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Defense & Security
Brussels, Belgium – November 06 2023: new pack of economic EU sanctions against Russia, vector cartoon illustration on white

Who supports EU sanctions against Russia’s war in Ukraine? The role of the defence of European values and other socioeconomic factors

by Alessandro Indelicato , Juan Carlos Martína

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Introduction On 24 February 2022, Russia launched a full-scale invasion of Ukraine, following the military actions that began with the annexation of Crimea in 2014. The conflict is having devastating consequences, including widespread death and displacement, destruction of infrastructure, and a global energy crisis, also heightening geopolitical tensions (Kurapov et al., Citation2023). Pertiwi (Citation2024) contended that since the crisis in Eastern Ukraine and Russia’s annexation of Crimea in 2014, the European Union (EU) has adopted sanctions as the key policy response targeting Russia’s aggressive behaviour. These restrictive measures were applied by the EU in multiple rounds and packages and gradually became the cornerstone of the EU’s policy towards Russia. (p. 61) There is extant literature studying the direct consequences of the war, such as humanitarian crises, economic impacts and geopolitical instability. Numerous countries have experienced food shortages and rising prices due to disruptions in supply chains, worsened by the crisis in Ukraine and the closure of airspace (Hellegers, Citation2022). Concurrently, the war has caused an unprecedentedly volatile energy market, as many European countries were obliged to seek alternative energy sources to Russian imports, demanding more oil and natural gas from alternative suppliers (Liadze et al., Citation2022). The invasion has also fuelled inflation across the EU, not only affecting energy, which is essential in all the sectors of the economy but also other sectors like food, for example, as Ukraine is a major global grain producer (Ozili, Citation2024). The added value and main contribution of this paper is based on the use of grounded social scientific methods like the Fuzzy Hybrid TOPSIS and the Ordered Probit, to analyse the EU citizens’ support of the sanctions against Russia, providing more nuanced insights on what factors are the most important to be in favour and against the sanctions. Thus, in particular, our study contributes to filling one of the important gaps mentioned by Pertiwi (Citation2024) in the analysis of the literature on the EU’s approach to sanctions on Russia. Concretely, our study fills in part the fifth gap in the analysis of causal mechanisms that examine the sanctions, including relevant actors like the EU citizens. Thus, we first provide an in-depth analysis of European citizens’ views on EU sanctions to weaken Russia and support Ukraine. And then, we analyse the main factors that affect the EU citizens’ support of the sanctions taken by the EU against Russia and in favour of Ukraine. The study includes data from 26,461 respondents across the 27 EU Member States, collected through the 98th Eurobarometer survey (Winter 2022–2023), which examined the EU’s response to the war in Ukraine. The paper is organised as follows: Section 2 provides a brief overview of the literature review. Section 3 presents the dataset used, and the methodological approach. In Section 5, the results are presented, followed by Section 5, which offers a thorough discussion of the findings. Finally, Section 6 concludes the paper by summarising the main conclusions drawn from the study, identifying implications, limitations of the study, and potential directions for future research. Literature reviewAttitudes towards EU’s sanctions against Russia war in Ukraine Public sentiment for the EU is a complex phenomenon to study and needs to be approached from different angles, including identity, governance, security and the economy. How the public perceives the EU as a guardian of democratic values and good governance directly influences support for its policies, including sanctions on Russia. Boomgaarden et al. (Citation2011) argue that if the people believe that the EU is going to safeguard democratic principles, then they will identify sanctions as a proper means of safeguarding such principles. However, if there is a lack of trust in the EU to defend such values, there will be little support for such sanctions. The purpose of European identity is primarily to determine people’s views on the EU’s actions. Kende et al. (Citation2018) believe that European identity can have a profound impact on solidarity with common EU policies, such as sanctions. This would imply that the framing of a common European identity can become the most important factor in eliciting public consent for EU programmes, especially in the midst of geopolitical crises. Thus, public opinion on sanctions is also based on perceptions of the EU’s ability to act in the interests of citizens. According to McLean and Roblyer (Citation2016), if citizens perceive the EU as doing the best it can for its citizens, particularly in terms of economic stability and governance, they are more likely to support sanctions against Russia. However, if the EU is perceived as wasteful, or its policies are perceived as economically harmful, then the potential for support for sanctions will be low. This explains the need to ensure that EU action is consistent with shared perceptions of political effectiveness and economic benefit. The imposition of economic sanctions is one of the highest prioritised tools in the modern world, especially against threats to stability and security. The EU sanctions on Russia, especially after the annexation of Crimea and the invasion of Ukraine, have stimulated an immensely wide public discussion (Karlović et al., Citation2021). An important question is: What is the role of perceived security threats in shaping public opinion about these sanctions? It has been made known through investigation that subjective security risk strongly predicts public opinion regarding EU sanctions against Russia. Frye (Citation2019) argues that sanctions are not always supported but vary depending on how people view security threats. Public support is higher when sanctions are framed as protection against an external threat. When sanctions are perceived as a threat to national or economic security, they can generate opposition. The EU’s collective response to the Russia–Ukraine conflict also shows that public opinion on sanctions is shaped by both security interests and normative expectations of justice and self-determination (Bosse, Citation2024). This mutual influence can lead to mixed public responses, with some seeing sanctions as an ethical necessity, while others withdraw their support due to perceived economic and national security risks. The way EU sanctions are proposed and implemented also influences public opinion. According to Sjursen (Citation2015), citizens will be more supportive of sanctions if they see EU institutions as representative and transparent. Conversely, an image of bureaucratic distance or lack of public participation in decision-making can undermine trust and lead to opposition. Thus, in line with this background, we pose our first research question as follows: (1) How do European values and security threats influence the intensity of public support for EU sanctions against Russia?Socioeconomic factors in shaping attitudes towards EU sanctions Support for economic sanctions against Russia is widespread among the EU, varying according to socioeconomic status, demographic characteristics and political engagement. As Frye (Citation2017) has noted, economic prosperity is a key predictor of support for sanctions. Those who are financially ‘safe’ are more likely to support EU-imposed sanctions, as they are less directly affected by the economic burden. Previous studies have shown that those in more affluent income groups or with stable household finances are more likely to support foreign policy actions, such as sanctions, that represent broader European values, even if they are economically costly (Alexandrescu, Citation2024). This is consistent with the findings of Lepeu (Citation2025), which recognises that citizens who rate their own economic situation as ‘very good’ are far more likely to support sanctions than those facing financial hardship. On the other hand, citizens facing economic hardship are less likely to be sanction-supportive if they believe that sanctions will negatively impact inflation, increase unemployment or suppress national economic stability. Onderco (Citation2017) found that economic hardship is associated with higher scepticism towards foreign policy decisions that lack tangible personal benefits. This means that the economic price of sanctions is likely to disproportionately affect support among lower-income individuals. Generational differences also play a role in shaping public opinion on sanctions. Older individuals (over 55 years) are more supportive of EU sanctions, as they have a historical perspective on European security and are more politically engaged (Alexandrescu, Citation2024). On the other hand, younger people (15–34 years) have weaker support, possibly because they have different priorities, such as financial stability and employment, which could be considered more pressing than geopolitical concerns (Onderco, Citation2017). Alexandrescu (Citation2024) also suggests a new generational divide in attitudes towards coercive diplomacy, suggesting that efforts to build popular support for sanctions must consider young Europeans’ concerns and values about economic consequences and political transparency. Political interest is a second important predictor of support for EU sanctions. Politically knowledgeable and engaged citizens tend to be more supportive of EU foreign policy decisions, including sanctions (Alexandrescu, Citation2024). Thus, there is political ideology duality: left and centre-left voters support sanctions if they are anchored in a broader vision of upholding international law and human rights, while centre-right and populist voters are likely to be more sceptical if sanctions are perceived as infringing on national sovereignty (Onderco, Citation2017). As in the literature, the likelihood of being a strong supporter of EU sanctions depends on several socioeconomic and demographic factors, our second research question builds on the following: (2) Do socioeconomic characteristics influence the likelihood of being a strong supporter of EU sanctions against Russia?Dataset and methodology The dataset of the study is based on the Standard Eurobarometer 98.2 (EB98) survey Winter 2022–2023 which was conducted from 12 January to 6 February 2023 in 39 countries or territories. In the study, we only use the dataset from the 27 Member States of the EU, without considering the data from the other twelve additional countries included. The dataset was collected about a year after the start of the Russian invasion of Ukraine, covering the following five topic areas identified by the European Commission (Citation2024): (1) The EU’s response to the invasion of Ukraine; (2) the actions taken as a unified EU response to the invasion; (3) the consequences of the war in Ukraine; (4) the European security threat; and (5) the future EU actions in the wake of the war., and aims to analyse the solidarity of European citizens with the Ukrainian people. The sample size for each country was around 1000 respondents except for Malta with 503, making a total of 26,461 respondents. The endogenous variable of the study is obtained by applying the Fuzzy Hybrid TOPSIS approach to the items of the survey included to measure the degree of support of the respondents towards the measures taken by the EU in response to the Russian invasion of Ukraine. The following five items were included in the analysis: (1) financing the purchase and supply of military equipment to Ukraine; (2) imposing economic sanctions on the Russian government, companies and individuals; (3) providing financial support to Ukraine; (4) providing humanitarian support to the people affected by the war; and (5) welcoming into the EU people fleeing the war. The question introduction was the same for all the items: The EU has taken a series of actions as a response to Russia’s invasion of Ukraine. To what extent do you agree or disagree with each of these actions taken? The responses to the question for each item were given using a complete 5-point Likert scale, where: 1 = totally agree; 2 = tend to agree; 3 = do not know; 4 = tend to disagree; and 5 = totally disagree. The scale was reversed to enhance interpretability, ensuring that higher values are aligned with those citizens who expressed higher support for the measures taken by the EU. The analysis of the variables affecting the citizens’ support was based on the selection of 14 exogenous variables, including age, gender, political interest, perception of the situation in the country, employment personal perception, financial household perception, the labour market perception of the country, the provision of public services perception, the overall image of the EU, the perception of the threat posed by the Russian war in Ukraine to security in the EU and the country itself, the personal perception that standing against the Russian invasion of Ukraine, the EU is defending European values, and the political orientation. More information about the exogenous variables can be found in Table A1 in the appendix. The Ordered Probit model will provide interesting and nuanced results of whether some exogenous variables affect the support of the EU sanctions taken by the EU in response to the Russian invasion. For example, for each of the variables included in the analysis, it will be possible to analyse to what extent some of the categories support more or less the sanctions. Similarly, it will be possible to determine if some of the variables have a significant effect on the level of support. Methodology Opinion surveys are affected by the subjective judgments of respondents, leading to potential inaccuracy in interpreting response categories (Disegna et al., Citation2018). For instance, ‘totally agree’ for one respondent could be equivalent to simply ‘tend to agree’ for another. For this reason, Fuzzy Set Logic methods are becoming very popular in social sciences to manage the uncertainty associated with survey responses effectively (Cantillo et al., Citation2021; Indelicato & Martín, Citation2024). The study uses the Fuzzy Hybrid TOPSIS Approach to calculate the endogenous variable that measures the support (sup) of the respondents towards the sanctions taken by the EU against Russia. The method is grounded in the fuzzy set theory proposed by Zadeh (Citation1965), which was introduced for handling the inherent uncertainty and vagueness of information provided by answers to social surveys (Carlsson & Fullér, Citation2001; Disegna et al., Citation2018; Mamdani & Assilian, Citation1999). There are multiple fuzzy set representations that can be used to associate the categories of the answers given in the survey (Nguyen et al., Citation2005). In the study, we use the Triangular Fuzzy Numbers (TFNs), which are the most used fuzzy sets (Anand & Bharatraj, Citation2017; Wang, Citation2017). The final representation of the answers from the dataset is as follows: (1) totally disagree is represented by (0, 0, 30); (2) tend to disagree by (20, 30, 40); (3) do not know by (30, 50, 70); (4) tend to agree by (60, 70, 80); and (5) totally agree by (70, 100, 100). The hybrid nature of the method is based on the application of the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), which calculates the synthetic indicator (Hwang & Yoon, Citation1981). We omit the mathematical formulation of the method for simplicity and ease of exposition. Interested readers can consult many existing papers, such as (Cantillo et al., Citation2023; Indelicato et al., Citation2023; Martín et al., Citation2020; Martín & Indelicato, Citation2023). We will use sup which provides relative support for the sanctions on Russia taken by the EU after invading Ukraine, as the dependent variable for the econometric model. The variable will be categorised into five quintiles according to the ranking of the indicator in order to use an ordered probit model. The marginal effects of the results will be used to analyse the main determinants that explain the highest support of EU citizens. In the study, we use the Daly normalisation for all the categories that act as exogenous variables in the model. Thus, it is possible to determine the marginal effects of each category with respect to the sample-weighted average. We omit the discussion of the technicalities of the model and exogenous variables normalisation. Interested readers can consult Daly et al. (Citation2016), Greene and Hensher (Citation2010), Hensher et al. (Citation2015) and Martin and Roman (Citation2021). Results Figure 1 shows the kernel density of the exogenous variable that measures the support of EU individuals for the sanctions against Russia taken by the EU for the whole sample (panel a) and for those who totally agree and totally disagree with the EU imposing the sanctions to defend European values (panel b). The results indicate that a small number of respondents do not support the sanctions imposed by the EU at all, with 170 citizens giving a score of 1 to all survey items included in the scale. Conversely, a significant portion of the population holds a more neutral position, as shown by responses falling in the range of 0.3–0.6. Additionally, a substantial number of citizens – specifically, 6430 – express their strong support for the sanctions by responding with a score of 5 to all items.  Figure 1. Support kernel density. Panel (b) of the figure clearly distinguishes between the two categories of respondents. It shows that those who strongly support the defence of European values are more in favour of the sanctions compared to those who strongly oppose them. Similar figure patterns are obtained for the categories of those who have a positive or negative image of the EU, and for those who think that the Russian invasion of Ukraine is seen as an important threat to the security of the EU. Nevertheless, this will be further discussed with the results of the ordered probit model. Table 1 shows the main drivers to support or not the sanctions taken by the EU against Russia. The table is obtained from the marginal effects obtained from the ordered probit model, which is in the fifth quintile of the support distribution, and refers to the citizen group of the strong supporters (Table A3, in the appendix). It can be seen that the main drivers to support the sanctions are totally agreeing that by standing against the Russian invasion, the EU is defending European values, having a very good or rather good image of the EU, totally agreeing that the EU security is under threat with the Russian invasion, and to have a very good financial situation in the household. All the coefficients are significant at 999 per thousand. The results of the ordered probit model, as well as the complete table of the marginal effects, can be consulted in the appendix. Table A2 shows that all the exogenous variables affect the support level except the area in which the respondent resides, so the support is transversal to whether the European lives in a rural, middle town or large town. It is also interesting to observe that all the threshold parameters of the ordered probit model result significant, i.e. the five different quintiles of the distribution can be allocated without the need to collapse some of the categories used in the estimation.  Table 1. Main drivers to be or not a strong supporter of the EU sanctions. Interestingly, the main drivers to be in the population segment of those who do not strongly support the EU sanctions are the opposite categories of supporting the sanctions: totally disagreeing or tending to disagree with the defence of European values, totally disagreeing or tending to disagree with the fact that the invasion of Ukraine is a security threat to the EU and having a very bad image of the EU. The coefficients of Table 1 have been extracted from Table A3, and need to be interpreted as follows: the coefficients are the marginal effects of the category to be or not a strong supporter of the EU sanctions. For example, the coefficient of 0.105 for individuals who totally agree that the EU is defending European values by standing against the Russian invasion of Ukraine indicates that this group has a 10.5 per cent higher likelihood of being strong supporters of EU sanctions compared to the average citizen in the overall sample. In a similar manner, the coefficient of −0.225 for the category of total disagreement indicates a 22.5 per cent lower probability of being a strong supporter. Other interesting results that can be seen in the complete marginal effects table (Table A3, in the appendix) are that the type of urbanisation where the respondent lives, namely rural village, small and mid-size town or large town, is the only variable of the twelve under analysis which does not have any significant effect on being a strong supporter of the sanctions. For the rest of the variables, there is always a category with more odds of being or not in the category of strong supporters. It is interesting to note that the younger generations (between 15 and 24 and between 25 and 34) are less likely to be in the category of strong supporters than those over 55, who are significantly more likely to be in this category. Similarly, those who have a strong political interest, have a good personal job situation, think that the economic situation of their country is rather good, are leftist or left-centre, think that the employment situation of the country is rather good, are males, or have a rather good financial situation have a higher probability of being in the category of strong supporters. Conclusions In a recent speech by Jens Stoltenberg, former Secretary General of NATO, the following assessment was made: In just a few weeks, NATO leaders will meet in Madrid. We will make important decisions. To continue to strengthen and adapt our Alliance to a new security reality and protect our people and our values. I look forward to the day when we can welcome both Finland and Sweden into our Alliance. This will make Finland and Sweden safer. NATO stronger. And the whole Euro-Atlantic area more secure. (NATO, Citation2022) Although NATO’s strategic decision affects the entire geopolitical landscape, public perceptions of EU sanctions need to be addressed through a more nuanced, evidence-based approach. Public opinion on sanctions is driven not only by security concerns but also by economic and political factors that underpin individual belief systems. To measure the determinants of support for such policies, this study applies both the fuzzy hybrid approach and the ordered probit model. The first method calculates the endogenous variable that measures the level of support of each respondent. The second method is used to find the main factors of a set of 14 exogenous variables or covariates that affect the support. Our results reveal that there are four important drivers to be a strong supporter of the sanctions taken by the EU against Russia after the invasion of Ukraine in early 2022: (1) totally agreeing that by standing against the Russian invasion of Ukraine, the EU is defending European values, (2) having a very good overall EU image, (3) totally agreeing that Russia’s invasion of Ukraine is a threat to the security of the EU, and (4) having a very good household financial situation. Other factors, such as age, gender, or political orientation, among others, are less determinant in explaining the strong support category. The dataset for the study was obtained from the 98th Eurobarometer, covering winter 2022–2023, providing a solid foundation for the objectives pursued in the study. Our results imply that, at least in the salient category of being a strong supporter of the EU sanctions, European Parliamentarians and the political parties involved should promote a triad: the defence of European values (Anghel & Jones, Citation2023), a more integrated security defence system that will permit the EU to be more independent from NATO and US (Del Sarto Citation2016; Howorth Citation2018), and a solid campaign of improving the EU image, highlighting the benefits of being in the union (Elmatzoglou, Citation2020). The European values of human rights and dignity, as well as the principles of living in liberal democracies, should not be undermined by misinformation campaigns from autocratic regimes. The invasion of Ukraine constitutes the biggest security threat in Europe since the end of the Cold War, fostering a wave of fear and real politics about the necessity of increasing the military budget. Europeans have seen more closely how the lives of human beings are worth almost nothing when their homes are bombed, and they have to leave with just the bare minimum, stopping their daily lives and becoming refugees in countries that may not welcome them with open arms. There is a need for effective communication campaigns that change the focus from generic issues such as ‘Europeanness’ fostering a common national identity or sense of belonging to a pragmatic branding strategy that achieves a power actor in the new turbulent geopolitical battlefield. Recent developments, in the light of newly elected President Donald Trump’s views on NATO and US foreign aid, have added uncertainty to the EU’s strategic calculus on sanctions. Trump’s concerns about NATO’s burden-sharing and his ambivalent stance on continued US military aid to Ukraine have set off alarm bells among EU policymakers and underscored the need for a European security policy that is less dependent on US leadership (Sorgi, Citation2025). Thus, it is the time for a more than-less European Union mentality that decreases Euroscepticism, a time to strengthen public support for the EU. This shift requires an emphasis on the tangible benefits that EU membership brings to member states, including economic stability, enhanced security, and the promotion of shared values like democracy and human rights. By fostering greater awareness and understanding of the EU’s role in addressing cross-border challenges, citizens can better appreciate the advantages of unity over division. Engaging with local communities, encouraging open dialogues, and actively involving citizens in EU decision-making processes can further bridge the gap between the EU and its citizens, reinforcing a sense of belonging and shared purpose. This study has some limitations that can be addressed in future studies. First, the dataset is a point-in-time measure of public opinion, surveyed in the winter of 2022–2023. Due to the dynamic nature of the geopolitical environment, longitudinal studies are needed to examine how public support for EU sanctions may change over time in response to political, economic and military events. Second, other external factors can also be examined to gain a better picture of how other factors could shape people’s opinions. These range from cultural equivalence with Ukraine to geographical proximity to the war zone, exposure to social media narratives, and interaction with Ukrainian refugees. The role of media frames and disinformation campaigns in determining views on EU sanctions is another area that would require more work. Third, latent variables such as societal resilience, institutional trust, geopolitical affinity, and adherence to European values could provide a better understanding of the reasons for support or opposition to EU sanctions. Such variables could also explain the differences in public opinion between EU member states and between different demographic groups. Furthermore, as previous studies on public support (Onderco et al., Citation2023) have also shown, a comparative analysis with previous surveys, for example, in 2008 (Russia-Georgia war), 2014 (annexation of Crimea and Donbas war) with the full invasion of Ukraine in 2022–2023, could also be very useful. Although not directly compared in the current study, future research would benefit from a historical analysis component to explore the continuities and shifts in public opinion during these major geopolitical events and how they change in different EU countries. This would provide a better insight into how threat perceptions, economic concerns and EU identity evolve in response to Russian aggression and EU foreign policy initiatives. Supplemental Material Supplemental data for this article can be accessed online at https://doi.org/10.1080/23745118.2025.2476484. Additional informationFunding Dr Alessandro Indelicato research is funded by the research fellowship “Catalina Ruiz,” provided by the Consejo de Economía, Conocimiento y Empleo of the Gobierno de Canarias, the Agencia Canaria De Investigación Innovación Y Sociedad De La Información (ACIISI), and Fondo Social Europeo of the EU, through the Universidad de Las Palmas de Gran Canaria (Spain). Martín, J. C., & Indelicato, A. (2025). 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Toward an understanding of the Russian-Ukrainian war impact on university students and personnel. Journal of Loss and Trauma, 28(2), 167–174. https://doi.org/10.1080/15325024.2022.208483834. Lepeu, J. (2025). Ukraine, the de-targetization of EU sanctions, and the rise of the European commission as architect of EU foreign policy. International Politics, 1–14.35. Liadze, I., Macchiarelli, C., Mortimer-Lee, P., & Juanino, P. S. (2022). The economic costs of the Russia-Ukraine conflict.36. Makarychev, A., & Terry, G. (2020). An estranged ‘marriage of convenience’: Salvini, Putin, and the intricacies of Italian-Russian relations. Contemporary Italian Politics, 12(1), 23–42. https://doi.org/10.1080/23248823.2019.170692637. Mamdani, E. H., & Assilian, S. (1999). An experiment in linguistic synthesis with a fuzzy logic controller. International Journal of Human-Computer Studies, 51(2), 135–147. https://doi.org/10.1006/ijhc.1973.030338. Martin, J. C., & Roman, C. (2021). The effects of COVID-19 on EU federalism. Eastern Journal of European Studies, 12(Special issue), 126–148. https://doi.org/10.47743/ejes-2021-SI0639. Martín, J. C., & Indelicato, A. (2023). A fuzzy-hybrid analysis of citizens’ perception toward immigrants in Europe. Quality & Quantity, 57(2), 1101–1124. https://doi.org/10.1007/s11135-022-01401-040. Martín, J. C., Moreira, P., & Román, C. (2020). A hybrid-fuzzy segmentation analysis of residents’ perception towards tourism in Gran Canaria. Tourism Economics, 26(7), 1282–1304. https://doi.org/10.1177/135481661987346341. McLean, E., & Roblyer, D. (2016). Public support for economic sanctions: An experimental analysis. Foreign Policy Analysis, 13(1), 233–254. https://doi.org/10.1093/FPA/ORW01442. NATO. (2022). Speech by NATO Secretary General Jens Stoltenberg at the kultaranta talks in Finland. Retrieved January 10, 2025, from https://www(open in a new window). nato.int/cps/en/natohq/opinions_196300.htm43. Nguyen, H. T., Nguyen, H. T., & Walker, E. A. (2005). A first course in fuzzy logic. Chapman and Hall/CRC, Taylor & Francis Group. https://doi.org/10.1201/978142005710244. Onderco, M. (2017). Public support for coercive diplomacy: Exploring public opinion data from ten European countries. European Journal of Political Research, 56(2), 401–418. https://doi.org/10.1111/1475-6765.1218345. Onderco, M., Smetana, M. (2023). Hawks in the making? European public views on nuclear weapons post-Ukraine. Global Policy, 14(2), 305–317.46. Ozili, P. K. (2024). Global economic consequences of Russian invasion of Ukraine. In P. Pietrzak (Ed.), Dealing with regional conflicts of global importance (pp. 195–223). IGI Global.47. Pertiwi, L. A. (2024). The EU’s approach to sanctions on Russia: A critical analysis of the existing literature. Central European Journal of International and Security Studies, 18(3), 61–86. https://doi.org/10.51870/NOEX447548. Pospieszna, P., Onderco, M., & van der Veer, R. (2024). Comparing public attitudes towards internal and external EU sanctions: The role of populism, trust and Euroscepticism. East European Politics, 40(2), 345–366. https://doi.org/10.1080/21599165.2023.228908949. Raik, K., Blockmans, S., Dandashly, A., Noutcheva, G., Osypchuk, A., & Suslov, A. (2023). Tackling the constraints on EU foreign policy towards Ukraine: From strategic denial to geopolitical awakening. Instituto Affari Internazionali. https://cris(open in a new window). maastrichtuniversity.nl/ws/portalfiles/portal/137103994/joint_rp_20.pdf50. Sjursen, H. (2015). Normative theory: An untapped resource in the study of European foreign policy. In K. E. Jrgensen, A. K. Aarstad, E. Drieskens, K. Laatikainen, B. Tonra (Eds.), The Sage handbook of European foreign policy (Vol. 2, pp. 197–214). SAGE Publications. https://doi.org/10.4135/978147391519051. Sorgi, G. (2025, February 25). EU eyes €200B secret weapon as Trump dominates Ukraine peace talks. 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Energy & Economics
Economic crisis impact of Russian invasion of Ukraine concept. Stacked coins, graph falling down and battle tank on wooden table background copy space. War effect to world economy.

The Economic Effects of the Gaza War on Palestine and Israel

by World & New World Journal Policy Team

I. Introduction Since October 7, 2023, when the Hamas attacked Israel, the Gaza war has entered its third year. Palestinians continue to endure an unprecedented level of violence, trauma, economic hardship, and uncertainty. The war has resulted in a staggering number of casualties and widespread displacement, in addition to massive destruction of physical assets in Gaza, significant reduction of economic output, increased violence in the West Bank, and widespread collapse of basic service provision across the entire Palestinian territories.  As of May 7, 2025, according to Wikipedia and Gaza’s Ministry of Health, 55000 fatalities (53,253 Palestinians and 1,706 Israelis) and more than 110,00 injuries have been reported in Gaza. More than half of the casualties are women, children, and the elderly. An estimated 1.9 million people, approximately 90 percent of Gaza’s population, are currently internally displaced. Seventy percent of Gaza’s Road network, more than 80 per cent of commercial facilities, and close to 90 percent of housing units in Gaza have either severely damaged or have been destroyed.  Since October 7, 2023, the UN has documented over 1,500 clashes between Israeli settlers and Palestinians in the West Bank, resulting in property damage, casualties, and displacement. Over 1,600 Palestinians, half of whom are children, have been displaced due to increased settlers’ violence and access restrictions. Additionally, existing fiscal constraints and growing security concerns have disrupted service provision in the West Bank.  On the macroeconomic front, the Gaza and West Bank face a collapse, which is unmatched in recent memory. The Palestine economy has faced significant contraction, evidenced by a reduced production, sharp decline in gross domestic product (GDP), and soaring unemployment rates. On the other hand, the Gaza war has had significant negative impacts on Israel. The economic and financial costs of war consist of the direct cost of military operations as well as the indirect losses that extend over the medium and long term. One of the most direct costs of the Gaza war was the recall of about 300,000 reservists in the early days, which meant that the Israeli government would bear the cost of conscription, and the Israeli economy would bear loss of output due to their absence from the workforce.Given these situations, this paper analyzes the economic effects of the Gaza war on Palestine and Israel. II. Literature on the Effects of Wars Wars have the potential to alter the parties and “transform the future” of belligerents (Ikle 1991) and they also bring about fundamental changes to the international system (Gilpin 1981).  Scholars in Economics have provided considerable analysis of the macroeconomic effects of a conflict across spatial levels: locally, nationally, regionally, and internationally. Some studies have examined the effects of specific wars such as the Syrian civil war (Kešeljević and Spruk, 2023) or the Iraq war (Bilmes and Stiglitz 2006). For example, an analysis estimated that the Russian invasion of Ukraine had an economic cost of 1% of global GDP in 2022 (Liadze et al. 2023) Others have examined the effects of war in general. For instance, Reuven Glick and Alan Taylor (2010) examine bilateral trade relations from 1870 to 1997 and find large and persistent negative impacts of wars on trade and hence on national and global economic welfare. Similarly, Vally Koubi (2005) investigates the effects of inter- and intrastate wars on a sample of countries and finds that the combined prewar, contemporaneous, and postwar effects on economic growth are negative.  A “war ruin” school emphasized that the destruction caused by wars is accompanied by higher inflation, unproductive resource spending on the military, and war debt (Chan 1985; Russett 1970). By contrast, a “war renewal” school argued that there can be longer-term positive economic effects from war because war can lead to increased efficiency in the economy by reducing the power of rent-seeking special interests, triggering technological innovation, and advancing human capital (Organski and Kugler 1980).  III. Economic Effects of the Gaza War1. Casualties  As Table 1 shows, since the Hamas attacked Israel on October 7, 2023, 55,000 people (as of May 7, 2025, 53,253 Palestinians and 1,706 Israelis) have been killed in the Gaza war according to the Gaza Health Ministry. Scholars have estimated that 80% of Palestinians killed are civilians. A study by OHCHR (The Office of the United Nations High Commissioner for Human Rights) found that 70% of the Palestinians killed in residential buildings or similar housing were children and women.  The majority of casualties have been found in the Gaza Strip. The Gaza Health Ministry’s total casualty count is the number of deaths directly caused by the war.  The 7 October attacks of the Hamas on Israel killed 1,195 people, including 815 civilians. A further 806 Palestinians have been killed in the occupied West Bank (including East Jerusalem).  2. Economic Effects of the Gaza War on Palestine  As Figure 1-1 shows, since October 7, 2023, Palestine’s economy has significantly contracted as a result of continued warfare. As Figure 1-2 shows, economic downturn started from the fourth quarter of 2023. In 2024, Palestine's GDP contracted by 27% compared to the previous year. The decline was driven by a 27% drop in industrial output in the Gaza Strip due to the ongoing Israeli occupation and attack. Especially, economic contractions were recorded in construction (-14.5%), services (-11.0%), financial and insurance activities (-5.3%), information and communication (-3.2%). However, Palestine’s economy began to recover in the fourth quarter of 2024, although it still marked a negative growth.   Figure 1-1: Palestine economic growth rate  Figure 1-2: Palestine economic growth (quarterly) As Figure 2 shows, industrial production in Palestine significantly decreased in 2024 as war has continued between Israel and Hamas. Industrial production in Palestine has been low, averaging -7.62 percent from 2012 until 2025. However, it reached a record low of -29.77 percent in June of 2024. Then industrial production in Palestine increased to 2.1 percent in March of 2025 over the same month in the previous year.   Figure 2: Industrial production in Palestine As Figure 3 shows, inflation rate in Palestine has significantly increased in 2023 and 2024, reaching all time high of 88.93 percent in November of 2024. High inflation resulted from resource shortages as a result of continued warfare and significant production decline. And then inflation rate in Palestine dropped to 1.88 percent in March and -2.51 percent in February of 2025. Inflation rate in Palestine averaged 4.95 percent from 1998 until 2025.   Figure 3: Inflation rate in Palestine As Figure 4-1 shows, unemployment rate in Palestine significantly increased after October 7, 2023, as economy continued to shrink and industrial production fell. Unemployment rate in Palestine increased to 35.20 percent in the first quarter of 2024 from 24.1 percent in the third quarter of 2023. It then dropped to 31.1 percent in the second quarter of 2024 and 28.8 percent in the fourth quarter of 2024. Unemployment Rate in Palestine has been remarkably high, averaging 24.07 percent from 1995 until 2024, reaching an all-time high of 35.60 percent in the third quarter of 2002 and a record low of 8.80 percent in the second quarter of 2000.    Figure 4-1: Unemployment rate in Palestine As Figure 4-2 shows, youth unemployment rate in Palestine increased from 38.40 percent in the first quarter of 2023 to 45.70 percent in the first quarter of 2024 and then slightly dropped to 42.60 percent in the third quarter of 2024 and 38.6 percent in the fourth quarter of 2024. Youth unemployment rate in Palestine has been remarkably high, averaging 41.85 percent from 2009 until 2024, reaching an all-time high of 49.90 percent in the second quarter of 2018 and a record low of 32.90 percent in the first quarter of 2011.   Figure 4-2: Youth unemployment rate in Palestine As Figure 4-3 shows, full-time employment in Palestine plunged to 628000 persons in the first quarter of 2024 from 1143800 persons in the third quarter of 2023. Then it increased to 705700 persons in the fourth quarter of 2024. Full-time employment in Palestine averaged 888133 persons from 2010 until 2024, reaching an all-time high of 1143800 persons in the third quarter of 2023 and a record low of 67900 persons in the first quarter of 2010.   Figure 4-3: Full-time employment in Palestine Despite the continued warfare in Gaza, as Figure 5 shows, exports in Palestine did not significantly decrease. On the contrary, exports in Palestine increased from 148.3 USD Million in August 2023 to 164.20 USD Million in December of 2024. Exports in Palestine averaged 68.15 USD Million from 2001 until 2025, reaching an all-time high of 164.20 USD Million in December of 2024 and a record low of 15.92 USD Million in April of 2002. Exports in Palestine maintained pre-war level in 2025, recording 140.70 USD Million in January of 2025. Top exports of Palestine in 2023 were scrap iron ($68.6M), tropical fruits ($53.8M), pure olive oil ($10.9M), and building stone ($7.56M).  Figure 5: Exports in Palestine Figure 6 shows, imports in Palestine significantly dropped in 2024 as warfare continued in Gaza. Imports in Palestine decreased to 420.30 USD Million in April 2024 from 747.20 USD Million in August 2023. Imports in Palestine averaged 370.00 USD Million from 2001 until 2025, reaching an all-time high of 750.60 USD Million in November of 2022 and a record low of 82.71 USD Million in April of 2002. According to media reports, there are severe food shortages in Gaza, but there is no information about the imports of food after 2023.   Figure 6: Imports in Palestine As Figure 7 shows, since October 7, 2023, government spending in Palestine has significantly declined in 2023 and early 2024, hitting a record low of 461.20 USD million in the first quarter of 2024. And then government spending in Palestine increased to 666.70 USD million in the fourth quarter of 2024 from 616.50 USD million in the third quarter of 2024. Government spending in Palestine averaged 797.95 USD million from 2011 until 2024, reaching an all-time high of 974.90 USD million in the fourth quarter of 2016 and a record low of 461.20 USD million in the first quarter of 2024.   Figure 7: Government spending in Palestine 3. Economic Effects of the Gaza War on Israel  As Figure 8 shows, since October 7, 2023, when the Hamas attacked Israel, government spending in Israel significantly increased as Israel government conducted massive military operations against the Hamas. Government spending in Israel increased from 84100 ILS (Israel new shekel) Million in the third quarter of 2023 to 97973 ILS Million in the fourth quarter of 2023 and 97018 ILS Million in the fourth quarter of 2024. Government Spending in Israel averaged 58676 ILS Million from 1995 until 2024, reaching an all-time high of 97973 ILS Million in the fourth quarter of 2023 and a record low of 39524 ILS Million in the third quarter of 1995.   Figure 8: Government spending in Israel As Figure 9 shows, as Israel government conducted massive military operations against the Hamas, military expenditure in Israel increased to 46505.30 USD Million in 2024 from 27498.50 USD Million in 2023. Military expenditure in Israel averaged 7742.87 USD Million from 1951 until 2024, reaching an all-time high of 46505.30 USD Million in 2024 and a record low of 57.60 USD Million in 1954.   Figure 9: Military expenditure in Israel As Figure 10 shows, Israel recorded a government budget deficit of -33793.00 ILS Million in December of 2023 from 14100 ILS Million in January 2023 because government spending, in particular military expenditure significantly increased. Government budget value in Israel averaged -3405.71 ILS Million from 2005 until 2025, reaching an all-time high of 22839.00 ILS Million in January of 2025 and a record low of -33793.00 ILS Million in December of 2023.   Figure 10: Budget Balance in Israel As Figure 11-1 & 11-2 show, Israel's economic growth plunged to -4.32 percent in the fourth quarter of 2023 from 3.44% in the third quarter of 2023. Israel experienced consecutive negative growth until the third quarter of 2024 as the ongoing conflict with the Hamas had taken a significant toll on economic activity. This marked the weakest growth since 2020, when the covid-19 pandemic severely impacted the economy. However, the Gross Domestic Product (GDP) in Israel expanded 5.46 percent in the fourth quarter of 2024 over the same quarter of the previous year. GDP annual growth rate in Israel averaged 3.73 percent from 1996 until 2024, reaching an all-time high of 16.27 percent in the second quarter of 2021 and a record low of -8.37 percent in the second quarter of 2020.  Figure 11-1: Israel's economic growth rate  Figure 11-2: Israel's GDP growth (quarterly) As Figure 12 shows, industrial production in Israel decreased 7.4 percent in December of 2023 and 9.8 percent in March 2024 and then increased 15.9 percent in December 2024. Industrial production in Israel averaged 5.66 percent from 1960 until 2025, reaching an all-time high of 62.70 percent in June of 1968 and a record low of -29.20 percent in June of 1967.   Figure 12: Industrial production in Israel As Figure 13 shows, unemployment rate in Israel decreased from 4.30 percent in January 2023 to 2.80 percent in November 2023 and 2.60 percent in December 2024. This decline seems to result from the fact that Israeli government called up tens of thousands of reservists to replace conscripts and active-duty soldiers. And then unemployment rate in Israel slightly increased to 2.9% in March 2025. Unemployment rate in Israel averaged 5.89 percent from 1992 until 2025, reaching an all-time high of 11.40 percent in March of 1992 and a record low of 2.60 percent in August & December of 2024.  Figure 13: Unemployment Rate in Israel As Figure 14 shows, the number of unemployed persons in Israel decreased to 119200 in December of 2024 from 184000 in January 2023. Unemployed persons in Israel averaged 192800 from 1991 until 2025, reaching an all-time high of 305400 in September of 2003 and a record low of 119200 in December of 2024.  Figure 14: The number of unemployed persons in Israel As Figure 15 shows, after October 2023, exports in Israel fluctuated between 4470 USD Million in October 2023, 5330 USD Million in March 2024, 4320 USD Million June 2024 and 5250 USD million in December 2024. Exports in Israel averaged 1836.30 USD Million from 1959 until 2025, reaching an all-time high of 6276.70 USD Million in March of 2022 and a record low of 10.80 USD Million in July of 1959.   Figure 15: Exports in Israel As Figure 16 shows, imports in Israel fluctuated between 8090 USD Million in August 2023, 7590 USD Million in December 2023, 7010 USD Million in August 2024, and 8318.70 USD Million in March 2025. Imports in Israel averaged 2500.72 USD Million from 1959 until 2025, reaching an all-time high of 10372.30 USD Million in May of 2022 and a record low of 33.10 USD Million in November of 1959.   Figure 16: Imports in Israel As Figure 17 shows, inflation rate in Israel decreased from 5.40 percent in January 2023 to 3.70 percent in October 2023 and 2.50 percent in February 2024. It then increased to 3.60 percent in August 2024 and 3.80 percent in January 2025. Inflation rate in Israel averaged 26.75 percent from 1952 until 2025, reaching an all-time high of 486.20 percent in November of 1984 and a record low of -2.70 percent in March of 2004.   Figure 17: Inflation rate in Israel As Figure 18 shows, despite on-going warfare in Gaza, gasoline price in Israel did not rise significantly. It increased from 1.82 USD/Liter in September 2023 to 1.98 and 2.14 USD/Liter in January and May 2024, respectively and then dropped to 2.06 and 2.04 USD/Liter in August 2024 and February 2025, respectively. Gasoline prices in Israel averaged 1.78 USD/Liter from 1995 until 2025, reaching an all-time high of 2.30 USD/Liter in June of 2022 and a record low of 0.73 USD/Liter in December of 1995.   Figure 18: Gasoline price in Israel IV. Conclusion The Gaza war has had negative impacts on both Palestine and Israel, but the negative effects were much bigger in Palestine than in Israel. The number of casualties was much higher in Palestine. Especially the war brought down Palestine economy, lowering economic growth, reducing industrial productions, and increasing inflation & unemployment in Palestine. The Israeli economy has also slowed down, and budget deficit increased. However, unemployment went down, and inflation has been stable between 2 and 5 percent. Trade has maintained a pre-war level, although there have been some difficulties. References Bilmes, Linda, and Joseph E. Stiglitz. 2006. The Economic Costs of the Iraq War: An Appraisal Three Years After the Beginning of the Conflict. Cambridge, MA: National Bureau of Economic Research. Chan, Steve. 1985. “The Impact of Defense Spending on Economic Performance: A Survey of Evidence and Problems.” Orbis 29 (2): 403–434.CIA Factbook. 2024. “Ukraine.”Gilpin, Robert. 1981. War and Change in World Politics. New York: Cambridge University Press.  Glick, Rouven and Alan Taylor. 2010. “Collateral Damage: Trade Disruption and the Economic Impact of War.” The Review of Economics and Statistics 92(1): 102-127.Iklé, Fred C. 1991. Every War Must End. New York: Columbia University Press.Kešeljević, Aleksandar, and Rok Spruk. 2023. Estimating the Effects of Syrian Civil War. Empirical Economics.  Koumi, Valley. 2005. “War and Economic Performance.” Journal of Peace Research 42 (1): 67-82. Liadze, Iana, Corrado Macchiarelli, Paul Mortimer-Lee, and Patricia Sanchez Juanino. 2023. “Economic Costs of the Russia-Ukraine War.” The World Economy 46: 874–886.Organski, A. F. K., and Jacek Kugler. 1980. The War Ledger. Chicago: University of Chicago Press. Russett, Bruce. 1970. What Price Vigilance? The Burdens of National Defense. New Haven: Yale University Press.

Diplomacy
ASEAN - GCC Ministerial Meeting - 25 May 2025 Group Photo

Implications of Xi Jinping's visit to Malaysia and Trump's visit to the Gulf ahead of the Malaysia-led ASEAN-China-GCC summit

by Nadia Helmy

China relies heavily on Malaysia as a bridge for cooperation, dialogue, and coordination with the Gulf Cooperation Council (GCC) countries and China in confronting the economic and political challenges imposed by the United States on China and many countries around the world after President “Trump” increased US tariffs on China. To this end, China seeks to coordinate with Malaysia during its presidency of the (ASEAN Summit) this year 2025, and its concurrent presidency of the (ASEAN-GCC Cooperation Summit), a situation China is keen to capitalize on through its distinguished partnership with Malaysia. In addition, Chinese President Xi Jinping's visit to Malaysia in mid-April 2025, during which they issued a joint statement on support for Gaza and the Palestinian cause in the face of Israeli violations.  Malaysia's meetings and its current hosting of the (ASEAN Summit and the ASEAN-GCC Cooperation Summit) come after important trade talks between the United States and China in Switzerland in May 2025, the same month as the ASEAN and ASEAN-GCC Cooperation Summits with China. The ASEAN-GCC Summit may be a real opportunity to lay the foundation for deeper negotiations between the world's two largest economies after a period of escalation in the trade war between the two sides.  Given the importance of the ASEAN region to Southeast Asia, which represents China's vital backyard, it is at the heart of the strategy for managing major events between Washington and Beijing in the Indo-Pacific region. To this end, Washington and Beijing signed a strategic partnership agreement with ASEAN, given its critical importance to both countries.  Former US President Joe Biden signed a new Comprehensive Strategic Partnership agreement between the United States and the Association of Southeast Asian Nations (ASEAN), describing it as a decisive step toward addressing the biggest issues of our time. Meanwhile, Beijing emphasized strengthening the Comprehensive Strategic Partnership agreement it signed with ASEAN in 2021, with China keen to jointly build the world's largest free trade area.  The most prominent complex global issues on the agenda of ASEAN countries, China, Malaysia, and the Gulf Cooperation Council (GCC) in their confrontation with Washington and Russia include (the war in Ukraine, climate change, regional tensions around the Taiwan Strait and the South China Sea, North Korea's missile launches, the recent Gaza war, and US tariffs), among others.To this end, China officially confirmed Chinese Premier Li Keqiang's visit to Malaysia in late May 2025 to attend a summit coordinated by China with a newly formed group of Southeast Asian and Arab countries, through which Beijing hopes to garner support in the face of Washington's tariffs. China also launched a campaign to mend relations with the European Union, Japan, and South Korea, after US President Donald Trump imposed a series of tariffs on numerous countries on April 2, 2025, before abruptly suspending them for dozens of countries except China.  Chinese Premier “Li Keqiang” will also be in Kuala Lumpur, Malaysia, to attend the (ASEAN-GCC-China Summit) on May 27, 2025, which will be held one day after the ASEAN Summit scheduled for May 26, 2025. China has not publicly confirmed the names and number of Chinese officials who will comprise the Chinese delegation it will send to Malaysia before the summits in Malaysia.  From my analytical perspective, this may stem from China's fear that the United States and its ASEAN allies will exert pressure on those Chinese figures who will participate in the (ASEAN-GCC Summit) in particular.  In my view, Chinese President Xi Jinping's visit to Malaysia in mid-April 2025 is linked to the role Malaysia will play, along with its ally China, in confronting US protectionist policies. This follows President Xi Jinping's visit to three Southeast Asian countries (Vietnam, Malaysia, and Cambodia) to win them over to China's side in its trade war with the United States. To this end, China is seeking to win Malaysia over, particularly at this time, as Beijing intensifies its current efforts to secure partnerships to protect its economy from the escalating trade war with the United States. While the three countries (Vietnam, Cambodia, and Malaysia) will benefit from Chinese President Xi Jinping's visit in mid-April 2025 to diversify their Chinese supply chains, it also places them in a challenging position with the US, and in the crosshairs of US President Trump as he seeks to restrict the reshipment of Chinese goods to its regional neighbors and then transport them through them to the world.  In anticipation of all stages of US escalation against China, Chinese President “Xi Jinping” convened and chaired the Central Working Conference on Diplomacy with Neighboring Countries in early May 2025. This conference highlighted China's increasing focus on strengthening regional relations, particularly with its neighbors, most notably Malaysia and its ASEAN partners.  On the other hand, there is competition between the United States, China, and Europe to enhance economic presence at the joint summit between the Malaysia-led ASEAN and the Gulf Cooperation Council (GCC) in Kuala Lumpur, Malaysia. The GCC countries are in fierce competition with the United States, Russia, China, and Europe to strengthen their economic presence in the vibrant ASEAN, which holds promising opportunities in multiple fields for the Gulf community. The ASEAN summit with the Gulf states and China represents an important milestone that reflects the growing interest of the leaders of the Gulf Cooperation Council (GCC) in strengthening relations with the ASEAN countries and China, in the face of economic and geopolitical challenges that require deeper coordination and more flexible cooperation. This is especially true given the unbalanced nature of Trump's personality, from the perspective of the Gulf states, even his closest allies. Many GCC leaders fear a sudden Trump coup against his closest allies, which is one of the reasons for the Gulf's move towards rapprochement with the ASEAN and China, led by Malaysia. The geopolitical transformations and escalating international competition between China and the United States over the Asian region and the Association of Southeast Asian Nations (ASEAN) in East and Southeast Asia, on the part of Russia, Europe, the United States, and China, have highlighted the efforts of the Gulf Cooperation Council (GCC) countries to strengthen their economic and political presence in this vital region through strategic partnerships that transcend traditional considerations and are based on mutual interests and commonalities. ASEAN countries represent emerging economies that hold promising opportunities in multiple fields for China and the Gulf countries, such as energy and infrastructure. This is why all GCC countries are currently investing in it. Furthermore, there are important commonalities, including that these countries, like the Gulf states, are also seeking to distance themselves from geopolitical polarization in their regional environment, especially after the recent Gaza war. The GCC countries are currently unwilling to enter into economic alliances against other parties. This provides common ground for fruitful cooperation between all, led and coordinated by Malaysia as a bridge for communication, dialogue, and coordination between the GCC countries, primarily with China.  There is also a mutual desire to strengthen Sino-Gulf relations with ASEAN countries through Malaysia at various levels, including cultural cooperation, based on a shared history spanning hundreds of years, particularly through the Chinese Belt and Road Initiative, which represents numerous cultural and civilizational aspects, in addition to its economic, commercial, and investment importance for all.  The secret to ASEAN's success and the encouragement of GCC countries to cooperate and coordinate with it and with China through Malaysia is its focus on economic objectives, transcending ideology and non-interference in the internal politics and affairs of other countries, while giving priority to development and investment. The new and vital area of coordination between ASEAN, China, Malaysia, and the GCC countries is the Maritime Cooperation Mechanism, recognizing the importance of oceans and seas as a key factor in driving growth.  Therefore, there is a working agenda for a framework for maritime cooperation among all concerned countries, to ensure the security of maritime and logistical straits, achieve the principles of maritime safety and security, and ensure freedom of navigation and air traffic without obstacles that limit the movement of legitimate maritime trade. It also promotes peaceful resolution of disputes in accordance with the principles of universally recognized international law.   The Gulf's move toward cooperation with ASEAN countries and China, through Malaysia's coordination of the Gulf Cooperation Council (GCC) summit with ASEAN and China, has several fundamental reasons. These include the United States' imposition of tariffs on several countries, including the GCC itself, at varying rates. This will impact their exports to the US market. This move will inevitably push them to seek alternative markets, enhancing opportunities for cooperation between ASEAN and China, led by Malaysia, with the Gulf countries. This comes amid Chinese efforts to leverage these changes to strengthen its negotiating position vis-à-vis the Americans. Perhaps the positive thing is that Washington announced the suspension of these tariffs on China for 90 days, but I most likely expect it to impose other tariffs on China and the Gulf countries and set other conditions. This will make economic relations between the GCC countries, ASEAN, and China vis-à-vis Washington more tense in the short and long term, as their exports to the US will inevitably be affected in the near future. Therefore, we note that these common challenges facing the Gulf Cooperation Council (GCC), ASEAN, China, and Malaysia together in the face of these American pressures, even after Trump's visit to the three Gulf states (Saudi Arabia, Qatar, and the UAE) in the same month as the (ASEAN-China-GCC summit) in Malaysia in May 2025, open the door to new economic dialogues between all parties and help form regional blocs between ASEAN, China, Malaysia, and the GCC countries. There is clear enthusiasm from all parties to make this happen on the ground. Suffice it to mention the keenness of the concerned parties to hold real summits at the level of heads of state, in addition to ongoing ministerial and technical meetings. This reflects the existence of a genuine political will that seeks to translate all these aspirations into practical partnerships on the ground.  In this context, China, ASEAN, and Malaysia welcomed Saudi Arabia's bid to host Expo 2030 in Riyadh, highlighting the importance of organizing regional and international exhibitions to revitalize economic and cultural exchanges between the Gulf and ASEAN regions, including Southeast Asian countries, China, and Malaysia. They also emphasized the importance of conducting consultations to explore cooperation on implementing the “ASEAN Integration Initiative Action Plan” (2021-2025) and integration programs in the Gulf Cooperation Council (GCC) countries with China and Malaysia. This is what the ASEAN-GCC Joint Summit with China and Malaysia seeks to explore and achieve.  The ASEAN-GCC-China Joint Summit, led by Malaysia, is expected to discuss the Joint Action Plan until 2028 and enhance cooperation between the two organizations, particularly political, economic, security, and cultural aspects, as well as investment, tourism, agriculture, halal products, education, and training.  Coordination between these parties, through Malaysia's presidency of the current ASEAN-GCC summit with China, is focused on key economic partnership priorities, namely enhancing regional market integration and integrating them through cooperative partnerships among all, while strengthening the multilateral trading system. This summit also aims to strengthen existing relations between the Gulf states, ASEAN, and China, given the current circumstances, regional conditions, and rapid international changes. The summit will also enhance the dynamics of relations between ASEAN, the GCC, China, and Malaysia, by discussing the path forward and strengthening cooperation across a number of existing areas of cooperation, including combating international crimes and terrorism. It is also an opportunity to identify new areas of cooperation in security, politics, economics, and cultural pillars. The most important aspect, from my perspective, is that the currently emerging multipolar international order requires middle powers such as the Gulf states, ASEAN, China, and Malaysia to stick together and reach a joint dialogue to support multilateral relations, particularly political aspects, and to coordinate their common positions, especially after the recent Gaza war and the American pressures that have become openly exerted on everyone. In general, the relationship between the Gulf and ASEAN sides, along with China and Malaysia, is considered primarily economically important for all, but it has also evolved due to circumstances in the political dimension. ASEAN countries enjoy a reputation for great neutrality and flexibility regarding international positions, with a greater focus on the economic dimension, while Gulf leaders are placing greater importance on developmental aspects alongside the economy.

Diplomacy
Concept image of USA - Vietnam trade war, Economy conflict, US tariffs on exports, Trade frictions

Opinion – The US-Vietnam Comprehensive Strategic Partnership in its Second Year

by Julian McBride

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The United States and Vietnam, former adversaries but now significant trading partners, are in their second year of the comprehensive strategic partnership, further improving their ties. In 2025, the comprehensive strategic partnership makes a major two-year milestone as both America and Vietnam are thirty years into normalization, as five decades ago, both countries were intertwined in one of the most deadly wars in modern history. The comprehensive strategic partnership is a significant counterbalance in international relations in the Indo-Pacific region against China’s rising soft power and naval force projection into the South China Sea. In its second year, questions remain: Will the partnership hold up, and is there still room to grow between Washington and Hanoi? On September 10th, 2023, then-U.S. President Joe Biden and the late General Secretary Nguyen Phu Trong of Vietnam signed the comprehensive strategic partnership, which is a major turning point in Southeast Asia. The elevation of relations between Hanoi and Washington puts America along the same bilateral status as Russia and China in Vietnam’s hierarchy, signifying a major diplomatic breakthrough between the former two countries. Under the upgraded relations, Vietnam and the United States will further strengthen cooperation in trade, investments, science, technology, and climate action, with more opportunities in other sectors. Southeast Asia is an emerging global supply chain hub for not just the United States but the entire world, and Hanoi is a top ten major trading partner of Washington. The opportunity to grow supply chains in the Indochina region with Vietnam as a starting point would be an essential step toward digressing from the People’s Republic of China, which the United States government looks to do, especially as the latter two superpowers now compete for global hegemonic status. The United States and Vietnam share the ideals of growing their technological and economic sectors. The growth of semiconductors in Eastern Asia continues to grow not only in Taiwan, China, Japan, and South Korea but also in Vietnam. Amkor, an American firm, is opening a $1.6 billion firm in Vietnam for this endeavor. Furthermore, Reuters reported in January 2024 that fifteen American firms are vying to invest $8 billion in semiconductors in Vietnam. American companies and business owners currently heavily invest in Vietnam, such as Intel, Apple, Nike, Amkor, Marvell, and First Solar, and the list can continue to grow in the comprehensive strategic partnership. Simultaneously, Vietnamese companies such as VinFast and VGN Corporation are increasing investments in the United States. VinFast’s growth in North Carolina is helping the local economy by creating more manufacturing opportunities. Though Vietnam and the United States have reached new peaks in upgraded relations, it is vital to mention that the comprehensive strategic partnership is not a mutual defense accord including direct military assistance. During the joint signing, neither Washington nor Hanoi mentioned ‘containment’ of Beijing’s ambitions, even though the South China Sea continues to grow into a potential regional powder keg. Vietnam’s upgraded partnership with the United States correlates with India’s current strategy of not fully aligning to one side to trigger ire or retaliation from the People’s Republic of China but strategically keeping full diplomatic cohesion with all regional powers while maintaining its sovereignty. Vietnam is also a close ally of Russia as the United States ignored the original requests for their self-determination post-WWII. Though they do not supply the Russian military’s illegal aggression in Ukraine, it is tantamount for the U.S. government not to push or strong-arm Hanoi closer to Moscow. Nevertheless, in the future, the U.S. and Vietnamese Armed Forces could establish backchannels to warn each other of any potential military threat by the People’s Liberation naval movements around the South China Sea without openly engaging in military cooperation that could draw strong actions from China and Russia. Hanoi looks to advance its interests amidst rising economic and technological competition in the Indo-Pacific and growing American investments will only push Vietnam’s marketing further. Simultaneously, Washington gains a growing economic and diplomatic presence in Southeast Asia. To promote a growing relationship, the United States can also further reconciliation efforts in the aftermath of the Vietnam War, as many of Vietnam’s demographic majority and elderly still remember the American aggression in the Indochina conflicts. In its second year, Hanoi and Washington continue to grow ties through several key sectors that advance both country’s national interests and further open opportunities between the East and West. Rebuilding and rewriting the wrongs of the past, the United States reached out to Vietnam to solidify a comprehensive strategic partnership, which is decades in the making and a landmark agreement long envisioned by Ho Chi Minh. With opportunities to expand into the technology, economic, and trade sectors, Hanoi and Washington continue to grow bilateral ties in year two of the partnership. The text of this work is licensed under  a Creative Commons CC BY-NC 4.0 license

Energy & Economics
The image displays mineral rocks alongside US currency and flags of Ukraine and the USA, highlighting the complex relationship involving economics, power, and resources.

Why Zelensky – not Trump – may have ‘won’ the US-Ukraine minerals deal

by Eve Warburton , Olga Boichak

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Last week, the Trump administration signed a deal with Ukraine that gives it privileged access to Ukraine’s natural resources. Some news outlets described the deal as Ukrainian President Volodymyr Zelensky “caving” to US President Donald Trump’s demands. But we see the agreement as the result of clever bargaining on the part of Ukraine’s war-time president. So, what does the deal mean for Ukraine? And will this help strengthen America’s mineral supply chains? Ukraine’s natural resource wealth Ukraine is home to 5% of the world’s critical mineral wealth, including 22 of the 34 minerals identified by the European Union as vital for defence, construction and high-tech manufacturing. However, there’s a big difference between resources (what’s in the ground) and reserves (what can be commercially exploited). Ukraine’s proven mineral reserves are limited. Further, Ukraine has an estimated mineral wealth of around US$14.8 trillion (A$23 trillion), but more than half of this is in territories currently occupied by Russia. What does the new deal mean for Ukraine? American support for overseas conflict is usually about securing US economic interests — often in the form of resource exploitation. From the Middle East to Asia, US interventions abroad have enabled access for American firms to other countries’ oil, gas and minerals. But the first iteration of the Ukraine mineral deal, which Zelensky rejected in February, had been an especially brazen resource grab by Trump’s government. It required Ukraine to cede sovereignty over its land and resources to one country (the US), in order to defend itself from attacks by another (Russia). These terms were highly exploitative of a country fighting against a years-long military occupation. In addition, they violated Ukraine’s constitution, which puts the ownership of Ukraine’s natural resources in the hands of the Ukrainian people. Were Zelensky to accept this, he would have faced a tremendous backlash from the public. In comparison, the new deal sounds like a strategic and (potentially) commercial win for Ukraine. First, this agreement is more just, and it’s aligned with Ukraine’s short- and medium-term interests. Zelenksy describes it as an “equal partnership” that will modernise Ukraine. Under the terms, Ukraine will set up a United States–Ukraine Reconstruction Investment Fund for foreign investments into the country’s economy, which will be jointly governed by both countries. Ukraine will contribute 50% of the income from royalties and licenses to develop critical minerals, oil and gas reserves, while the US can make its contributions in-kind, such as through military assistance or technology transfers. Ukraine maintains ownership over its natural resources and state enterprises. And the licensing agreements will not require substantial changes to the country’s laws, or disrupt its future integration with Europe. Importantly, there is no mention of retroactive debts for the US military assistance already received by Ukraine. This would have created a dangerous precedent, allowing other nations to seek to claim similar debts from Ukraine. Finally, the deal also signals the Trump administration’s commitment to “a free, sovereign and prosperous Ukraine” – albeit, still without any security guarantees. Profits may be a long time coming Unsurprisingly, the Trump administration and conservative media in the US are framing the deal as a win. For too long, Trump argues, Ukraine has enjoyed US taxpayer-funded military assistance, and such assistance now has a price tag. The administration has described the deal to Americans as a profit-making endeavour that can recoup monies spent defending Ukrainian interests. But in reality, profits are a long way off. The terms of the agreement clearly state the fund’s investment will be directed at new resource projects. Existing operations and state-owned projects will fall outside the terms of the agreement. Mining projects typically work within long time frames. The move from exploration to production is a slow, high-risk and enormously expensive process. It can often take over a decade. Add to this complexity the fact that some experts are sceptical Ukraine even has enormously valuable reserves. And to bring any promising deposits to market will require major investments. What’s perhaps more important It’s possible, however, that profits are a secondary calculation for the US. Boxing out China is likely to be as – if not more – important. Like other Western nations, the US is desperate to diversify its critical mineral supply chains. China controls not just a large proportion of the world’s known rare earths deposits, it also has a monopoly on the processing of most critical minerals used in green energy and defence technologies. The US fears China will weaponise its market dominance against strategic rivals. This is why Western governments increasingly make mineral supply chain resilience central to their foreign policy and defence strategies. Given Beijing’s closeness to Moscow and their deepening cooperation on natural resources, the US-Ukraine deal may prevent Russia — and, by extension, China — from accessing Ukrainian minerals. The terms of the agreement are explicit: “states and persons who have acted adversely towards Ukraine must not benefit from its reconstruction”. Finally, the performance of “the deal” matters just as much to Trump. Getting Zelensky to sign on the dotted line is progress in itself, plays well to Trump’s base at home, and puts pressure on Russian President Vladimir Putin to come to the table. So, the deal is a win for Zelensky because it gives the US a stake in an independent Ukraine. But even if Ukraine’s critical mineral reserves turn out to be less valuable than expected, it may not matter to Trump.

Diplomacy
HAJJAH , YEMEN – October 26, 2020:Tribal mobilization to support government forces in northwest Yemen

Yemen’s Ansar Allah reaches ceasefire deal with US that excludes strikes on Israel

by Aseel Saleh

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском While Trump declared the truce agreement a US victory, Ansar Allah said that Washington contacted them in order to “avoid drowning in the mountains of Yemen”. Yemen’s Ansar Allah movement reached a ceasefire deal with the United States on Wednesday, May 7, according to Oman, which mediated the negotiations. The deal stipulates the halt of Ansar Allah’s attacks on US ships in the Red Sea and Bab al-Mandab Strait, and an end to US aggression on Yemen. However, it does not prevent the Yemeni movement from launching attacks on Israel.  “Following recent discussions and contacts conducted by the Sultanate of Oman with the United States and the relevant authorities in Sana’a, in the Republic of Yemen, with the aim of de-escalation, efforts have resulted in a ceasefire agreement between the two sides,” Omani Foreign Minister, Badr Albusaidi, wrote on X. “In the future, neither side will target the other, including American vessels, in the Red Sea and Bab al-Mandab Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping,” the minister added. Peoples Dispatch spoke to a member of the Communist Party of Jordan, Dr. Emad Al-Hatabeh, to discuss the ceasefire, which he described as a “sudden development in the war in the Red Sea.” Dr. Emad Al-Hatabeh indicated that “both the US and Oman didn’t comment on Ansar Allah’s missiles targeting Israel, especially that this agreement was reached shortly after a Yemeni missile reached Ben Gurion airport, near the occupied city of Lydda (also known as Lod).” As per Al-Hatabeh’s analysis, “important questions about this agreement are left without answers. Taking into consideration the Omani role in the American – Iranian negotiations, is the ceasefire in the Red Sea part of the deal? Another question will arise from this assumption, did America give up some of Israel’s interests in order to reach an agreement with Iran? Where does this agreement leave Netanyahu’s government, especially after Ansar Allah’s spokesman told Reuters that the agreement doesn’t include Israel.” Ansar Allah says the US contacted them seeking a truce One day before Oman announced that the deal was sealed, US President Donald Trump alluded that a ceasefire agreement was about to be reached, claiming that Ansar Allah agreed to stop the fight with the US because they “capitulated”.  “They just don’t want to fight, and we will honor that and we will stop the bombings, and they have capitulated,” Trump said from the White House on Tuesday, May 6. “They will not be blowing up ships anymore, and that’s what the purpose of what we were doing. So that’s just news. We just found out about that. So I think that’s very, very positive,” he added. Although Trump bragged about the deal, presenting it as a US victory, analysts suggest that it was Ansar Allah that forced the world’s greatest military superpower to the negotiating table, after paralyzing US naval traffic off the Yemeni coast.  Ansar Allah’s chief negotiator, Mohammed Abdulsalam, confirmed during an interview with Almasirah TV channel, that the movement “did not make any request to the Americans to hold ceasefire talks”. Abdulsalam asserted that, on the contrary, the movement recently received US requests and messages seeking a truce, via the Sultanate of Oman. The Yemeni official pointed out that US endeavors to reach a ceasefire with Ansar Allah were a great disappointment to Israel. “The Israelis have endured great disappointment after the stance of the US, which tried to walk away and avoid drowning in the mountains of Yemen,” he said. However, Abdulsalam clarified that Ansar Allah is still “assessing this US position so that the facts on the ground do not contradict its statements”. He further warned that in the event that the US “would not abide by the agreement in any way”, the movement “will respond”. Abdulsalam considered the deal “a success to be added to Yemen’s credit, as it enhances a situation that would leave the “usurper entity” [Israel] in a situation of loneliness, in confrontation with the great popular and military stance led by Yemen on behalf of the Arab and Islamic nation.” The ceasefire was announced two months after Trump ordered a large-scale aerial campaign against Yemen on the pretext of protecting US shipping, air, and naval assets and to restore “navigation freedom” from Ansar Allah’s attacks. Trump’s order followed Ansar Allah’s decision to resume a ban on Israeli ships due to Israel’s continuous blockade of humanitarian aid to Gaza. Yemen threatens Israel with a devastating and painful response for attacking Sana’a airport  While Ansar Allah agreed to a truce with the US, it vowed to escalate its operations against Israel as long as its blockade on humanitarian aid to Gaza is not lifted.  In response to Israel’s aggression on Sana’a International Airport on Tuesday, that destroyed terminal buildings and caused USD 500 million in damage, Yemen’s Supreme Political Council Chairman, Mahdi al-Mashat, threatened that “Sanaa’s response will be devastating, painful, and beyond what the Israeli enemy can endure.” “From this moment onward, stay in your shelters or leave for your homelands immediately. Your failed government will no longer be able to protect you,” Al-Mashat warned Israeli people.  Moreover, the Yemeni senior official reaffirmed that no aggression will deter Yemen from its “rightful decision” to support the people of Palestine “until the genocide ends and the siege on Gaza is lifted.” The Yemeni Armed Forces’ spokesman, Brigadier General Yahya Saree, also confirmed in a televised statement late Wednesday, that the movement will continue its ban on Israeli ships in the Red Sea and the Arabian Sea, alongside the comprehensive aerial blockade on Israel’s Ben Gurion Airport. Text under Creative Commons Attribution-ShareAlike 4.0 (CC BY-SA) license

Energy & Economics
Flags of America and China atand on table during talks between diplomats and businessmen. American and Chinese representatives sit opposite each other to discuss relations between countries.

China and US agree to cut tariffs imposed in April

by Abdul Rahman

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The agreement was an acknowledgment of the significance of their trade for mutual economic development and the health of the global economy, the joint statement says. China and the US agreed to roll back high tariffs imposed on one another last month for a period of 90 days. The agreement was announced in a joint statement issued on Monday, May 12. The agreement was a result of a high-level meeting on trade and economic affairs held between Chinese and US delegations in Geneva, Switzerland over the weekend. As described in a press conference on Monday by the US Treasury Secretary Scott Bessent who was part of the US delegation, both sides have agreed to reduce the tariffs by 115%. That would mean that the US will reduce its tariffs on China to 30% from its present 145% while the Chinese will lower their tariffs to 10% from its present 125%. These new tariff rates would be effective from Wednesday for the next 90 days. Both the countries also agreed to explore a more stable arrangement in the interim period. China also agreed to reverse additional measures imposed in response to US President Donald Trump’s tariff war, such as putting various US companies on the sanctions list and placing export controls on rare earth minerals. The parties committed to taking these measures as an acknowledgment of the mutual significance of their bilateral trade and its importance for the global economy and for “moving forward in the spirit of mutual opening, continued communication, cooperation and mutual respect,” a joint statement says. The 30% US tariff includes a 10% baseline tariff imposed on all imports by Trump in April after suspending his reciprocal tariff regime for 90 days, and a 20% tariff imposed by the Trump administration before April in the name of stopping the illegal flow of the drug fentanyl. Answering a question on the cooperation between both the countries over fentanyl, the spokesperson of the Chinese Foreign Ministry Lin Jian criticized “the wrongly slapped tariffs on Chinese imports” by citing the issue and claiming that “if the US truly wants to cooperate with China, it should stop vilifying and shifting the blame.” Jian also advised the US “to seek dialogue with China based on equality, respect and mutual benefit.” Relief for the global economy  Trump announced a reciprocal tariff regime on April 2 against all those countries which had a trade surplus with the US, including China. After global backlash, Trump later postponed the implementation of the regime for 90 days, inviting countries to seek bilateral agreements to avoid high tariffs while imposing a 10% common tariff. The Trump administration had claimed that reciprocal tariffs were required in order to lower the US trade deficit, which is over a trillion dollars. China, the third largest trade partner of the US, faced the highest tariff rates under Trump’s tariff war and chose to retaliate. It also called the policy a violation of international law and an attempt by the US to weaponize trade. On Tuesday, Chinese President Xi Jinping reiterated his country’s position that there are no winners in trade and tariff wars, claiming bullying and hegemony will only result in self-isolation. He was addressing the fourth ministerial meeting of the China-CELAC (Community of Latin American and Caribbean States) forum in Beijing. The tariff war between the world’s leading economies was seen as a disaster for the global economy and trade. A large number of US businesses had also opposed Trump’s tariff war. They had claimed high tariffs may lead to a rise in prices which harm both the consumer and domestic production. Several businesses filed lawsuits in the US claiming Trump’s reciprocal tariff regime was illegal and harmful for their ability to do business. US trade representative Jamieson Greer, who was part of the negotiating team in Geneva, claimed that the talks with various countries, including China, is the first step to reducing the US trade deficit and ending the national emergency declared by Trump to authorize the reciprocal tariff decrees, South China Morning Post reported. The Chinese Ministry of Commerce also hailed the agreement as “substantive progress” for mutual economic development. It expressed hope that “the US side will build on the meeting, continue to work with China in the same direction, completely rectify its wrong practices of unilateral tariff hikes, and keep strengthening mutually beneficial cooperation.” Acknowledging that “high levels of tariffs were equivalent to an embargo and neither side wanted that,” Bessent declared on Monday that the US wants a trade relationship with China, though a balanced one. The Chinese Ministry of Commerce also hoped that the US would pursue the matter much more seriously and “inject more certainty and stability into the world economy.” Both the countries have agreed to establish “a joint mechanism” to continue their trade and economic negotiations in future. Text under Creative Commons Attribution-ShareAlike 4.0 (CC BY-SA) license

Defense & Security
Gaza on map. Israel an Palestine on geopolitical Map. Gaza strip and West Bank. War conflict.

Netanyahu accelerates plans for total occupation of a starving Gaza

by Redacción El Salto

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The Israeli army seeks to mobilize 30,000 reservists for a new expansion of its offensive on Gaza. UN-affiliated organizations warn of famine and disease in an enclave where clean drinking water is scarce. The Israeli security cabinet has approved a plan to intensify the operation in Gaza, which includes capturing or seizing additional areas across the Palestinian coastal territory and expanding the area controlled by the IDF. Government members, such as Finance Minister Bezalel Smotrich, are already using the term “occupation” to clarify the plans for Gaza. Although Prime Minister Benjamin Netanyahu has not specified which parts of the territory are involved in the new escalation, anonymous military sources have claimed that the goal is to occupy the entire Gaza Strip. The idea put forth by the Zionist regime, in any case, is to seize the territory and not return it in the future. Hamas has rejected this plan and continues to pursue “a comprehensive agreement that guarantees the safety and protection of our people,” according to one of its senior officials. The announcement includes the destruction of “all infrastructure above and underground,” according to Israeli Chief of General Staff Eyal Zamir. The meeting followed IDF orders to mobilize 30,000 reservists last Saturday. Israel is thereby increasing pressure on Gaza during the same month that U.S. President Donald Trump is expected to visit Saudi Arabia, Qatar, and the UAE, where he will present his colonization plans aligned with the wishes of the Tel Aviv regime. The plan also entails a new forced displacement of hundreds of thousands of Palestinians to the south of Gaza, expected to last for months. The government of Netanyahu — who is considered a suspected war criminal by the International Court of Justice (ICJ) — faces internal resistance from the Hostage and Missing Families Forum, which has protested what they see as prioritizing territorial conquest over the return of prisoners captured by Hamas on October 7. Fifty-nine people remain held by the Gaza government after Israel unilaterally broke the ceasefire on March 18. The Forum mentioned before, criticized the Gaza occupation plans, referring to them as the “Smotrich-Netanyahu Plan for the Sacrifice of Hostages,” according to a public statement. The main debate within the security cabinet focused on whether to open routes for humanitarian aid — routes that have been closed since early March, two weeks before the ceasefire collapsed. According to Israeli newspaper Haaretz, Itamar Ben Gvir — also subject to ICJ arrest warrants — argued for keeping all aid routes closed: “I don’t understand why we have to give them anything; they have enough food there. We should bomb Hamas’s food reserves,” the outlet quoted. The Chief of Staff called the idea “dangerous.” According to the same leaks, Ben Gvir also proposed “bombing food warehouses and generators.” The International Criminal Court has reminded that blocking humanitarian aid may constitute a war crime. The Israeli government has leaked to the press that under the new escalation, humanitarian aid would be allowed in only through “international organizations and private security contractors.” On Sunday, May 4, the Country Humanitarian Team (CHT), under the UN Office for the Coordination of Humanitarian Affairs (OCHA), reported that for nine weeks Israeli authorities had blocked all supplies from entering Gaza: “Bakeries and community kitchens have shut down. The warehouses are empty. Children are starving.” Two days earlier, UNICEF Executive Director Catherine Russell expanded on the critical situation in Gaza: “In the past month, more than 75% of households have reported increased difficulty accessing water. Families don’t have enough to drink, cannot wash their hands when needed, and often must choose between showering, cleaning, or cooking,” Russell said in a statement. UNICEF also warned of the prevalence of acute watery diarrhea, especially dangerous for children: “Over 9,000 boys and girls have received treatment for acute malnutrition,” the organization added. At the end of April, during ICJ hearings related to South Africa’s case against Israel, Claire Nicolet, Head of Emergencies at Médecins Sans Frontières (MSF), stated that “Israeli authorities are not only using aid as a bargaining chip but also as a weapon of war.” Since October 7, 2023, 52,567 Palestinians have been killed and 118,610 injured as a result of Israeli attacks, according to the Gaza Health Ministry. Of those fatalities, 2,459 occurred after the March ceasefire was broken. 

Diplomacy
KYIV, UKRAINE - May 1, 2022. Flags of Finland and NATO.

Finland: Two Years in NATO

by Sergey Andreev

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском April 2025 marks the second anniversary of Finland’s accession to the North Atlantic Treaty Organization (NATO). Although the prospect of joining the alliance began to be seriously considered after the escalation of the Ukraine crisis in 2014, a final decision was repeatedly postponed due to the unclear advantages of this move and insufficient public support. Despite close economic ties with Russia and a tradition of cautious diplomacy known as the “Paasikivi–Kekkonen line” (often criticized as “Finlandization”), the 2022 international crisis pushed Finland to join NATO. Since then, the once-neutral country has shifted its foreign policy, increased defense spending, and expanded its arms exports. Government and Military Perspectives In December 2024, the Finnish government presented a new Defense Report in Helsinki, replacing the previous strategy issued in September 2021. Back in 2021, Finland had highlighted the growing military activity in the Baltic Sea and Arctic regions, along with the increased interest of major powers in the natural resources of the North and the Northern Sea Route. Notably, the country didn’t name any specific enemy, choosing to keep its message broad and carefulThe 2024 document takes a much more serious tone. It clearly names Russia as the main source of global instability and describes China as a growing power that challenges the U.S. and its allies. Terrorism is mentioned too, but much less often. Some of the main points about global security include the following - The return of a "large-scale, protracted war" to the European continent;- The Special Military Operation (SMO) is interpreted as a continuation of Russia’s aggressive actions in Crimea and eastern Ukraine in 2014, as well as in Georgia in 2008;- An increase in hybrid attacks and incidents involving critical infrastructure;- Growing Chinese influence on Finland and its neighboring countries;- An unpredictable and unstable defense and international security environment, with a clear tendency toward further deterioration;- The largest NATO military buildup on the eastern flank since the end of the Cold War;- Accession to NATO is described as “the most significant transformation in Finland’s defense policy since World War II”;- Ongoing integration of Finland’s armed forces into NATO’s structures and joint defense planning;- Finland is now planning its defense together with NATO, focusing not just on its own territory but also on the Baltic States, the Baltic Sea, the Arctic Ocean, and the North Atlantic. In the section on shifts in global power, Russia is named as the main cause of instability. It is described as “the most significant and immediate threat to the Allies, to security, and to peace and stability in the Euro-Atlantic region.” Other claims include: a long-standing effort to weaken the European Union, a push to restore its great power status, and an attempt to divide Europe into spheres of influence using military force. Russia is also accused of using hybrid tactics—such as spreading fear, influencing public opinion, stirring political divisions, and blocking decisions—to target European countries and their people. Its Special Military Operation is seen as the beginning of a broader, more direct, and unpredictable conflict with the West. China is characterized as a less aggressive player. It is noted that Beijing is rapidly modernizing its armed forces, has intensified intelligence activities in the United States and Europe, and has strengthened military and economic cooperation with Russia, the development of which will determine Moscow’s ability to exert influence over Europe. At the same time, Finnish strategists place greater emphasis on the ongoing competition between China and the United States for global political, military, economic, and technological dominance. In matters concerning NATO’s role in defense, it is noted that the Alliance has intensified its cooperation with partners in the Indo-Pacific region, increased its military presence on the eastern flank and the number of military exercises, and is continually updating both general and regional defense plans in the event of a large-scale conflict. With the accession of Finland and Sweden, NATO has become geographically closer to strategically important areas for Russia, including Moscow, Saint Petersburg, Kaliningrad, the Kola Peninsula, Belarus, the Baltic Sea, and the Arctic region. Within the Alliance, ensuring the security of maritime transport routes and the modernization of military infrastructure in Northern European countries is viewed as a key condition for the potential reinforcement of troops from North America. The role of the European Union is described as complementary to NATO, while it is also noted that the EU is increasing defense spending and expanding technological cooperation. The report was published after the election victory of Republican U.S. President Donald Trump, known for his isolationist views, which is partially reflected in the document through emphasis on European independence in security matters and the need for further military expenditures. On intra-European regional issues, the report focuses on cooperation with the member states of the Nordic Defense Cooperation (NORDEFCO), the Baltic States, and the United Kingdom, as well as on Germany’s shift in security policy, France’s increased defense spending, and Poland’s growing purchases of military equipment. In military and technology matters, the document highlights the growing role of unmanned systems (both remote-controlled and autonomous), artificial intelligence, and advanced human capabilities like improved thinking and synthetic biology. It stresses the need to use the latest scientific and tech innovations in developing weapons — a step that could help make up for fewer soldiers on the battlefield. Cyberspace and outer space are seen as new areas of military and technological competition. This view is based on several factors: the rapid growth of space technologies (driven by private companies), easier access to space, and heavy reliance on cyber tools and satellites for both military and civilian use. Information warfare is also becoming more influential alongside traditional combat. The document notes that small countries can benefit in such conflicts by using innovations smartly and managing resources well. Still, Helsinki does not rely only on high-tech solutions. A key part of Finland’s military strategy is preparing both its army and population for long-term, grinding conflicts. This includes signing long-term arms supply contracts, building strategic reserves, keeping supply chains strong, and staying ready to protect their way of life. Among the main conclusions, the authors of the report present the following: - Finland and Europe are facing a significant decline in security, with no short-term improvement expected.- Russia poses and will continue to pose a constant security threat to Europe and Finland;- Finland will provide military assistance to Ukraine for as long as necessary;- Following the accession of Finland and Sweden to NATO, the Nordic countries, the Baltic Sea region, and the High North have formed a unified geostrategic space; the Baltic Sea region holds strategic importance for Finland;- Finland’s defense will rely on maintaining conscription, strengthening the training of its military reserve, a strong public will to defend the country, and support from NATO membership.- Commitment to total defense — a combination of all national and international military and civilian measures that ensure the protection of the country under any circumstances (seven components are listed: government administration, international relations, defense capability, internal security, economy, functional capabilities of the population, and psychological resilience of people); There is a need to improve working conditions in the defense industry, increase production, and secure steady, reliable supply chains. A gradual increase in Finland’s military spending. - The development of the EU’s defense potential, and movement toward greater independence of the European Union both in policy and in the development of military technologies and defense supplies;- NATO’s readiness to provide the full spectrum of forces necessary for large-scale, high-intensity combat operations; Finland, in turn, must also create all the necessary conditions for the presence of allied troops on its territory. Similar assessments are presented in the Military Intelligence Review of Finland — 2025 (previous publications date back to 2021 and 2023), prepared by the General Staff of the Finnish Defence Forces. Russia is also named as the main threat there, which “seeks to reduce Western influence, secure its sphere of influence,” “views security policy as a zero-sum great power game in which NATO expansion strengthens the position of the United States and thereby weakens Russia’s security,” and “the interests or security of neighboring countries are not an important factor in Moscow’s calculations.” In addition, Russia is accused of seeking to turn the Global South against Western countries, in particular, there is a reference to “an attempt to present the BRICS group as part of an anti-Western ‘global majority’” . As for the Northern European direction, the Finnish General Staff notes the buildup of Russian forces on the Kola Peninsula and in the Arctic region, attributes to Moscow attempts to gain unrestricted access to the Northern Sea Route and to weaken the integration of Finland and Sweden into NATO structures. Helsinki predicts that after the end of the conflict in Ukraine, Russia’s priority will be the accelerated buildup and modernization of forces in the reestablished Leningrad Military District, bordering Scandinavia. Finnish military officials do not believe in a quick settlement of the situation in Ukraine and forecast a deterioration of Russia’s relations with the West in the coming years, a struggle by Russia for shipping in the Baltic Sea “by any means,” continued attacks on underwater infrastructure in the Baltic (a reference to damage to undersea cables, although no exact culprit is named), escalation of the race between the West, Russia and China for the resources of the High North, and increased intelligence and sabotage activities by Russian special services in Finland. China is not viewed in an entirely negative light; instead, there is recognition of Beijing's ambition to become a political, economic, military, and technological leader by 2049, marking the centenary of the founding of the People's Republic of China. China's growing influence over countries of the Global South is also noted. Russia–China relations are seen as a "lifeline" for the Russian economy and a means of circumventing sanctions. However, Beijing is not seen as an equal partner, but as someone benefiting from Russia’s growing isolation. This makes Russia more dependent on China. The war in Ukraine is seen as helping China, since it distracts the West from China's global rise. At the regional level, Helsinki plans to enhance cooperation and update the foundational NORDEFCO agreement during its presidency of the organization in 2025. This push for renewal is driven by the evolving security environment and Finland’s recent accession to NATO alongside Sweden. Back in April 2024, the defense ministers of the member states signed a memorandum outlining a new vision for NORDEFCO. According to the document, by 2030 the countries plan to improve joint military planning and operations, make it easier to move troops across borders, boost cooperation and intelligence sharing, both directly and through NATO and the EU, and keep strengthening the defense industries of the Nordic countries. NORDEFCO is not officially seen as a mutual defense agreement or a command system like NATO; however, in recent years, it has started to show features usually found in a defense alliance, mostly because of the actions of some of its members. In 2021, the defense ministers of Denmark, Norway, and Sweden signed a deal to strengthen cooperation, allowing for "joint action in times of peace, crisis, or conflict." In 2022, they gave each other permission to use their airspace and military bases. That same year, the defense ministers of Finland, Norway, and Sweden updated their three-way agreement, further growing their military cooperation. After Finland and Sweden applied to join NATO, Denmark, Iceland, and Norway made a joint promise to fully support them if either country were attacked. While NORDEFCO has not yet become an organization like NATO, the current level of defense cooperation between the Nordic countries at the regional level — and repeated promises to help each other in case of conflict — suggest that in the coming years, this effort might start to look like a smaller version of NATO in Northern Europe. This kind of setup would likely be less full of red tape, quicker at making decisions, and made up of countries that share similar views and speak with one voice. It would also have a lower risk of going backward — unlike some NATO members who, in recent years, have threatened to block decisions, added extra demands for new members, or even talked about leaving the Alliance. Defense and Military-Industrial Complex Expenditures Threats identified by Finnish politicians and the military automatically require growing expenditures and an acceleration of the defense industry. According to the Stockholm International Peace Research Institute (SIPRI), from 2014 to 2020, Finland’s military spending remained annually at the level of 1.5% of GDP, while in absolute terms it gradually increased — from $3.57 billion to $3.9 billion. Amid the pandemic in 2021, the figure dropped to $3.65 billion, but by the end of 2022 it amounted to $4.47 billion, and in 2023 — to $6.85 billion, or 2.4% of GDP. The British International Institute for Strategic Studies (IISS) provides similar estimates: growth from $3.72 billion in 2014 to $6.89 billion in 2024, with the budget for 2025 estimated at $7.47 billion. Helsinki does not intend to stop there — on April 1, 2025, following recommendations from the Ministry of Defense, the government began preparations for a phased increase of the military budget to at least 3% of GDP by 2029. Over four years, it plans to raise allocations by €3.7 billion, expand the state defense order, and develop new rearmament programs for the 2030s. Helsinki also views the prospects of its domestic defense industry with optimism — according to the Finnish think tank SaferGlobe (which, according to its website, is “engaged in the study and development of tools to promote sustainable peace and security”), in 2023 arms exports reached €333 million (of which €141 million accounted for weapons intended for civilian use in self-defense, sports, and hunting) — a record since record-keeping began in 2002. About 85% of military exports were distributed within Europe. The largest importing countries by value were Sweden (€51 million), Latvia (€34 million), and Lithuania (€19 million) — together, these three countries accounted for more than half of all military product exports. In value terms, the largest share of exported military products (32%) consisted of land vehicles and their components. The next largest export categories were ammunition (17%), as well as explosives and charges (15%). The largest exports of civilian weapons were to the United States (€52 million), Canada (€15 million), and Australia (€9 million). The year 2023 also set a record for issued export licenses for military products — €667 million. The largest recipient countries of export licenses were Slovakia (€201 million), Japan (€154 million), and Ukraine (€88 million). Similar conclusions were reached by the state investment company Finnish Industry Investment (Tesi), which in autumn 2024 surveyed 368 domestic defense companies: 144 of them were identified as “fast-growing startups and growth companies,” while the rest were described as “more established players with a long history, mainly providing consulting services to the Finnish Defence Forces.” The highest growth rates were shown by producers of dual-use goods, whose net profit has increased annually by 30–40% since 2022. At the same time, companies engaged exclusively in the military sector faced difficulties in attracting investment. 50% of defense companies were located in the capital region of Uusimaa, where the leaders were Helsinki (74 companies) and its satellite city Espoo (65); another 16% were based in the Pirkanmaa region centered around Tampere (40). Rounding out the top five were the high-tech “capital” Oulu (21) and another satellite of Helsinki, Vantaa (14). By type of activity, the majority of companies (246) operated in the support and logistics sector; 70 were engaged in the design of combat command and control systems (C4I — Command, Control, Communications, Computers, and Intelligence); 20 firms cooperated with the land forces, 13 with the navy, 10 with the air force, five worked in joint operations, and the remaining four were involved in space technologies. A New Strategy — A New President Finland’s entry into NATO happened during the second and final term of President Sauli Niinistö. While he followed the West’s general approach on the war in Ukraine and supported anti-Russian sanctions, he still tried to keep some level of political dialogue with Russia. After February 2022, this became almost impossible, and Finland officially ended its nearly 80-year policy of staying neutral. In the two-round election held in January and February 2024, Finnish voters chose Alexander Stubb from the National Coalition Party as their new president. Stubb studied in the United States and France, and previously worked as a Member of the European Parliament, as well as Finland’s Foreign Minister and Prime Minister. Back in 2014, when Finland still followed the "Paasikivi–Kekkonen line" of cautious foreign policy, Stubb was one of the only top officials who openly supported joining NATO. On the topic of relations with Russia, he said that “Russia’s integration with the West was an illusion.” This view may be influenced by his family history. Stubb’s father, Göran Stubb, was born in Käkisalmi — a town that was given to the Soviet Union after the Soviet–Finnish War of 1939–1940, renamed first as Kexholm (in Swedish), and later as Priozersk. On his father's side, Stubb’s grandparents came from Vyborg, which also became part of the Soviet Union after the war. However, the family had already moved to Helsinki before the conflict started. In his inaugural speech on March 1, 2024, Alexander Stubb uncompromisingly stated to the citizens of Finland that “the post–Cold War era is over” (placing the blame on Russia), “the instruments of cooperation have been turned into weapons,” “the world is in a transitional state,” and “the creation of a new world order takes time.” He added that Finns “will have to respond quickly to changing circumstances, as was the case with NATO membership,” and that “when times become difficult, I too will be ready to make tough decisions to ensure the security of our country.” In addition to his campaign promises, the newly elected president confirmed his commitment to the previously introduced “value-based realism” (arvopohjainen realismi), which he pledged to be guided by in the conduct of foreign policy if elected. Later, this was officially included in the government’s report on foreign and security policy in June 2024. Among other ideas, the report especially highlighted the following: commitment to democratic values, the rule of law, international law, and human rights; strengthening the country’s defense; staying out of military conflicts; and being open to dialogue with countries that do not share these values. The election of A. Stubb as president strengthened the pro-Western trends in Finland’s foreign policy. On September 1, 2024, the Defense Cooperation Agreement with the United States entered into force, under which Finland opens 15 of its military facilities for possible use by U.S. forces, while Helsinki will not charge rent for premises or land made available to the United States. On September 27 of the same year, the Finnish Ministry of Defense announced the placement of NATO headquarters on Finnish territory — in Mikkeli in the southwest of the country, 140 km from the border with the Russian Federation, and in the northern region of Lapland. On April 1, 2025, the Finnish authorities announced preparations to withdraw from the Ottawa Convention banning anti-personnel mines (a similar step had previously been taken by the defense ministers of Latvia, Lithuania, Poland, and Estonia), stating that this is “a cost-effective way to supplement the capabilities of the armed forces,” but adding that the country would remain “committed to the humanitarian goals of the convention” even after a possible withdrawal. On April 15, 2025, a Finnish servicemember took part for the first time in a flight aboard a NATO E-3A Airborne Warning and Control System (AWACS) aircraft during Ramstein Alloy 2025 exercises in the Baltic region. The NATO Airborne Early Warning & Control Force (NAEW&CF) includes personnel from 17 countries, in addition to which Canada, France, Finland, and Lithuania also contribute their staff. NATO noted that the E-3A is the first multinational flying unit created by the Alliance. Statements regarding Russia, despite initial uncompromising tone, began to soften after the election of Donald Trump as President of the United States, who held a different view of the Ukrainian conflict compared to the strongly pro-Ukrainian administration of Joe Biden. As early as April 2024, Alexander Stubb stated that there was no need to conduct political dialogue with Russia, and considered military action the only path to peace in the context of Ukraine. Under the new Washington administration, the Finnish president approved of the negotiations between the U.S. and Russian leaders, but again repeated the Ukrainian position on the need for a “just peace” and Ukraine’s accession to the EU and NATO. During his March 2025 visit to Florida, Stubb attempted to dissuade Donald Trump from cooperating with Russia and also called for tougher sanctions against Moscow. On April 1, 2025, the Finnish president admitted that European countries had started talking about renewing contact with Russia. He said that Finland must "morally prepare" for rebuilding political ties with Russia, since "nothing changes the fact that Russia exists and will always be a neighbor." However, he did not give any timeline for when relations might be restored. The situation around the war in Ukraine is made more difficult by the Trump administration’s growing isolationism, along with threats to pull out of talks and a trade war that Washington has launched against almost the entire world (though some parts of it have been paused). This raises fears of a new “Great Depression.” The European Union’s success at the negotiating table will depend on how united its member states are, since they have different geopolitical interests. Although Finland supports calls for a ceasefire, it does not plan to stop its military support for Ukraine or oppose Ukraine joining NATO. Alexander Stubb, on at least two occasions (in November 2024 and March 2025), publicly warned Ukraine against following a “Finnish scenario.” This would mean giving up on NATO membership and possibly giving up territory—similar to what Finland did after World War II, when it accepted neutrality and lost 11% of its land. In a comment on efforts to resolve the conflict in 2025, Stubb criticized Finland’s past policy of “good neighborliness” with the Soviet Union. He said that while Finland kept its independence in 1944, it lost land, part of its sovereignty, and the ability to make its own decisions freely.

Diplomacy
H.E. the President of the Republic, Gabriel Boric Font, visits the Supreme Federal Court of Brazil and holds a protocol reception with the President of the Supreme Federal Court of Brazil, Minister Luís Roberto Barroso.

H.E. President of the Republic, Gabriel Boric Font, leads the inauguration of the Roundtable: Business and Investment Opportunities on the Bioceanic Corridor, Brasília 2025

by Gabriel Boric Font

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском H.E. President of the Republic, Gabriel Boric Font, together with the Minister of Economy, Development, and Tourism of Chile, Nicolás Grau, and the Minister of Planning of Brazil, Simone Tebet, leads the inauguration of the Roundtable: Business and Investment Opportunities on the Bioceanic Corridor, Brasília 2025. Thank you very much, Nicolás, Minister Tebet, and everyone present. First of all, I apologize for the 15-minute delay. We were previously attending a preparatory forum for the COP in Belém do Pará, convened by President Lula with several world leaders, including the presidents of China, France, Spain, Vietnam, and South Korea. That delayed us a bit, so my apologies. That said, it is truly an honor for me to be here because it represents something that resonates with me on two distinct yet complementary dimensions. The first is South American integration. One of the things that Pepe Mujica has repeated to me countless times whenever I visit him — and something President Lula has also emphasized on every occasion we have met — is that Latin American integration, and particularly South American integration, must necessarily go beyond rhetoric, beyond adjectives, and beyond summit photographs. It must be about result-oriented actions, concrete actions that materialize, that our people and communities can see and feel in their daily lives. I believe that the Bioceanic Corridor is one of the best examples of this serious approach to integration. Beyond, I insist, adjectives and rhetoric. And secondly, because it is integration with decentralization. This is no small matter. Brazil is a federal state, while Chile is a unitary state — which is an elegant way of saying "centralized." Although we have gradually advanced in granting greater power and resources to the regions — for example, by electing governors, who used to be appointed by the President of the Republic — we still have a long way to go. It is enough to see that more than 40% of Chile’s population, out of 20 million inhabitants, lives in the capital, Santiago. This is partly due to cultural inertia, but also to a lack of opportunities and development in the other regions. I come from an extreme region — from Chilean Patagonia, from the southernmost part of the world. I was a deputy for eight years representing Magallanes and the Chilean Antarctic. Therefore, I am fully aware that from places like Planalto in Brazil or La Moneda in Chile, the daily reality of the regions — especially the most remote ones — is not always fully perceived. That is why I am very pleased that, in the case of Chile, this initiative is being carried out by empowering the north of the country with local authorities. That is why today we are joined by Ricardo Díaz, Governor of the Antofagasta Region, and José Miguel Carvajal, Governor of the Tarapacá Region, which provide a significant portion of Chile’s wealth. However, this wealth is not necessarily reflected in the quality of life within those regions, despite their tremendous potential. Therefore, I believe this project is very positive in both dimensions. The Bioceanic Road Corridor aims to connect the Atlantic and Pacific Oceans through an extensive network of road and port infrastructure. I have shared this anecdote before, but since there are people here I hadn’t met previously, I’ll tell it again. The former President of Chile, Ricardo Lagos — who, if I remember correctly, served during the same period as Fernando Henrique Cardoso and the first term of President Lula — once told me, thinking about the future, that the Mediterranean was the center of the civilized world, at least from a European perspective, for much of history. After World War II, the center of the world shifted to the North Atlantic. But today, the future of the world lies in the South, particularly in the Pacific, in the Pacific Ocean. Chile is part of several treaties, including the CPTPP 11, and various free trade agreements with ASEAN countries, particularly with China, and we are also working on others. These agreements grant us, I would say, privileged access to sectors that are among the fastest growing in the world today. As Minister Grau mentioned, we are also working on a Comprehensive Economic Partnership Agreement (CEPA) with India, the world’s most populous country with 1.4 billion people. The Bioceanic Corridor will be at the heart of South America. The Mayor of Iquique showed me a world map and pointed out, "Iquique is the center of the world." Mayors, governors, and leaders everywhere always praise their own regions, but I find that a beautiful idea. Now we are talking about the Bioceanic Corridor, not about a particular city or a particular country. We are speaking about more than 2,400 kilometers that will significantly reduce cargo transport times from the interior regions of Brazil and Paraguay to the markets of the Asia-Pacific. Instead of crossing the Panama Canal — which, as we know, is currently facing significant congestion due to the climate crisis and water shortages — we will create a new route. And what will this lead to? We will link the Pantanal with the Atacama Desert, two ecosystems that are unique on the planet — and this is not just about trade. I really liked what Minister Tebet said: "This is also about tourism." We discussed it yesterday during the business forum we attended, where President Lula also participated: how tourism is not only one of the few non-polluting industries, but also how tourists often become the best ambassadors for our countries and the best promoters of the destinations they visit. In 2024, we had a record number of Brazilian tourists visiting Chile. This happened because the tourists who came in previous years had a good experience and shared it with their families, friends, and colleagues. The same is true for Chileans traveling to Brazil — and not just to Rio de Janeiro or São Paulo, but also to Bahia, Fortaleza, Mato Grosso, and the Amazon. Thus, we have opportunities in many areas. We have taken this very seriously, and from Chile, we created a high-level commission to drive this project forward in a coordinated manner. One of the greatest challenges for states is achieving coordination and collaboration among different public agencies to move projects forward more quickly. That’s why what Nicolás mentioned is so important regarding the input we need from the private sector to more rapidly identify and resolve bottlenecks and obstacles together. In this high-level commission, we have brought together various ministries, regional governments, and local actors because we have learned from experience that without involving organized communities, these initiatives do not work well. We want to ensure that this project brings direct benefits to our people — to the families of Tocopilla, Antofagasta, and Iquique, as well as to the provinces of Santa Fe, Jujuy, Salta, and Mato Grosso do Sul. However, we still face significant challenges. One of the main concerns of our populations — and I am sure this is true in Brazil as well, but I will speak specifically about Chile — is security. While we have made significant progress in infrastructure — Nicolás outlined the improvements we have achieved and the ones we will continue to make, as infrastructure is a long-term investment — we must also address the challenge of security. Today, we see that crime, delinquency, drug trafficking, human trafficking, and arms trafficking are no longer purely local issues; they are transnational. The case of the Tren de Aragua is perhaps the most well-known in recent times in Latin America, at least in the Pacific region. But this issue deeply concerns our people, and therefore, opening new routes must go hand in hand with providing security for those traveling along them. All trucks must be guaranteed safety, as well as dignified conditions for rest, meals, and repair services in case of vehicle breakdowns — and of course, security for all people. Whether through scanners, police presence, artificial intelligence, or other mechanisms, we must ensure that everyone can feel safe. Because ultimately, when crime spirals out of control and we are unable to contain it, it effectively becomes a new kind of tax — an undeclared tax — because it forces increased spending. And in the end, it is the consumers who bear that cost. Therefore, we must be extremely careful and put great effort into addressing this issue. Another positive aspect is the very clear complementarity between our countries. Brazil is a first-rate industrial and agri-food powerhouse. Chile enjoys privileged access to the Pacific and Asian markets and has increasingly positioned itself as a technological hub. Argentina and Paraguay contribute with critical transport routes and productive capacities. If all of this is properly coordinated, it can transform South America into a global integration platform with sovereignty, without external tutelage, promoting free trade in times of uncertainty for the benefit of our peoples. Here we are also talking about strengthening many SMEs — small and medium-sized enterprises — in addition to large companies. If we do this well, it will generate benefits, circulation, and a dynamic that will positively impact many people. Achieving this, however, is primarily the responsibility of the states, but certainly also in close partnership with the private sector. At this moment, global integration is being called into question. The United States has unleashed a trade war marked by volatility and great uncertainty. And the best way to respond to this trade war is not through loud declarations. From Chile’s point of view, and considering the position we hold in the world as a medium-sized country, we will not respond with retaliation. We will respond with more integration. We will respond through the CEPA agreement with India, through the initiatives we are advancing with the United Arab Emirates. We will also push and engage in dialogue with countries like France to expedite the approval of the agreement between the European Union and Mercosur. And we will continue integrating regionally within South America, working together with our regions. That is why we must continue working diligently to facilitate customs processes, promote cross-border investments, and improve logistics throughout the entire supply chain. And I ask, particularly of the private sector, that you intensify these business alliances. I assure you that you can trust the Chilean state to provide guarantees for long-term investment. We have a development path that is environmentally conscious and understands that to better distribute wealth, first we must grow more. There is a balance to be struck: generating more wealth to distribute it better, not merely accumulating it in the hands of a few. But this is a cycle — to distribute wealth better, we must first create it. We cannot be satisfied with what we already have. Trade is one of the main drivers of this, along with strengthening our own industries — an area where Brazil is ahead of us, and which Minister Grau has also strongly promoted within Chile. Minister Tebet lamented how long it has taken us to advance this integration. President Lula mentioned yesterday that during his first term, the first bridge with Peru was built — if I recall correctly — after so many years of being neighbors. What I want to tell you is that it is never too late, and that today it is up to our generation to make this integration a reality. This is a unique opportunity, and we have no right to waste it. We cannot let this opportunity slip away. The Bioceanic Road Corridor will be much more than a transport route; it will be a path for human development, a bridge between peoples, and a symbol of what South America can achieve when it stands united. Thank you very much.