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Energy & Economics
LADA Sport factory , LADA Granta Drive Active 2

Driving Towards a Brighter Past? A ‘Brezhnevisation’ of Russia’s Internal Market

by Dr. Karel Svoboda , Dr. Giangiuseppe Pili , Jack Crawford

Despite the Kremlin’s rhetoric on Russia’s economic stability and good fortune since its 2022 invasion of Ukraine, several economic indicators belie this narrative and hint at potential domestic turmoil as the country’s economy falters. The legitimacy of President Vladimir Putin’s rule rests upon two pillars: economic wellbeing (the carrot) and political and civil repression (the stick). Putin and his regime consider themselves irreplaceable, boasting a narrative of internal stability contrasted against recent economic turmoil in the West. This propaganda extends to the Russian economy, as the government appears to prefer publishing numbers that it believes reflect favourably upon Russia while concealing more unsavoury statistics from the public. Ironically, however, even some data deemed palatable for publication hints at a difficult situation for Russia’s domestic economy. According to the statistics presented by the Russian authorities, Russia’s GDP only contracted by 1.9% in 2022, following an onslaught of Western sanctions and the war. Furthermore, Russia maintains a record-low unemployment rate of 3.2% as of May 2023, which is notably lower than the EU’s 5.9% and still better than the UK’s 4%. Russia’s 2023 inflation rate is 2.76%, below Western rates like the US’s 3.2%. These numbers, however, do not provide a comprehensive view of Russia’s economic situation. Russia's prioritisation of its wartime industries, rising emigration rates and over-employment all played a role in mitigating any sharp declines in GDP. Additionally, Russia’s economy relies on the sale of raw materials, particularly oil, to withstand sanctions on sophisticated goods. This keeps the country relatively insulated from economic restrictions imposed by its Western neighbours. Maintaining a perception of stability and wealth is crucial for Putin’s domestic legitimacy, and consumer goods are important for this purpose. Putin’s strategy is reminiscent of Leonid Brezhnev’s ‘social contract’, which relied on the relative welfare of citizens in exchange for their political apathy. Any weakening of this contract undermines the system’s ‘immunity’ and increases its vulnerability during a crisis. Parallel imports and the substitution of popular foreign brands with obscure Russian versions (for example, Vkusno i Tochka for McDonald’s and Stars Coffee for Starbucks) attempt to portray an unchanged society in which the ‘special operation’ in Ukraine has not adversely altered Russian life. However, trends in Russia’s automobile industry may disrupt this carefully constructed image. Grinding Gears The automobile industry plays a crucial role in Russia’s projection of a ‘business-as-usual’ economy. For years, Russia has presented its ‘import substitution’ programme as a series of successes towards achieving technological sovereignty. Therefore, when Western automobile manufacturers began pulling out of Russia, Russia attempted to fill the void with domestic replacements, with mixed results. Western automobiles have become scarce in Russian dealerships, which are mainly selling the remaining stock after the brands left Russia. Most Western automobiles now arrive in Russia through parallel imports via third countries. The reduction in the market is reflected not only in quantity but also quality. With limited competition in the market, products tend to be more expensive and lower quality. Producers become accustomed to the prevailing conditions and have less incentive to innovate. Additionally, shortages of spare parts lead to disruptions. For instance, the underwhelming Lada Granta Classic lacks crucial components found in modern automobiles, while the Lada Niva Legend has only very basic equipment. Both automobiles are already technologically outdated, yet they accounted for 35% of the Russian market in 2022. A particularly embarrassing incident occurred at the St Petersburg International Economic Forum when the premium Lada Aura failed to start during an exhibition – a reputational failure for an automobile costing well over RUB 2 million. Lower- and middle-class Russians have been particularly hit by the departure of Western auto manufacturers as the market becomes more exclusive. The average monthly salary in Russia reached almost RUB 73,000 in April 2023, putting most new automobiles outside the price range of an average-salaried citizen. The cheapest automobiles on the market, the Lada Granta and Lada Niva, now cost around RUB 700,000 and 821,000, respectively. The currency exchange rate for the Russian rouble may contribute to a further decline in the affordability of new automobiles, creating room for the growth of the second-hand market. However, with the rouble depreciating to RUB 91 per $1, imports of new automobiles are becoming more expensive. Turning East Nonetheless, Russia continues to search elsewhere for import opportunities. Despite announcements from Iranian and Indian producers about negotiations over automobile production in Russia, the only substitutes appear to have come from Chinese companies. As of July 2023, Chinese imports accounted for 49% of Russia's automobile market – a significant increase from June 2021’s 7% share. Additionally, Russian automobile brand officials tout cooperation with ‘Eastern partners’ when proclaiming the resilience of Russia’s domestic automobile industry in the face of Western sanctions, but these ‘Russian-produced cars’ are often heavily reliant on Chinese parts. Even Chinese producers and import substitution are as yet unable to fill the production gap left by Western companies shunning Russia. Before the invasion, new automobile sales reached approximately 1.66 million automobiles annually, but in 2022, new sales and production plummeted by 60% and 67%, respectively. These numbers still likely benefit from the fact that Western producers only began leaving Russia in 2022, and significant stocks of automobiles remained with dealers. In June 2023, Russia’s Ministry of Industry and Trade claimed that the Russian automobile market grew 6% from January to May 2023 compared to the same period in 2022. Nevertheless, this relative growth is primarily due to the low base of the previous year, when monthly production fell to 3,700 automobiles in May 2022. Stopping Short While parallel imports have partially lessened the supply–demand gap, they have not resolved all problems. As evidenced above, some recent figures suggest a partial market recovery, but growth is modest compared to low sales in 2022. Domestic Russian automobile production is anticipated to continue increasing, mainly through the assembly of Chinese automobiles. AvtoVAZ, part of the Rostec complex and a producer of Lada automobiles, intends to increase production to 400,000 automobiles in 2023. However, even if this plan is achieved, the production volume would still fall short of the necessary levels. Factories assembling Chinese automobiles will also increase production, with the Moskvich factory planning to produce 50,000 automobiles in 2023. While this surpasses previous production rates, it remains below the Renault factory’s production capacity of 190,000 automobiles annually. However, increasing the production of Russian-made automobiles will pose a challenge. Moscow is currently prioritising arms production within its manufacturing industry, and Russia may struggle to close the gap in the foreseeable future due to workforce issues. As a result, the delayed consumer demand will only continue to grow. Those who have refrained from purchasing a new automobile may continue to wait for now, but they will eventually demand new models. A Troubled Road Ahead Russia’s workforce is tied to the country’s economic structure; many entrepreneurial individuals have migrated in search of better opportunities in the West, and the remaining workforce is often specialised but has limited access to higher-paying employment opportunities. Russia’s internal market workforce is sufficient to meet military and economic needs, but there are no significant incentives for comparable development in manufacturing and services to that in the West. In the face of Western sanctions, Russia will continue trying to rely on countries hostile or indifferent to the preferences of Western countries. The economic situation in Russia, as reflected in the automobile market, is unlikely to directly threaten Putin’s regime. However, it does present a significant security concern. The automobile market in Russia is showing signs of a decline reminiscent of the Brezhnev era, characterised by technological backwardness and diminishing quality. Russian automobile producers lack the necessary technologies and expertise to manufacture their own vehicles; most new automobile models introduced recently are essentially Chinese automobiles assembled in Russia. As a result, Putin’s ambitions for ‘technological sovereignty’ are unlikely to be realised soon, and tensions may rise as consumer demand becomes impossible to meet. Domestic complacency with regard to Russia’s wanton belligerence in Ukraine, and indeed, towards Putin’s regime, may be in for a bumpy ride. The views expressed in this Commentary are the author’s, and do not represent those of World and New World Journal or any other institution.

Diplomacy
North Korean President Kim Jong-un with Vladimir Putin

Russia-North Korea talks

by Vladimir Putin

Vladimir Putin and Chairman of State Affairs of the Democratic People’s Republic of Korea Kim Jong-un held talks at the Vostochny Space Launch Centre. Following the talks with participation of the countries’ delegations, the two leaders held a one-on-one meeting. * * * President of Russia Vladimir Putin: Mr Chairman, I am delighted to see you again and to welcome you to Russia. This time we are meeting at the Vostochny Cosmodrome, just as we agreed. We are proud of the way this sector is developing in Russia, and this is our new facility. I hope that it will be of interest to you and your colleagues. However, our meeting is taking place at a special time. The People’s Democratic Republic of Korea has recently celebrated the 75th anniversary of its founding, and we established diplomatic relations 75 years ago. I would like to remind you that our country was the first to recognise the sovereignty and independence of the Democratic People’s Republic of Korea. This year we mark 70 years since the end of the war for independence and the Korean people’s victory in that war. It is a landmark date because our country also helped our friends in the Democratic People’s Republic of Korea to fight for their independence. Of course, we need to talk about our economic cooperation, humanitarian issues and the situation in the region. There are many issues we will discuss. I would like to say that I am glad to see you. Thank for accepting our invitation to come to Russia. Welcome. Chairman of State Affairs of the Democratic People's Republic of Korea Kim Jong-un (retranslated): I express my gratitude to you for inviting us despite your being busy with state affairs. Our visit to Russia is taking place at a very important time. The Russian side is giving a warm welcome to the delegation from the Democratic People's Republic of Korea. From the moment we arrived in Russia, we could feel the sincerity of our Russian friends. On behalf of the Democratic People's Republic of Korea, I express my gratitude to you and to the people of the Russian Federation. I also thank you for paying so much attention to our visit to Russia. We have been able to see with our own eyes the present and the future of Russia as it builds itself as a space power. Right now, we are having a meeting at a very special moment, right in the heart of the space power which is Russia. As you mentioned, the Soviet Union played a major role in liberating our country and helping it become an independent state, and our friendship has deep roots. Currently, our relations with the Russian Federation are the top priority for our country. I am confident that our meeting will serve as another step in elevating our relations to a new level. As you have just mentioned, we have many issues pertaining to the development of our relations, including politics, the economy and culture, in order to contribute to the improvement of the well-being of our peoples. Russia is currently engaged in a sacred battle to defend its state sovereignty and security in the face of the hegemonic forces that oppose Russia. We are willing to continue to develop our relations. We have always supported and will continue to support every decision made by President Putin, as well as the decisions of the Russian Government. I also hope that we will always stand together in fighting imperialism and building a sovereign state. Once again, I express my gratitude to you for providing us with the opportunity to visit Russia and for paying so much attention to our visit. Vladimir Putin: Thank you. <…>

Defense & Security
Belarus President Alexander Lukashenko, Russia's President Vladimir Putin

Vladimir Putin and Alexander Lukashenko answered media questions

by Vladimir Putin

Following the Russian-Belarusian talks, the two leaders answered questions from the media. Question: Mr Putin, a couple of questions? President of Russia Vladimir Putin: Please, go ahead. Question: Your comment and the one by the Vice-President of Laos [Pany Yathotou], which you made at the EEF plenary session, on the use of cluster munitions, is being widely discussed. The United States is now supplying such munitions to Ukraine. What is the latest information on the use of these weapons in the special military operation zone? Vladimir Putin: They are being used in the broadest possible way. But I have already commented on this, I have nothing to add. The only thing worth mentioning, perhaps, is that this situation, like a drop of water, reflects what is happening in the world as a whole. What I mean by that is that there is one country that thinks it is exceptional, and that country is the United States. That country even thinks it is allowed to do what it considers a crime – it is the United States that uses cluster munitions, using the Ukrainian army in this case. I mean the country considers this a crime, but does it nonetheless, and this is the main problem of today's international relations. This is the reason why the overwhelming majority of participants in international communication have joined us in fighting to create a multipolar world, since no one sees this situation as acceptable. I said almost because even those countries that appear to be allies of the United States, I can assure you, they do not like this situation either, where they are reduced to the role of extras. So yes, unfortunately, they are using them, they call it a crime and are still doing it. Question: If I may, one more question. A broad discussion arose – again at the Eastern Economic Forum – over the possibility of peace talks between Russia and Ukraine and [US Secretary of State Antony] Blinken’s statement that “it takes two to tango” about Russia and Ukraine. How do you assess the prospects for talks? Vladimir Putin: As for the Americans, they do not even know how to tango, they have a tendency to – for all the wonderful, amazing music, and beautiful movements – the United States is trying to approach everything from a position of force: through economic sanctions, or financial restrictions, or threats to use military force, and actually using it. They are lecturing others even though they have no idea how to do it and do not want to. Most likely, they just do not want to. This is the first point. Second, I already said that we have never refused to hold talks. So, please, if the other party wants them, they should say so directly. I am speaking about it but the other side keeps silent. Finally, tango is good, of course… I think Ukraine should not forget about its gopak dance. It is important, otherwise they will keep dancing to someone else’s tune. And by the way, everyone will have to perform the barynya dance or, in the best-case scenario, the kazachok. Alexander Lukashenko: They sort of started dancing and held three rounds of talks in Belarus, then in Istanbul, and then [US Secretary of State Antony] Blinken and [US Secretary of Defence Lloyd] Austin told Zelensky… Vladimir Putin: Gave a command, and that was it. Alexander Lukashenko: Gave a command and he prohibited them to hold talks. The facts are on the table, they are obvious. So, they should not blame anyone. Vladimir Putin: He signed a decree prohibiting talks. Alexander Lukashenko: Exactly, they forbade themselves. Question: The last question relates to Kim Jong-un’s visit. Many in the West believe that the visit will aggravate tensions in the region. They say that Russia all but asked North Korea to send volunteers to take part in the special military operation. What can you say on this matter? Vladimir Putin: I can say that this is complete nonsense. A couple of days ago, I said that 270,000 of our men, our warriors signed contracts with the Russian Armed Forces. But it was old information. This morning it was reported to me that there were 300,000 contracts signed by people who – I want to emphasise this – are ready to sacrifice their lives for the interests of our Motherland, to protect Russia’s interests. Yes, we pay them some money, which is much, much more than the average monthly salary in the country. But can money compensate for a death or a severe injury? Of course not. So first of all, our men who sign these contracts are guided by the most noble patriotic sentiments. It commands respect. This is the first thing. Second, about some kind of provocations, escalations, and creating a threat to anyone. We do not threaten anyone. The largest threats in the world today are created by today’s ruling elites. They themselves say this. Several years ago, a former [US] Defence Secretary Mr [Robert] Gates, I think, said the greatest threat to the United States came from the territory where the Capitol or the White House is located. They talk about it themselves, while looking for a threat outside. Therefore, I want to stress once again that this is complete nonsense: Korea is our neighbour, and we must build good neighbourly relations with our neighbours one way or another. Yes, there are certain specifics associated with the Korean Peninsula. We discuss this openly; we never violate anything; and in this case we are not going to violate anything. But, of course, we will look for opportunities to develop Russian-North Korean relations. Alexander Lukashenko: Mr Putin, the Westerners have to count first how many of their mercenaries they have sent there, and how many are fighting there. There are dark-skinned, Asian, and white Americans, all of whom are fighting on the side of the Ukrainians. Why blame Russia for inviting someone there? So maybe that is why they need to do it. Secondly, this is a dangerous statement on their part, because they dream about seeing their regular military units there, already lined up near the border in Poland. You have also talked about this. Military units have been formed and are ready to enter Ukraine. You need to look at yourself first and not reproach others. Vladimir Putin: I absolutely agree. By the way, we have detected foreign mercenaries and instructors both on the battlefield and in the units where training is carried out. I think yesterday or the day before yesterday someone was captured again. We do not need to invite people from outside for combat operations. Moreover, I want to emphasise this again, 300,000 people signed contracts and came as volunteers. And moreover: the units that are now being formed are equipped with advanced types of weapons and equipment, and some of them are already 85–90 percent equipped. <…>

Defense & Security
Kim Jong Un with Russian Defence Minister Sergei Shoigu during the ceremonies marking the 70th anniversary of the end of the Korean War

This is how likely North Korean arms shipments to Russia are

by Frederic Spohr , Jannik Krahe

North Korean leader Kim Jong Un and Russian President Vladimir Putin have met at the Vostochny Cosmodrome, a spaceport in eastern Russia. Since Russia's war of aggression against Ukraine, the two states have grown significantly closer – and could now agree on arms supplies for Russia's war of aggression against Ukraine.   Russian President Vladimir Putin and North Korea's strongman Kim Jong Un held four hours of consultations. According to state media, the two leaders agreed on several cooperation projects and assured each other of solidarity. Most explosively, Russia plans to assist North Korea with its satellite program. Such support would almost certainly violate UN sanctions. Fittingly, the meeting took place at the Vostochny spaceport. Putin and Kim immediately went on a tour of inspection. Kim has "great interest in rocket technology and a focus on progress in space," Putin said. "I plan to acquaint him with the latest technologies during our tour of the base."  The U.S. even assumes that an even hotter topic was on the agenda: ammunition deliveries to Russia for the war of aggression against Ukraine.  According to John Kirby, spokesman for the U.S. Security Council, Russia wants to order missiles and artillery shells from North Korea. Analysts believe it is realistic that North Korea will indeed supply arms. The composition of Kim's delegation also points to talks on arms deliveries. The head of state is being accompanied to Russia by high-ranking military officials, including Defense Minister Kang Sun Nam and Jo Chun Ryong, the head of the Munitions Industry Agency.  It is the first foreign visit of Kim Jong Un in four years. The North Korean leader came to Vostochny in his luxury armored train. The meeting with Putin is another sign of rapprochement between the two states. North Korea is interesting to Russia not only as a possible munitions supplier. The Asian country is also one of the few states that diplomatically support Russia's invasion. With only six other states, North Korea voted against a resolution for Russia's withdrawal from Ukraine at the recent UN General Assembly. Even Iran, which supports Russia with drones, abstained from the vote.  The North Koreans, on the other hand, are securing the support of a veto power in the UN Security Council by cooperating more closely with Russia. At the same time, they reduce their one-sided dependence on China, which is actually their most important partner. Moreover, closer cooperation could improve the desolate economic situation. In particular, the supply of food has deteriorated massively since the beginning of the Corona pandemic.  The U.S. assumes that North Korea could probably pay for arms deliveries with food, among other things. In addition, North Korea will ask for raw materials and defense know-how in return. In addition to weapons, North Korea would also be able to send workers to Russia. Russia also has a labour shortage due to conscription because of the war. North Koreans could fill this gap – and bring foreign currency into the North Korean treasury.  As early as last November, the U.S. had accused North Korea of supplying the Russian mercenary force Wagner with weapons. In January, Security Advisor John Kirby showed satellite images of a freight train allegedly delivering missiles to Russia.  However, this was not conclusive evidence of North Korean arms shipments to Russia.  In the summer, the Financial Times published a report about North Korean weapons in Ukraine – but they were in the hands of the Ukrainian army. The Ukrainian Defense Ministry suggested in the report that the weapons had been captured by Russia. At present, however, there is nothing to suggest that North Korean weapons are being used on a large scale in Ukraine – the USA also admits this.  Both states have denied reports of arms deliveries. Russia in particular could lose credibility if it actually obtains weapons. The UN Security Council has banned North Korea from exporting weapons with Russia's consent. If Russia were to actually import weapons now, it would undermine its own sanctions.  However, there are many indications that Russia no longer feels bound by the rules in the Security Council anyway and is pushing ahead with an arms deal.  In July, Russia's Defense Minister Sergei Shoigu had already travelled to North Korea. Kim gave him a tour of a weapons display there featuring the latest North Korean military technology, including combat drones. At a military parade, Shoigu also inspected ballistic missiles actually banned by the UN Security Council.  Also taking part in the tour was Deputy Defense Minister Aleksei Krivoruchko, who is responsible for Russia's ammunition and weapons procurement.  According to analysts, Russia is primarily interested in artillery ammunition: North Korea has shells compatible with Russian guns in 152mm and 122mm calibres.   Short-range missiles could also be on the Russians' shopping list. The North Korean KN-23, for example, is a further development of the Russian Iskander missile. Accordingly, Russian soldiers are likely to be familiar with the handling of the weapon. According to military experts, the KN-23 has a range of almost 700 kilometres. The KN-23 was also on display at the weapons exhibition Shoigu visited in North Korea.  The United States is threatening North Korea that it will have to pay a "heavy price" if it actually supplies weapons. However, the U.S. has little opportunity to put North Korea under further pressure. However, bilateral sanctions, as well as sanctions imposed by Western allies, can hardly be increased. Russia, and presumably China as well, are preventing global sanctions in the UN Security Council - and seem unlikely to implement current sanctions.  However, the Americans can act against companies that support secret trade between North Korea and Russia. For example, in mid-August, the U.S. Treasury Department imposed sanctions on three Slovak companies. They allegedly tried to organize secret arms deals between Russia and North Korea.

Diplomacy
Russian President Vladimir Putin with China's Vice Premier Zhang Guoqing during Eastern Economic Forum

Meeting with the Deputy Premier of the State Council of China, Zhang Guoqing

by Vladimir Putin

Vladimir Putin met with Vice Premier of the State Council of the People's Republic of China Zhang Guoqing. President of Russia Vladimir Putin: Mr Zhang Guoqing, friends, I am very pleased to see you and to welcome you to Russia, to Vladivostok. China has traditionally participated in this forum for many years now. I had the pleasure of welcoming the President of the People's Republic of China to it. He participated in person, spoke here, and then took part in the forum in the videoconference format. I would like to take this opportunity to ask you to convey my best wishes to the President of the People's Republic of China, with whom I have friendly work-related and personal relations. This certainly helps promote bilateral relations and ties between our countries. We know you well as a very business-like person. You headed a major company and now engage in matter of industry. As far as I know, you have already had the chance to meet with your counterparts, deputy prime ministers [Yury] Trutnev and [Denis] Manturov. The latter is in charge of the industrial block in the Government. I would like to note that thanks primarily to the efforts of our governments and business circles, Russia-China relations in this area – the area of economic cooperation – have reached a very high level. Of course, this is a derivative of what has been achieved in the political sphere, but nevertheless the results are more than good, they are excellent, and every year our trade grows by almost one third. This year, too, over the first seven months of it, the trade is up by about the same amount, I think, 24 percent – to as much as 120 billion. The goal President Xi Jinping and I have set – to reach the US$200 billion mark in trade – can be achieved very soon, already this year. I am confident that our relations will keep the current pace. We are glad to welcome you, and I would like to thank you for your decision to come and take part in the Eastern Economic Forum. Welcome. Vice Premier of the State Council of the People's Republic of China Zhang Guoqing (retranslated): Thank you, Mr President, for the opportunity to meet with you. First of all, I would like to pass on to you sincere regards and best wishes from President Xi Jinping. We also wish to offer heartfelt congratulations on the successful organisation of the 8th Eastern Economic Forum. Under the strategic direction of President Xi Jinping and President Vladimir Putin, China and Russia have deepened their overarching partnership and strategic cooperation in this new era. Our relations have maintained a consistently high dynamic. As you rightly noted, our countries have provided resolute mutual support in matters concerning our key interests. We are deepening political cooperation and trust and multiplying our mutual interests, bringing our nations closer. Our multi-dimensional practical cooperation is moving forward progressively, and the range of our bilateral cooperation is constantly expanding. Mr President, you noted the volume of our trade for the first seven months of this year, but in the first eight months of this year, the bilateral turnover reached US$155.1 billion, which is 32 percent higher year-on-year. We have every reason to believe that the goal set at the highest level, to reach US$200 billion in bilateral trade, will be achieved earlier than the end of the year. Last March, President Xi Jinping made a successful state visit to Russia, during which a new large-scale plan for developing China-Russia relations was outlined and new guidelines were set. Currently, the Chinese nation, under the true leadership of the Central Committee of the Chinese Communist Party, centred around comrade Xi Jinping, is promoting the comprehensive Chinese modernisation focused on high-quality development. We are ready to share development opportunities and deepen mutually beneficial cooperation with our Russian colleagues. Vladimir Putin: We highly value and appreciate the fact that, as you mentioned, the President of China made his first foreign visit after his re-election to Russia. This indicates that the relations between Russia and China have reached an unprecedented and historic level in the past few years. As you said, we will continue working together.

Defense & Security
President of Russian Federation Vladimir Putin

Video address on the occasion of the 80th anniversary of the liberation of Donbass

by Vladimir Putin

Vladimir Putin: Friends, esteemed veterans, September 8, 1943, marks a landmark date in the history of our country. Eighty years ago today, the legendary unconquered Donbass – Russia’s centuries-old stronghold, a land of hard workers and warriors, a rich and generous land – was liberated and cleansed from Nazi occupiers. Its resources held enormous value for the enemy. Seizing them was one of the goals behind Germany's attack on the Soviet Union, and the Nazis did everything to keep the Donbass steppe to themselves and to force the people to work for the war machine of the Third Reich. However, they ran into fierce resistance in the occupied territories, the intensity of which did not wane for nearly 700 days. During that time, while the cruel and cynical beast ruled over Donbass, hundreds of thousands of partisans, underground fighters, civilians, and children were subjected to torture and execution, and unassailable enemy fortifications grew on the key fronts. The banks of the Seversky Donets River were dotted with bunkers and dugouts, and many kilometres of minefields. Breaking through that defence line appeared impossible, but the Red Army soldiers accomplished this task, performed feats beyond human capabilities, and travelled a heroic and sacrificial path, thus solidifying the triumph of Soviet troops at the Kursk Bulge. The arduous and selfless assault of Saur Mogila is a special chapter. The Nazis turned this ancient burial mound into an impregnable citadel, but there was no force in the world that could stop our soldiers. This strategic height changed hands several times and surrendered to the Soviet soldier, who stood to the death for the truth, justice, freedom, and the future of our Motherland. I am confident that nine years ago, on these frontlines that are sacred for us, Donbass militia members, descendants of the Great Patriotic War soldiers followed their example. It multiplied their courage and fortitude in yet another confrontation with Nazism, gave the grandchildren and great-grandchildren of the victors the strength to defend their land, culture, language, and heritage. The Saur Mogila Memorial, which was destroyed during the 2014 hostilities, has now been fully restored. Alongside the images of Soviet soldiers, the feats of their valiant and glorious descendants – the new heroes of Donbass – have been rightfully immortalised. That is what Russia is: a nation united by its history, unbreakable through its spiritual traditions, and loyal to the legacy and memory of its ancestors. I warmly congratulate the people of the Donetsk People's Republic and all Russian citizens on the 80th anniversary of the liberation of Donbass from Nazi invaders.

Defense & Security
An informal memorial for the Wagner leader Yevgeny V. Prigozhin in Moscow

Russia in Africa: Prigozhin’s death exposes Putin’s real motives on the continent

by Joseph T. Siegle

The apparent assassination of Yevgeny Prigozhin in the crash of his private jet between Moscow and St. Petersburg represents an inflection point in Russian-African relations. Prigozhin, as leader of the notorious Wagner Group, had been the point man for Russia in Africa since Wagner first began operations on the continent in 2017. More than a single entity, the Wagner Group is an amalgamation of shell companies deploying paramilitary forces, disinformation and political interference in Ukraine, Syria and Africa. Its leaders have been sanctioned by 30 countries for the group’s destabilising activities.  Prigozhin was believed to be living on borrowed time after he led a short-lived insurrection – part of a power struggle with the Russian military leadership – in June. While he quickly backed down, the action embarrassed Russian president Vladimir Putin and triggered chatter that Putin’s perceived weakness would embolden other challengers to his authority. Prigozhin advanced Russian influence in Africa by propping up politically isolated and unpopular authoritarian leaders. As a result of Wagner’s support, these leaders were beholden to Russian interests. Wagner’s backing took a variety of irregular forms, like paramilitary forces, disinformation campaigns, election interference, intimidation of political opponents, and arms for resources deals. Prigozhin referred to this interlocking set of influence operations as “The Orchestra”, which he conducted. Wagner deployed forces to Libya, the entral African Republic, Mali and Sudan. It has also been interfering in domestic politics and information narratives in some two dozen African countries. I research the role of governance in advancing security and development as well as the influence of external actors in Africa, including Russia. Democratic transitions and institutions of democratic accountability are among my interests. The breadth of Russian political interference in Africa points to Russia’s strategic objectives for the continent. It aims to secure a foothold in North Africa and the Red Sea, undermine western influence, normalise authoritarianism and displace the UN-based international system. None of these objectives are about making Africa more prosperous or stable. Rather, the continent is primarily a theatre to advance Russia’s geostrategic interests. Attempting to maintain the lucrative and influential operations of the Wagner Group in Africa after Prigozhin’s death will make it hard for Russia to deny that it uses irregular and illegal actions to extend its influence. Maintaining Wagner without Prigozhin The Wagner model has seen Russian influence expand rapidly in Africa. That’s despite Russia investing very little on the continent. Most of Wagner’s costs have been covered through cash and mineral concessions provided by host regimes. By some accounts revenues from mining operations in the Central African Republic and Sudan generate billions. It is no surprise that Russia would want to keep the Wagner enterprise going. Tellingly, on the day of Prigozhin’s plane crash, deputy defence minister Yunus-Bek Yevkurov was in Libya to reassure warlord Khalifa Haftar of Russia’s ongoing support. Yevkurov later visited the military juntas in Mali and Burkina Faso to deliver the same message. The question will be whether the Russian military has the capacity. Russia needs soldiers in Ukraine. So, it may not have experienced fighters to spare in Africa. It is also an open question whether Wagner troops will agree to sign contracts with the Russian defence ministry, given the way their leader was dispatched. The Russian government would also need to recreate the multidimensional dealings that made Wagner’s operations effective in shoring up client regimes. For years, Russia has promoted hybrid warfare – the fusion of conventional and subversive tools. Synchronising this across multiple African contexts will require greater dexterity than the Russian security bureaucracy is likely capable of, however. Finally, Russia has benefited from the plausible deniability that Wagner has provided while doing Putin’s bidding. In every context in which Wagner forces have been deployed, they have been credibly accused of human rights abuses including rape, torture and extrajudicial killings. In Mali, Wagner is linked to more than 320 incidents of human rights abuses and hundreds of civilian deaths. Wagner has also been accused of driving away local communities where it has secured mining concessions, effectively annexing African territory. By directly taking over the mantle of Wagner operations in Africa, the Russian government can no longer claim ignorance or impotence to do anything about these unlawful and destabilising actions. Russia has largely escaped serious reputational costs for Wagner’s thuggish activities in Africa. But this will change when it owns the repressive tactics Wagner has deployed. Reassessments in Africa What of Wagner’s African clients? Leaders of these regimes have come to power through extraconstitutional means. They restrict opposition voices and media. They are isolated internationally. Simply put, they cannot survive without Moscow’s support. So, we should not expect a change in receptivity from the military juntas in Mali, Sudan, Burkina Faso, the co-opted leadership in the Central African Republic, or the Libyan warlord, Haftar. What will be telling is the reaction from other governments on the continent. Some will continue to see value in flirting with Russia as a way of hedging against international criticism. Russia’s reach in Africa may be exceeding its grasp, however. There is a growing awakening on the continent of how little Russia actually brings to Africa in terms of investment, trade, jobs creation or security. Its deployment of mercenaries, disinformation, political interference and arms for resources deals mean it actually amplifies instability on the continent. The symbolism of this was vividly brought home in the days before the Russia-Africa Summit at the end of July. Russia pulled out of the Black Sea grain deal that had enabled 33 million tonnes of grain to get from Ukraine to Africa and other parts of the world. The deal had eased supply chain restrictions caused by Russia’s invasion of Ukraine in 2022. Not only did Russia scuttle the deal: it bombed the Ukrainian ports that were exporting the grain, wasting 180,000 tonnes in the process. The contempt Putin showed for African interests by this action was hard to ignore. This disregard, coupled with recognition that Russia offers relatively little to Africa, contributed to only 17 African heads of state attending the St. Petersburg summit. By comparison 43 African heads of state attended the Russia-Africa Summit in Sochi in 2019. The way that Prigozhin was eliminated must also give African leaders pause. Putin speaks often of his desire to create a new international order. Russia’s lawlessness at home and abroad is bringing into sharp focus what his world order would look like. And that’s not a vision many African leaders share.

Defense & Security
President of Belarus Aleksandr Lukashenko handshaking with President of Russia Vladimir Putin

Negotiations with Russian President Vladimir Putin

by Aleksandr Lukashenko

The meeting of the presidents of Belarus and Russia, Aleksandr Lukashenko and Vladimir Putin, took place in St. Petersburg on 23 July. The heads of state arrived at Konstantinovsky Palace together.  "Aleksandr Grigorievich, we are meeting today as agreed...", the Russian leader began the protocol part of the meeting. The Belarusian president remarked: "We agreed on the meeting six months ago."  "It's true. That's right. We agreed about this a long time ago," Vladimir Putin noted. “We are meeting in St. Petersburg today. The weather is good. It is a Sunday afternoon, but we always have something to talk about. At the beginning of the meeting, I would like to note that all our plans are being implemented, even at a better pace than we expected." The Russian leader noted the good state of the economies of the two countries, the expected economic growth by the end of the year: "I looked at the latest data. The Belarusian economy is expected to grow by 3.7% in 2023. These are the projected figures, but still. Our growth forecasts are a little lower. But this is a good indicator for us too. We expect the growth of more than 2%. Unemployment is low. In general, all the main indicators give us reason to believe that we will pass this year well and will have good growth." "Our plans in terms of the Union State are being fully implemented. We are moving confidently in all areas. Trade is growing. According to various sources, the data vary a little. According to our data, it is around $43.7 billion, if we speak in dollar terms. According to Belarusian statistics, it is almost $45 billion," the Russian president said. Aleksandr Lukashenko said that the cost of services provided should be into account too. "You are right," the Russian president concurred. The presidents also noted the successful operation of the Belarusian nuclear power plant. Its second unit has already been launched this year.  "We have made progress, satisfactory progress, to put it modestly. Of course, we will also talk about security issues in the region. I hope that today and tomorrow we will have the opportunity to discuss all this in an informal setting, in great detail," Vladimir Putin said. In his opening remarks, Aleksandr Lukashenko touched upon many issues, including the course of the special military operation, the lack of results of Ukraine’s counteroffensive, and NATO's military build-up in Poland. Another important topic is plans for the development of economic cooperation between Belarus and Russia. "We won't be able to do it in a day. Therefore, we will meet tomorrow. As far as I understand, you will find time for us to talk," the Belarusian president said addressing his counterpart. "Of course. I changed some of my plans. We can spend one and a half to two days," Vladimir Putin confirmed. "Great! We will settle these issues in a day and a half. Thank you for finding the time for the meeting we agreed six months ago. Therefore, there is nothing extraordinary here. We have been planning the meeting for a long time. When a need arises, we meet and discuss our tactical and strategic issues," the Belarusian head of state said. "As for the economy, I would like to suggest that our governments think through some kind of economic plan. The point is self-reliance. We will not kowtow to anyone. We have got brains. Resources are more than enough. We need a plan for the development of our Fatherland. As I say: two states, one Fatherland. We can do it. The main forces have been here, in Russia, since old times. It will be good if our governments come up with such a plan," the head of state said.  "Even if things are a little worse off, people will understand and support us. Because there will be the light at the end of the tunnel," the Belarusian leader said.  The countries have already begun to work in this direction, advancing cooperation in all areas, including in microelectronics, space, and agriculture. "We see good results everywhere. So we need to put everything together into a plan, appoint people in charge. Thus we will do our job strategically," the Belarusian president said. Aleksandr Lukashenko brought a map showing the deployment of Polish troops at the border of the Union State to a meeting with Russian President Vladimir Putin. The head of state noted that one of the Polish brigades is now deployed 40km away from Brest, another - about 100km away from Grodno. Aleksandr Lukashenko noted that there is no Ukrainian counteroffensive. "No, there is. It's just failed," the Russian president said. "It failed indeed. There are no results," the Belarusian leader confirmed. “What's next? They, as you said recently, have begun to engage Poland. They are making active use of mercenaries. I brought you a map showing the deployment of the Polish Armed Forces at the borders of the Union State, which you talked about. We see that they are setting the stage. One of the brigades has been deployed 40km away from Brest. They used to be 500km away, now the distance is 40km. We see it all. Another brigade has been deployed a little more than 100km away from Grodno. They have a division, but so far these are brigades. Poland opened a facility to repair Leopards on their territory. Rzeszow is becoming more active. The Americans are using its airfield to send hardware and so on.” The head of state noted the increased militarization of Poland, the deployment of significant forces to the borders of the Union State. "Naturally, Poland wants something in return. It's clear it will get money, weapons. This is understandable. But now there is a lot of talking ‘to admit Ukraine into NATO in parts’. You also noted this. What's behind it? This is a smokescreen," the president said. “Tear off western Ukraine. Under the guise of admission to NATO, so that the population is ok with that."    "They want to chop off western Ukraine and annex it to Poland. This is a payment to Poland for its active participation in this operation against the Russian army. The Americans support this," the Belarusian leader added. Belarusian President Aleksandr Lukashenko lauded the successes of the Russian army in the special military operation.  "Yesterday was a difficult day. This is according to our data. You will also share your opinion on this. It was a very difficult day. Fortunately, it ended well. According to our data, more than 15 Leopards [German-made tanks] and more than 20 Bradleys [US infantry fighting vehicles] were destroyed in one battle. This, I think, has never happened before," the head of state said.  “On the other side they used units fully equipped with foreign hardware," Vladimir Putin said. Aleksandr Lukashenko stressed that the destruction of such a number of hardware also testifies to the heavy losses of the Armed Forces of Ukraine: "We can estimate how many soldiers of the Armed Forces of Ukraine died considering the number of destroyed hardware. I know this because I served as an officer in the armored army back in the day. Therefore, I understand what it means to destroy so many infantry fighting vehicles and, most importantly, much vaunted Leopards.” The Belarusian president cited the U.S. estimates which indicate that the Armed Forces of Ukraine lost 26,000 soldiers since the start of the counteroffensive. "More," Vladimir Putin responded. "It's already more. Well, a week ago they estimated Ukraine’s irretrievable losses at over 26,000. From 4 June [from the launch of the counteroffensive]. I put their data down," the Belarusian president said. "Even more," the Russian leader said affirmatively.  Aleksandr Lukashenko continued: "Yesterday showed that this is the war against the entire NATO. They arm them; send a lot of mercenaries there. Yesterday was an important day because they made use of the main strategic reserves. This suggests that this thoughtless policy of throwing untrained people and mercenaries into hell will lead nowhere. During the meeting, Vladimir Putin noted that foreign mercenaries also suffer significant losses. "Huge losses. Because of their tactics," Aleksandr Lukashenko said.  "Because of their stupidity," the Russian leader replied. "They move in groups," the Belarusian president said. In turn, Vladimir Putin stressed that people of the countries whose governments are sending people to the war zone should also be aware of what is happening. "We will communicate this to the people so that they assess the actions of their rulers," he said. Belarusian President Aleksandr Lukashenko thanked the Russian president for the security guarantees to Belarus. "I would like to thank you. You are the first person in Russia who spoke about this openly and clearly. Aggression against Belarus will be like an attack on Russia. We take this into account in the construction of our Armed Forces," the head of state said during at the talks with Russian President Vladimir Putin in St. Petersburg. The presidents of Belarus and Russia toured the landmarks in Kronstadt after the official part of the talks in Konstantinovsky Palace. The heads of state first came to the Island of Forts Museum and Historical Park. There they were shown the main exhibit - the first Soviet nuclear submarine K-3 "Leninsky Komsomol". She was delivered to the Museum of Naval Glory in Kronstadt from Murmansk Oblast in the autumn of 2022. Another point of the joint informal program of the presidents was a visit to the Stavropegic St. Nicholas Naval Cathedral in Kronstadt, also known as the Naval Cathedral of St. Nicholas.

Defense & Security
People protesting in solidarity with Sudan

Middle powers, big impact: Africa’s ‘coup belt,’ Russia, and the waning global order

by Theodore Murphy

The changing global order has created an enabling environment for the recent spike of takeovers in Africa’s ‘coup belt’ – with Russia and newly assertive middle powers offering themselves as partners to putschists  Coups d’états have returned to Africa. In the 1990s and 2000s, the number of forced takeovers of power on the continent fell; but the figure began to creep back up around 15 years ago. This deterioration has come to particular prominence with the emergence of a ‘coup belt’ spanning from Sudan to Niger (and mostly recently Gabon), where eight coups have taken place in the last three years.   The drivers behind coups range from state fragility to weak economic development. But such factors were also a constant in the decades immediately after the end of the cold war – when Africa experienced fewer coups.  The overlooked factor is the weakening of global order and the coup-enabling international environment it has created. Policymakers should consider, in particular, the role that activist ‘middle powers’ and Russia are now playing in taking advantage of an increasingly lawless international setting. US retrenchment, selective AU enforcement As the United States retrenches to pursue its strategic competition with China, its capacity to invest seriously in both strategic imperatives and values-led foreign policy objectives is coming under strain. With the essential taking precedence over the good, upholding democracy in Africa has slipped down the list of America’s strategic priorities.  Africa’s own system for deterring takeovers has also weakened considerably. The African Union’s  enforcement of its coup-prohibiting rules grew increasingly inconsistent during the same period, during which time it began to enforce only selectively, due to the whims of powerful AU member states. This started with the coup in Mauritania in 2008, and was followed by President Sisi’s post-coup election in Egypt, and more recently by coups in Chad and Sudan. The interregnum and the rise of the middle powers To paraphrase Gramsci, the international rules-based order has not yet died so the new order cannot be born. The world thus finds itself in an interregnum in which the rules-based order is fraying but where the next iteration of global order is yet to emerge.  Aware that the world around them is changing, African leaders worry that a new version of cold war is developing, and that they are at risk of being forced to choose a side – America or China. But a cold war-style scenario is not a given, which means African leaders may be preparing for the wrong thing. This risks obscuring a major challenge created by the interregnum: the rise of assertive middle powers.    With global order in flux, middle powers seek to maximise their sovereignty and expand their influence. For middle powers in the Gulf, to Egypt and Turkey, those twin ambitions translate into treating the Horn of Africa as their near abroad. Russia surges into the coup belt sharing the same middle power motivations, but it differs on one count: desire to undermine the West. The opportunity generated by coups determines where Russia chooses to engage. But pursuing its rivalry with the West provides a second motive for Russia’s focus on the western half of the coup belt: it works to push back the strongest European influence, namely France’s presence in francophone Sahel states.  Naturally, Russia’s and middle powers’ engagement in Africa pre-dates the interregnum, but the opportunity presented by the evolving global order supercharges their interventions. Russia and middle powers exploit US retrenchment and eroding AU norms by offering themselves as partners to putschists. Seeing the opportunity to gain influence in power-grabs, they move in and back their preferred horse. These include the UAE, Saudi Arabia, Qatar, and Turkey throughout the Horn of Africa, where Turkey is more focused on Somalia; the UAE, Saudi Arabia, and Qatar are more focused on Sudan. In the Sahel, Turkey is tentatively exploring economic and security cooperation in Niger, Burkina Faso, and Mali. Russia plays a role across the Horn of Africa and Sahel sections of the coup belt; its deepest footprint is in Mali and Burkina Faso. All active middle powers are eyeing the prize of Libya as part of the strategic rationale for getting involved in its bordering countries.  With increasing numbers of autocratic political entrepreneurs in the coup belt bidding for power, the opportunities for engagement multiply. Middle powers – and Russia, to a lesser degree – place serious political and financial capital behind their engagement as well as no-questions-asked security support. This creates outsize impact compared to the mid-level Western official engagement and more conditional provision of financial and security support. Even though they wield greater firepower, the abilities of middle powers’ diplomatic and security institutions have yet to catch up with the demands placed on them by their political masters’ robust will to act. The impact can be of the bull in the china shop variety.  Russia and middle powers create an enabling environment for Africa’s autocrats by making their international and African-regional isolation impossible. The previous, unipolar period allowed the US, with European flanking, all behind an African lead (generally the AU), to deploy carrots and sticks while corralling other external powers. But middle powers’ assertive go-it-alone policies hamper the formation of a critical mass of international support to disincentivise rule-breaking.  How to navigate this new landscape African leaders grasp that changing global order is creating greater interest in Africa. They encourage new partners as a welcome means of diversification beyond the former confined choice of the US, old colonial powers such as France and Britain, or China. But the impact of Russian and middle power engagement in the coup belt demonstrates the pitfalls of such diversification. Rather than creating an additionality of options for Africa’s benefit, Russian and middle power engagement strengthens African autocrats and feeds state destabilisation.  There will be no return to the unipolar US-led order; no American linchpin to hold together the rules-based order against coups in Africa. Even if the US were to reallocate political capital to this end, the interregnum phase has already created shifts in global order of a magnitude that makes assertive middle powers and Russia near impossible to contain.  Nor can muscular engagement by France in its former colonies – the Sahel swathe of the coup belt – fill the US leadership gap. As much as France struggles to retain its primus inter pares role among European powers in the Sahel, the fever-pitch of anti-French sentiment in its former Sahel colonies constrains its efficacy.  When encouraging all-comers to support development in their countries, African leaders may have lingered too little on the drawbacks of Russia’s and middle powers’ engagement. If their fear was of Africa’s instrumentalisation by China and the US, then Russia and middle powers are not creating greater African agency. As it stands, they simply add to the number of actors instrumentalising Africa. That is the true wake-up call sounded by the Niger coup.

Defense & Security
Pedro Sánchez Prime Minister of Spain

The president of the Spanish government, Pedro Sánchez, has delivered this speech in the Rada, the Ukrainian parliament

by Pedro Sánchez

Thank you very much.  Dear Mr. Speaker Stephanchuk, Distinguished Members of the Verjovna Rada,Excellencies, dear friends. I am very grateful to be here today, on this very special day for my country. Today, 1st July,  Spain assumes the great responsibility of becoming the rotating Presidency of the Council of the European Union for the next six months. And I wanted that the very first thing I did in my new capacity was to address the people of Ukraine through their Verjovna Rada. I wanted to tell you that we are and will be with you as long as it takes. I wanted to tell you that we will support Ukraine no matter the price to pay. That we will be with you in the achievement of your aspirations to be a free and sovereign  country that decides its own destiny as a member of the European family. In short, I am here to express the firm determination of Europeans and Europe to fight against the illegal, unjustifiable and unjustified Russian aggression to Ukraine. Once again, I have the honour to address all of you in this temple of Ukrainian democracy. My first address took place in February, on the first anniversary of Russia’s aggression against your sovereignty and territorial integrity. Things have changed since then. Today Ukraine is in the midst of the counter-offensive against an enemy that is showing signs of weakness. We have all seen the events of last week. They speak for themselves. And, if one side shows weakness, it is because in front of him there is someone who shows the opposite: determination. It's what I can see, right here, and right now: determination, strength and courage. What I can see is a whole country that refuses to be subjected and fights for its independence with immense dignity. I know the price to pay is enormous. Especially in human lives lost. Nothing I can say here today can comfort a family that has lost a daughter, a son, a mother, a father or a husband. Men and women who gave their lives defending a free and democratic Ukraine.  Still, I want to do it from the bottom of my heart on behalf of my country, Spain. A country that mourns with you. A country that condemns every Russian attack against Ukrainian civilians, like the one at Kramatorsk. Victoria Amelina, a Ukrainian writer was there. Severely injured, now fights for her life. Victoria was close to the front line, because she wanted to document the tragedy. She wanted to collect the memory of infamy. The lost heritage. The broken lives. The crimes committed. We need women Victoria Amelina, to write history. To tell the facts as they happened and preserve the memory of those who suffer this tragedy. Excellencies, dear friends, we do not forget that the European aspiration of the Ukrainian people was one of the excuses that triggered the Russian reaction and, in turn, the invasion. It was only fair to honour this aspiration by granting you the status of candidate to the European Union. No one deserves it more than you, than Ukraine. However, I know that this is not an easy process, especially with an ongoing war. To become a member state requires changes, reforms and sacrifices. Not long ago, Spain faced this challenge as a candidate country. But, let me tell you, that the process to become an European Union member taught us important lessons. One of them is that undertaking reforms has a value in itself. Reforms make your governance and your economy better, more modern and transparent. They bolster international confidence and proximity. They attract investment. And, in time, they will grant you access to our European Union. A Union, which is more than just the largest internal market in the world. Which is, above all, a community of values: human dignity, freedom, democracy, equality, the rule of law and respect for human rights. Last week, the European Commission made a positive assessment of Ukrainians, of Ukraine’s progress concerning the required reforms. I congratulate you for the progress made, especially thanks to the legislative work of this Rada, and I encourage you to keep up with it. It is worth the effort. Congratulations. And of course we will be eagerly awaiting the report of the European Commission in the fall, which will set the basis for the future. Excellencies, We want a just and lasting peace in Ukraine. Only Ukraine can set terms and times for peace negotiations. Other countries and regions are proposing peace plans. The involvement is much appreciated, but, at the same time, we cannot accept them entirely. This is a war of aggression, with an aggressor and a victim. They cannot be treated equally. And ignoring the rules should in no way be rewarded. That is why we support President Zelenski’s peace formula, which is respectful with International Law and the UN Charter. Ukraine is paying a heavy prize in terms of destruction of cities and infrastructure. So, we need to make sure that the country is rebuilt, thus creating the conditions for its growth and prosperity. And we have already started. Today, Spain has decided to dedicate another 55 million euros, including offering 51 M€ through the World Bank Group to help finance Small and Medium Enterprises in Ukraine, as well as 4 M€ to the UN Development Program to provide schools in Ukraine with green-friendly and resilient energy systems. Reconstruction will take time and investment in many sectors. Spain is committed to accompanying Ukraine in this process. There are some areas, such as the railway infrastructure, in which our companies have the know-how that can make the difference. The Spanish government will support finance the necessary investments to adapt and upgrade infrastructures and productive sectors in your country. Yet, we understand that reconstruction and prosperity will only arrive if real, long-term security is achieved. My friends, in my view, it is clear that we cannot rely on the promises made after the Cold War anymore. We have to adapt to a different security environment, one in which concepts like peace, sovereignty or territorial integrity can no longer be taken for granted. The aggression on Ukraine has shown us that they need to be effectively defended. Not just with words, but with facts. Therefore, we will need to rethink the security framework to ensure that your country, Ukraine, will be able to live free from aggression or intimidation. As the President said, we are approaching the NATO Summit in Vilnius, which will follow on the commitments we made last year, in Madrid, the capital of Spain. Spain supports enhancing the political participation of Ukraine through the creation of a NATO-Ukraine Council, where you will no longer be an invitee, but a member, a full member. We are also in favour of enhancing the practical cooperation, to continue to adapt your defence sector to NATO Standards. These are, my friends, big steps forward that will be further discussed during the upcoming NATO Summit in Vilnius. Spain will continue to do its part as well: we are delivering more Leopard tanks, armoured personnel carriers and a field hospital with surgical capacity. We also continue to reach out to other countries and continents, to explain what is really happening here in Ukraine, but also to listen to their concerns, especially those related to food and energy security or insecurity, in this case. Excellencies, Last February, before my trip to Kyiv, someone in Madrid, in my city, was  wondering about the Ukrainian’s state of mind and asked me: “Do you think they are afraid?”. When I came back, after the visit, I had a clear answer to this question and I told them: Look, they are not afraid. They are going to win. It will take them weeks, or months. It will take tears, blood and sweat, but Ukraine is going to win this war. And they asked me “Pedro, Pedro, why?, why?”. And I said, “Because there are two battles. One happens in the battlefield. The other happens in the mind, because it’s a battle of ideas. And that one, the Ukrainian people have already won it”. Ukraine has chosen democracy in the face of those who despise it. Ukraine has chosen openness and freedom, in the face of those who fear it. Ukraine has chosen to sit, and discuss, and vote, and change, and evolve, in the face of those who only believe in force and obedience. Ukraine has chosen to be independent, to move freely, to trade, to invest, to prosper, to have hope, in the face of those who still have delusional dreams about old empires. The Ukrainian people have chosen the European way. The Ukrainian people ARE, you are Europeans. And you are Europeans not only because of a geographical imperative. You are Europeans by moral and spiritual commitment. So, dear friends. During this years, I have learned many things about Ukraine. Even some Ukrainian words. For instance, I have learned that "Mriya" (emriya) means “dream” in English, we say in Spanish Sueño. That was the name of the largest plane in the world, located at the Hostomel airfield when it was destroyed by Russian troops in February 2022. That plane brought medical supplies during the pandemic or carried humanitarian aid in natural disasters. It was a symbol, a pride for Ukraine. They destroyed the symbol, but they couldn’t destroy the idea. Now, I have learnt that Ukrainian engineers are already working on the reconstruction of that giant of the skies. Let me tell you that you are not just rebuilding an airplane: you are rebuilding a dream. One day, that dream will cross the skies again. And from there, here on the ground, we will see a new Ukraine reborn from the ashes of destruction. That’s what you fight for. You fight for peace, for security and prosperity for your children. And every Ukrainian soldier knows it. Russian soldiers fight because they are scared they will be punished if they don’t. They ask themselves everyday “what are we doing here?”. You are united, you stand on the moral high ground. They even rebel, as we saw a few days ago. That’s why they cannot win and you cannot lose. I came here today to tell you that Europe is open to those who make the choice. The European Union was built to prevent new wars. We chose to get together, to be “united in diversity”, and that made us stronger. Europe is with you, and you are one with Europe. Mui Yevropa! [¡Somos Europa!] Slava Ukraini [¡Viva Ucrania!]