosocha, Director General of the Directorate for International Organizations and Human Rights in the Ministry for Foreign and European Affairs of Slovakia, stressing that the Council must not be passive in the fact of conflict, crisis and atrocity.

The fact that “no new world war has happened” is not a consolation to Ukrainians whose towns have been destroyed, observed Mariana Betsa, Deputy Minister for Foreign Affairs of Ukraine. Multilateral institutions are being undermined from within, she said, urging that permanent Council members be limited in their use of the veto when they have a conflict of interest in the matter under consideration. She added: “If the UN begins to resemble a boxing ring — with fighters, their supporters and passive spectators — the prospects for global security will be bleak.”

MIL OSI United Nations News –

February 19, 2025
MIL-OSI: Occidental Announces Further Progress on Debt Reduction
Source: GlobeNewswire (MIL-OSI)
- Achieved near-term debt repayment target of $4.5 billion in the fourth quarter of 2024
- Announced proceeds from $1.2 billion of divestitures signed in the first quarter of 2025 will go toward current year debt maturities
HOUSTON, Feb. 18, 2025 (GLOBE NEWSWIRE) — Occidental (NYSE: OXY) today announced it achieved its near-term debt repayment target of $4.5 billion in the fourth quarter of 2024 and signed two agreements in the first quarter of 2025 to divest upstream assets to undisclosed buyers for a combined total of $1.2 billion.

The divestiture transactions, which are expected to close in the first quarter of 2025, include Rockies non-operated assets and Permian Basin assets not included in Occidental’s near-term development plan. The resulting proceeds will be applied to the company’s remaining 2025 debt maturities.

“We were pleased to reach the near-term deleveraging milestone in the fourth quarter of 2024, within five months of closing the CrownRock acquisition, and seven months ahead of our goal,” said President and CEO Vicki Hollub. “The transactions announced today continue to high grade our portfolio and accelerate the progress toward achieving both our medium-term balance sheet deleveraging target and shareholder return pathway.”

Occidental will continue to advance deleveraging via free cash flow and divestitures.

About Occidental
Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of America. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas, and includes our Oxy Low Carbon Ventures subsidiary, which is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. We are dedicated to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about Occidental’s expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as “estimate,” “project,” “will,” “should,” “could,” “may,” “anticipate,” “plan,” “intend,” “expect,” “goal,” “target,” “advance,” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release unless an earlier date is specified. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.

Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Actual outcomes or results may differ from anticipated results, sometimes materially. Factors that could cause actual results to differ include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; Occidental’s indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Occidental’s ability to successfully monetize select assets and repay or refinance debt and the impact of changes in Occidental’s credit ratings or future increases in interest rates; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, Occidental’s products and services; actions by Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of Occidental’s proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Occidental’s ability to timely obtain or maintain permits or other government approvals, including those necessary for drilling and/or development projects; Occidental’s ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or divestitures; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections or projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses; uncertainties about the estimated quantities of oil, NGL and natural gas reserves; lower-than-expected production from development projects or acquisitions; Occidental’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Occidental’s competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Occidental’s oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets, including capital market disruptions and instability of financial institutions; government actions (including geopolitical, trade, tariff and regulatory uncertainties), war (including the Russia-Ukraine war and conflicts in the Middle East) and political conditions and events; health, safety and environmental (HSE) risks, costs and liability under existing or future federal, regional, state, provincial, tribal, local and international HSE laws, regulations and litigation (including related to climate change or remedial actions or assessments); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes and deep-water and onshore drilling and permitting regulations; Occidental’s ability to recognize intended benefits from its business strategies and initiatives, such as Occidental’s low-carbon ventures businesses or announced GHG emissions reduction targets or net-zero goals; potential liability resulting from pending or future litigation, government investigations and other proceedings; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the scope and duration of global or regional health pandemics or epidemics, and actions taken by government authorities and other third parties in connection therewith; the creditworthiness and performance of Occidental’s counterparties, including financial institutions, operating partners and other parties; failure of risk management; Occidental’s ability to retain and hire key personnel; supply, transportation and labor constraints; reorganization or restructuring of Occidental’s operations; changes in state, federal or international tax rates; and actions by third parties that are beyond Occidental’s control.

Additional information concerning these and other factors that may cause Occidental’s results of operations and financial position to differ from expectations can be found in Occidental’s filings with the U.S. Securities and Exchange Commission, including Occidental’s Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contacts

The MIL Network –
February 19, 2025
MIL-OSI United Kingdom: The United Kingdom remains deeply committed to the United Nations: UK statement at the UN Security Council

Source: United Kingdom – Executive Government & Departments

Statement by Ambassador Barbara Woodward, UK Permanent Representative to the UN, at the UN Security Council meeting on practising multilateralism, reforming and improving global governance.

The United Kingdom remains deeply committed to the United Nations.

But 80 years since its creation, with more countries engaged in conflict than ever before, we are falling short of its founding mission to save succeeding generations from the scourge of war.

And despite progress on health and education, significant global challenges remain.

The climate crisis is accelerating and the Sustainable Development Goals are off-track.

Why so? There is more to this than the often-mentioned liquidity crisis.

In 80 years, UN membership has increased from 51 to 193 Member States, but the UN and its institutions are not fully representative of all its members.

We now live in a multipolar world, not a bipolar or unipolar one, whose challenges, climate, pandemics and cyber security are more transnational than national.

As the Secretary-General reminded us and so many speakers today have reiterated, the Pact of the Future demonstrated a clear desire and a clear commitment to reinvigorate the multilateral system, including through reforming the UN and the international financial system.

Together, we need to redouble our efforts and find new ways to address emerging challenges.

2025, the UN’s 80th anniversary and a year of key summits, is the first step on this path.

Next month we have the Commission on the Status of Women and the Beijing +30 meeting; in June we have the UN Oceans Conference; in July FFD4. And later in the year the UN Social Summit and COP30, back in Brazil.

Together, these summits seek to address our shared concerns.

Their success is critical for progress and the UN’s reputation as our multilateral home.

Second, we need to use the UN more effectively to deliver international peace and security.

Such progress must go hand in hand with upholding human rights.

This starts first and foremost with the defence of the UN Charter as colleagues have references.

Nowhere is that more true today than in Ukraine, whose sovereignty and territorial integrity is under threat from Russian aggression.

We must work to ensure that all UN tools, including its good offices, are used to deliver and advance peace.

For example, Personal Envoy Lamamra has a crucial platform to bring together the warring parties in Sudan.

We encourage reinvigorated momentum for mediation efforts, as well as a renewed focus on prevention to reduce crises before they happen.

This year’s Peacebuilding Architecture Review is an important opportunity in this regard.

We also need to refresh our peacekeeping approach to ensure missions are fit for purpose and defend UN peacekeepers wherever they serve.

Attacks against them are unacceptable.

We honour, in particular today, MONUSCO peacekeepers who have fallen in defence of civilians in the DRC.

Finally, in the face of growing global crises, from Sudan to Myanmar, we need to support the UN’s development and humanitarian programmes, across its agencies.

In Gaza, UNRWA, alongside the WFP and UNICEF, provides over 50% of all food aid.

We commend OCHA’s tireless efforts to reach those in need.

Humanitarian access and the protection of aid workers are integral to their successful delivery.

In conclusion, President, colleagues, the Council is often characterised as an ineffective geopolitical theatre.

While reform of its membership is needed and the UK supports that, this body has the tools to implement its peace and security mandate.

We now need to strengthen our collective will to use them more effectively and, as the Secretary-General has said, in our 80th year, work to build the more peaceful, just and prosperous world that we know is within reach.

Updates to this page

Published 18 February 2025

MIL OSI United Kingdom –

February 19, 2025
MIL-OSI United Nations: As Peace Gets Pushed Further from Reach, Dark Spirit of Impunity for Terrorism Spreads, Multilateral Solutions Key

Source: United Nations General Assembly and Security Council

Following are UN Secretary-General António Guterres’ remarks to the UN Security Council open debate on the maintenance of international peace and security: practicing multilateralism, reforming and improving global governance, in New York today:

I thank Minister Wang Yi and China for convening this important discussion.

This year marks the eightieth anniversary of the United Nations. Born out of the ashes of the Second World War, our Organization was the result of a global commitment to “save succeeding generations from the scourge of war”.

It also signalled a commitment to an entirely new level of international cooperation grounded in international law and our founding Charter. To help countries move past the horrors of conflict to forge sustainable peace. To tackle poverty, hunger and disease. To assist countries in climbing the development ladder. To provide humanitarian support in times of conflict and disaster. To embed justice and fairness through international law and respect for human rights. And to work through this Council to push for peace through dialogue, debate, diplomacy and consensus-building.

Eight decades later, one can draw a direct line between the creation of the United Nations and the prevention of a third world war. Eight decades later, the United Nations remains the essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights. But eight decades is a long time. And because we believe in the singular value and purpose of the United Nations, we must always strive to improve the institution and the way we work.

We have the hardware for international cooperation — but the software needs an update. An update in representation to reflect the realities of today. An update in support for developing countries to redress historical injustices. An update to ensure countries adhere to the purposes, principles and norms that ground multilateralism in justice and fairness. And an update to our peace operations.

Global solidarity and solutions are needed more than ever. The climate crisis is raging, inequalities are growing, and poverty is on the rise. As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond.

Terrorism and violent extremism remain persistent scourges. We see a dark spirit of impunity spreading. The prospect of nuclear war remains — outrageously — a clear and present danger. And the limitless promise of emerging technologies like artificial intelligence is matched by limitless peril to undermine and even replace human thought, human identity and human control.

These global challenges cry out for multilateral solutions.

The Pact for the Future you adopted in September is aimed at strengthening global governance for the twenty-first century and rebuilding trust — trust in multilateralism, trust in the United Nations, and trust in this Council. At its heart, the Pact for the Future is a pact for peace — peace in all its dimensions.

It puts forward concrete solutions to strengthen the machinery of peace, drawing from proposals to the New Agenda for Peace that prioritize prevention, mediation and peacebuilding. The Pact seeks to advance coordination with regional organizations and ensure the full participation of women, youth and marginalized groups in peace processes. And it calls for strengthening the Peacebuilding Commission to mobilize political and financial support for nationally owned peacebuilding and prevention strategies.

The Pact also includes the first multilateral agreement on nuclear disarmament in more than a decade… New strategies to end the use of chemical and biological weapons… And revitalized efforts to prevent an arms race in outer space and advance discussions on lethal autonomous weapons.

It also calls on Member States to live up to their commitments enshrined in the UN Charter and the principles of respect for sovereignty, territorial integrity and the political independence of States.

It reaffirms unwavering commitment to abide by international law and prioritize the peaceful settlement of disputes through dialogue. It recognizes the role of the United Nations in preventive diplomacy. It reinforces the need to uphold all human rights — civil, political, economic, social and cultural. It calls for the meaningful inclusion of women and youth in all peace processes.

And it specifically calls on this Council to ensure that peace operations are guided by clear and sequenced mandates that are realistic and achievable — with viable exit strategies and transition plans.

But the Pact does even more for peace. It recognizes that we must address the root causes of conflict and tensions. Sustainable peace requires sustainable development. The Pact includes support for a Sustainable Development Goal (SDG) Stimulus to help developing countries invest in their people and tackle key challenges, like moving towards a future anchored in renewable energy.

It includes a revitalized commitment to reform the global financial architecture to better and more fairly represent the needs of developing countries. And it includes a Global Digital Compact that calls for an artificial intelligence governance body that brings developing countries to the decision-making table for the first time.

The Pact also recognizes that the Security Council must reflect the world of today, not the world of 80 years ago, and sets out important principles to guide this long-awaited reform. This Council should be enlarged and made more representative of today’s geopolitical realities. And we must continue improving the working methods of this Council to make it more inclusive, transparent, efficient, democratic and accountable.

These issues have been under consideration by the General Assembly for more than a decade. Now is the time to build on the momentum provided by the Pact for the Future and work towards a greater consensus among regional groups and Member States — including the permanent members of this Council — to move the intergovernmental negotiations forward.

Throughout, I call on Members of this Council to overcome the divisions that are blocking effective action for peace. The world looks to you to act in meaningful ways to end conflicts and ease the suffering these wars inflict on innocent people.

Council Members have shown that finding common ground is possible. From deploying peacekeeping operations, to forging life-saving resolutions on humanitarian aid, to historic recognitions of the security challenges faced by women and young people, to the landmark resolution 2719 supporting African Union-led peace support operations through assessed contributions.

Even in the darkest days of the cold war, the collective decision-making and vigorous dialogue in this Council maintained a functioning, if imperfect, system of collective security. I urge you to summon this same spirit, continue working to overcome differences and focus on building the consensus required to deliver the peace all people need and deserve.

Multilateral cooperation is the beating heart of the United Nations. Guided by the solutions in the Pact for the Future, multilateralism can also become an even more powerful instrument of peace. But multilateralism is only as strong as each and every country’s commitment to it.

As we look to the challenges around us, I urge all Member States to continue strengthening and updating our global problem-solving mechanisms. Let’s make them fit for purpose — fit for people — and fit for peace.

MIL OSI United Nations News –

February 19, 2025
MIL-OSI Global: The German election explained through seven essential questions

Source: The Conversation – UK – By Gabriele Abels, Jean Monnet Professor for Comparative Politics & European Integration, University of Tübingen

Germany is holding a federal election on February 23 – a snap vote called by chancellor Olaf Scholz when his coalition government fell apart at the end of last year. Parties are running to win seats in the national parliament, or Bundestag. And with an unusual level of interest from onlookers outside the country, including the world’s richest man, The Conversation asked Gabriele Abels, the Jean Monnet professor for comparative politics and European integration at the University of Tübingen, to prime us on the basics, via seven essential questions.

1. Who are the main parties running in this election?

The parties standing in the federal election are, from left to right on the political spectrum: Linke (the Left), SPD (social democrats), Greens, FPD (liberals), CDU/CSU (conservatives), AfD (right-wing extremist/populist).

There is also the Buednis Sahra Wagenknecht (BSW), but this party is not so easy to fit into the left-right spectrum. The BSW holds leftist positions on social policy issues but is also anti-migration and opposed to sanctions against Russia and against military support for Ukraine.

2. When will we know the results?

It will take several days after February 23 to confirm the final results of the election.

Based on the exit polls we will have fairly reliable results that evening but there may still be some uncertainty. It depends on how many people vote by post (a trend which is on the rise) and on how the smaller parties fare.

There are three such parties – Linke, FDP and BSW – hovering around a 5% vote-share in pre-election polls. This is the threshold for qualifying for any seats in parliament at all, so whether or not the three make it past 5% will have quite an effect on the overall composition of the Bundestag and the distribution of seats among the parties in parliament.

There is an additional rule: parties winning at least three districts (basic mandate clause) qualify for the Bundestag and will get seats according to their share of party votes. The Linke is investing its hopes in this option.

3. Who is most likely to become chancellor?

According to all opinion polls, the conservatives (CDU/CSU) will win the election and become the biggest party in government. This means that their lead candidate Friedrich Merz will become the next chancellor.

4. Will one party run the government?

No party will have enough seats to form a government alone, given that the German system makes it extremely difficult to do so, by design. A coalition needs to be formed comprising parties that together hold more than 50% of the seats in the Bundestag.

Read more:
AfD: how Germany’s constitution was designed with the threat of extremism in mind

Even when we have the full results, forming a new government will, most likely, take some time. Talks between parties will start immediately after the election, but it might take several months to put a government together. It depends on the numbers at play and the political arithmetic – essentially the extent to which different combinations of parties agree or disagree on various policy positions.

During a period in the 1950s, when Konrad Adenauer was chancellor, there was an option to have a single-party government. But even he preferred a coalition. Other than that, there has always been the need to form a coalition after an election.

Unlike the Nordic countries, we in Germany do not have a tradition of minority governments since they are considered to be too weak and unstable. Germans prefer governments which are backed by a clear majority in the Bundestag.

5. Why does Germany have a system that makes coalitions the norm?

It is partly political culture to prefer stable majorities and emphasise compromise. But the proportional voting system and increased political fracturing also play a part in delivering many different parties into the Bundestag.

Until the early 1980s there were usually three parties (conservative, social democrats and liberals). Today, we have seven parties in the Bundestag. Proportional voting gives new parties more possibilities to win seats, while the 5% threshold is a barrier against excessive fragmentation.

6. We hear a lot about the AfD – but will it be in government?

No – at least, not this time. There is what we call a brandmauer (firewall), meaning that, so far, none of the other parties is willing to form a government with the AfD. The most likely partner would be the conservatives. Yet, their lead candidate Merz is very outspoken that cooperation with the AfD would mean selling out the conservative soul. Given that the AfD is becoming more and more radical, this is not likely to change in the near future.

However, there is already a level of cooperation between the AfD and other parties at the local level and even in some state parliaments, especially in East German Länder (states). Often, new patterns of coalition formation are tried out in Länder parliaments and later serve as models for the federal level. The AfD is hoping this will be the case for them.

7. How important is this election in historical context?

I would not call this election historic on the scale of the one that just took place in the US. But this election is nevertheless important – and is perceived as important by voters in terms of the future of Germany and its economy.

Migration and the economy are the top issues and there is a strong sense of frustration as well as a growing distrust in politics. The majority of voters are happy about the snap election given that the coalition led by Olaf Scholz was no longer efficient and there was constant in-fighting.

However, given that this election has been called at short notice, it’s not clear that turnout will match the current strength of feeling. There has not been much time to register for a postal vote and parties have had only a brief campaign window to win over voters. Which of them will be able to mobilise their voters and also non-voters (recently between 25% and 30% of the electorate will be a crucial deciding factor. Lately the AfD has been successful in terms of mobilising non-voters and also at mobilising young voters. That said, older voters make up the majority, so a lot hangs in the balance.

Gabriele Abels 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 German election explained through seven essential questions – https://theconversation.com/the-german-election-explained-through-seven-essential-questions-247945

MIL OSI – Global Reports –

February 19, 2025
MIL-OSI Global: How banks, lawyers and lobbyists in the west help post-Communist kleptocrats stay rich

Source: The Conversation – UK – By John Heathershaw, Professor in International Relations, University of Exeter

‘Londongrad’ is a nickname for London that encapsulates the British capital’s popularity as a haven for wealthy Russians in the post-Soviet era. Drone Motion Stock / Shutterstock

Kleptocracy, a term derived from the Greek for “rule by thieves”, describes a system where business success and political power are inextricably entwined. Political elites exploit their position to siphon off public wealth, entrenching their power through corruption, patronage and repression.

However, kleptocracy is not just a system of domestic corruption. It typically involves a transnational network of political elites and so-called professional enablers who work together to extract wealth and project power.

The ability of kleptocrats to loot state resources and evade accountability depends on an ecosystem of banks, lawyers, lobbyists, intelligence agencies and PR firms that provide the financial, legal and reputational tools to legitimise stolen wealth.

Our new book, Indulging Kleptocracy, analyses many cases of such professional enabling in the UK for elites whose wealth originates in post-Soviet countries such as Azerbaijan, Kazakhstan and Russia. We uncovered examples of this activity using in-depth case studies that drew on court documents and correspondence with the enablers themselves.

We found that, on countless occasions, British professionals have found loopholes in the rules, defeated new measures against money laundering, exploited the lack of transparency in universities and political parties and challenged the efficiency and effectiveness of the rule of law.

UK properties worth tens of millions of pounds have been purchased for oligarchs and kleptocrats. And London corporate intelligence firms and lawyers have acted against journalists and researchers on behalf of their post-Soviet elite clients.

Political parties, parliamentary groups and some of Britain’s top universities have even accepted donations from individuals associated with kleptocracy. In doing so, they have indulged kleptocrats much like the Catholic church once sold indulgences – offering absolution for a price.

These services extend the wealth, status and influence of these elites into the UK and further afield. The phenomenon of “Londongrad” – a moniker to denote the British capital’s hosting of Russian and Eurasian oligarchs – is not merely about the amount of post-Soviet money laundered there. It incorporates a much wider offering of social and reputational goods, and political and security services.

Indulging Kleptocracy was published on February 4 by Oxford University Press.
John Heathershaw, Tena Prelec & Tom Mayne, CC BY-NC-ND

Sustaining kleptocracy

Professional enablers do not simply move money, and they don’t merely supply their services. They create the structures that sustain kleptocracy, embedding it into the political and economic fabric.

The overall picture from the nine indulgences we study in our book, from “hiding money” (banking) to “silencing critics” (defamation law), is of regulators outgunned by the private sector. The professions are driven by market incentives, but their adherence to professional ethical standards is inconsistent.

Enablers aren’t usually accessories to crimes. They may be acting downstream from grand corruption and are typically compliant with the law. But, in most cases, they appear to be either aware of who they are acting for or wilfully unwitting. They either justify their work by convoluted arguments or simply do not carry out effective due diligence on their clients.

With Russia’s full-scale invasion of Ukraine, the British government introduced a large number of sanctions against Russian entities. It also passed two acts of parliament in 2022 and 2023 to counter illicit financial activity from Russia. But most enabling is not currently considered criminal and cannot easily be legislated out of existence.

The issue of indulging in kleptocracy is indicative of a general problem of self-regulation in global financial centres, tax havens and other secrecy jurisdictions that arose with the end of empires in the second half of the 20th century.

At that time, former British colonies like the British Virgin Islands and Cyprus were looking to broaden their economies into the services sector. This coincided with the end of the Soviet empire, when the wealthy and their capital were flying out of Russia and Eurasia.

How to indulge no more

Stopping the indulgence of kleptocracy requires moving beyond piecemeal reforms and treating it as the organised criminal enterprise it is. We suggest designating “kleptocratic enterprises” as organised crime and thereby implicating enablers as part of criminal networks. Across the world, there needs to be transparency from charities, universities and political parties.

There should be more protection for investigators and whistleblowers. And governments could do more to stimulate the market in for-profit asset recovery.

In 2020, US$740 million (£598 million) of real estate was seized in Spain from Rifaat al-Assad, the uncle of Syria’s former president Bashar al-Assad. This case involved private sector expertise and followed civil society investigations.

Without such action, the transformation to a world where kleptocratic wealth and influence sit easily within democracies will continue apace. Even the perception of a connection should be subjected to proper scrutiny: Tulip Siddiq, the UK’s Treasury minister responsible for anti-corruption, recently resigned after her family and alleged financial links to the deposed kleptocratic regime in Bangladesh were highlighted.

These connections, which the government’s ethics watchdog found not to be in breach of the ministerial code, had been known for years before they became a story. But effective PR campaigns, clever legal arguments and complex financial structures mean that many cases of kleptocratic wealth are never exposed. It’s time to uncover what professional enablers do for kleptocrats.

John Heathershaw receives funding from the UK’s Foreign Commonwealth and Development Office’s Anti-Corruption Evidence programme. He is affiliated with the Illicit Finance Working Group of the UK Anti-Corruption Coalition.

Tena Prelec receives funding from the UK’s Foreign Commonwealth and Development Office’s Anti-Corruption Evidence programme. She is affiliated with the Illicit Finance Working Group of the UK Anti-Corruption Coalition

Tom Mayne receives funding from the UK’s Foreign Commonwealth and Development Office’s Anti-Corruption Evidence programme. He is affiliated with the Illicit Finance Working Group of the UK Anti-Corruption Coalition

– ref. How banks, lawyers and lobbyists in the west help post-Communist kleptocrats stay rich – https://theconversation.com/how-banks-lawyers-and-lobbyists-in-the-west-help-post-communist-kleptocrats-stay-rich-248973

MIL OSI – Global Reports –

February 19, 2025
MIL-OSI Economics: Microsoft announces latest investment in Europe, $700M for computing capacity in Poland

Source: Microsoft

Headline: Microsoft announces latest investment in Europe, $700M for computing capacity in Poland

This morning, I stood in Warsaw with Poland’s Prime Minister, Donald Tusk, and announced Microsoft’s latest cloud and AI infrastructure investment in Europe. Building on our initial billion-dollar investment to launch a Polish cloud region in 2023, I announced that Microsoft will spend another $700 million by the middle of next year to expand our computing capacity in the country. And we will deepen our work with Polish National Defense to strengthen Poland’s cybersecurity, including by working together on the development of AI competencies and emerging digital technologies, including new AI and quantum breakthroughs.

This marks the latest critical step for Microsoft’s business, economic, and political relationships in Poland – and in Europe as a whole.

During the past 16 months, we have announced more than $20 billion in AI and cloud infrastructure investments that represent an important part of our datacenter expansion across 15 European countries. Today’s investment in Poland builds on the integrated supply chain we are building with manufacturers across the EU. It calls on suppliers that are manufacturing critical components not only in Poland but in Italy, France, Germany, Finland, Ireland, and the United Kingdom. It also includes components manufactured and exported from Indiana in the United States. It’s the type of investment that creates jobs and fosters economic growth throughout Europe and across the Atlantic.

Promoting Trans-Atlantic Investment, Trade, and Economic Growth

The American technology sector is creating world-leading AI technology and is focused on being a trusted “partner of choice” around the world. And European policy leaders are focused on mobilizing more capital and increasing productivity by “closing the innovation gap.” Even in a time of fragmenting geopolitics, today’s announcement illustrates that these two technology ambitions are more aligned than divergent.

In multiple ways, our investment in Poland puts both these goals into practice. It demonstrates how vastly the technology sector has changed since I first joined Microsoft as an employee in Paris more than 31 years ago. While we develop and provide world-leading technology products and services globally, we now support these with enormous national investments in infrastructure and large numbers of local employees. More than ever, technology requires coordinated investments that connect countries and span oceans.

Sustained Technology Support During a Decade of Crises

Equally important, technology has become a lynchpin for national needs in times of crisis. European Commission President Ursula von der Leyen has aptly put recent history in perspective. As she highlighted, Europe faces a competitiveness challenge that comes as the third crisis of the 2020s, after the pandemic and the war in Ukraine.

It’s worth reflecting on the critical role of technology in helping to support the responses needed for each of these crises.

Five years ago this month, the first pandemic in a century literally started to shut doors around the world. At Microsoft, our employees and partners used new video and productivity technology like Teams to keep the economy moving forward in every corner of Europe. In just days, businesses, schools, universities, hospitals, and governments sustain their operations by moving online.

Two years later, the Russian military invaded Ukraine. At Microsoft, we helped move Ukraine’s critical data and technology services to our datacenters across Europe, ensuring their continued operation outside the range of cruise missile and air attacks. And like several other technology companies, we immediately helped Ukraine’s officials and citizens defend their nation from Russian cyberattacks. As a company, we provided more than $250 million of free technology and financial assistance. And we have sustained this substantial support to this day.

As Europe now launches a new “competitiveness compass,” technology will again play an indispensable role. Especially as working-age populations shrink and aging populations expand, economic growth and prosperity will depend more than ever on new technology. Productivity growth will require it. And the competitiveness of Europe’s many great industries and companies, large and small, will depend on their ability to hone their ongoing leadership in critical scientific domains and put their data to work. Across the continent, European institutions will need to harness the power of AI and the cloud.

A Strong Foundation for Europe’s AI Transition

AI is rapidly becoming what economists call a General Purpose Technology, or GPT. In contrast to single-purpose technologies, GPTs boost innovation and productivity across the entire economy. Throughout history, transformative GPTs like ironworking, electricity, machine tooling, computer chips, and software have not only driven economic growth but sparked new discoveries and inventions, changing the way we live and work.

The good news is that the foundation for Europe’s AI transition is already being laid. Industry leaders are investing tens of billions to construct state-of-the-art infrastructure to help Europe access, adopt, and innovate on the world’s most advanced cloud and AI technology. And companies like Microsoft are developing and offering innovative AI tools and vital services that are ready for use by every sector of every European economy.

As a company, we are developing and operating our AI infrastructure and platform services with a constant focus on Europe’s needs. This is one reason we announced our AI Access Principles in Barcelona a year ago. These eleven principles govern our operations and are designed to ensure that Microsoft’s AI infrastructure is accessible, open, and available on fair terms to the entire European economy.

As we’ve put these principles into practice, we’ve recognized the vital role of open-source software and AI models for European researchers, start-ups, businesses, and governments. We’ve launched the Azure AI Foundry, a platform designed to help developers build, run, and optimize AI-driven applications. The Foundry supports flexible choices and now supports more than 1,800 AI models, from OpenAI’s o3-mini to open-source models like Llama, Mistral, and others, all giving Europe the tools it needs to stay competitive in the fast-moving AI landscape. European developers can then use our Models as a Service offering to distribute their products instantly to our datacenters around the world, so customers can call on them for AI-powered applications.

We also recognize that technology innovation requires investments in people. That’s why we’re investing in our AI Skilling Initiative across Europe. We’re partnering with government, education, industry, and civil society to help bring AI skills to users, developers, and organizational leaders. Through our strategic partnerships, we have already helped to skill 2.9 million Europeans and are on track to engage 8 million people by the end of the year.

Technology Collaboration Built on Interdependence

We readily recognize that European leaders sometimes worry about becoming overly dependent on American technology. We appreciate that such questions are both natural and legitimate. We take them seriously and work hard to address them, including by understanding European values, supporting European needs, and adapting to European rules.

Along the way, we often point to a second technology dimension that too easily is overlooked. The reality is that this dependence runs both ways.

As a company, we’re pouring tens of billions of dollars of investment into acquiring land, constructing massive buildings, bringing additional electricity to the grid, and installing the world’s most advanced computing, networking, liquid cooling, and other technology.

These datacenters are not built on wheels.

Once constructed, these billions of dollars in infrastructure are permanent and subject to local laws, regulations, and governments. Time inevitably brings changes. It’s imperative as a company that we constantly remain focused on earning and sustaining our “license to operate” within each country. With datacenters, this starts with each local community and runs up to officials with EU-wide responsibilities. Our economic dependence on Europe runs deep.

As Microsoft celebrates its 50th birthday less than two months from now, we look back at more than four decades of European presence and support. As a company, we’ve seen many things change. And we ourselves have changed. We’ve put down deep roots, with employees and families in communities and countries across the continent.

But even amid constant change, one thing has been constant. Our support for Europe has been not only steady but steadfast.

MIL OSI Economics –

February 19, 2025
MIL-OSI Security: Defense News: U.S. Navy EOD Conducts Arctic Warfare Exercise ‘Arctic Specialist’ with NATO Allies in Norway

Source: United States Navy

Arctic Specialist is an annual Norway-hosted multinational joint EOD and expeditionary mine countermeasures (ExMCM) exercise providing training at the platoon and squad level and the development of land and maritime EOD tactics, techniques and procedures (TTPs) in a cold-weather environment. Allied forces from Denmark, Norway, and Sweden trained alongside U.S. forces at this year’s event.

“Arctic Specialist represents one of the premier exercises where Thunderstealers hone our cold weather survival, EOD, and diving skills,” said Cmdr. John Kennedy, Commander, Task Group (CTG) 68.1 (EODMU 8). “The opportunity to train alongside such capable Allies builds confidence in our ability to deploy to the Arctic region and sustain combat operations.”

According to the Department of Defense’s 2024 Arctic Strategy, “Major geopolitical changes are driving the need for this new strategic approach to the Arctic, including Russia’s full-scale invasion of Ukraine, the accession of Finland and Sweden to the NATO Alliance, increasing collaboration between the People’s Republic of China (PRC) and Russia, and the accelerating impacts of climate change. This increasingly accessible region is becoming a venue for strategic competition, and the United States must stand ready to meet the challenge alongside Allies and partners.”

While arctic strategy and presence is a growing priority for the U.S. military, training for arctic warfare with our Allies in the high north is not a new initiative for U.S. Navy EOD. In 1986, Norway began hosting an annual “EOD Ex”, which in 2012 became Arctic Specialist.

“This is my 14th year participating at this exercise. The value of it, beyond working together on realistic scenarios and exchanging knowledge and TTPs, is getting to know other nations. Learning cultural respect and traditions, their working methods, the ‘do’s and don’ts’. Whatever the operation is going to be, it is important to get to know your Allies on a deep level,” said a Lieutenant Commander Operations Officer of Norwegian Naval EOD Command.

The exercise has continued to provide an excellent training ground for EOD operators to hone their skills and operate in a uniquely challenging environment alongside NATO Allies and partners. Unique to this year’s exercise was the participation of Sweden, NATO’s newest member, for the first time.

Participation in such exercises will enable our EOD and diving forces to increase warfighting skills in arctic conditions, use lessons learned from past engagements, and provide opportunities to learn from our Allies’ extensive cold weather operating experience.

During the 11-day exercise, EOD and MCM forces exchanged knowledge for countering regional and global security threats. A multinational Tactical Operations Center (TOC) was established to provide command and control, intelligence, and advanced communications for all participating units.

Beyond in-depth training on cold weather survival techniques, the exercise included live demolition for mine countermeasure diving, conventional munition disposal, limpet mine response, historical ordnance disposal operations (HODOPS), and chemical and homemade explosive (HME) response. All training was designed with an emphasis on integrated multinational operations at the tactical level in preparation for major combat operations.

EODMU 8’s MCM Company Commander, Lt. Andrew Lewis, said, “Forward deploying our team to Norway has been critical to our development of warfighting skills in arctic conditions. Through working with our peers from Denmark, Sweden, and Norway—subject matter experts who live and operate in this environment year-round—we have gained a new understanding of and respect for the difficult conditions we could face while operating in the Arctic. Exercises like Arctic Specialist allow us to continue improving our knowledge, skills, and tactics by conducting increasingly complex and high-end missions, and to build lasting bonds with our Allies.”

As the arctic security environment evolves, training, exercising, and operating in the Arctic will improve U.S. Navy EOD’s operational effectiveness by familiarizing the expeditionary Force with the unique and demanding operating environments of the European Arctic region. By exercising alongside Arctic Allies, the Force continues to improve interoperability and gains regional expertise.

“This exercise is designed for the operators. The focus is ground level training, developing the skills of the EOD technicians, and everyone getting stronger,” said a Lieutenant from Norwegian Naval EOD Command.

Before AS kicked off, a platoon of U.S. Navy EOD operators from EODMU 8 and Norwegian Navy EOD clearance divers from Minedykker Kommandoen (Norwegian Naval EOD Command) completed a 2-week winter warfare training in Hovden, Norway, focused on arctic mobility and survivability.

The winter warfare course consisted of academic training, gear preparation, cross country, back country, and downhill skiing instruction, ski training with heavy rucksack, cold weather injury treatment and prevention, improvised shelter building, camp set up, proper clothing loadout, avalanche safety training, cold weather demolition, small arms shooting on skis, and freezing water response.

“The value to the guys was immeasurable. Most of them started off the training without ever having skied and some never having seen snow in their lives. We went from that, to being able to self-sustain for 96 hours in the brutal, non-forgiving Norwegian wilderness in 6 feet of snow, transiting roughly 20 kilometers through the mountains, on back country skis, while wearing 70 lb. rucks,” said Explosive Ordnance Disposal Senior Chief Karl Sowinski, EODMU 8 ExMCM Company senior enlisted leader and lead exercise planner. “The cost of ending up out there alone, without the proper gear and training, is death. Out of all the environments we operate in, the Arctic is the only one that is actively trying to kill you 24/7.”

The team did a cold-water plunge in a freezing river, where they had to function under extreme stress and cold shock. Surrounded by snow and ice, they fully submerged in the icy water, then worked through their cold response by controlling their breathing and responding to a series of questions to demonstrate mental acuity before exiting the water, donning dry clothing, and rewarming.

“The critical takeaway of this exercise was the integration and interoperability. During the winter warfare portion, prior to Arctic Specialist, the U.S. EOD operators looked to us for our expertise in Arctic survival techniques. During Arctic Specialist, we [Norwegian EOD] looked to the U.S., Sweden, and Denmark teams for new technology or methods that we may not currently use,” said a platoon commander from Norwegian Naval EOD Command. “When we work with our Allied peers, the most valuable part is the group dynamic and becoming a team. We bond on both a personal level and as a military team, making us stronger for future engagements.”

Continuing to exercise presence in the high north through training and operations will enhance deterrence by demonstrating combat-credible capabilities and the ability to respond rapidly to threats in the Arctic and elsewhere around the globe.

U.S. Navy EOD stands ready to protect U.S. interests from explosive threats in the face of new challenges and an evolving security environment.

CTF-68 commands all naval expeditionary combat forces in the U.S. European Command and U.S. Africa Command areas of responsibility in direct support of U.S. Naval Forces Europe -Africa, and U.S. 6th Fleet.

U.S. 6th Fleet conducts the full spectrum of joint and naval operations, often in concert with allied, joint, and inter-agency partners, in order to advance U.S. national interests and security and stability in Europe and Africa.

For additional news about U.S. Navy EOD, visit https://www.dvidshub.net/unit/EODG-2.

MIL Security OSI –

February 19, 2025
MIL-OSI United Nations: Amid ‘clear’ threat of nuclear war, Guterres tells Security Council multilateral off ramp is essential

Source: United Nations 2

18 February 2025 Peace and Security

Strengthening international cooperation and delivering on a UN pact that calls for reforming global governance, among other measures, was the focus of debate in the UN Security Council on Tuesday.

The ministerial-level meeting was convened by China, which holds the rotating Council presidency this month, as the UN prepares to mark its 80^th anniversary later this year.

UN Secretary-General António Guterres opened the debate emphasizing that “global solidarity and solutions are needed more than ever” as the climate crisis rages and inequalities and poverty increase.

Peace remains illusive

“As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond,” he said.

“Terrorism and violent extremism remain persistent scourges. We see a dark spirit of impunity spreading. The prospect of nuclear war remains – outrageously – a clear and present danger.”

Emerging technologies such as Artificial Intelligence (AI) are also a challenge as their “limitless promise…is matched by limitless peril to undermine and even replace human thought, human identity and human control.”

Pact for the Future

Mr. Guterres said “these global challenges cry out for multilateral solutions,” and pointed to the Pact for the Future, adopted by Member States last September.

The agreement “is aimed at strengthening global governance for the 21st century and rebuilding trust” in multilateralism, the UN, and the Security Council.

Provisions include advancing coordination with regional organizations and ensuring the full participation of women, youth and marginalized groups in peace processes.

The Pact outlines support for a stimulus plan to help developing countries achieve the Sustainable Development Goals (SDGs), and revitalized commitment to reform the post-war global financial architecture to better serve the modern world.

It also contains a Global Digital Compact that calls for an AI governance body that allows developing countries to participate in decision-making, marking a first.

Security Council reform

“The Pact also recognizes that the Security Council must reflect the world of today, not the world of 80 years ago, and sets out important principles to guide this long-awaited reform,” said Mr. Guterres.

The Council should be enlarged and made more representative of today’s geopolitical realities, while countries also must continue to improve its working methods to make the body more inclusive, transparent, efficient, democratic and accountable.

He recalled that these issues have been under consideration by the UN General Assembly for more than a decade.

Build on momentum

“Now is the time to build on the momentum provided by the Pact for the Future, and work towards a greater consensus among regional groups and Member States – including the permanent members of this Council – to move the intergovernmental negotiations forward,” he said.

“Throughout, I call on Members of this Council to overcome the divisions that are blocking effective action for peace.”

He noted that Council members have shown reaching common ground is possible, for example through deploying peacekeeping operations and forging resolutions on humanitarian aid.

Spirited compromise

“Even in the darkest days of the Cold War, the collective decision-making and vigorous dialogue in this Council maintained a functioning, if imperfect, system of collective security,” he said.

“I urge you to summon this same spirit, continue working to overcome differences and focus on building the consensus required to deliver the peace all people need and deserve.”

The Secretary-General said multilateral cooperation is the beating heart of the United Nations, and guided by the solutions in the Pact for the Future, it can become an even more powerful instrument of peace,

“As we look to the challenges around us, I urge all Member States to continue strengthening and updating our global problem-solving mechanisms,” he said. “Let’s make them fit for purpose – fit for people – and fit for peace.”

More to follow

MIL OSI United Nations News –

February 19, 2025
MIL-OSI Africa: Secretary-General’s remarks to the Security Council – on the Maintenance of International Peace and Security: Practicing Multilateralism, Reforming and Improving Global Governance [bilingual as delivered; scroll down for all-English and all-French]

Source: United Nations – English

xcellencies,

I thank Minister Wang Yi and China for convening this important discussion.

This year marks the 80th anniversary of the United Nations.

Born out of the ashes of the Second World War, our organization was the result of a global commitment to “save succeeding generations from the scourge of war.”

It also signaled a commitment to an entirely new level of international cooperation grounded in international law and our founding Charter.

To help countries move past the horrors of conflict to forge sustainable peace.

To tackle poverty, hunger and disease.

To assist countries in climbing the development ladder.

To provide humanitarian support in times of conflict and disaster.

To embed justice and fairness through international law and respect for human rights.

And to work through this Council to push for peace through dialogue, debate, diplomacy and consensus-building.

Eight decades later, one can draw a direct line between the creation of the United Nations and the prevention of a third world war.

Eight decades later, the United Nations remains the essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights.

But eight decades is a long time.

And because we believe in the singular value and purpose of the United Nations, we must always strive to improve the institution and the way we work.

We have the hardware for international cooperation — but the software needs an update.

An update in representation to reflect the realities of today.

An update in support for developing countries to redress historical injustices.

An update to ensure countries adhere to the purposes, principles and norms that ground multilateralism in justice and fairness.

And an update to our peace operations.

Excellencies,

Global solidarity and solutions are needed more than ever.

The climate crisis is raging, inequalities are growing, and poverty is on the rise.

As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond.

Terrorism and violent extremism remain persistent scourges.

We see a dark spirit of impunity spreading.

The prospect of nuclear war remains — outrageously — a clear and present danger.

And the limitless promise of emerging technologies like Artificial Intelligence is matched by limitless peril to undermine and even replace human thought, human identity and human control.

These global challenges cry out for multilateral solutions.

The Pact for the Future you adopted in September is aimed at strengthening global governance for the 21st century and rebuilding trust — trust in multilateralism, trust in the United Nations, and trust in this Council.

At its heart, the Pact for the Future is a pact for peace — peace in all its dimensions.

It puts forward concrete solutions to strengthen the machinery of peace, drawing from proposals to the New Agenda for Peace that prioritize prevention, mediation and peacebuilding.

The Pact seeks to advance coordination with regional organizations, and ensure the full participation of women, youth and marginalized groups in peace processes.

And it calls for strengthening the Peacebuilding Commission to mobilize political and financial support for nationally owned peacebuilding and prevention strategies.

The Pact also includes the first multilateral agreement on nuclear disarmament in more than a decade…

New strategies to end the use of chemical and biological weapons…

And revitalized efforts to prevent an arms race in outer space and advance discussions on lethal autonomous weapons.

It also calls on Member States to live up to their commitments enshrined in the UN Charter, and the principles of respect for sovereignty, territorial integrity and the political independence of states.

It reaffirms unwavering commitment to abide by international law and prioritize the peaceful settlement of disputes through dialogue.

It recognizes the role of the United Nations in preventive diplomacy.

It reinforces the need to uphold all human rights — civil, political, economic, social and cultural.

It calls for the meaningful inclusion of women and youth in all peace processes.

And it specifically calls on this Council to ensure that peace operations are guided by clear and sequenced mandates that are realistic and achievable — with viable exit strategies and transition plans.

But the Pact does even more for peace.

It recognizes that we must address the root causes of conflict and tensions.

Sustainable peace requires sustainable development.

The Pact includes support for an SDG Stimulus to help developing countries invest in their people and tackle key challenges, like moving towards a future anchored in renewable energy.

It includes a revitalized commitment to reform the global financial architecture to better and more fairly represent the needs of developing countries.

And it includes a Global Digital Compact that calls for an AI governance body that brings developing countries to the decision-making table for the first time.

Excellences,

Le Pacte reconnaît également que le Conseil de sécurité doit refléter le monde d’aujourd’hui, et non celui d’il y a 80 ans, et énonce des principes importants pour guider cette réforme tant attendue.

Ce Conseil devrait être élargi et devenir plus représentatif des réalités géopolitiques d’aujourd’hui.

Nous devons aussi continuer à améliorer les méthodes de travail du Conseil afin de le rendre plus inclusif, plus transparent, plus efficace, plus démocratique et plus responsable.

Cela fait plus de dix ans que l’Assemblée générale examine ces questions.

Le moment est venu de tirer parti de l’élan donné par le Pacte pour l’avenir et d’œuvrer en faveur d’un consensus plus large entre les groupes régionaux et les États Membres – y compris les membres permanents de ce Conseil – afin de faire avancer les négociations intergouvernementales.

À tous les niveaux, j’appelle les membres de ce Conseil à surmonter les divisions qui bloquent une action efficace en faveur de la paix.

Le monde compte sur vous pour contribuer véritablement à mettre fin aux conflits et à alléger les souffrances que ces guerres infligent à des innocents.

Les membres du Conseil ont montré qu’il était possible de trouver un terrain d’entente.

Qu’il s’agisse du déploiement d’opérations de maintien de la paix… de l’adoption de résolutions vitales sur l’aide humanitaire… de la reconnaissance historique des problèmes de sécurité rencontrés par les femmes et les jeunes… ou encore de la résolution 2719, qui appuie les opérations de soutien à la paix menées par l’Union africaine à travers des contributions obligatoires.

Même aux heures les plus sombres de la guerre froide, la prise de décisions collégiales et le dialogue vif entretenu au Conseil de sécurité ont permis de préserver un système de sécurité collective, certes imparfait, mais fonctionnel.

Je vous exhorte à retrouver cet esprit, à poursuivre vos efforts pour surmonter les divergences et bâtir les consensus nécessaires pour instaurer la paix dont tous les peuples ont tant besoin et qu’ils méritent.

Excellences,

La coopération multilatérale est le cœur battant de l’Organisation des Nations Unies.

Guidé par les solutions offertes dans le Pacte pour l’avenir, le multilatéralisme peut devenir un instrument de paix encore plus puissant.

Mais la puissance du multilatéralisme dépend directement du niveau d’engagement de chaque pays.

Face aux enjeux du monde qui nous entoure, j’invite tous les États Membres à continuer de renforcer et d’actualiser nos mécanismes mondiaux de résolution des problèmes.

Faisons en sorte qu’ils soient à la hauteur de la mission… à la hauteur des besoins des populations… à la hauteur de la paix.

Je vous remercie.

****
[all-English]

Excellencies,

I thank Minister Wang Yi and China for convening this important discussion.

This year marks the 80th anniversary of the United Nations.

Born out of the ashes of the Second World War, our organization was the result of a global commitment to “save succeeding generations from the scourge of war.”

It also signaled a commitment to an entirely new level of international cooperation grounded in international law and our founding Charter.

To help countries move past the horrors of conflict to forge sustainable peace.

To tackle poverty, hunger and disease.

To assist countries in climbing the development ladder.

To provide humanitarian support in times of conflict and disaster.

To embed justice and fairness through international law and respect for human rights.

And to work through this Council to push for peace through dialogue, debate, diplomacy and consensus-building.

Eight decades later, one can draw a direct line between the creation of the United Nations and the prevention of a third world war.

Eight decades later, the United Nations remains the essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights.

But eight decades is a long time.

And because we believe in the singular value and purpose of the United Nations, we must always strive to improve the institution and the way we work.

We have the hardware for international cooperation — but the software needs an update.

An update in representation to reflect the realities of today.

An update in support for developing countries to redress historical injustices.

An update to ensure countries adhere to the purposes, principles and norms that ground multilateralism in justice and fairness.

And an update to our peace operations.

Excellencies,

Global solidarity and solutions are needed more than ever.

The climate crisis is raging, inequalities are growing, and poverty is on the rise.

As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond.

Terrorism and violent extremism remain persistent scourges.

We see a dark spirit of impunity spreading.

The prospect of nuclear war remains — outrageously — a clear and present danger.

And the limitless promise of emerging technologies like Artificial Intelligence is matched by limitless peril to undermine and even replace human thought, human identity and human control.
These global challenges cry out for multilateral solutions.

The Pact for the Future you adopted in September is aimed at strengthening global governance for the 21st century and rebuilding trust — trust in multilateralism, trust in the United Nations, and trust in this Council.

At its heart, the Pact for the Future is a pact for peace — peace in all its dimensions.

It puts forward concrete solutions to strengthen the machinery of peace, drawing from proposals to the New Agenda for Peace that prioritize prevention, mediation and peacebuilding.

The Pact seeks to advance coordination with regional organizations, and ensure the full participation of women, youth and marginalized groups in peace processes.

And it calls for strengthening the Peacebuilding Commission to mobilize political and financial support for nationally owned peacebuilding and prevention strategies.

The Pact also includes the first multilateral agreement on nuclear disarmament in more than a decade…

New strategies to end the use of chemical and biological weapons…

And revitalized efforts to prevent an arms race in outer space and advance discussions on lethal autonomous weapons.

It also calls on Member States to live up to their commitments enshrined in the UN Charter, and the principles of respect for sovereignty, territorial integrity and the political independence of states.

It reaffirms unwavering commitment to abide by international law and prioritize the peaceful settlement of disputes through dialogue.

It recognizes the role of the United Nations in preventive diplomacy.

It reinforces the need to uphold all human rights — civil, political, economic, social and cultural.

It calls for the meaningful inclusion of women and youth in all peace processes.
And it specifically calls on this Council to ensure that peace operations are guided by clear and sequenced mandates that are realistic and achievable — with viable exit strategies and transition plans.

But the Pact does even more for peace.

It recognizes that we must address the root causes of conflict and tensions.

Sustainable peace requires sustainable development.

The Pact includes support for an SDG Stimulus to help developing countries invest in their people and tackle key challenges, like moving towards a future anchored in renewable energy.

It includes a revitalized commitment to reform the global financial architecture to better and more fairly represent the needs of developing countries.

And it includes a Global Digital Compact that calls for an AI governance body that brings developing countries to the decision-making table for the first time.

Excellencies,

The Pact also recognizes that the Security Council must reflect the world of today, not the world of 80 years ago, and sets out important principles to guide this long-awaited reform.

This Council should be enlarged and made more representative of today’s geopolitical realities.

And we must continue improving the working methods of this Council to make it more inclusive, transparent, efficient, democratic and accountable.

These issues have been under consideration by the General Assembly for more than a decade.

Now is the time to build on the momentum provided by the Pact for the Future, and work towards a greater consensus among regional groups and Member States — including the permanent members of this Council — to move the intergovernmental negotiations forward.

Throughout, I call on Members of this Council to overcome the divisions that are blocking effective action for peace.

The world looks to you to act in meaningful ways to end conflicts, and ease the suffering these wars inflict on innocent people.

Council Members have shown that finding common ground is possible.

From deploying peacekeeping operations…to forging lifesaving resolutions on humanitarian aid…to historic recognitions of the security challenges faced by women and young people…to the landmark Resolution 2719 supporting African Union-led peace support operations through assessed contributions.

Even in the darkest days of the Cold War, the collective decision-making and vigorous dialogue in this Council maintained a functioning, if imperfect, system of collective security.

I urge you to summon this same spirit, continue working to overcome differences and focus on building the consensus required to deliver the peace all people need and deserve.

Excellencies,

Multilateral cooperation is the beating heart of the United Nations.

Guided by the solutions in the Pact for the Future, multilateralism can also become an even more powerful instrument of peace.

But multilateralism is only as strong as each and every country’s commitment to it.

As we look to the challenges around us, I urge all Member States to continue strengthening and updating our global problem-solving mechanisms.

Let’s make them fit for purpose — fit for people — and fit for peace.

Thank you.

****
[all-French]

Excellences,

Je remercie le Ministre Wang Yi et la Chine d’avoir organisé cet important débat.

Cette année marque le quatre-vingtième anniversaire de l’Organisation des Nations Unies.

Née des cendres de la Seconde Guerre mondiale, notre Organisation est le fruit de l’engagement pris à l’échelle mondiale de « préserver les générations futures du fléau de la guerre ».

Sa création a également marqué un engagement en faveur d’un niveau de coopération internationale entièrement nouveau, ancré dans le droit international et dans notre Charte fondatrice.

L’engagement d’aider les pays à dépasser les horreurs du conflit pour instaurer une paix durable.

De lutter contre la pauvreté, la faim et la maladie.

D’aider les pays à progresser sur l’échelle du développement.

De fournir une aide humanitaire en cas de conflit ou de catastrophe.

D’ancrer la justice et l’équité grâce au droit international et au respect des droits humains.

D’œuvrer, dans le cadre de ce Conseil, pour faire avancer la paix par le dialogue, le débat, la diplomatie et la recherche d’un consensus.

Huit décennies plus tard, on peut établir un lien direct entre la création de l’Organisation des Nations Unies et la prévention d’une troisième guerre mondiale.

Huit décennies plus tard, l’ONU reste un lieu de rencontre unique en son genre et indispensable à la promotion de la paix, du développement durable et des droits humains.

Mais huit décennies, c’est long.

Et parce que nous croyons à la valeur et à l’objectif de l’ONU, qui lui sont propres, nous devons en permanence nous efforcer d’améliorer l’institution et notre façon de travailler.

Le dispositif de coopération internationale est opérationnel, mais une refonte du système d’exploitation s’impose.

Une refonte de la représentation, pour rendre compte des réalités d’aujourd’hui.

Une refonte de l’aide apportée aux pays en développement, afin de réparer les injustices historiques.

Une refonte visant à s’assurer que les pays adhèrent aux objectifs, principes et normes qui fondent le multilatéralisme sur la justice et l’équité.

Et une refonte de nos opérations de paix.

Excellences,

La solidarité mondiale et des solutions globales sont plus que jamais nécessaires.

La crise climatique fait rage, les inégalités se creusent et la pauvreté augmente.

Comme ce Conseil le sait bien, la paix est de plus en plus hors de portée – du Territoire palestinien occupé à l’Ukraine, en passant par le Soudan, la République démocratique du Congo, etc.

Les fléaux que sont le terrorisme et l’extrémisme violent persistent.

Nous voyons se répandre une sombre culture de l’impunité.

La menace d’une guerre nucléaire demeure un danger clair et présent, ce qui est révoltant.

Les possibilités illimitées offertes par les technologies émergentes telles que l’intelligence artificielle s’accompagnent d’un risque également illimité d’affaiblissement, voire de remplacement de la pensée humaine, de l’identité humaine et du contrôle humain.

Ces problèmes mondiaux demandent des solutions multilatérales.

Le Pacte pour l’avenir que vous avez adopté en septembre vise à renforcer la gouvernance mondiale pour le vingt et unième siècle et à rétablir la confiance – confiance dans le multilatéralisme, confiance dans les Nations unies et confiance dans ce Conseil.

Au fond, le Pacte pour l’avenir est un pacte pour la paix – la paix dans toutes ses dimensions.

Il propose des solutions concrètes pour renforcer les mécanismes de paix, s’inspirant des propositions du Nouvel Agenda pour la paix qui donnent la priorité à la prévention, à la médiation et à la consolidation de la paix.

Le Pacte vise à renforcer la coordination avec les organisations régionales et à garantir la pleine participation des femmes, des jeunes et des groupes marginalisés aux processus de paix.

Il appelle au renforcement de la Commission de consolidation de la paix afin de mobiliser le soutien politique et financier nécessaire à la mise en œuvre des stratégies de prévention et de consolidation de la paix pilotées par les pays.

Il contient également le premier accord multilatéral sur le désarmement nucléaire conclu depuis plus de dix ans…

Présente de nouvelles stratégies visant à mettre fin à l’emploi d’armes chimiques et biologiques…

Ainsi que des mesures revitalisées visant à prévenir une course aux armements dans l’espace et à faire avancer les débats sur les armes létales autonomes.

Il exhorte les États Membres à respecter les engagements qu’ils ont pris, consacrés dans la Charte des Nations Unies, ainsi que les principes de respect de la souveraineté, de l’intégrité territoriale et de l’indépendance politique des États.

Il réaffirme leur volonté inébranlable à respecter le droit international et à privilégier le règlement pacifique des différends par le dialogue.

Il reconnaît le de l’Organisation des Nations Unies dans la diplomatie préventive.

Il réaffirme la nécessité de respecter tous les droits humains – civils, politiques, économiques, sociaux et culturels.

Il appelle à une véritable inclusion des femmes et des jeunes dans tous les processus de paix.

Il demande en particulier au Conseil de sécurité de veiller à ce que les opérations de paix soient guidées par des mandats clairs et séquencés, réalistes et réalisables, ainsi que des stratégies de sortie et des plans de transition viables.

Mais le Pacte va encore plus loin pour la paix.

Il prend acte du fait que nous devons nous attaquer aux causes profondes des conflits et des tensions.

Le développement durable passe par l’instauration d’une paix durable.

Le Pacte dispose qu’il faut soutenir la mise en place d’un plan de relance des objectifs de développement durable afin d’aider les pays en développement à investir dans leur population et à relever des défis majeurs, notamment à s’orienter vers un avenir ancré dans les énergies renouvelables.

Il comprend un engagement renouvelé de réformer l’architecture financière mondiale afin de représenter de manière plus exacte et plus équitable les besoins des pays en développement.

Il comprend également un Pacte numérique mondial qui appelle à la création d’un organe de gouvernance de l’intelligence artificielle associant pour la première fois les pays en développement à la prise de décisions.

Excellences,
Le Pacte reconnaît également que le Conseil de sécurité doit refléter le monde d’aujourd’hui, et non celui d’il y a 80 ans, et énonce des principes importants pour guider cette réforme tant attendue.

Ce Conseil devrait être élargi et devenir plus représentatif des réalités géopolitiques d’aujourd’hui.

Nous devons aussi continuer à améliorer les méthodes de travail du Conseil afin de le rendre plus inclusif, plus transparent, plus efficace, plus démocratique et plus responsable.

Cela fait plus de dix ans que l’Assemblée générale examine ces questions.
Le moment est venu de tirer parti de l’élan donné par le Pacte pour l’avenir et d’œuvrer en faveur d’un consensus plus large entre les groupes régionaux et les États Membres – y compris les membres permanents de ce Conseil – afin de faire avancer les négociations intergouvernementales.

À tous les niveaux, j’appelle les membres de ce Conseil à surmonter les divisions qui bloquent une action efficace en faveur de la paix.

Le monde compte sur vous pour contribuer véritablement à mettre fin aux conflits et à alléger les souffrances que ces guerres infligent à des innocents.

Les membres du Conseil ont montré qu’il était possible de trouver un terrain d’entente.

Qu’il s’agisse du déploiement d’opérations de maintien de la paix… de l’adoption de résolutions vitales sur l’aide humanitaire… de la reconnaissance historique des problèmes de sécurité rencontrés par les femmes et les jeunes… ou encore de la résolution 2719, qui appuie les opérations de soutien à la paix menées par l’Union africaine à travers des contributions obligatoires.

Même aux heures les plus sombres de la guerre froide, la prise de décisions collégiales et le dialogue vif entretenu au Conseil de sécurité ont permis de préserver un système de sécurité collective, certes imparfait, mais fonctionnel.

Je vous exhorte à retrouver cet esprit, à poursuivre vos efforts pour surmonter les divergences et bâtir les consensus nécessaires pour instaurer la paix dont tous les peuples ont tant besoin et qu’ils méritent.

Excellences,

La coopération multilatérale est le cœur battant de l’Organisation des Nations Unies.

Guidé par les solutions offertes dans le Pacte pour l’avenir, le multilatéralisme peut devenir un instrument de paix encore plus puissant.

Mais la puissance du multilatéralisme dépend directement du niveau d’engagement de chaque pays.

Face aux enjeux du monde qui nous entoure, j’invite tous les États Membres à continuer de renforcer et d’actualiser nos mécanismes mondiaux de résolution des problèmes.

Faisons en sorte qu’ils soient à la hauteur de la mission… à la hauteur des besoins des populations… à la hauteur de la paix.

Je vous remercie.

MIL OSI Africa –

February 19, 2025
MIL-OSI United Nations: Secretary-General’s remarks to the Security Council – on the Maintenance of International Peace and Security: Practicing Multilateralism, Reforming and Improving Global Governance [bilingual as delivered; scroll down for all-English and all-French]

Source: United Nations secretary general

Excellencies,

I thank Minister Wang Yi and China for convening this important discussion.

This year marks the 80th anniversary of the United Nations.

Born out of the ashes of the Second World War, our organization was the result of a global commitment to “save succeeding generations from the scourge of war.”

It also signaled a commitment to an entirely new level of international cooperation grounded in international law and our founding Charter.

To help countries move past the horrors of conflict to forge sustainable peace.

To tackle poverty, hunger and disease.

To assist countries in climbing the development ladder.

To provide humanitarian support in times of conflict and disaster.

To embed justice and fairness through international law and respect for human rights.

And to work through this Council to push for peace through dialogue, debate, diplomacy and consensus-building.

Eight decades later, one can draw a direct line between the creation of the United Nations and the prevention of a third world war.

Eight decades later, the United Nations remains the essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights.

But eight decades is a long time.

And because we believe in the singular value and purpose of the United Nations, we must always strive to improve the institution and the way we work.

We have the hardware for international cooperation — but the software needs an update.

An update in representation to reflect the realities of today.

An update in support for developing countries to redress historical injustices.

An update to ensure countries adhere to the purposes, principles and norms that ground multilateralism in justice and fairness.

And an update to our peace operations.

Excellencies,

Global solidarity and solutions are needed more than ever.

The climate crisis is raging, inequalities are growing, and poverty is on the rise.

As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond.

Terrorism and violent extremism remain persistent scourges.

We see a dark spirit of impunity spreading.

The prospect of nuclear war remains — outrageously — a clear and present danger.

And the limitless promise of emerging technologies like Artificial Intelligence is matched by limitless peril to undermine and even replace human thought, human identity and human control.

These global challenges cry out for multilateral solutions.

The Pact for the Future you adopted in September is aimed at strengthening global governance for the 21st century and rebuilding trust — trust in multilateralism, trust in the United Nations, and trust in this Council.

At its heart, the Pact for the Future is a pact for peace — peace in all its dimensions.

It puts forward concrete solutions to strengthen the machinery of peace, drawing from proposals to the New Agenda for Peace that prioritize prevention, mediation and peacebuilding.

The Pact seeks to advance coordination with regional organizations, and ensure the full participation of women, youth and marginalized groups in peace processes.

And it calls for strengthening the Peacebuilding Commission to mobilize political and financial support for nationally owned peacebuilding and prevention strategies.

The Pact also includes the first multilateral agreement on nuclear disarmament in more than a decade…

New strategies to end the use of chemical and biological weapons…

And revitalized efforts to prevent an arms race in outer space and advance discussions on lethal autonomous weapons.

It also calls on Member States to live up to their commitments enshrined in the UN Charter, and the principles of respect for sovereignty, territorial integrity and the political independence of states.

It reaffirms unwavering commitment to abide by international law and prioritize the peaceful settlement of disputes through dialogue.

It recognizes the role of the United Nations in preventive diplomacy.

It reinforces the need to uphold all human rights — civil, political, economic, social and cultural.

It calls for the meaningful inclusion of women and youth in all peace processes.

And it specifically calls on this Council to ensure that peace operations are guided by clear and sequenced mandates that are realistic and achievable — with viable exit strategies and transition plans.

But the Pact does even more for peace.

It recognizes that we must address the root causes of conflict and tensions.

Sustainable peace requires sustainable development.

The Pact includes support for an SDG Stimulus to help developing countries invest in their people and tackle key challenges, like moving towards a future anchored in renewable energy.

It includes a revitalized commitment to reform the global financial architecture to better and more fairly represent the needs of developing countries.

And it includes a Global Digital Compact that calls for an AI governance body that brings developing countries to the decision-making table for the first time.

Excellences,

Le Pacte reconnaît également que le Conseil de sécurité doit refléter le monde d’aujourd’hui, et non celui d’il y a 80 ans, et énonce des principes importants pour guider cette réforme tant attendue.

Ce Conseil devrait être élargi et devenir plus représentatif des réalités géopolitiques d’aujourd’hui.

Nous devons aussi continuer à améliorer les méthodes de travail du Conseil afin de le rendre plus inclusif, plus transparent, plus efficace, plus démocratique et plus responsable.

Cela fait plus de dix ans que l’Assemblée générale examine ces questions.

Le moment est venu de tirer parti de l’élan donné par le Pacte pour l’avenir et d’œuvrer en faveur d’un consensus plus large entre les groupes régionaux et les États Membres – y compris les membres permanents de ce Conseil – afin de faire avancer les négociations intergouvernementales.

À tous les niveaux, j’appelle les membres de ce Conseil à surmonter les divisions qui bloquent une action efficace en faveur de la paix.

Le monde compte sur vous pour contribuer véritablement à mettre fin aux conflits et à alléger les souffrances que ces guerres infligent à des innocents.

Les membres du Conseil ont montré qu’il était possible de trouver un terrain d’entente.

Qu’il s’agisse du déploiement d’opérations de maintien de la paix… de l’adoption de résolutions vitales sur l’aide humanitaire… de la reconnaissance historique des problèmes de sécurité rencontrés par les femmes et les jeunes… ou encore de la résolution 2719, qui appuie les opérations de soutien à la paix menées par l’Union africaine à travers des contributions obligatoires.

Même aux heures les plus sombres de la guerre froide, la prise de décisions collégiales et le dialogue vif entretenu au Conseil de sécurité ont permis de préserver un système de sécurité collective, certes imparfait, mais fonctionnel.

Je vous exhorte à retrouver cet esprit, à poursuivre vos efforts pour surmonter les divergences et bâtir les consensus nécessaires pour instaurer la paix dont tous les peuples ont tant besoin et qu’ils méritent.

Excellences,

La coopération multilatérale est le cœur battant de l’Organisation des Nations Unies.

Guidé par les solutions offertes dans le Pacte pour l’avenir, le multilatéralisme peut devenir un instrument de paix encore plus puissant.

Mais la puissance du multilatéralisme dépend directement du niveau d’engagement de chaque pays.

Face aux enjeux du monde qui nous entoure, j’invite tous les États Membres à continuer de renforcer et d’actualiser nos mécanismes mondiaux de résolution des problèmes.

Faisons en sorte qu’ils soient à la hauteur de la mission… à la hauteur des besoins des populations… à la hauteur de la paix.

Je vous remercie.

****
[all-English]

Excellencies,

I thank Minister Wang Yi and China for convening this important discussion.

This year marks the 80th anniversary of the United Nations.

Born out of the ashes of the Second World War, our organization was the result of a global commitment to “save succeeding generations from the scourge of war.”

It also signaled a commitment to an entirely new level of international cooperation grounded in international law and our founding Charter.

To help countries move past the horrors of conflict to forge sustainable peace.

To tackle poverty, hunger and disease.

To assist countries in climbing the development ladder.

To provide humanitarian support in times of conflict and disaster.

To embed justice and fairness through international law and respect for human rights.

And to work through this Council to push for peace through dialogue, debate, diplomacy and consensus-building.

Eight decades later, one can draw a direct line between the creation of the United Nations and the prevention of a third world war.

Eight decades later, the United Nations remains the essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights.

But eight decades is a long time.

And because we believe in the singular value and purpose of the United Nations, we must always strive to improve the institution and the way we work.

We have the hardware for international cooperation — but the software needs an update.

An update in representation to reflect the realities of today.

An update in support for developing countries to redress historical injustices.

An update to ensure countries adhere to the purposes, principles and norms that ground multilateralism in justice and fairness.

And an update to our peace operations.

Excellencies,

Global solidarity and solutions are needed more than ever.

The climate crisis is raging, inequalities are growing, and poverty is on the rise.

As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond.

Terrorism and violent extremism remain persistent scourges.

We see a dark spirit of impunity spreading.

The prospect of nuclear war remains — outrageously — a clear and present danger.

And the limitless promise of emerging technologies like Artificial Intelligence is matched by limitless peril to undermine and even replace human thought, human identity and human control.
These global challenges cry out for multilateral solutions.

The Pact for the Future you adopted in September is aimed at strengthening global governance for the 21st century and rebuilding trust — trust in multilateralism, trust in the United Nations, and trust in this Council.

At its heart, the Pact for the Future is a pact for peace — peace in all its dimensions.

It puts forward concrete solutions to strengthen the machinery of peace, drawing from proposals to the New Agenda for Peace that prioritize prevention, mediation and peacebuilding.

The Pact seeks to advance coordination with regional organizations, and ensure the full participation of women, youth and marginalized groups in peace processes.

And it calls for strengthening the Peacebuilding Commission to mobilize political and financial support for nationally owned peacebuilding and prevention strategies.

The Pact also includes the first multilateral agreement on nuclear disarmament in more than a decade…

New strategies to end the use of chemical and biological weapons…

And revitalized efforts to prevent an arms race in outer space and advance discussions on lethal autonomous weapons.

It also calls on Member States to live up to their commitments enshrined in the UN Charter, and the principles of respect for sovereignty, territorial integrity and the political independence of states.

It reaffirms unwavering commitment to abide by international law and prioritize the peaceful settlement of disputes through dialogue.

It recognizes the role of the United Nations in preventive diplomacy.

It reinforces the need to uphold all human rights — civil, political, economic, social and cultural.

It calls for the meaningful inclusion of women and youth in all peace processes.
And it specifically calls on this Council to ensure that peace operations are guided by clear and sequenced mandates that are realistic and achievable — with viable exit strategies and transition plans.

But the Pact does even more for peace.

It recognizes that we must address the root causes of conflict and tensions.

Sustainable peace requires sustainable development.

The Pact includes support for an SDG Stimulus to help developing countries invest in their people and tackle key challenges, like moving towards a future anchored in renewable energy.

It includes a revitalized commitment to reform the global financial architecture to better and more fairly represent the needs of developing countries.

And it includes a Global Digital Compact that calls for an AI governance body that brings developing countries to the decision-making table for the first time.

Excellencies,

The Pact also recognizes that the Security Council must reflect the world of today, not the world of 80 years ago, and sets out important principles to guide this long-awaited reform.

This Council should be enlarged and made more representative of today’s geopolitical realities.

And we must continue improving the working methods of this Council to make it more inclusive, transparent, efficient, democratic and accountable.

These issues have been under consideration by the General Assembly for more than a decade.

Now is the time to build on the momentum provided by the Pact for the Future, and work towards a greater consensus among regional groups and Member States — including the permanent members of this Council — to move the intergovernmental negotiations forward.

Throughout, I call on Members of this Council to overcome the divisions that are blocking effective action for peace.

The world looks to you to act in meaningful ways to end conflicts, and ease the suffering these wars inflict on innocent people.

Council Members have shown that finding common ground is possible.

From deploying peacekeeping operations…to forging lifesaving resolutions on humanitarian aid…to historic recognitions of the security challenges faced by women and young people…to the landmark Resolution 2719 supporting African Union-led peace support operations through assessed contributions.

Even in the darkest days of the Cold War, the collective decision-making and vigorous dialogue in this Council maintained a functioning, if imperfect, system of collective security.

I urge you to summon this same spirit, continue working to overcome differences and focus on building the consensus required to deliver the peace all people need and deserve.

Excellencies,

Multilateral cooperation is the beating heart of the United Nations.

Guided by the solutions in the Pact for the Future, multilateralism can also become an even more powerful instrument of peace.

But multilateralism is only as strong as each and every country’s commitment to it.

As we look to the challenges around us, I urge all Member States to continue strengthening and updating our global problem-solving mechanisms.

Let’s make them fit for purpose — fit for people — and fit for peace.

Thank you.

****
[all-French]

Excellences,

Je remercie le Ministre Wang Yi et la Chine d’avoir organisé cet important débat.

Cette année marque le quatre-vingtième anniversaire de l’Organisation des Nations Unies.

Née des cendres de la Seconde Guerre mondiale, notre Organisation est le fruit de l’engagement pris à l’échelle mondiale de « préserver les générations futures du fléau de la guerre ».

Sa création a également marqué un engagement en faveur d’un niveau de coopération internationale entièrement nouveau, ancré dans le droit international et dans notre Charte fondatrice.

L’engagement d’aider les pays à dépasser les horreurs du conflit pour instaurer une paix durable.

De lutter contre la pauvreté, la faim et la maladie.

D’aider les pays à progresser sur l’échelle du développement.

De fournir une aide humanitaire en cas de conflit ou de catastrophe.

D’ancrer la justice et l’équité grâce au droit international et au respect des droits humains.

D’œuvrer, dans le cadre de ce Conseil, pour faire avancer la paix par le dialogue, le débat, la diplomatie et la recherche d’un consensus.

Huit décennies plus tard, on peut établir un lien direct entre la création de l’Organisation des Nations Unies et la prévention d’une troisième guerre mondiale.

Huit décennies plus tard, l’ONU reste un lieu de rencontre unique en son genre et indispensable à la promotion de la paix, du développement durable et des droits humains.

Mais huit décennies, c’est long.

Et parce que nous croyons à la valeur et à l’objectif de l’ONU, qui lui sont propres, nous devons en permanence nous efforcer d’améliorer l’institution et notre façon de travailler.

Le dispositif de coopération internationale est opérationnel, mais une refonte du système d’exploitation s’impose.

Une refonte de la représentation, pour rendre compte des réalités d’aujourd’hui.

Une refonte de l’aide apportée aux pays en développement, afin de réparer les injustices historiques.

Une refonte visant à s’assurer que les pays adhèrent aux objectifs, principes et normes qui fondent le multilatéralisme sur la justice et l’équité.

Et une refonte de nos opérations de paix.

Excellences,

La solidarité mondiale et des solutions globales sont plus que jamais nécessaires.

La crise climatique fait rage, les inégalités se creusent et la pauvreté augmente.

Comme ce Conseil le sait bien, la paix est de plus en plus hors de portée – du Territoire palestinien occupé à l’Ukraine, en passant par le Soudan, la République démocratique du Congo, etc.

Les fléaux que sont le terrorisme et l’extrémisme violent persistent.

Nous voyons se répandre une sombre culture de l’impunité.

La menace d’une guerre nucléaire demeure un danger clair et présent, ce qui est révoltant.

Les possibilités illimitées offertes par les technologies émergentes telles que l’intelligence artificielle s’accompagnent d’un risque également illimité d’affaiblissement, voire de remplacement de la pensée humaine, de l’identité humaine et du contrôle humain.

Ces problèmes mondiaux demandent des solutions multilatérales.

Le Pacte pour l’avenir que vous avez adopté en septembre vise à renforcer la gouvernance mondiale pour le vingt et unième siècle et à rétablir la confiance – confiance dans le multilatéralisme, confiance dans les Nations unies et confiance dans ce Conseil.

Au fond, le Pacte pour l’avenir est un pacte pour la paix – la paix dans toutes ses dimensions.

Il propose des solutions concrètes pour renforcer les mécanismes de paix, s’inspirant des propositions du Nouvel Agenda pour la paix qui donnent la priorité à la prévention, à la médiation et à la consolidation de la paix.

Le Pacte vise à renforcer la coordination avec les organisations régionales et à garantir la pleine participation des femmes, des jeunes et des groupes marginalisés aux processus de paix.

Il appelle au renforcement de la Commission de consolidation de la paix afin de mobiliser le soutien politique et financier nécessaire à la mise en œuvre des stratégies de prévention et de consolidation de la paix pilotées par les pays.

Il contient également le premier accord multilatéral sur le désarmement nucléaire conclu depuis plus de dix ans…

Présente de nouvelles stratégies visant à mettre fin à l’emploi d’armes chimiques et biologiques…

Ainsi que des mesures revitalisées visant à prévenir une course aux armements dans l’espace et à faire avancer les débats sur les armes létales autonomes.

Il exhorte les États Membres à respecter les engagements qu’ils ont pris, consacrés dans la Charte des Nations Unies, ainsi que les principes de respect de la souveraineté, de l’intégrité territoriale et de l’indépendance politique des États.

Il réaffirme leur volonté inébranlable à respecter le droit international et à privilégier le règlement pacifique des différends par le dialogue.

Il reconnaît le de l’Organisation des Nations Unies dans la diplomatie préventive.

Il réaffirme la nécessité de respecter tous les droits humains – civils, politiques, économiques, sociaux et culturels.

Il appelle à une véritable inclusion des femmes et des jeunes dans tous les processus de paix.

Il demande en particulier au Conseil de sécurité de veiller à ce que les opérations de paix soient guidées par des mandats clairs et séquencés, réalistes et réalisables, ainsi que des stratégies de sortie et des plans de transition viables.

Mais le Pacte va encore plus loin pour la paix.

Il prend acte du fait que nous devons nous attaquer aux causes profondes des conflits et des tensions.

Le développement durable passe par l’instauration d’une paix durable.

Le Pacte dispose qu’il faut soutenir la mise en place d’un plan de relance des objectifs de développement durable afin d’aider les pays en développement à investir dans leur population et à relever des défis majeurs, notamment à s’orienter vers un avenir ancré dans les énergies renouvelables.

Il comprend un engagement renouvelé de réformer l’architecture financière mondiale afin de représenter de manière plus exacte et plus équitable les besoins des pays en développement.

Il comprend également un Pacte numérique mondial qui appelle à la création d’un organe de gouvernance de l’intelligence artificielle associant pour la première fois les pays en développement à la prise de décisions.

Excellences,
Le Pacte reconnaît également que le Conseil de sécurité doit refléter le monde d’aujourd’hui, et non celui d’il y a 80 ans, et énonce des principes importants pour guider cette réforme tant attendue.

Ce Conseil devrait être élargi et devenir plus représentatif des réalités géopolitiques d’aujourd’hui.

Nous devons aussi continuer à améliorer les méthodes de travail du Conseil afin de le rendre plus inclusif, plus transparent, plus efficace, plus démocratique et plus responsable.

Cela fait plus de dix ans que l’Assemblée générale examine ces questions.
Le moment est venu de tirer parti de l’élan donné par le Pacte pour l’avenir et d’œuvrer en faveur d’un consensus plus large entre les groupes régionaux et les États Membres – y compris les membres permanents de ce Conseil – afin de faire avancer les négociations intergouvernementales.

À tous les niveaux, j’appelle les membres de ce Conseil à surmonter les divisions qui bloquent une action efficace en faveur de la paix.

Le monde compte sur vous pour contribuer véritablement à mettre fin aux conflits et à alléger les souffrances que ces guerres infligent à des innocents.

Les membres du Conseil ont montré qu’il était possible de trouver un terrain d’entente.

Qu’il s’agisse du déploiement d’opérations de maintien de la paix… de l’adoption de résolutions vitales sur l’aide humanitaire… de la reconnaissance historique des problèmes de sécurité rencontrés par les femmes et les jeunes… ou encore de la résolution 2719, qui appuie les opérations de soutien à la paix menées par l’Union africaine à travers des contributions obligatoires.

Même aux heures les plus sombres de la guerre froide, la prise de décisions collégiales et le dialogue vif entretenu au Conseil de sécurité ont permis de préserver un système de sécurité collective, certes imparfait, mais fonctionnel.

Je vous exhorte à retrouver cet esprit, à poursuivre vos efforts pour surmonter les divergences et bâtir les consensus nécessaires pour instaurer la paix dont tous les peuples ont tant besoin et qu’ils méritent.

Excellences,

La coopération multilatérale est le cœur battant de l’Organisation des Nations Unies.

Guidé par les solutions offertes dans le Pacte pour l’avenir, le multilatéralisme peut devenir un instrument de paix encore plus puissant.

Mais la puissance du multilatéralisme dépend directement du niveau d’engagement de chaque pays.

Face aux enjeux du monde qui nous entoure, j’invite tous les États Membres à continuer de renforcer et d’actualiser nos mécanismes mondiaux de résolution des problèmes.

Faisons en sorte qu’ils soient à la hauteur de la mission… à la hauteur des besoins des populations… à la hauteur de la paix.

Je vous remercie.

MIL OSI United Nations News –

February 19, 2025
MIL-OSI Asia-Pac: Korea-Malaysia summit (November 2024)
Source: Government of the Republic of Korea

Korea-Latvia summit (November 2024)

President Yoon Suk Yeol on Nov. 28 hosted a summit at his office for visiting Latvian President Edgars Rinkevics on raising bilateral cooperation and analyzing regional and international situations.

Both leaders agreed to strengthen bilateral cooperation in sectors such as bio and pharmaceuticals, national security and the defense industry.

Korea-Malaysia summit (November 2024)

President Yoon Suk Yeol on Nov. 25 hosted summit talks in Seoul with Malaysian Prime Minister Anwar Ibrahim, who was on an official visit to Korea, and adopted a joint statement on their newly formed strategic partnership.

Both leaders welcomed the resumption of negotiations on a bilateral free trade agreement this year and agreed to accelerate efforts to conclude the deal next year. They also pledged to raise cooperation in infrastructure and supply chains for core minerals.
Korea-Peru summit (November 2024)

President Yoon Suk Yeol and Peruvian President Dina Boluarte on Nov. 16 held a bilateral summit at the Presidential Palace in Lima, Peru, and agreed to bolster cooperation in the defense sector and infrastructure.
The two countries concluded memorandums of understanding on joint production of KF-21 fighter jet parts, development of naval ships (submarines) and cooperation in army ground equipment.
- Current Affairs President Yoon’s visits to Peru, Brazil for APEC, G20
Korea-ASEAN summit (October 2024)

President Yoon Suk Yeol on Oct. 10 attended the 25th Association of Southeast Asian Nations (ASEAN) Summit at the National Convention Centre in Vientiane, Laos, where he and ASEAN leaders agreed to form a comprehensive strategic partnership and launch joint projects in a range of sectors.

They also agreed to stimulate trade and investment through a bilateral free trade agreement and the Regional Comprehensive Economic Partnership, while creating a “conducive and favourable environment” for ASEAN and Korean business such as the ASEAN-ROK (Republic of Korea) Business Council.
- Current Affairs President Yoon’s visit to 3 Asian nations
Korea-Japan summit (October 2024)

President Yoon Suk Yeol on Oct. 10 held a summit with Japanese Prime Minister Shigeru Ishiba at a hotel in Vientiane, Laos, their first talks since the prime minister assumed office on Sept. 1.

Both leaders agreed on the growing need to raise bilateral cooperation in regional and global issues and expand the horizons for such collaboration on the global stage.
- Current Affairs President Yoon’s visit to 3 Asian nations
Korea-Philippines summit (October 2024)

President Yoon Suk Yeol, on a state visit to the Philippines, on Oct. 7 agreed with Philippine President Ferdinand Marcos Jr to form a bilateral strategic partnership at their summit held at the presidential Malacanang Palace in Manila.

Both leaders also adopted a joint declaration on higher cooperation in all sectors including national security and economy like nuclear power plants.
- Current Affairs President Yoon’s visit to 3 Asian nations
Korea-Czechia summit (September 2024)

President Yoon Suk Yeol on Sept. 19 discussed with Czech President Petr Pavel in Prague cooperation in strategic sectors including nuclear power plants. Both leaders also shared opinions on developing their bilateral strategic partnership.

Korea-New Zealand summit (September 2024)

President Yoon Suk Yeol and New Zealand Prime Minister Christopher Luxon on Sept. 4 at their bilateral summit adopted a joint statement on stronger bilateral relations in trade, economy, science, human exchange, national security and international cooperation.

Both leaders also agreed to elevate their Partnership for the 21st Century concluded in 2006 to a comprehensive strategic partnership.
Korea-Germany summit (July 2024)

President Yoon Suk Yeol on July 10 in Washington held bilateral talks with German Chancellor Olaf Scholz on the sidelines of the NATO Summit.
President Yoon said he hopes to work more closely with Germany on global issues such as support for Ukraine, supply chain disruptions and the climate crisis. He also hailed Germany’s application to join the United Nations Command.
- Current Affairs President Yoon’s US visit for NATO Summit
Korea-Japan summit (July 2024)

President Yoon Suk Yeol on July 10 in Washington held bilateral talks with Japanese Prime Minister Fumio Kishida on the sidelines of the NATO Summit.
President Yoon said, “The recent signing by Russia and North Korea of a comprehensive strategic partnership treaty and their accelerated closeness in military and economic ties are raising serious concern over global security as well as that of East Asia.”
- Current Affairs President Yoon’s US visit for NATO Summit
MIL OSI Asia Pacific News –
February 19, 2025
MIL-OSI Asia-Pac: Korea-Latvia summit (November 2024)
Source: Government of the Republic of Korea

Korea-Latvia summit (November 2024)

President Yoon Suk Yeol on Nov. 28 hosted a summit at his office for visiting Latvian President Edgars Rinkevics on raising bilateral cooperation and analyzing regional and international situations.

Both leaders agreed to strengthen bilateral cooperation in sectors such as bio and pharmaceuticals, national security and the defense industry.

Korea-Malaysia summit (November 2024)

President Yoon Suk Yeol on Nov. 25 hosted summit talks in Seoul with Malaysian Prime Minister Anwar Ibrahim, who was on an official visit to Korea, and adopted a joint statement on their newly formed strategic partnership.

Both leaders welcomed the resumption of negotiations on a bilateral free trade agreement this year and agreed to accelerate efforts to conclude the deal next year. They also pledged to raise cooperation in infrastructure and supply chains for core minerals.
Korea-Peru summit (November 2024)

President Yoon Suk Yeol and Peruvian President Dina Boluarte on Nov. 16 held a bilateral summit at the Presidential Palace in Lima, Peru, and agreed to bolster cooperation in the defense sector and infrastructure.
The two countries concluded memorandums of understanding on joint production of KF-21 fighter jet parts, development of naval ships (submarines) and cooperation in army ground equipment.
- Current Affairs President Yoon’s visits to Peru, Brazil for APEC, G20
Korea-ASEAN summit (October 2024)

President Yoon Suk Yeol on Oct. 10 attended the 25th Association of Southeast Asian Nations (ASEAN) Summit at the National Convention Centre in Vientiane, Laos, where he and ASEAN leaders agreed to form a comprehensive strategic partnership and launch joint projects in a range of sectors.

They also agreed to stimulate trade and investment through a bilateral free trade agreement and the Regional Comprehensive Economic Partnership, while creating a “conducive and favourable environment” for ASEAN and Korean business such as the ASEAN-ROK (Republic of Korea) Business Council.
- Current Affairs President Yoon’s visit to 3 Asian nations
Korea-Japan summit (October 2024)

President Yoon Suk Yeol on Oct. 10 held a summit with Japanese Prime Minister Shigeru Ishiba at a hotel in Vientiane, Laos, their first talks since the prime minister assumed office on Sept. 1.

Both leaders agreed on the growing need to raise bilateral cooperation in regional and global issues and expand the horizons for such collaboration on the global stage.
- Current Affairs President Yoon’s visit to 3 Asian nations
Korea-Philippines summit (October 2024)

President Yoon Suk Yeol, on a state visit to the Philippines, on Oct. 7 agreed with Philippine President Ferdinand Marcos Jr to form a bilateral strategic partnership at their summit held at the presidential Malacanang Palace in Manila.

Both leaders also adopted a joint declaration on higher cooperation in all sectors including national security and economy like nuclear power plants.
- Current Affairs President Yoon’s visit to 3 Asian nations
Korea-Czechia summit (September 2024)

President Yoon Suk Yeol on Sept. 19 discussed with Czech President Petr Pavel in Prague cooperation in strategic sectors including nuclear power plants. Both leaders also shared opinions on developing their bilateral strategic partnership.

Korea-New Zealand summit (September 2024)

President Yoon Suk Yeol and New Zealand Prime Minister Christopher Luxon on Sept. 4 at their bilateral summit adopted a joint statement on stronger bilateral relations in trade, economy, science, human exchange, national security and international cooperation.

Both leaders also agreed to elevate their Partnership for the 21st Century concluded in 2006 to a comprehensive strategic partnership.
Korea-Germany summit (July 2024)

President Yoon Suk Yeol on July 10 in Washington held bilateral talks with German Chancellor Olaf Scholz on the sidelines of the NATO Summit.
President Yoon said he hopes to work more closely with Germany on global issues such as support for Ukraine, supply chain disruptions and the climate crisis. He also hailed Germany’s application to join the United Nations Command.
- Current Affairs President Yoon’s US visit for NATO Summit
Korea-Japan summit (July 2024)

President Yoon Suk Yeol on July 10 in Washington held bilateral talks with Japanese Prime Minister Fumio Kishida on the sidelines of the NATO Summit.
President Yoon said, “The recent signing by Russia and North Korea of a comprehensive strategic partnership treaty and their accelerated closeness in military and economic ties are raising serious concern over global security as well as that of East Asia.”
- Current Affairs President Yoon’s US visit for NATO Summit
MIL OSI Asia Pacific News –
February 19, 2025
MIL-OSI Global: Why the British army is so unprepared to send troops to Ukraine

Source: The Conversation – UK – By Kenton White, Lecturer in Strategic Studies and International Relations, University of Reading

Martin Hibberd/Shutterstock

Prime Minister Keir Starmer has said that Britain is “ready and willing to contribute to security guarantees to Ukraine by putting our own troops on the ground if necessary”.

While reports suggest these would be “peacekeeping” forces, the reality is that true peacekeepers must be impartial. British troops placed to support Ukraine could certainly be seen as “partial”. And the positioning of British forces in Ukraine would fit the Russian narrative that casts Nato as the aggressor.

Ukraine is not a member of Nato, but the goal of Nato membership is enshrined in its constitution. British forces involved in any sort of fighting in Ukraine would not enable article 5, which states that each member will regard an attack on any other member as an attack on themselves and assist it, to be invoked. Additionally, US defence secretary Pete Hegseth said last week that European troops deployed to Ukraine should not be covered under article 5.

The weakness with Starmer’s idea is that Britain does not have the wherewithal to provide enough troops, supplies and weapons to act as a real deterrent. This isn’t too dissimilar from the state of British forces when faced with war in Europe more than a century ago.

In 1914 Lord Kitchener, then secretary of state for war, speaking of the cabinet’s decision to go to war in Europe, thundered, “Did they remember, when they went headlong into a war like this, that they were without an army, and without any preparation to equip one?”

Small numbers would be nothing more than a “speed-bump” against a large attack, as the British Expeditionary Force was in 1914 and again in 1940. Poor preparation, small numbers and limited equipment meant their deployment was more an indication of Britain’s support, rather than real capability to fight a long war against a peer enemy.

Britain is again in this position. Years of spending cuts have removed the ability of British forces to prosecute a war against a peer adversary for an extended time. The number of troops has fallen from 100,000 full-time trained personnel in 2000, to approximately 70,000 today.

Read more:
US says European security no longer its primary focus – the shift has been years in the making

Britain also does not have the capacity to manufacture at the levels required for a modern war. Much will be needed for immediate capital investment, such as manufacturing capacity for arms and ammunition. Longer-term investment will be required for arms production, as will the reinstatement of supporting infrastructure, such as airfields and storage facilities abandoned after the end of the cold war, both within Britain and across Europe.

There is no solution to the immediate problem except increasing the money available for defence. But Britain, and many other Nato members, have been unwilling to increase spending on defence, even though the current capabilities have been run down to such an extent that European nations cannot field a capable force.

Defence spending

US president Donald Trump has called for Nato countries to up their defence spending to 5% of GDP from the current Nato target of 2%. This would be very difficult to achieve in Britain’s current financial situation without spending cuts elsewhere.

While it has been reported that defence chiefs are pushing for a rise to 2.65% of GDP, Starmer indicated he would resist pressure to increase spending above 2.5%.

The last time the UK spent more than 5% of its GDP on defence was in the height of the cold war. The current international situation has already begun to shift into two distinct blocs similar to the east-west split between 1945 and 1991. However, the bipolar balance of the cold war has been replaced with an increasing instability, as displayed by Russian aggression in Georgia and Ukraine.

Replacing lost capacity is almost always more expensive than maintaining it. Had the governments of past decades maintained the capabilities of the armed forces, the overall cost would most likely have been lower than the amount the nation will now have to invest to obtain the same level of defence.

Each defence review since 1957 has led to cuts to the defence budget in real terms. Reductions in the military budget continue because, previously, nothing presented a sufficient sub-nuclear threat to the nation deemed significant enough to reverse them. Those cuts are now so deep that the nation is on the edge of being unable to defend itself, let alone project military power abroad in any significant capacity.

The prime minister wrote: “We have got to show we are truly serious about our own defence and bearing our own burden.” This assertion is quickly undermined by the indication that he won’t increase spending anytime soon.

None of the western members of Nato have shown any willingness to significantly increase their defence spending. Great Britain expects to spend £56.4 billion for 2024-25, amounting to approximately 2.3% of GDP. But this includes £0.65 billion in pensions and benefits, and £0.22 billion in “arms-length bodies” that do not contribute to the defence establishment in any practical terms.

Britain and Nato have had clear warning since 2014 to correct the deficiencies of their defences. All have chosen to ignore the developing threat from Russia. The impression is that not only are we hoping for the best, but we are planning for the best too.

Lord Tedder, chief of the air staff after the second world war, wrote, “It is at the outset of war that time is the supreme factor.” Three years into the war in Ukraine, and it is clear that Nato missed the opportunity to strengthen its defences in the early stages. It now faces a significant increase in defence spending simply to make up the shortfall from previous decades.

Kenton White 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. Why the British army is so unprepared to send troops to Ukraine – https://theconversation.com/why-the-british-army-is-so-unprepared-to-send-troops-to-ukraine-250123

MIL OSI – Global Reports –

February 19, 2025
MIL-OSI China: China responds to US-Russia talks on Ukraine crisis

Source: China State Council Information Office

China welcomes all peace efforts to resolve the Ukraine crisis, including the talks between the United States and Russia, and China hopes that all parties and stakeholders can participate in the peace talks process in due course, Foreign Ministry spokesperson Guo Jiakun said on Tuesday.

China always believes that dialogue and negotiation are the only viable way to resolve the crisis and has been committed to promoting talks for peace, Guo said at a regular news briefing.

He made the comments in response to a query about a meeting between the U.S. and Russian officials on Tuesday in Riyadh, Saudi Arabia, without the participation of Ukraine.

MIL OSI China News –

February 19, 2025
MIL-OSI Global: Ukraine peace talks: Trump is bringing Russia back in from the cold and ticking off items on Putin’s wish list

Source: The Conversation – UK – By James Rodgers, Reader in International Journalism, City St George’s, University of London

The meeting now underway in Saudi Arabia between senior delegations from the United States and Russia could be the first step towards an end to the war in Ukraine – and not just an end to the war. The New York Times has reported that the talks may cover issues beyond the battlefield, with the resumption of US-Russia business ties on the table, too.

Whatever is discussed, Ukraine seems set to lose out.

The same cannot be said of the long-term occupant of the Kremlin. For 20 years, Vladimir Putin has been working towards what Donald Trump has now given him. Ever since Putin bemoaned the collapse of the Soviet Union as “the greatest geopolitical catastrophe” of the 20th century, his foreign policy has been about getting back at least some of the superpower status the Soviet Union enjoyed.

In one sense, the US president’s overture to Putin to discuss peace in Ukraine has given the Russian president exactly what he wanted: for Washington to treat Moscow with the respect – and perhaps even fear – that the Soviet Union once commanded from the west.

And in that sense, Trump’s telephone call with the Kremlin represented a huge triumph for Putin. Putin now has a pending invitation back to the top table of world affairs. He has conceded not an inch of occupied Ukrainian territory to get there. Nor has he even undertaken to give back any of what Russian forces have seized since the full-scale invasion of Ukraine three years ago.

Now his foreign minister, Sergei Lavrov, is talking to the US secretary of state, Marco Rubio. Meanwhile the annexation of Crimea in 2014 – which is when Russia’s war on Ukraine actually began – seems increasingly likely to be overlooked. The suggestion from the US defence secretary, Pete Hesgeth, last week that a return to Ukraine’s pre-2014 borders was “unrealistic” has made clear Washington’s current view on that.

So far, so good for Putin, who sees the western alliance that has been ranged against him – albeit with varying degrees of enthusiasm and commitment – for the past three years beginning to crack.

Under Trump, Washington’s policy on Ukraine is showing signs of significant divergence from that of the EU or UK. Putin no doubt sees his determination not to be cowed by western pressure as starting now to lead to longer-term success.

Read more:
Europe left scrambling in face of wavering US security guarantees

Now the two leaders have agreed to meet – a complete reversal of the three years of increasing isolation during Joe Biden’s presidency. And, as we know, the first time the two leaders met for a summit, in Helsinki in 2018, Putin was widely seen as having outwitted Trump. As Trump’s then senior director for European and Russian Affairs, Fiona Hill, recalled in her memoir: “As Trump responded that he believed Putin over his own intelligence analysts, I wanted to end the whole thing.”

Putin will hardly feel he enters any future negotiation as an underdog. Just by being there, to discuss the most pressing matter for the future of European security with the US president, Putin has achieved part of his long-term goal. Just as in the days of the Soviet Union, leaders from the Kremlin and the White House will meet to discuss European affairs as the preeminent powers on the continent.

The views of Europeans themselves, especially Ukrainians, are secondary.

Back to the top table

If Putin’s 2005 lament for a lost superpower gave a clue to the course his time at the summit of Russian power would take, then he gave yet more clues on the eve of the full-scale invasion. In December 2021, Putin regretted the collapse of the Soviet Union once again.

This time he said it had a significance far beyond the century in which it happened, saying: “We turned into a completely different country. And what had been built up over 1,000 years was largely lost.”

Days later, with expectation growing that Russia was planning to invade Ukraine, the foreign ministry in Moscow published a document it called Treaty between The United States of America and the Russian Federation on security guarantees.

The language chosen is striking today for the references it makes to the Soviet Union, as in article 4: “The United States of America shall undertake to prevent further eastward expansion of the North Atlantic Treaty Organization and deny accession to the Alliance to the States of the former Union of Soviet Socialist Republics.”

The Biden administration dismissed the treaty as the trolling it represented. But Hegseth’s recent remark, “The United States does not believe that Nato membership for Ukraine is a realistic outcome of a negotiated settlement,” fits right in with Putin’s wish list.

This is about Russia becoming the international heavyweight the Soviet Union once was. It is also about a turn of events that greatly favours Putin.

For three years, I have been working on a book, The Return of Russia: From Yeltsin to Putin, the Story of a Vengeful Kremlin. My research included interviews with leading policymakers, among them Jens Stoltenberg, who served as secretary general of Nato between 2014 and 2024. When we spoke in September 2023, I took the opportunity to ask him how he saw the coming months in the war in Ukraine. He told me:

Only the Ukrainians that can decide what is an acceptable solution. But the stronger they are on the battlefield, the stronger they will be on the negotiating table and therefore our responsibility is to support them … but it’s for Ukrainian to make the hard decisions on the battlefield. And of course at the end at the negotiating table.

Trump’s démarche towards a deal appears to ignore that logic, and strengthens Putin’s hand before negotiations have even started.

If it does lead to an end to the war now, there is nothing to say that Putin’s long view of history won’t encourage him to go to war again in a few years. And he’ll be better prepared to capture more territory than he has already in the last three blood-soaked years.

James Rodgers 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. Ukraine peace talks: Trump is bringing Russia back in from the cold and ticking off items on Putin’s wish list – https://theconversation.com/ukraine-peace-talks-trump-is-bringing-russia-back-in-from-the-cold-and-ticking-off-items-on-putins-wish-list-249982

MIL OSI – Global Reports –

February 19, 2025
MIL-OSI United Kingdom: Defence Secretary’s speech on Defence Reform

Source: United Kingdom – Executive Government & Departments

Transcript of the Defence Secretary’s address on defence reform at the Institute for Government.

Good morning, everyone. Thank you for being here and thank you for hosting us today.

The Institute for Government, in my book, plays a really important role in Westminster. It helps hold Ministers to account for what we say we’re going to do as part of that bigger mission to securing this country a better government for Britain.

I must say, when I confirmed this event a few weeks ago, I wouldn’t have expected such interest in MOD reform, and I’m really grateful for the level of this attendance and presence, both in the room and online.

But I guess the pace of the geopolitical change which you were referring to Hannah, and what we’re seeing right now confirms what I would argue is the need for change within defence too.

As I said on my first day as Secretary of State in the department, when I came through the doors, I’m a Defence Secretary that’s more interested in getting results and global opportunities than headlines, and I guess I’m delivering on that promise, making a speech on defence reform right in the middle of parliamentary recess.

However, the headlines, the wider headlines, and the decisions that we make right now over the coming weeks will not only define the outcome of the conflict in Ukraine, but the security of our world for a generation to come, and the nature of government means dealing with these challenges.

In my view, the test of leadership, of political leadership isn’t just about managing the immediate, it’s also about reforming for the future.

We’re in a new era of threat that demands a new era for defence and in the middle of everything else, last week, the new Defence Secretary Pete Hegseth in the US and I, made time to discuss the aims we share on defence reform.

This government, our new Labour government, was elected on a mandating one word: change.

We govern on an instruction in one word: deliver.

And as a new government, we’re delivering for defence.

Over these first seven months, we stepped up and speeded up support for Ukraine. We’ve increased defence spending this year by nearly £3 billion, and we’ll set the path to spending 2.5% of GDP in the Spring.

We’ve launched a new Defence Industrial Strategy. We secured a deal to buy back 36,000 military homes to improve conditions for personnel and get better value for the taxpayer.

We’ve given the men and women of our armed forces the biggest pay increase for more than 20 years. We signed the landmark Trinity House agreement with the Germany.

We’ve already progressed the Armed Forces Commissioner bill through the House of Commons to give a strong independent voice to improve service life.

We have in the MOD two major change programmes both launched within the first month of government.

One, the Strategic Defence Review. Two, our Defence Reform program. Each is essential for the other. The Defence Review will reinforce the imperative for Defence Reform. Defence reform is the foundation for being able to implement the Defence Review and for discharging what is our first duty in government.

Exactly a year ago, actually, in February, I gave a speech at Policy Exchange on defence reform in which I outlined, and I said then the need to create a strong defence centre capable of leading Britain meeting the increasing threats we face.

And in a little noticed section of the Labour Party manifesto at the July election, we pledged specific reforms and said strengthening our defences requires stronger leadership, clearer accountability, faster delivery, less waste and better value for money.

By the end of July, I put in place a new team, new leadership, and weekly meeting meetings with me to drive our defence reform programme.

And today, I wanted to offer an update on where we’ve got to and where we are going in the months ahead.

One of the really special things about this job, the special things about this special job are the deeply impressive men and women I meet every day, from the submariners coming home from weeks undersea, to apprentices on Derby’s nuclear reaction production lines, to the NATO HQ team with people in the MOD building that last week pulled together the Ukraine led contact group meeting of 46 nations in the room at one week’s notice.

Extraordinary people doing extraordinary things within a system that very often doesn’t work in the way that we need it to, for an increasingly dangerous world, work in the way that we need it to, to provide our armed forces with what they need to deter, to fight and to win.

First, underpinning it all is the absence of clear, consistent accountability, central to the effectiveness of any organisation. Yet I have been in too many meetings when I ask who’s leading this? Who’s responsible for getting this done? And no one is able to give me a single, clear answer.

Second, while everyone agrees that defence spending needs to increase, it’s not just how much you spend, but it’s how well you spend it. And we’re simply not securing the value for money our armed forces, our economy needs for every defence panel.

We duplicate even the most central tasks. For example, we have eleven separate finance functions, two and a half thousand people doing the same activity in different places, in different ways. And third defence is mired in process and procedure. We’ve added complexity where simplicity is needed.

Procurement, we’ve got a situation where we employ eleven checkers for every one decision maker. So, no wonder it takes an average six years for a large programme simply to get onto contract.

So today, I’m here to declare that investment in defence will be matched by reform.

First, we’re introducing clear points of accountability at every level within UK defence, starting at the top with four new senior leaders, four leaders who report to me as Defence Secretary and my ministerial team at the central point of accountability to the British people and to the British public.

The Chief of the Defence Staff, who, for the first time since this role was created, now commands the service chiefs and will be the head of newly established Military Strategic Headquarters, responsible for force design and war planning across our integrated force.

The Permanent Secretary, our principal accounting officer, who will run a leaner, more agile Department of State with more policy muscle to lead arguments across Whitehall and with allies, we’ll revamp senior roles to elevate those into policymakers with broad portfolios and powerful mandates.

Third, our new Armaments Director, who will fix procurement and drive growth. I’ll come back to the detail of the National Armaments Director in a moment.

Fourthly, our Chief of Defence Nuclear, who will continue to lead and deliver the national Nuclear Enterprise within the recently established ring fence and freedoms.

This new quad will lead a defence which is more concentrated on warfighting, readiness and on deterrence.

They’ll shift the approach as an organisation, which too often has been obsessed with process, to one focus on outcomes, in which information flows quickly, accountabilities are clear, and results are demanding. This new quad will be up and running from the 31st of March.

On finance will match our new accountabilities, making hardware that manages money better to secure better value for money, for the taxpayer, better outcomes for the armed forces.

[Political reference removed]

Instead of the ten current top line budget holders, there will be four new budget holders, one for each of this new quad. We will introduce three new centrally determined financial budgets, each with ministerial oversight, readiness, operations, investment.

The new readiness budget will hold the chiefs of the services to account for how they run their day-to-day spending. This will be done by the Chief of Defence Staff through our new Military Strategic Headquarters. The Military Strategic Headquarters will be responsible for the new operations budget, unencumbered by the excess bureaucracy and the lack of clarity that characterises the way the defence is organised now, and ministers will direct those priorities.

And then finally, our new National Armaments Director will run the single new investment budget, bringing together eight separate procurement budgets across the organisation into one.

This will help cut waste, reduce duplication, it will help ensure that we are buying better what our front-line forces need. In turn, the Armaments Director will acquire owning capabilities which are affordable within the budgets set by Ministers.

These budgets, as with the quad, will have Initial Operating Capability from the end next month, 31st March.

Our new National Armaments Director will fundamentally change how defence works partner with industry, how the defence becomes the engine for driving economic growth.

So sitting alongside the Permanent Secretary, the Chief of Defence Staff, then executing £20 billion-plus budget to build sustain our national arsenal, because at this time, we must rearm Britain, and I see this as a new FTSE 100 company within the MOD tasked, if you like, with getting the very best capabilities needed into the hands of our frontline forces.

Delivering on our Defence Industrial Strategy to create more defence jobs, more defence apprenticeships in every region and nation across the UK. Tasked with driving British exports up and wider, tasked with receiving responsibility for the entire end to end acquisition system for the MOD.

They will save the taxpayer at least £10 billion over the next decade, savings that we would reinvest directly into Britain’s defence. Our interim National Armaments Director will be in post by the end of next month, recruitment for a permanent candidate is already underway.

In conclusion, the world is changing. Defence is changing. Our reform programme represents the biggest shake up of UK defence for over 50 years.

Let me say this. This is a government whose commitment to defence is unshakeable. It’s the foundation for our Plan for Change, for the delivery of our government’s missions, we will match sustained investment with serious reform.

It will mean, growing the economy. It will mean a more muscular defence for a more dangerous world. It will mean, Britain, which is secure, at home, and strong abroad.

Updates to this page

Published 18 February 2025

MIL OSI United Kingdom –

February 19, 2025
MIL-OSI Europe: Draft agenda – Wednesday, 12 March 2025 – Strasbourg

Source: European Parliament
38 Continuing the unwavering EU support for Ukraine, after three years of Russia’s war of aggression – Motions for resolutions Wednesday, 5 March 2025, 13:00 – Amendments to motions for resolutions; joint motions for resolutions Monday, 10 March 2025, 19:00 – Amendments to joint motions for resolutions Monday, 10 March 2025, 20:00 – Requests for “separate”, “split” and “roll-call” votes Tuesday, 11 March 2025, 16:00 49 Social and employment aspects of restructuring processes: the need to protect jobs and workers’ rights – Motions for resolutions Wednesday, 5 March 2025, 13:00 – Amendments to motions for resolutions; joint motions for resolutions Friday, 7 March 2025, 12:00 – Amendments to joint motions for resolutions Friday, 7 March 2025, 13:00 11 Debates on cases of breaches of human rights, democracy and the rule of law (Rule 150) – Motions for resolutions (Rule 150) Monday, 10 March 2025, 20:00 – Amendments to joint motions for resolutions (Rule 150) Wednesday, 12 March 2025, 13:00 – Amendments to joint motions for resolutions (Rule 150) Wednesday, 12 March 2025, 14:00 Separate votes – Split votes – Roll-call votes Texts put to the vote on Tuesday Friday, 7 March 2025, 12:00 Texts put to the vote on Wednesday Monday, 10 March 2025, 19:00 Texts put to the vote on Thursday Tuesday, 11 March 2025, 19:00 Motions for resolutions concerning debates on cases of breaches of human rights, democracy and the rule of law (Rule 150) Wednesday, 12 March 2025, 19:00

MIL OSI Europe News –

February 19, 2025
MIL-OSI Europe: OLAF completes investigation into suspected serious irregularities in EU-funded procurement of power generators for Ukraine

Source: European Anti-Fraud Offfice

Press release no 5/2025
PDF version

The European Anti-Fraud Office (OLAF) has recommended the financial recovery of over EUR 91 million that were intended for the purchase and delivery of power generators to areas in Ukraine affected by power shortages.

OLAF completed in June 2024 its investigation into alleged serious breaches of procurement rules, transparency, and financial management in a EUR 114 million EU-funded project managed by Poland’s Government Agency for Strategic Reserves (RARS).

On top of the EU 91 million recommended for recovery, an additional EUR 22 million have been safeguarded from being unduly spent, allowing them to reach those in need of assistance. During the case, OLAF closely cooperated with the Central Anti-Corruption Bureau (CBA) and the Polish Public Prosecutor’s Office, leading to the arrest of at least three individuals.

“We need every euro of EU support to Ukraine to reach those in need and guarantee that our taxpayers’ money is duly spent. Protecting EU aid to Ukraine, not only guarantees our taxpayers’ money is duly spent but is also a matter of our security. Thanks to our strong cooperation with the CBA and the Polish Prosecutor’s Office, we have successfully safeguarded the EU’s financial interests,” said Ville Itälä, OLAF Director-General.

Overpricing, lack of competition and undue advantages

The evidence gathered during OLAF’s investigation, which began in July 2023, revealed overpricing, lack of competition and undue advantages given to certain contractors. RARS at the time refused to cooperate with OLAF during the investigation despite their obligations under the EU grant agreement signed in January 2023.

However, OLAF’s investigation was able to establish that RARS’ procurement process violated transparency, competition, equal treatment, and financial management principles. According to the findings of the investigation, contracts were awarded in a non-competitive manner, failing to ensure that the EU funds would reach their intended destination.

OLAF also gathered evidence indicating that RARS granted undue advantages to contractors by issuing large advance payments without sufficient guarantees, exposing EU funds to significant financial risks.

OLAF found that some contractors charged RARS up to 40% more than their purchase costs, leading to substantial overpricing of the EU-funded generators.

_{OLAF mission, mandate and competences:}
_{OLAF’s mission is to detect, investigate and stop fraud with EU funds.}

_{OLAF fulfils its mission by:}
_{•    carrying out independent investigations into fraud and corruption involving EU funds, so as to ensure that all EU taxpayers’ money reaches projects that can create jobs and growth in Europe;}
_{•    contributing to strengthening citizens’ trust in the EU Institutions by investigating serious misconduct by EU staff and members of the EU Institutions;}
_{•    developing a sound EU anti-fraud policy.}

_{In its independent investigative function, OLAF can investigate matters relating to fraud, corruption and other offences affecting the EU financial interests concerning:}
_{•    all EU expenditure: the main spending categories are Structural Funds, agricultural policy and rural development funds, direct expenditure and external aid;}
_{•    some areas of EU revenue, mainly customs duties;}
_{•    suspicions of serious misconduct by EU staff and members of the EU institutions.}

_{Once OLAF has completed its investigation, it is for the competent EU and national authorities to examine and decide on the follow-up of OLAF’s recommendations. All persons concerned are presumed to be innocent until proven guilty in a competent national or EU court of law.}

For further details:

Pierluigi CATERINO
Spokesperson
European Anti-Fraud Office (OLAF)
Phone: +32(0)2 29-52335
Email: olaf-media ec [dot] europa [dot] eu (olaf-media[at]ec[dot]europa[dot]eu)
https://anti-fraud.ec.europa.eu
LinkedIn: European Anti-Fraud Office (OLAF)

_{If you’re a journalist and you wish to receive our press releases in your inbox, please}_{leave us your contact data}_.

MIL OSI Europe News –

February 19, 2025
MIL-OSI Economics: Young innovators shine: Meet the finalists of the Verizon Unloc Young Entrepreneurs Challenge

Source: Verizon

Headline: Young innovators shine: Meet the finalists of the Verizon Unloc Young Entrepreneurs Challenge

LONDON, U.K. – Five young entrepreneurs have been named as finalists in the latest Young Entrepreneurs Challenge (YEC), an initiative launched by Verizon and Unloc.

The challenge, now in its seventh year, aims to discover the business leaders of tomorrow by tasking young European entrepreneurs between the ages of 16 and 25 to devise a tech-led business idea that addresses a key industry or societal issue.

This year’s challenge has brought to light a number of business models that tackle current sustainability and healthcare challenges including water restoration robots, biodegradable textiles from kombucha by-products, reforestation hexapod robots, a floating solar solution and a robotic glove for stroke rehabilitation. The team received over 100 competitive and innovative business ideas from a wide range of countries across Europe including the UK, Ireland, Spain, Italy, France, Germany, Switzerland, Belgium, Greece, Slovakia, Turkey, Portugal, Austria, Ukraine, Bulgaria, Estonia and Poland.

“Throughout the past seven years, the Young Entrepreneurs Challenge has been a brilliant opportunity to discover young and promising talent across Europe. There is nothing like the imagination and innovation of a young mind. The YEC serves as a platform to help bring their ideas to life,” said Sanjiv Gossain, General Manager and Head of EMEA for Verizon Business.

“Young entrepreneurs in Europe often face hurdles and scepticism in accessing funding and mentorship. Verizon Business is proud to play a small role in helping this next generation of tech leaders stay a step ahead in the industry, as they work to make a positive impact around the world.”

“We are in an era where technological innovation is crucial for tackling complex challenges in sustainability, climate change, and health. Investing in the next generation of leaders and their ideas is essential to addressing these issues,” said Hayden Taylor, Co-Founder and Chief Executive of Unloc. “Each year, we are amazed by the ingenuity of young entrepreneurs and are impressed to see the innovative ideas submitted for the Young Entrepreneurs Challenge.”

The five finalists will now compete head-to-head in a grand finale held in March 2025, pitching their business concept live to a panel of expert judges and invited guests representing both the worlds of business and education.

The winner receives £10,000 (€11,750*), mentorship and a technology support package to help kickstart their business. In addition, the winner will also receive a ticket to attend the Global One Young World 2025 Munich Summit.

Each runner-up will receive £977 (€1175) to fund their start-up business, a personalised development plan that focuses on key priorities, and access to a series of masterclasses over the next year that will pair the finalists with various industry experts.

Here are the 2025 finalists:

Aleksandra Daniljuk – AquaRenew

Aleksandra aims to address the global environmental crisis of water pollution caused by excess nitrogen and phosphorus in water bodies. Her solution involves small, solar-powered robots that use wire meshes to collect harmful algae blooms, release oxygen through air stones to combat oxygen depletion, and utilise zeolite biofilters to absorb excess nutrients, thereby preventing further eutrophication.

The key selling point is its self-sustaining business model. The collected algae will be sold to businesses that convert them into biofuels and other sustainable products, creating a revenue stream to fund more robots. This approach not only restores aquatic ecosystems but also fosters sustainability and generates economic value.

Aleksandra’s solution also aligns with the UN SDG 14: Life Below Water, promoting ecological restoration and sustainability.

Luisanny Martinez – Skomby by Tex

Skomby by Tex is a solution to modern challenges in fashion and sustainability that offers a sustainable, biodegradable material made from kombucha fermentation by-products. The eco-friendly alternative to traditional leather and textiles is crafted from bacterial cellulose, offering a lightweight, durable, and unique texture.

The material is 100% biodegradable and compostable, and can even be reused as planting capsules. To further enhance the sustainable model of the business, the team uses natural dyes like turmeric, spirulina, and saffron, ensuring no toxic chemicals are involved.

Skomby by Tex collaborates with local kombucha producers in order to reduce waste and emissions. Luisanny’s long-term vision is to scale production while maintaining low-impact manufacturing practices, such as sun drying and ambient-temperature fermentation.

Marta Bernardino – Trovador

The precision reforestation market is projected to reach $9.77 billion by 2033, growing at a 5.74% CAGR, with high demand from the private sector. Recognising a billion-dollar opportunity, Marta developed Trovador, a reforestation robotics company that combats climate change by planting trees in hard-to-reach areas. Unlike drones, which have a low survival rate for seeds, Trovador’s hexapod robots plant saplings with a 90% survival rate. These AI-driven robots navigate challenging terrains like cliffs and slopes, ensuring effective reforestation.

Trovador’s unique hexapod design preserves essential soil conditions for sapling survival and operates autonomously, overcoming obstacles in real-time. This innovative approach supports sustainability by providing rural communities with a safe, efficient reforestation solution, aligning with several UN Sustainable Development Goals.

The service is quite simple and self-explanatory: clients select the planting site, the robot is deployed, and reforestation is monitored remotely. With just £2.5 (€3) per tree, Trovador is 30% more affordable than traditional methods, while excelling in speed, safety, and sustainability.

Sebastiaan Schalkwijk – Solar Sub

Solar Sub’s floating solar solution revolutionises renewable energy by placing solar panels on water bodies, maximising land use and harnessing natural cooling. This approach enhances system efficiency, increasing energy yield by up to 27% compared to traditional solar systems.

Solar Sub’s advanced cooling technology and optimal panel positioning improve efficiency and durability, reducing operational costs and extending the lifespan of solar installations. This innovation sets Solar Sub apart from competitors facing issues with panel overheating and degradation.

Sebastiaan adopts a licensing business model which allows rapid scaling without significant capital investment. This reduces upfront costs and risks, enabling us to focus on strategic partnerships. His model has gained traction with support from key industry players, confirming market interest and feasibility.

Zain Sumdani – Exoheal

Exoheal addresses the global shortage of physiotherapists and the inaccessibility of effective therapy with a robotic glove and a machine-learning-powered app. This solution delivers personalised, real-time therapy, enabling stroke recovery from home. Early trials show a 50% improvement in recovery time compared to traditional methods.

Exoheal app connects patients with hospitals and clinics, allowing remote monitoring and real-time feedback. Its modular design and scalable production ensure affordability and the ability to meet global demand.

By 2028, Zain and his team aim to transform 100,000 lives, saving governments $178 million in healthcare costs and enabling $16 million in inpatient earnings.

For more information on the Young Entrepreneurs Challenge visit: youngentrepereneurschallenge.com

About Unloc

Unloc was founded in 2013 by award-winning young leaders and advocates Hayden Taylor and Ben Dowling. Our mission is to empower young people to be innovative changemakers who seek to build stronger communities and sustainable businesses. We develop young people’s skills, enhance their potential and boost their determination to succeed. This is encapsulated in our ‘Developing Young Potential’ tagline. We work towards our mission by delivering inspiring educational programmes in our growing network of schools and colleges, our physical Changemaker Studios spaces in Portsmouth and London, and work with business leaders to deliver a range of programmes that help us achieve our mission. For more information about Unloc visit www.unloc.org.uk

MIL OSI Economics –

February 19, 2025
MIL-OSI Economics: Christopher J Waller: Disinflation progress uneven but still on track rates cuts on track as well

Source: Bank for International Settlements

Thank you, Bruce, and thank you for the opportunity to speak to you today. It’s great being back in Sydney and seeing old friends-like the Opera House!

As I look at the U.S. economy today, I see that the real side is doing just fine but progress on lowering inflation has come in fits and starts.¹ After two good months of inflation data for November and December, January once again disappointed and showed that progress on inflation remains uneven. I continue to believe that the current setting of monetary policy is restricting economic activity somewhat and putting downward pressure on inflation. If this winter-time lull in progress is temporary, as it was last year, then further policy easing will be appropriate. But until that is clear, I favor holding the policy rate steady.

Spending by households and businesses has proved to be resilient, we have solid growth in real gross domestic product (GDP) and the latest data on employment, including revisions to most of 2024, support the view that labor market is in a sweet spot. Meanwhile, last week’s January inflation data have a similar feel to that of January 2024, albeit to a smaller degree; they surprised on the high side and raised concerns that the progress we made in pushing inflation toward our 2 percent goal would stall out. But once we got past the first quarter of last year, we did see continued progress in reducing inflation in the latter part of the year. The question now is if we will see progress again later this year, as we did in 2024.

Progress on inflation is an important consideration in policymakers’ judgment about whether monetary policy needs adjustment in the near term. The continued solid labor market is one reason why I supported the Federal Open Market Committee’s (FOMC) decision at the end of January to hold our policy rate steady. After two good inflation reports for November and December there was concern about a January bounce back in inflation. So based on good labor market data and concerns about a seasonal shock to inflation not fully adjusted in the data, I felt it was prudent to stand pat at our January meeting. Given last week’s inflation report, that concern was warranted.

Let me pause here for a moment to address some commentary after the FOMC meeting that cited uncertainty about the new Administration’s policies as a leading reason for that decision. We must keep in mind that there is always a degree of uncertainty about economic policy, and we need to act based on incoming data even when facing great uncertainty about the economic landscape. We have done this in the past and will continue to do so in the future.

Let me provide two recent examples where the FOMC acted in the face of great uncertainty. In March 2022, inflation was roaring, and rate hikes were on the table. Then Russia invaded Ukraine, which created tremendous economic uncertainty around the globe. Not only did the FOMC raise the policy rate in March 2022 for the first time since 2019, but in subsequent meetings we also implemented large rate hikes for several meetings. We could not wait for uncertainty about the war to be resolved.

The second episode was in March of 2023 when stresses emerged in the U.S. banking system, stemming in part from the failures of Silicon Valley Bank and Credit Suisse, with the latter occurring the weekend before our March FOMC meeting. There was great uncertainty as to whether these events would lead to financial instability and a significant contraction of credit that could trigger a recession. Many forecasters projected a recession would hit in the second half of 2023 as a result. Consequently, there were calls to stop hiking the policy rate due to a tremendous amount of financial and banking uncertainty. But the Federal Reserve worked in concert with other government agencies and used its financial stabilization tools to deal with the banking issues and continued raising the policy rate to deal with inflation.² So the moral of this story is that monetary policy cannot be put on hold waiting for these types of uncertainty to resolve.

Putting uncertainty aside, let me turn to my view of the economic data. As I noted, real GDP continued to grow solidly in the fourth quarter, at a pace of 2.3 percent, and would have been nearly 1 percentage point stronger without a reduction in inventories, which tend to be volatile. Personal consumption expenditures (PCE), which are typically two-thirds of GDP, grew a robust 4.2 percent in the fourth quarter. As was noted in the Fed’s latest Monetary Policy Report to Congress, households have a solid level of liquid assets to sustain their spending. Based on the limited data we have for the first quarter of 2025 this solid growth seems to be continuing. The employment report for January, which I will focus on in a moment, indicated a continued strong labor market, which should support consumption. Retail sales are reported to have fallen back in January after a strong rise in December, but given how volatile these data can be, and given that the cold weather in January probably held down sales, I’m not putting much weight on that reading for the time being. Business sentiment, as reflected in surveys of purchasing managers in both manufacturing and non-manufacturing, was among the most consistently positive in a while. The index for manufacturing businesses was 50.9, the first time since October 2022 that these results topped 50, as sentiment indicators about orders, production, and employment were all expanding. The corresponding index for the large majority of businesses outside manufacturing also indicated expansion, as it has for some time. The Blue Chip consensus of private forecasters and the Atlanta Fed’s GDP Now forecast based on the data in hand predict growth this quarter similar to that of the end of last year. To circle back to my message earlier, many people predicted that tariffs proposed by the Administration on February 1 would have a significant effect on trade and consumption in the first quarter, not to mention prices, but after the postponement of some of those tariffs, it is unclear to me if and when that might show up in the data. I will, of course, be watching closely, but I haven’t altered my outlook based on what has been implemented to date.

As I noted earlier, data on the labor market indicate that it is in a good spot, with employers having an easier time filling jobs than earlier in the expansion but with still ample demand for new workers and new jobs being created. The unemployment rate ticked down to 4 percent, which is just about where it has been for the past year. Employers added a net 143,000 jobs in January, down some from a 204,000 average for the final three months of 2024 but right around the 133,000 average for the quarter before that. Two factors that may have held down this number a bit were cold weather and the fires in Los Angeles, which prevented thousands of people from getting to or performing their jobs. Beyond payrolls, the ratio of job vacancies to the number of unemployed people stands at 1.1, close to the level before the pandemic.

Wage growth continues to be strong, and it has considerably outpaced price increases, but is down from two years ago, and for a few reasons, I don’t judge recent data as indicating that wages are a factor preventing inflation from making continued progress toward 2 percent. Though the January reading of average hourly earnings was a bit elevated, this series is pretty volatile and the reading may have been held up by weather-related issues. Smoothing through the monthly fluctuations, we see wage growth fairly steady at 4 percent a month over the past year. Broader measures of worker compensation show a more distinct moderation in growth. The Labor Department’s employment cost index has fallen gradually but consistently from 4.2 percent at the end of 2023 to 3.8 percent at its last reading.

As for whether 4 percent wage growth is consistent with 2 percent inflation, I will note, as I have before, that productivity has grown at roughly a 2 percent annual rate since the advent of the pandemic-and slightly faster than that in 2023 and 2024. Unless that productivity trend changes a lot, wage growth is consistent with bringing inflation down to 2 percent.

Turning to inflation, last week’s data taken as a whole were mildly disappointing but not nearly so disappointing as a focus on the consumer price index (CPI) alone would have indicated. Total CPI inflation for January came in hot at 0.5 percent, and core was 0.4 percent, which brings the 12-month changes to 3.0 percent and 3.3 percent, respectively. These 12-month readings are lower than we had in January 2024, so we have made some progress over the past year, but they are still too high.

However, we also received producer price data last week, and, combining that information with the CPI data, forecasts for January PCE inflation aren’t as alarming as the CPI inflation data. Estimates for total PCE inflation, the FOMC’s preferred measure, are about 0.3 percent and that for core PCE inflation was around 0.25 percent. These numbers will mean a bump-up in the monthly pace of core inflation of about one-tenth of 1 percentage point from readings of under 0.2 percent in November and December. And this would leave the 12-month and 6-month average core PCE inflation around 2.6 percent and 2.4 percent, respectively. These rates are lower than where they stood in January 2024, which is good, but progress has been slower than I expected on reducing inflation to our 2 percent target.

As a policymaker, I rely on these data to help me judge how close we are to meeting our inflation target. And I’m thinking hard about how to interpret these recent numbers because there seems to be some pattern over the past few years of higher inflation readings at the start of the year. This pattern brings into question whether the inflation data have “residual seasonality,” which means that statisticians have not fully corrected for some apparent seasonal fluctuations in some prices. Many firms reset their prices at the beginning of each year, and the Commerce Department tries to factor this in, but even after this adjustment, there is a consensus among economists that some seasonality remains. Incidentally, this probably isn’t just a problem in January. Some recently updated research by the Fed staff shows that inflation in the first months of the year has been higher than in the second half for 16 of the last 22 years.³ I’m alert to this issue and will watch the data over the next few months to evaluate if we are having what looks like a repeat of high first quarter inflation data that could be followed by lower readings later in the year.

Before I get to my outlook for monetary policy, I want to address a topic of some debate recently, which is the divergence between long-term interest rates and the FOMC’s policy rate since we started cutting rates in September. While the FOMC has reduced the policy rate 100 basis points since then, yields on the benchmark 10-year Treasury security have increased by a noticeable amount. In theory, longer-term rates should follow the expected path of the overnight policy rate set by the FOMC. But this relationship is based on the classic economic assumption of ceteris paribus, or “all other factors remaining constant.” The 10-year Treasury security trades in a deep, liquid global market, and its yield is affected by a variety of factors other than the path of the policy rate. This means that all other factors are not constant and that the 10-year Treasury yield may not follow the federal funds rate.

Perhaps the most famous example of the divergence of market interest rates and policy rates began in the mid 2000’s. The FOMC was tightening monetary policy from 2004 to 2006 and raised the policy rate 425 basis points. Over that time, Treasury yields barely moved. This was so surprising that Fed Chairman Alan Greenspan referred to it as a “conundrum.” At about the same time, future Chair Ben Bernanke identified what he called a “global savings glut” that was pushing up foreign demand for Treasury securities and putting downward pressure on yields. Over time, this has come to be seen as a significant factor for the conundrum then and as a factor for low Treasury yields subsequently. This example is just to illustrate that the 10-year Treasury yield may not respond to the policy rate as expected because of a variety of factors that are beyond the control of the FOMC.

So, what does my economic outlook mean for monetary policy? The labor market is balanced and remarkably resilient. If you want an example of a stable labor market with employment at its maximum level, it looks a lot like where we are right now. On the other side of the FOMC’s mandate, inflation is still meaningfully above our target, and progress has been excruciatingly slow over the last year. This tells me that we should currently have a restrictive setting of policy, as we do-to continue to move inflation down to our goal-but that setting should be getting closer to neutral as inflation moves closer to 2 percent and should allow the labor market to remain in a good place.

So for now, I believe a pause in rate cuts is appropriate. Assuming the labor market continues to be in rough balance, I can wait and see if the higher inflation readings in January moderate, as they have in the past couple of years. If so, I’ll have to decide if this reflects residual seasonality that will go away later in the year and if the underlying trend in inflation is toward 2 percent, or if there is a different issue holding up inflation and how that may play out. Whichever case it may be, the data are not supporting a reduction in the policy rate at this time. But if 2025 plays out like 2024, rate cuts would be appropriate at some point this year.

And while we are waiting on data to understand how the economy is moving relative to our objectives, we will learn more about Administration policies. My baseline view is that any imposition of tariffs will only modestly increase prices and in a non-persistent manner. So I favor looking through these effects when setting monetary policy to the best of our ability. Of course, I concede that the effects of tariffs could be larger than I anticipate, depending on how large they are and how they are implemented. But we also need to remember that it is possible that other policies under discussion could have positive supply effects and put downward pressure on inflation. At the end of the day, the data should be guiding our policy action-not speculation about what could happen. And if the incoming data supports further rate cuts or staying on pause, then we should do so regardless of how much clarity we have on what policies the Administration adopts. Waiting for economic uncertainty to dissipate is a recipe for policy paralysis.

MIL OSI Economics –

February 19, 2025
MIL-OSI Economics: Klaas Knot: Dealing with geo-economic fragmentation

Source: Bank for International Settlements

Good morning, welcome back. And for those of you who were not present at dinner last night, welcome to our newly renovated building. We are glad to be back in our headquarters after nearly five years of renovation work. We are immensely proud of it.

Today’s topic is ‘Dealing with geo-economic fragmentation’. Not really a topic for a Valentine’s day. Rather than being in love, it sometimes seems the world is in the middle of a nasty multilateral divorce. We see accusations, threats, and fighting over the children.

And as in a real divorce, geopolitical tensions have real consequences for real people. The impact on our constituency differs widely per country. For more than three years already, Ukraine has been literally fighting for its life. Incredibly, and despite all hardship, it has more than successfully concluded the 6th review of its IMF programme. Other countries in our constituency are facing a threatening security situation. They are rearming, protecting their strategic economic infrastructures. And we all suffer when free trade declines and international economic and financial cooperation stalls.

Strengthening national security and curbing strategic economic risks are logical policies in a world that has become a more dangerous place. But, if not properly managed, the economic costs of these policies could be very high.

Economic costs can be felt directly as a result of trade restrictions, for example through higher import prices, market segmentation and reduced access to technology and knowledge.

Fragmentation impacts not only the real economy and inflation. It also has implications for financial stability. Weaker growth and higher inflation make it more likely that banks and other financial institutions will incur credit and market losses. Restrictions on the flow of capital and investments limit the ability of financial institutions to diversify their portfolios. And state-sponsored cyber-attacks pose a threat to our financial systems.

But perhaps the most important way in which fragmentation impacts financial stability is when we can no longer find each other when faced with crucial cross-border challenges. And there are many such challenges. During the Global Financial Crisis, policymakers around the world were able to respond swiftly and effectively. This was possible thanks to good relations among public-sector financial decision makers and solid institutional structures that had been forged over the years. After the crisis, countries around the world, assembled in the G20, took the lead in hammering out a firm package of financial reforms. In a fragmented world, such a swift response is becoming more complicated. This could prove costly. That’s because the most important challenges to financial stability that we currently face are precisely the cross-border issues that we can only solve if we work together.

For us central banks, and for institutions like the IMF and the World Bank, geo-economic fragmentation is to a large extent a given. We have to deal with it, and of course the central question is: how? I am glad that we have been able bring four distinguished speakers to the table to share their expert knowledge and fuel our discussion.

To give you my two cents, I think our task as central bankers is to try to limit the economic cost of the current global political climate. By continuing to speak up for the international financial rules-based order that has brought us stability and prosperity over the decades. By pointing to the economic and social costs of protectionist policies. And by staying committed to constructive international working relationships as much as possible, so that the international financial policy framework can continue to function.

And we need to speak up for further European integration. In the economic and financial domain, that means deepening the internal market, completing the banking union, and working towards a capital markets union. But beyond that, it has become clear that we have to work closer together in many other fields as well: in defence, energy, healthcare, etcetera. And, as I said yesterday, we have to work to bring the non-EU countries that share our values closer to the European Union. To this end, the IMF constituency can be a useful instrument. We really need to work together.

MIL OSI Economics –

February 19, 2025

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