BRUSSELS — The European Union is under pressure to keep Ukrainian troops fully
online after Elon Musk’s Starlink was restricted amid volatile U.S. support for
Kyiv.
“It was a very dangerous and unpleasant surprise,” Ukrainian President Volodymyr
Zelenskyy told reporters after EU leaders met in Brussels, referring to Starlink
speed limitations experienced by military troops in recent days. “We were using
Starlink to intercept jet-powered Shaheds [combat drones] that are attacking our
civilian infrastructure and killing our families … When the speed limits were
lowered, we became incapable of shooting [them] down.”
Ukraine has long relied critically on Musk’s satellite constellation for wartime
efforts. Reuters reported Friday that the order to slow Ukraine’s military-grade
Starshield service came from the White House, days after Washington pressed Kyiv
to halt strikes on Russian refineries, amid soaring energy prices and ahead of
November’s midterm elections.
“It is unacceptable for Ukraine’s defense — and therefore Europe’s security — to
depend on the goodwill of a single American billionaire or on Donald Trump’s
decisions,” French centrist Member of the European Parliament Christophe Grudler
told POLITICO.
Ahead of Thursday’s high-level meeting, European lawmakers had been calling on
the EU executive to fast-track Kyiv’s access to satellite capabilities already
pooled under the bloc’s Govsatcom program — which gives participating
governments secure communications capabilities.
Negotiations between the EU executive and Ukraine over this access have been
ongoing since March, with no breakthrough. Norway and Iceland secured such an
agreement earlier this year.
“What I don’t understand is why the European Commission and the Member States
have not done everything possible to quickly reach an agreement that would allow
Ukraine to benefit from it,” added Christophe Grudler, who wrote to EU leaders.
He also called on them to speed up work on IRIS² — the EU’s in-house, planned
satellite network and full-fledged match to Starlink, which is only expected to
come online in 2030.
Commission spokesperson Thomas Regnier confirmed in a statement that it is
“currently in talks with Ukraine to fully associate” the country with the EU’s
Govsatcom program. “The war in Ukraine shows that our security also depends on
space. And the EU has been doing quite a lot. We are ready to support Ukraine
where we can support Ukraine,” he added.
Calls to crack down on dependence on foreign providers and boost alternatives to
Starlink also come at a time when legislators are negotiating a series of laws
that could tame Musk’s ambitions in Europe.
“Ukraine’s dependence on Starlink highlights the vulnerability of European
defence systems that rely on U.S. technology, Another reminder that Europe must
reduce its dangerous technological dependencies — ASAP,” center-right Finnish
lawmaker Aura Salla said on social media.
Policymakers across Europe have been joining forces to curb Starlink’s dominance
in low-Earth orbit, where satellites fly close to Earth to deliver faster
connections.
“As legislators, we must ensure that European operators are well positioned in
the market and limit the dominance of foreign players,” German center-left
lawmaker Matthias Ecke said. In Brussels, lawmakers, including Ecke, are backing
European telcos gunning for prized satellite frequencies, currently licensed to
U.S. operators until next year and eyed by Starlink.
Meanwhile, Zelenskyy said Ukraine was working bilaterally with EU countries to
secure more capabilities, citing France. He also expressed hopes that Starlink
restrictions could be lifted. “My partners told me there were signals from the
White House that they would return these capabilities.”
SpaceX — Starlink’s parent company — didn’t respond to POLITICO’s request for
comment.
Tag - Negotiations
PARIS — Russia’s top diplomat slammed French efforts to resuscitate dialogue
between Emmanuel Macron and Vladimir Putin as “pathetic” just days after the
French president’s top diplomatic adviser traveled to Moscow for high-level
talks.
“French President Emmanuel Macron about two weeks ago once again said he would
somehow call [Vladimir] Putin,” Russia’s Foreign Minister Sergey Lavrov said in
an interview with state media outlet RT.
“You know, this is not serious. It’s pathetic diplomacy. If you want to call and
have a serious conversation, then call. Putin will always pick up the phone. He
will always hear out any proposals, especially serious ones,” Lavrov said.
Two EU diplomats, granted anonymity to speak candidly about the delicate talks,
confirmed to POLITICO that Bonne visited the Russian capital Tuesday to lay the
groundwork for Putin and Macron to resume speaking with each other. The leaders
have not spoken directly since shortly after Russia’s full-scale invasion of
Ukraine in 2022.
One of the diplomats said Bonne met with top Putin aide Yury Ushakov, who is
part of Russia’s delegation in ongoing peace talks with Ukraine brokered by the
United States.
French officials declined to confirm or deny Bonne’s visit. Kremlin spokesperson
Dmitry Peskov did the same Thursday at his daily press briefing out of
“solidarity” with the French.
Macron had said Tuesday that “technical talks” were underway in the effort to
reestablish dialogue with the Kremlin, and his office Wednesday said that such
talks are being held transparently “and in consultation with President Zelenskyy
and with our main European colleagues.”
Macron has repeatedly said Europeans need to hold their own direct talks with
Moscow, as negotiations between Russia, Ukraine and the United States drag on
and the conflict is nearing its fifth year.
Prominent Russia analyst Tatiana Stanovaya wrote in a post on X that the
Kremlin’s reaction signals it is open to Macron’s outreach “but remains deeply
[sic] sceptical about what Europe can offer.”
Sarah Paillou contributed to this report.
--------------------------------------------------------------------------------
Czech Prime Minister Andrej Babiš is facing new accusations that he never fully
severed ties with his agricultural empire, after publicly promising to do so in
order to avoid major conflicts of interest in both Prague and Brussels.
On taking up the Czech premiership in December, Babiš pledged to cut all links
with his company Agrofert, one of Central Europe’s largest agri-food and
chemicals groups. President Petr Pavel required him to take that step before
approving his government, and Babiš insisted his children would only take
Agrofert stakes after his death.
The commitment was meant to address long-standing conflict-of-interest concerns.
During Babiš’s previous term, EU and national auditors found the company had
improperly received at least €208 million in EU and national agricultural
subsidies, triggering payment suspensions and repayment demands.
At the EU level, the stakes are heightened by the fact that as prime minister,
Babiš is now helping to negotiate the bloc’s next long-term budget, including
farm spending from which Agrofert has previously benefited.
Babiš’s pledges of a total rupture with Agrofert are now coming into question,
even though the prime minister insists he has done much more than the law
required.
A leaked legal document that purports to map out his new relationship with the
company describes a trust structure that removes him from day-to-day
decision-making only while he remains in office, and that transfers
decision-making powers to a family-run governance mechanism once his political
career ends. The 18-page document, dated Dec. 17, was first reported by Czech
outlet Seznam Zprávy. POLITICO has seen a copy.
The document says the trust is meant to ensure “independent administration
during the period in which the [establisher of the trust] holds the office of a
member of the Government.” Once that period ends — whether through Babiš’s
departure from office or, eventually, his death — the business would
automatically transition to “family administration”
Opposition lawmakers seized on the document as evidence that Babiš would still
have strong personal and family interests tied to Agrofert during his lifetime,
potentially motivating his decisions on both the domestic and EU levels.
“The news about Andrej Babiš’s unresolved conflict of interest is really just
the proverbial cherry on top,” Pirate party parliamentary leader Olga Richterová
said in a legislative debate in Prague on Tuesday. “It is becoming clear that
you can’t teach an old dog new tricks. The old practices used when Agrofert was
previously parked in trust funds appear set to be applied again in a very
similar way.”
Danuše Nerudová, a European Parliament lawmaker from the Mayors and Independents
party, told POLITICO the arrangement preserves a personal incentive to protect
family business interests. “His companies benefited improperly from EU
agricultural subsidies in the past,” she said. “That incentive does not
disappear simply because the structure is renamed.”
Given the implications for the EU budget, the European Commission said it was
monitoring developments and underlined its rule that “anybody nominated in a
member state to be involved in budget implementation … shall not take any action
which may bring their own interests into conflict with those of the union.”
POLITICO requested comment from Babiš’s office, but did not receive a response
before publication.
Danuše Nerudová told POLITICO the arrangement preserves a personal incentive to
protect family business interests. | Martin Divisek/EPA
Babiš responded to the Seznam Zprávy story in another newspaper. He did not deny
the authenticity of the document and its reference to a continued family
interest, but claimed he was doing nothing wrong. “What I said earlier clearly
applies. I did much more than the law required of me. The shares of the company
that I built for almost 30 years will never be returned to me,” he told the
Deník N newspaper.
POLITICAL DEBATE IN PRAGUE
When Babiš made his pledge to keep out of Agrofert last year, his language was
definitive.
“I have decided to irrevocably give up the Agrofert company,” Babiš said in
December. “I will never own it, I will not have any economic relations with it,
and I will not be in any contact with it.”
He added: “My children will only get Agrofert after my death.”
Babiš reiterated his defense this week, telling Czech news agency ČTK that the
Agrofert shares would never return to him and that he would not benefit from
them for the rest of his life. He said the arrangement complied with both Czech
and European law, and accused critics of trying to deprive him of his property.
The prime minister has previously insisted any conflict would be resolved once
the trust takes effect. He missed a self-imposed early-January deadline to
complete the share transfer, saying he was still awaiting approval from
financial authorities in two EU countries.
David Kotora, executive director of Transparency International Czech Republic,
said the trust “is currently an inactive shell” because the share transfer has
not taken place. Once activated, he said, it would still fail EU standards.
“This structure clearly cannot withstand European regulations concerning
conflicts of interest in the redistribution of public funds,” Kotora said.
During the parliamentary session on Tuesday, Babiš dismissed the renewed
scrutiny as a “festival of hypocrisy.”
“This is not a spontaneous defense of democracy. It’s political theater,” he
said, stressing that Agrofert is not receiving any subsidies until the trust is
in effect. “You invented the conflict of interest because you’re incapable of
beating me.”
Lawmakers from Babiš’s ANO party have rallied behind him, rejecting assessments
of unresolved conflicts of interest. In a joint statement to POLITICO, MEPs
Ondřej Knotek and Klára Dostálová said the prime minister had taken steps “well
beyond what is required by Czech and European law.”
He has relinquished ownership and control of Agrofert permanently, they said,
and would not benefit from the company for the rest of his life.
“If someone finds this insufficient,” they added, “it is no longer about the
essence of the matter, but about an effort to constantly question it.”
Economist Petr Bartoň, a regulatory and public policy expert, noted Czech
conflict-of-interest rules were never designed for politicians with business
empires on the scale of Agrofert.
“The law does not aim to permanently separate politicians from their assets,”
Bartoň said. “It aims to manage conflicts while they are in office.” Promises to
go further, he added, may have political value but “no legal force.”
Ketrin Jochecová contributed to this report.
KYIV — Ukraine and Russia agreed to swap 314 prisoners of war during the latest
round of talks in Abu Dhabi on Thursday, U.S. Special Envoy Steve Witkoff said.
The trilateral discussions ended Thursday afternoon, with Ukrainian, American
and Russian negotiating teams working together and in special subgroups for two
days. In a post on X, Witkoff described the latest trilateral negotiating round
as “detailed and productive.”
“While significant work remains, steps like this demonstrate that sustained
diplomatic engagement is delivering tangible results and advancing efforts to
end the war in Ukraine,” Witkoff said, adding that discussions will continue in
the coming weeks.
Ukrainian President Volodymyr Zelenskyy confirmed that the PoW exchange, the
first in five months, happened on Thursday.
“We are bringing our people home — 157 Ukrainians. Warriors from the Armed
Forces, National Guard, and the State Border Guard Service. Soldiers, sergeants,
and officers. Along with our defenders, civilians are also returning. Most of
them had been in captivity since 2022,” Zelenskyy said in a post on X.
Russia also received the return of 157 of its PoWs.
The last prisoner exchange between Russia and Ukraine was in October, when the
sides swapped 185 soldiers and 20 civilians.
Zelenskyy explained that Moscow had halted the swaps. “They are not particularly
interested in exchanging people, because they do not feel that it gives them
anything. They believe it benefits us. But I think they should also be thinking
about their own people — their own soldiers,” Zelenskyy told reporters in Kyiv
last week.
Since Kyrylo Budanov, former head of Ukrainian military intelligence, joined the
negotiating group, Russia began to take the negotiations more seriously,
Zelenskyy said last week. “I believe it was a higher-level delegation than
before, considering what the people who represented Russia this time are
responsible for. We saw this as a more serious opportunity for discussion,”
Zelenskyy said.
“Because one thing is when you come only to receive information and deliver some
fantastical historical briefing from a playbook that everyone has heard many
times before. And another thing is when you move closer to real steps to end the
war,” Zelenskyy added.
Territorial issues remain the most difficult issue in the negotiations. Russia
demands that Ukraine withdraw from the remaining 30 percent of Donbas, Kyiv’s
most secure stronghold in the region. Kyiv insists everyone should stand where
they are, calling it enough of a compromise.
“The American side understands this and says that there is a compromise
solution, proposing a free economic zone. However, the issue of control over any
territory — including a free economic zone — must also be fair. Specifically, it
must involve Ukraine maintaining control over the territories that we currently
control,” Zelenskyy said last week.
BRUSSELS — The European Parliament’s top trade lawmakers failed on Wednesday to
reach a common position on the EU-U.S. trade deal, in a move that risks fueling
Washington’s impatience against the EU’s slow pace in finally implementing its
side of a bargain struck last summer.
Negotiations will continue until next week, two people who attended a meeting of
the lawmakers told POLITICO. One said that committee vote was penciled in for
Feb. 24 and a final plenary vote for March. Both were granted anonymity to
discuss the closed-door talks.
The meeting failed to clear remaining hurdles regarding the Parliament’s
position on the removal of tariffs on U.S. industrial goods and lobsters — a
precondition for Washington to reduce its own tariffs on European cars.
Lawmakers from the international trade committee disagreed on the length of a
sunset clause which would limit the proposals’ application to 18 to 36 months,
as well as whether the EU should withdraw any tariff concessions until a
solution is found between Brussels and Washington on the 50 percent tariff the
Trump administration has put on steel derivatives.
With the EU still processing the shock of Trump’s threats against the
territorial sovereignty of Greenland and the Kingdom of Denmark, the liberal
Renew group and the Socialists & Democrats are pushing to Trump-proof the deal
by inserting suspension clauses into enabling legislation in case the U.S.
president turns hostile again.
The center-right European People’s Party has pushed to sign off the deal
following calls from EU leaders to unfreeze the implementation of the deal.
Failure to reach an agreement on Wednesday throws into disarray the timeline for
parliamentary approval, and further delays the start of negotiations with EU
capitals and the European Commission.
KYIV — U.S. President Donald Trump insists that Vladimir Putin kept his word on
a weeklong pause in attacks on Ukrainian cities despite Russia’s massive missile
barrage on Monday.
Trump told reporters that Putin had made an agreement which expired on Sunday.
“It was Sunday to Sunday, and it opened up and he hit them hard last night,” he
said at the White House on Tuesday. “He kept his word on that … we’ll take
anything, because it’s really, really cold over there.”
However, Ukrainian President Volodymyr Zelenskyy said the truce began last
Friday, a day after Trump announced he reached a deal with Putin not to bomb
Ukraine for a week, as freezing temperatures were coming.
The pause was also supposedly tied to ongoing U.S.-led peace talks between
Ukraine and Russia, which resumed Wednesday in Abu Dhabi.
“We await the reaction of America to the Russian strikes,” Zelenskyy said in a
Tuesday evening statement. “It was the U.S. proposal to halt strikes on energy
during diplomacy and severe winter weather. The president of the United States
made the request personally. Russia responded with a record number of ballistic
missiles.”
He also called for the U.S. Congress to finally approve new sanctions against
Russia.
“The U.S. Congress has long been working on a new sanctions bill, and there must
be progress on it. European partners can take decisive steps regarding Russian
oil tankers’ earnings for the war. Russia must feel pressure so that it moves in
negotiations toward peace,” Zelenskyy said.
Last week, Zelenskyy told journalists in Kyiv there was no formal agreement
between Russia and Ukraine, but both sides agreed on the American proposal to
pause strikes on each other’s energy facilities during the previous round of
talks in Abu Dhabi.
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Im März stehen die ersten zwei von insgesamt fünf Landtagswahlen an.
Baden-Württemberg und Rheinland-Pfalz sind der Auftakt. In der CDU derweil sind
Vorschläge zur Abschaffung der”Lifestyle-Teilzeit” und der Streichung von
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äußern sich, die anderen sind verärgert und kassieren die Ideen so schnell ein,
wie sie gemacht werden.
Eine Partei sucht öffentlich ihre Linie und das macht die Wahlkämpfer
unglücklich. Rasmus Buchsteiner berichtet von der Flatterstimmung und dem
Versuch, unter anderem vor und auf dem CDU-Parteitag in Stuttgart den Schaden zu
begrenzen. Außerdem bespricht er mit Gordon, wie die ausbleibenden Fortschritte
bei den versprochenen Reformen die Situation mit ausgelöst haben.
Gleichzeitig geht es für die SPD in den Umfragen bergauf. Zumindest in
Mecklenburg-Vorpommern. Dort ist die AfD der Hauptgegner für die amtierende
Ministerpräsidentin Manuela Schwesig. Im 200-Sekunden-Interview spricht sie
darüber, wie sie den Moment für sich nutzen und für ihre Partei nutzen will.
Außerdem:
Der Kanzler bricht heute zu seiner ersten offiziellen Reise in die Golfregion
auf. Tom Schmidtgen vom Pro-Newsletter ‘Industrie und Handel am Morgen’ über den
neuen wichtigen Partner Saudi-Arabien, der sich nicht nur seiner strategisch
guten Lage, sondern auch seiner wirtschaftlichen Stärke bewusst ist.
Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski
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Europe.
Another round of U.S.-brokered Ukraine talks commence today in Abu Dhabi.
The overall outlook remains no less bleak for Ukraine, as it inches toward the
fourth anniversary of Russia’s war. Yet there are signs that what comes out of
this week’s face-to-face negotiations may finally answer a key question: Is
Russian President Vladimir Putin serious?
On the eve of the planned two-day talks, Russia resumed its large-scale air
assault on Ukraine’s battered infrastructure after a brief weekend hiatus.
Striking cities including Kyiv, Dnipro, Kharkiv, Sumy and Odesa overnight with
450 drones and 71 missiles, including ballistic, Russia hit the country’s energy
grid and residential houses as temperatures dropped below -20 degrees Celsius.
“Putin must be deprived of illusions that he can achieve anything by his
bombing, terror, and aggression,” pleaded Ukraine’s frustrated Minister of
Foreign Affairs Andrii Sybiha. “Neither anticipated diplomatic efforts in Abu
Dhabi this week nor his promises to the United States kept him from continuing
terror against ordinary people in the harshest winter.”
According to U.S. President Donald Trump, those promises included refraining
from targeting Kyiv and other major cities for a whole week during a period of
“extraordinary cold.” But no sooner had Trump spoken than Kremlin spokesperson
Dmitry Peskov warned the break would only last a weekend.
That’s hardly an auspicious launchpad to negotiations, and has many Ukrainian
politicians arguing that Russia is merely going through the motions to ensure it
doesn’t end up on the wrong side of an unpredictable U.S. leader — albeit one
who seems inordinately patient with Putin, and much less so with Ukrainian
President Volodymyr Zelenskyy.
Not that Ukrainians had put much store in a week-long “energy ceasefire” to
begin with. A vicious war has taught them to expect the worst.
“Unfortunately, everything is entirely predictable,” posted Zelenskyy adviser
Mykhailo Podolyak on Tuesday. “This is what a Russian ‘ceasefire’ looks like:
during a brief thaw, stockpile enough missiles and then strike at night when
temperatures drop to minus 24 Celsius or lower, targeting civilians. Russia sees
no reason whatsoever to stop the war, halt genocidal practices, or engage in
diplomacy. Only large-scale freezing tactics.”
It’s difficult to quibble with his pessimism. Putin’s Kremlin has a long track
record of using peace talks to delay, obfuscate, exhaust opponents and continue
with war. It’s part of a playbook the Russian leader and his lugubrious Minister
of Foreign Affairs Sergey Lavrov have used time and again in Ukraine, and for
years in Syria.
Nonetheless, according to some Ukrainian and U.S. sources familiar with the
conduct of the talks, there are indications that the current negotiations may be
more promising than widely credited. They say both sides are actually being more
“constructive” — which, admittedly, is an adjective that has often been misused.
“Before, these negotiations were like pulling teeth without anesthetic,” said a
Republican foreign policy expert who has counseled Kyiv. Granted anonymity in
order to speak freely, he said: “Before, I felt like screaming whenever I had to
see another readout that said the discussions were ‘constructive.’ But now, I
think they are constructive in some ways. I’m noticing the Russians are taking
these talks more seriously.”
It’s part of a playbook the Russian leader and his lugubrious Minister of
Foreign Affairs Sergey Lavrov have used time and again in Ukraine, and for years
in Syria. | Maxim Shipenkov/EPA
Some of this, he said, owes to the skill of those now leading the Ukrainian team
after the departure of Zelenskyy’s powerful former chief of staff, Andriy
Yermak. Among the smartest and most able are: Yermak’s replacement as head of
the Office of the President and former chief of the Main Intelligence
Directorate Kyrylo Budanov; Secretary of the National Security and Defense
Council Rustem Umerov; and Davyd Arakhamia, who heads the parliamentary faction
of Zelenskyy’s ruling Servant of the People party.
“I am noticing since Davyd got involved … there’s been a noticeable improvement
with the Russian negotiators. I think that’s because they respect them —
especially Davyd — and because they see them as people who are living in reality
and are prepared to compromise,” the expert explained. “I’m cautiously
optimistic that we have a reasonable chance to end this conflict in the spring.”
A former senior Ukrainian official who was also granted anonymity to speak to
POLITICO was less optimistic, but even he concurred there’s been a shift in the
mood music and a change in tone from Russia at the negotiating table.
Describing the head of the Russian delegation, chief of the Main Directorate of
the General Staff of the Russian Armed Forces Igor Kostyukov, and Military
Intelligence officer Alexander Zorin as practical men, he said neither were
prone to giving long lectures on the conflict’s “root causes” — unlike Lavrov
and Putin. “The Russian intelligence officers have been workmanlike, digging
into practical details,” noted the former official, whom Zelenskyy’s office
still consults.
He hazards that the change may have to do with the Kremlin’s reading that Europe
is getting more serious about continent-wide defense, ramping up weapons
production and trying to become less dependent on the U.S. for its overall
security.
“Putin must be deprived of illusions that he can achieve anything by his
bombing, terror, and aggression,” pleaded Ukraine’s frustrated Minister of
Foreign Affairs Andrii Sybiha. | Olivier Matthys/EPA
“A peace deal, an end of the war, could take a lot of the momentum out of this —
European leaders would have a much tougher time selling to their voters the
sacrifices that will be needed to shift to higher defense spending,” he said.
Of course, Russia’s shift in tone may be another attempt to string Trump along.
“Putin has almost nothing to show for the massive costs of the war. Accepting a
negotiated settlement now, where he cannot claim a clear ‘win’ for Russia and
for the Russian people, would be a big problem domestically,” argued retired
Australian general Mick Ryan.
Whatever the reasons, what emerges from Abu Dhabi in the coming days will likely
tell us if Putin finally means business.
The Trump administration wants to work with traditional allies to secure new
supplies of critical minerals. But months of aggression toward allies,
culminating with since-aborted threats to seize Greenland, have left many cool
to the overtures.
While the State Department has drawn a lengthy list of participating countries
for its first Critical Minerals Ministerial scheduled for Wednesday, a number of
those attending are hesitant to commit to partnering with the U.S. in creating a
supply chain that bypasses China’s current chokehold on those materials,
according to five Washington-based diplomats of countries invited to or
attending the event.
State Department cables obtained by POLITICO also show wariness among some
countries about signing onto a framework agreement pledging joint cooperation in
sourcing and processing critical minerals.
Representatives from more than 50 countries are expected to attend the meeting,
according to the State Department — all gathered to discuss the creation of tech
supply chains that can rival Beijing’s.
But the meeting comes just two weeks since President Donald Trump took to the
stage at Davos to call on fellow NATO member Denmark to allow a U.S. takeover of
Greenland, and that isn’t sitting well.
“We all need access to critical minerals, but the furor over Greenland is going
to be the elephant in the room,” said a European diplomat. In the immediate
run-up to the event there’s “not a great deal of interest from the European
side,” the person added.
The individual and others were granted anonymity to discuss sensitive diplomatic
relationships.
Their concerns underscore how international dismay at the Trump administration’s
foreign policy and trade actions may kneecap its other global priorities. The
Trump administration had had some success over the past two months rallying
countries to support U.S. efforts to create secure supply chains for critical
minerals, including a major multilateral agreement called the Pax Silica
Declaration. Now those gains could be at risk.
Secretary of State Marco Rubio wants foreign countries to partner with the U.S.
in creating a supply chain for the 60 minerals (including rare earths) that the
U.S. Geological Survey deems “vital to the U.S. economy and national security
that face potential risks from disrupted supply chains.” They include antimony,
used to produce munitions; samarium, which goes into aircraft engines; and
germanium, which is essential to fiber-optics. The administration also launched
a $12 billion joint public-private sector “strategic critical minerals
stockpile” for U.S. manufacturers, a White House official said Monday.
Trump has backed away from his threats of possibly deploying the U.S. military
to seize Greenland from Denmark. But at Davos he demanded “immediate
negotiations” with Copenhagen to transfer Greenland’s sovereignty to the U.S.
That makes some EU officials leery of administration initiatives that require
cooperation and trust.
“We are all very wary,” said a second European diplomat. Rubio’s critical
minerals framework “will not be an easy sell until there is final clarity on
Greenland.”
Trump compounded the damage to relations with NATO countries on Jan. 22 when he
accused member country troops that deployed to support U.S. forces in
Afghanistan from 2001 to 2021 of having shirked combat duty.
“The White House really messed up with Greenland and Davos,” a third European
diplomat said. “They may have underestimated how much that would have an
impact.”
The Trump administration needs the critical minerals deals to go through. The
U.S. has been scrambling to find alternative supply lines for a group of
minerals called rare earths since Beijing temporarily cut the U.S. off from its
supply last year. China — which has a near-monopoly on rare earths — relented in
the trade truce that Trump brokered with China’s leader Xi Jinping in South
Korea in October.
The administration is betting that foreign government officials that attend
Wednesday’s event also want alternative sources to those materials.
“The United States and the countries attending recognize that reliable supply
chains are indispensable to our mutual economic and national security and that
we must work together to address these issues in this vital sector,” the State
Department statement said in a statement.
The administration has been expressing confidence that it will secure critical
minerals partnerships with the countries attending the ministerial, despite
their concerns over Trump’s bellicose policy.
“There is a commonality here around countering China,” Ruth Perry, the State
Department’s acting principal deputy assistant secretary for ocean, fisheries
and polar affairs, said at an industry event on offshore critical minerals in
Washington last week. “Many of these countries understand the urgency.”
Speaking at a White House event Monday, Interior Secretary Doug Burgum indicated
that 11 nations would sign on to a critical minerals framework with the United
States this week and another 20 are considering doing so.
Greenland has rich deposits of rare earths and other minerals. But Denmark isn’t
sending any representatives to the ministerial, according to the person familiar
with the event’s planning. Trump said last month that a framework agreement he
struck with NATO over Greenland’s future included U.S. access to the island’s
minerals. Greenland’s harsh climate and lack of infrastructure in its interior
makes the extraction of those materials highly challenging.
Concern about the longer term economic and geostrategic risks of turning away
from Washington in favor of closer ties with Beijing — despite the Trump
administration’s unpredictability — may work in Rubio’s favor on Wednesday.
“We still want to work on issues where our viewpoints align,” an Asian diplomat
said. “Critical minerals, energy and defense are some areas where there is hope
for positive movement.”
State Department cables obtained by POLITICO show the administration is leaning
on ministerial participants to sign on to a nonbinding framework agreement to
ensure U.S. access to critical minerals.
The framework establishes standards for government and private investment in
areas including mining, processing and recycling, along with price guarantees to
protect producers from competitors’ unfair trade policies. The basic template of
the agreement being shared with other countries mirrors language in frameworks
sealed with Australia and Japan and memorandums of understanding inked with
Thailand and Malaysia last year.
Enthusiasm for the framework varies. The Philippine and Polish governments have
both agreed to the framework text, according to cables from Manila on Jan. 22
and Warsaw on Jan. 26. Romania is interested but “proposed edits to the draft
MOU framework,” a cable dated Jan. 16 said. As of Jan. 22 India was
noncommittal, telling U.S. diplomats that New Delhi “could be interested in
exploring a memorandum of understanding in the future.”
European Union members Finland and Germany both expressed reluctance to sign on
without clarity on how the framework aligns with wider EU trade policies. A
cable dated Jan. 15 said Finland “prefers to observe progress in the EU-U.S.
discussions before engaging in substantive bilateral critical mineral framework
negotiations.” Berlin also has concerns that the initiative may reap “potential
retaliation from China,” according to a cable dated Jan. 16.
Trump’s threats over the past two weeks to impose 100 percent tariffs on Canada
for cutting a trade deal with China and 25 percent tariffs on South Korea for
allegedly slow-walking legislative approval of its U.S. trade agreement are also
denting enthusiasm for the U.S. critical minerals initiative.
Those levies “have introduced some uncertainty, which naturally leads countries
to proceed pragmatically and keep their options open,” a second Asian diplomat
said.
There are also doubts whether Trump will give the initiative the long-term
backing it will require for success.
“There’s a sense that this could end up being a TACO too,” a Latin American
diplomat said, using shorthand for Trump’s tendency to make big threats or
announcements that ultimately fizzle.
Analysts, too, argue it’s unlikely the administration will be able to secure any
deals amid the fallout from Davos and Trump’s tariff barrages.
“We’re very skeptical on the interest and aptitude and trust in trade
counterparties right now,” said John Miller, an energy analyst at TD Cowen who
tracks critical minerals. “A lot of trading partners are very much in a
wait-and-see perspective at this point saying, ‘Where’s Trump really going to go
with this?’”
And more unpredictability or hostility by the Trump administration toward
longtime allies could push them to pursue critical mineral sourcing arrangements
that exclude Washington.
“The alternative is that these other countries will go the Mark Carney route of
the middle powers, cooperating among themselves quietly, not necessarily going
out there and saying, ‘Hey, we’re cutting out the U.S.,’ but that these things
just start to crop up,” said Jonathan Czin, a former China analyst at the CIA
now at the Brookings Institution. “Which will make it more challenging and allow
Beijing to play divide and conquer over the long term.”
Felicia Schwartz contributed to this report.
BRUSSELS — European Commission President Ursula von der Leyen is planning to
travel to Australia this month to clinch a security and trade deal, according to
a person familiar with the talks.
Her trip will follow a meeting next week between European Trade Commissioner
Maroš Šefčovič and his Australian counterpart Don Farrell in Brussels, a second
person said. Both people were granted anonymity because the schedules are still
tentative.
The EU and Canberra are moving to revive trade negotiations that collapsed at
the end of 2023 amid disagreements over quotas of beef and lamb.
The quotas are still being negotiated between Canberra and Brussels, the first
person familiar with the talks said.
Von der Leyen will take the 20-hour-plus flight to Australia directly after she
attends the Munich Security Conference, which takes place in the German city on
Feb. 13-15, according to Australian digital newspaper The Nightly, which broke
the news of the Commission chief’s four-day trip.
EU countries last December allowed the Commission to negotiate a defense deal
with Australia. Sealing such a deal would come on the heels of security and
defense partnerships signed with the U.K., Canada and most recently India.
An agreement with Australia would represent a win for the EU, as it would open
access to the country’s vast reserves of strategic minerals. Australia is the
world’s largest producer of lithium and also holds the world’s second-largest
copper reserves.
Coming after the EU’s fraught Mercosur deal with South American countries —
criticized by farmers, France and skeptical lawmakers — the pact with Canberra
is expected to also trigger pushback due to its significant agricultural
component.