Politics & Diplomacy - Atlantic Council https://www.atlanticcouncil.org/issue/politics-diplomacy/ Shaping the global future together Wed, 18 Jun 2025 00:22:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://www.atlanticcouncil.org/wp-content/uploads/2019/09/favicon-150x150.png Politics & Diplomacy - Atlantic Council https://www.atlanticcouncil.org/issue/politics-diplomacy/ 32 32 What did not happen at the G7 Summit in Canada (and why it matters) https://www.atlanticcouncil.org/blogs/new-atlanticist/what-did-not-happen-at-the-g7-summit-in-canada-and-why-it-matters/ Wed, 18 Jun 2025 00:22:13 +0000 https://www.atlanticcouncil.org/?p=854658 Several expected outcomes from this year’s meeting of Group of Seven leaders in Alberta, Canada, didn’t materialize.

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What didn’t happen sometimes matters more than what did. On Tuesday afternoon, the Group of Seven (G7) summit in Alberta, Canada, concluded, but US President Donald Trump had left the day before, jetting back to Washington as the war between Israel and Iran intensified. Trump’s attendance for the full two-day summit was not the only thing that didn’t go as planned—several expected meetings and outcomes were canceled as well. Below, Atlantic Council experts examine four things that did not happen and what each nonevent reveals about the relevant issue.  

The absence of a joint communiqué at this week’s G7 summit starkly illustrates the deepening policy divisions among leaders of the world’s most powerful economies. While policymakers debate what the G7 can accomplish amid growing US-European tensions, a more fundamental question has emerged: Is the G7 itself equipped to address today’s complex geopolitical landscape? 

The summit exposed significant rifts between G7 members and the United States on critical international issues. Trump’s assertion that ejecting Russia from the former Group of Eight (G8) was a strategic mistake amplified tensions over Russia’s war in Ukraine. While the G7 did endorse a statement calling for “de-escalation of hostilities, including a ceasefire in Gaza,” watered down statements like this underscore the challenges in achieving consensus. These parallel conflicts reveal not only internal G7 divisions but also the growing disconnect between G7 positions and broader global sentiment, especially when it comes to Israel and Gaza.  

The lead-up to the Kananaskis summit highlighted another critical question: Can the G7 remain relevant while excluding major global players? Pressure from G7 leaders ultimately compelled Canadian Prime Minister Mark Carney to extend an invitation to Indian Prime Minister Narendra Modi, despite ongoing diplomatic tensions over last year’s killing of a Khalistani separatist in British Columbia. This last-minute inclusion underscores an emerging reality—as one of the world’s largest economies, a crucial node in global supply chains, and a key player in Indo-Pacific security, India’s absence from major G7 discussions would render many outcomes meaningless. 

Perhaps most troubling is the weakening of the shared democratic values that supposedly bind the G7 together. The transatlantic relationship faces unprecedented strain as the Republican Party, under the leadership of Trump and Vice President JD Vance, increasingly views liberal European societies through a harsh cultural lens. While the United States frames China as the primary geopolitical challenge of its time, today’s Republican Party often sees European societies as equally divergent from American values and interests. This ideological drift threatens the very foundation upon which the G7 was built. 

These developments raise existential questions about the G7’s future relevance. A forum designed for the world’s democratic economic powerhouses now struggles to produce basic agreements, while excluding nations essential to global stability and prosperity. Today, the G7 risks becoming an increasingly irrelevant talking shop, much like the United Nations Security Council, unable to address many of the defining challenges of the twenty-first century. 

Rachel Rizzo is a nonresident senior fellow at the Atlantic Council’s Europe Center.

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Trouble was brewing even before Trump’s early departure from the leaders’ summit on Monday evening and the absence of a communiqué on Tuesday. Trump’s trade policy had already effectively resulted in a G6+1—a coalesced European, Canadian, and Japanese front against the United States. But the fracture in the G7 has only become more evident this week. At the time of its formation fifty years ago, the group was created as a channel for economic coordination between the world’s largest economies. In recent years, the conflict between Ukraine and Russia had energized the G7, which had functioned as the hub for sanctions coordination and strategizing on supporting Ukraine. This energizing, and in some ways defining, achievement of the G7 in the past decade was put into question by Trump’s assertion on Monday that Russia should be brought back into the G8 fold, laying bare the misalignment between him and the other leaders. 

There are issues that could have possibly aligned G7 leaders, such as responding to Chinese economic influence, including Beijing’s manufacturing overcapacity. But what ultimately binds the group and makes it different from the Group of Twenty (G20) and the United Nations Security Council is broad agreement on democratic values, free and open markets, and a belief in working together with allies. A fracturing G7 puts these foundational tenets under scrutiny. Trump’s early departure also snubbed partners beyond the G7; India and Mexico were looking forward to their respective bilateral meetings that could have furthered trade negotiations.  

It’s clear that on its fiftieth anniversary, the G7 is in the middle of a geopolitical crisis, as the Israel-Iran conflict plays out, and an existential crisis, exacerbated by the United States’ strained relationship with the rest of the group. What lies ahead as France will take on the presidency in 2026, and whether the G6+1 break will continue, depends on how much value Washington sees in collaborating with its closest allies on economic issues. 

Ananya Kumar is the deputy director for future of money at the GeoEconomics Center.  

Trump did himself no favors at the G7 Summit toward his goal of achieving a durable peace in Ukraine. Trump has set out a tough approach to achieve that peace. He has asked for serious concessions from both Ukraine and Russia and said that he would exert pressure on the side(s) blocking progress. Since then, Ukraine has accepted every proposal Trump has offered since mid-March, and Russia has rejected them all except for one that it violated immediately. It is clear which side is obstructionist.   

Trump had an excellent chance to use the G7 Summit to put needed pressure on the Kremlin. The G7 was poised to lower the price cap for a barrel of Russian oil from sixty dollars to forty-five dollars, which would put pressure on the Russian oil revenues enabling its aggression in Ukraine. But the United States vetoed the proposal last week—Trump’s first gift to Russian President Vladimir Putin at this G7 Summit.   

The second gift came after his arrival in Canada. The US president repeated his criticism of the G7 for kicking Russia out of the group because of its conquest and “annexation” of Crimea in 2014. (Trump had done the same in his first term.) Since Putin is blocking his peace efforts, why would Trump provide this offering to the Russian dictator at this time? It is also true that by departing the summit early to deal with the ongoing crisis in the Middle East, Trump missed a planned side meeting with Ukrainian President Volodymyr Zelenskyy. No harm, no foul there, but achieving a real peace in Ukraine will remain a distant wish if the White House continues to treat the aggressor to bouquets. 

John E. Herbst is the senior director of the Atlantic Council’s Eurasia Center and a former US ambassador to Ukraine. 

After much anticipation, the first face-to-face meeting between Trump and Mexican President Claudia Sheinbaum did not take place due to the US president’s early departure. Perhaps unexpectedly, the leaders have had an amicable and constructive relationship so far, with mutual praise often being shared between the two and at least seven phone calls taking place since Trump’s election in 2024.  

The meeting in Kananaskis, however, would have offered neutral ground for both leaders to further discuss the actions Sheinbaum has taken to address US security concerns while also addressing the thornier aspects of the bilateral relationship. This includes Mexico’s refusal to accept the involvement of US troops in its strategy against the illegal drug trade and cartels. It also includes Mexico’s concern about a proposed 3.5 percent tax on remittances currently moving through the US Senate. (Remittances to Mexico represent roughly 3.7 percent of the country’s gross domestic product.)  

A three amigos-style meeting of Trump, Sheinbaum, and Carney was off the table even before the summit. But the presence of all three newly minted North American leaders and their confirmed bilateral meetings on the sidelines of the G7 Summit had nonetheless raised hopes across the region that a tangible agenda to discuss next steps for the United States-Mexico-Canada Agreement (USMCA) would be set. Now, just over a year before the sunset clause is activated in July 2026, the private sector across all three countries will be left craving certainty about the future of the trade deal, especially against the current backdrop of continuously changing trade conditions and recently doubled steel and aluminum tariffs.  

So what comes next? US-Mexico communication lines remain open. Mexico has an ally in Christopher Landau, a US deputy secretary of state and a former US ambassador to Mexico who met with Sheinbaum last week. The United States should now continue to signal its willingness to engage with Mexico to find solutions to shared challenges by setting a date for Secretary of State Marco Rubio’s announced visit and pave the way for a Trump–Sheinbaum tête-à-tête.  

—Valeria Villarreal is a program assistant at the Atlantic Council’s Adrienne Arsht Latin America Center.

The G7 presents two cautionary tales for next week’s NATO Summit in The Hague. First, if Zelenskyy’s presence at the G7 contributed to Trump’s early departure, then this would serve as a reminder for NATO allies to tread lightly on signaling too much support for Ukraine in The Hague at the risk of alienating the US administration. Second, Trump’s comments in Canada suggesting that Russia should rejoin the G8 are also a warning to NATO. While allied leaders were already unlikely to raise costs on Russia at the summit for its ongoing war in Ukraine, Trump’s comments highlight that even tough language on Russia in the expected summit communiqué could exacerbate tensions while Trump is in The Hague.  

Ignoring the threats Russia poses to the Alliance and the importance of maintaining support for Ukraine comes with different (and I would argue more problematic) risks. But if NATO’s goal in The Hague is to project Alliance unity and avoid a dust-up with Trump, then the Alliance should stay focused on securing a new defense spending pledge and go home. All the hard work, for better or for worse, will fall after the summit. 

Torrey Taussig is the director of and a senior fellow at the Transatlantic Security Initiative in the Atlantic Council’s Scowcroft Center for Strategy and Security. Previously, she was a director for European affairs on the National Security Council.

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What should Trump do next on trade? Optimize existing US trade agreements in Central and South America. https://www.atlanticcouncil.org/blogs/new-atlanticist/what-should-trump-do-next-on-trade-optimize-existing-us-trade-agreements-in-central-and-south-america/ Tue, 17 Jun 2025 20:54:29 +0000 https://www.atlanticcouncil.org/?p=854419 The best way to foster sustainable growth for US exports to the region is to seek predictable rules of engagement with Western Hemisphere trading partners.

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The Trump administration recently imposed 10 percent tariffs on exports to the United States from many free-trade-agreement partners from Latin America. This has resulted in unnecessary instability. At a time when Washington should be deepening its economic engagement in the region, this measure risks undermining long-standing and strategically important partnerships. Colombia, Chile, Panama, and Peru are now urgently seeking exemptions to restore fair market access. So, too, are the CAFTA-DR nations Costa Rica, the Dominican Republic, El Salvador, Guatemala, and Honduras.

The White House has tied potential tariff relief to the elimination of tariff and nontariff barriers identified in the Office of the US Trade Representative’s 2025 National Trade Estimate Report on Foreign Trade Barriers (NTE Report). While the administration’s plan may be a well-intentioned attempt to increase US exports to the region in general, it overlooks a critical reality: Many of the so-called “barriers” are rooted in complex legal systems that cannot be easily dismantled without legislative or judicial processes. Pressuring countries to enact sweeping reforms in uncertain political environments could destabilize fragile democracies and weaken strategic partnerships, particularly at a time of growing global competition.

Profitable economic relationships

Despite ongoing challenges, Latin America has proven to be a successful economic partner for the United States. Washington enjoys trade surpluses with most Latin American countries that have existing agreements. According to US Census Bureau data, in 2024, US exports to CAFTA-DR nations totaled $47 billion, compared to $36.6 billion in imports.

Several examples illustrate this point. Colombia has consistently posted a surplus in industrial goods since 2012, driven by exports of machinery, vehicles, agrochemicals, and pharmaceuticals. Very recently, the United States has gained a trade surplus in agricultural goods with Colombia. Peru and Chile are also vital markets for US technology, medical equipment, and engineering services, due to their dynamic mining and agricultural sectors.

Moreover, many larger US companies have made significant investments across Latin America—investments made viable by the legal certainty that free trade agreements provide. 

Complexity, not obstructionism

It is worth zeroing in on the “barriers” the White House aims to remove. The 2025 NTE Report outlines a variety of trade “barriers,” ranging from health policies to customs procedures. Yet many of these are embedded in domestic legal frameworks and cannot be removed through executive fiat. In Colombia, for example, lifting certain phytosanitary restrictions requires prior consultation with indigenous communities, as mandated by the country’s constitutional court. In the Dominican Republic, altering labeling or certification norms requires legislative action. In Honduras, reforms to intellectual property laws must pass through cumbersome legislatures facing intense social scrutiny.

These legal and institutional realities should not be viewed as roadblocks but as features of functioning democracies. The United States expecting immediate compliance is not only unrealistic; it risks backfiring.

Still, there are areas where progress can be swift and impactful. Many Latin American governments are already working to streamline health registration processes, modernize customs systems, and improve transparency in public procurement. For instance, Peru’s National Customs Superintendency has digitized import procedures, significantly reducing clearance times. Guatemala’s Ministry of Economy has pushed for regulatory alignment with international food safety standards, boosting trade efficiency.

These efforts reflect a clear political will to cooperate and offer the Office of the US Trade Representative a path to pursue measurable outcomes without demanding sweeping structural reforms upfront. Furthermore, these efforts are a clear message that FTA partners in the region are facilitating trade with the United States by avoiding unnecessary red tape procedures while also complying with WTO standards.

A strategic imperative: Latin America vs. Southeast Asia

Meanwhile, Southeast Asia is emerging as a strong competitor for US investment, bolstered by market-friendly reforms and frameworks such as the Indo-Pacific Economic Framework. Vietnam, Thailand, and other countries in the region are actively positioning themselves as preferred US trade partners in that part of the world, but with the caveat that none of them currently has an FTA with the United States.

There is no doubt, however, that China is wielding its geopolitical influence to use neighboring countries to export its goods to Latin America. From there, China takes advantage of the current network of trade pacts in Latin America to distort the rules of play of many products covered under FTAs. The triangulation of goods from third countries can often circumvent proper country-of-origin rules, undermine trade facilitation efforts in the region, and contribute to unfair trade practices.

US trade partners in Central and South America cannot afford to fall behind. The region’s comparative advantages—geographical proximity, shared legal traditions, integrated supply chains, and democratic values—are unmatched. Unlike Southeast Asia, Latin America shares a common geopolitical space with the United States, in addition to their shared economic security interests.

It is time for US stakeholders to fully recognize the strategic value of Latin American partners. Providing support for viable reforms, offering technical cooperation, and showing flexibility in tariff negotiations can help ease current trade tensions and solidify the US presence in a region where China is seeking to expand its influence.

Thankfully, an appropriate framework for institutional trade cooperation is already in place. These agreements don’t require reinvention—only thoughtful adjustment. To give one clear example, free trade commissions established under free trade agreements—such as CAFTA-DR and the free trade agreements with Colombia and Peru—play a critical role in ensuring adherence to agreed commitments and resolving disputes effectively and diplomatically. These bilateral committees, which offer the possibility of engaging separately in previous consultations with the private sector, provide a structured forum for addressing trade issues, implementing dispute resolution mechanisms, and updating the technical provisions of agreements as trade dynamics evolve.

Under CAFTA-DR, the committees have helped resolve disputes concerning agricultural market access and rules of origin. In the case of Colombia, the committee has facilitated dialogue on labor practices and sanitary barriers affecting US agricultural exports. With Peru, the committee has been instrumental in addressing environmental concerns, particularly those related to illegal logging.

By providing an institutionalized channel for engagement, these bodies help prevent diplomatic tensions and foster mutually beneficial outcomes, thereby enhancing stability and predictability in trade relations. The United States should look to make the most of these important committees.

In an increasingly fragmented global landscape, deepening ties with existing partners is the most direct and effective path to advancing US economic security and strategic interests. The best way to foster sustainable growth for US exports to the region is for the United States to seek predictable rules of engagement with its trading partners in the Western Hemisphere.


Enrique Millán-Mejía is a senior fellow for economic development at the Adrienne Arsht Latin America Center. He previously served as a senior trade and investment diplomat of the government of Colombia to the United States between 2014 and 2021.

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Putin’s Kyiv blitz sends message to G7 leaders: Russia does not want peace https://www.atlanticcouncil.org/blogs/ukrainealert/putins-kyiv-blitz-sends-message-to-g7-leaders-russia-does-not-want-peace/ Tue, 17 Jun 2025 20:52:00 +0000 https://www.atlanticcouncil.org/?p=854590 As G7 leaders gathered on Monday for a summit in Canada, Russia unleashed one of the largest bombardments of the Ukrainian capital since the start of Moscow’s invasion more than three years ago, writes Peter Dickinson.

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As G7 leaders attended a summit in Canada on Monday, Russia unleashed one of the largest bombardments of the Ukrainian capital since the start of Moscow’s invasion more than three years ago. The overnight Russian attack on Kyiv involved hundreds of drones and missiles targeting residential districts across the city. At least fifteen Ukrainian civilians were killed with many more injured.

While this latest Kyiv blitz was by no means unprecedented in a war that has been marked by frequent Russian attacks on Ukraine’s civilian population, the timing is unlikely to have been coincidental. Like a mafia boss ordering elaborate killings to send coded messages, Putin has repeatedly scheduled major bombardments of Ukraine to coincide with international summits and gatherings of Western leaders. For example, Russia bombed Kyiv, Odesa, and other Ukrainian cities on the eve of NATO’s 2023 summit, and conducted a targeted missile strike on Ukraine’s biggest children’s hospital as NATO leaders prepared to meet in Washington DC last summer.

Bombing raids have also taken place during high-profile visits of international dignitaries. In spring 2022, Russia launched an airstrike on Kyiv while UN Secretary General António Guterres was in the Ukrainian capital. At the time, Ukrainian President Volodymyr Zelenskyy said the attack was a deliberate attempt by the Kremlin to “humiliate” the United Nations. Two years later, Russia subjected Ukrainian Black Sea port Odesa to intense bombardment as Greek PM Kyriakos Mitsotakis visited the city.

The massive bombardment of Kyiv and other Ukrainian cities during this week’s G7 summit is the latest example of Putin’s penchant for sending messages with missiles. On this occasion his message could hardly have been clearer: Russia does not want peace. On the contrary, Moscow feels increasingly emboldened by growing signs of Western weakness and is more confident than ever of securing victory in Ukraine.

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Russia’s rejection of US-led peace efforts is equally evident in the diplomatic arena. While Ukraine agreed to US President Donald Trump’s call for an unconditional ceasefire more than three months ago, Russia still refuses to follow suit. Instead, the Kremlin has engaged in obvious stalling tactics while creating a series of obstacles aimed at derailing any meaningful progress toward peace. At one point, Putin even claimed the Ukrainian authorities lacked the legitimacy to negotiate a settlement and suggested the country be placed under temporary UN administration.

The recent resumption of bilateral talks between Moscow and Kyiv has provided further confirmation of Russia’s commitment to continuing the war. Putin personally initiated these talks but then chose not to attend and sent a low-level delegation instead. In the two meetings that have since taken place, Russian officials have presented a list of ceasefire conditions that read like a call for Kyiv’s complete capitulation.

The Kremlin’s demands include Ukraine’s withdrawal from four partially occupied Ukrainian regions that the Russian army has so far been unable to fully occupy. This would mean handing over dozens and towns and cities while condemning millions of Ukrainians to the horrors of indefinite Russian occupation.

Moscow also wants to ban Ukraine from any international alliances or bilateral security partnerships, while imposing strict limits on the size of the Ukrainian army and the categories of weapons the country is allowed to possess. In recent days, Russia’s Deputy Foreign Minister Alexander Grushko has underlined Moscow’s insistence on Ukraine’s total disarmament by calling on the country to destroy all Western weaponry provided since 2022.

Putin’s punitive peace terms are not limited to sweeping territorial concessions and harsh military restrictions. The Kremlin also expects Ukraine to grant the Russian language official status, reinstate the Russian Orthodox Church’s legal privileges, rewrite Ukrainian history in line with Russian imperial propaganda, and ban any Ukrainian political parties that Moscow deems to be “nationalist.”

The Kremlin’s negotiating position envisions a postwar Ukraine that is partitioned, disarmed, internationally isolated, and heavily russified. If imposed, these terms would allow Russia to reestablish its dominance over Ukraine and would deal a fatal blow to Ukrainian statehood. In other words, Putin wants a Ukraine without Ukrainians.

Donald Trump’s talk of peace through strength succeeded in generating considerable optimism during the early months of 2025, but it is now time to acknowledge that this was largely based on wishful thinking. Since Trump returned to the White House, the Russians have significantly escalated their air war against Ukraine’s civilian population. On the battlefield, Putin’s troops are now engaged in the early stages of what promises to be a major summer offensive. Meanwhile, Kremlin officials continue make maximalist demands at the negotiating table that no Ukrainian government could accept. These are not the actions of a country seeking a pathway to peace.

In both words and deeds, Putin is sending unambiguous signals that he has no interest whatsoever in ending his invasion and remains determined to achieve the complete subjugation of Ukraine. This uncompromising stance will not change unless Western leaders can convince Putin that the most likely alternative to a negotiated peace is not an historic Russian triumph but a disastrous Russian defeat.

The steps needed to bring about this change and create the conditions to end the war are no secret. Sanctions measures against Russia must be tightened and expanded to starve the Kremlin war machine of funding and weaken the domestic foundations of Putin’s regime. Countries that currently help Moscow bypass international sanctions must be targeted with far greater vigor. In parallel, Western military aid to Ukraine must be dramatically increased, with an emphasis on providing long-range weapons and financing Ukraine’s rapidly growing domestic defense industry.

All this will require a degree of political will that is currently lacking. It would also be expensive. Indeed, during this week’s G7 summit, Trump balked at the idea of imposing new sanctions, saying they would “cost us a lot of money.” This is dangerously shortsighted. Trump and other G7 leaders need to urgently recognize that if Putin is allowed to succeed in Ukraine, the cost of stopping him will skyrocket.

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

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Southeast Europe Transatlantic Economic Forum 2025 https://www.atlanticcouncil.org/content-series/balkans-forward-content-series/southeast-europe-transatlantic-economic-forum-2025/ Tue, 17 Jun 2025 20:05:57 +0000 https://www.atlanticcouncil.org/?p=849493 On May 21, 2025, the Atlantic Council's Europe Center hosted the annual Southeast Europe Transatlantic Economic Forum - Five sessions convening leaders and stakeholders from business and government across SEE, the US, and the Western Balkans.

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The Atlantic Council Europe Center hosted the 2025 edition of the Southeast Europe Transatlantic Economic Forum, together with the Transatlantic Leadership Network, which took place in Washington DC on Wednesday, May 21.

This annual full-day conference is an opportunity to hear from policy-makers and experts on the most pressing issues for the US-Southeast Europe relationship and to craft a public dialogue to address these issues, hearing from the perspectives of business leaders and government officials from the United States, the Western Balkans, and wider SEE region.

Agenda

Session I

9:30 a.m. – 11:00 a.m. ET    Strengthening Transatlantic Alliances Through Business Cooperation: Next Steps?

Strahinja Matejić, Associate Director, Eurasia Group

Andrej PoglajenMember of Parliament of the Republic of Slovenia

Amb. Philip ReekerPartner, Europe Practice, Albright Stonebridge – DGA Group

Moderator: Ms. Lisa Homel, Associate Director, Europe Center, Atlantic Council

Session II

11:15 a.m. – 11:25 a.m. ET   Southeast Europe – US: Enhancing Transatlantic Cooperation

Keynote remarks by:

Vladimir Lučić, Chief Executive Officer, Telekom Serbia

Session III

11:25 a.m. – 12:30 p.m. ET    Energy Diversification: Obstacles and Opportunities

Amb. John Craig, Senior Fellow, Transatlantic Leadership Network; Senior Partner, Manaar Energy Associates

Fred HutchisonChief Executive Officer, LNG Allies

Laura Lochman, Acting Assistant Secretary of State, Bureau of Energy Resources, US Department of State

Moderator: Olga KhakovaDeputy Director, European Energy Security, Global Energy Center, Atlantic Council

 

Session IV

12:45 p.m. – 1:00 p.m. ET     Montenegro: At the doorsteps of the EU membership

Keynote remarks by:

Aleksa Bečić, Deputy Prime Minister of Montenegro

 

FULL TRANSCRIPT IN ENGLISH

It is my honor and privilege to address you on behalf of the Government of Montenegro, a country rich in a history of resistance, statehood, and pride, and a people who have never forgotten their identity, no matter how much time has passed or how many borders have changed.

Montenegro and the United States have been bound by over a century of friendship. As early as 1905, President Theodore Roosevelt recognized the strength, dignity, and freedom-loving spirit of our nation. Today, as allies within NATO and partners in the fight against organized crime and the preservation of international security, we reaffirm that this partnership has both purpose and a future.

On this day, May 21, as we celebrate nineteen years since the restoration of our independence, Montenegro stands at a historic turning point. Our strategic orientation is clear: by 2028, Montenegro aims to become the 28th member of the European Uniop. We are proudly advancing toward this goal under the mandate of this Government. The facts speak for themselves: Montenegro is the only EU candidate country that has opened all negotiation chapters, closed six chapters, and received a report on meeting the interim benchmarks in the key Chapters 23 and 24, which focus on the rule of law and security. As one of the few candidates fully aligning its foreign and security policy with that of the EU, Montenegro holds a leading position, undeniably the most advanced candidate and the next in line to join the European Union.

The foundation of this path is a resolute fight against organized crime and corruption. As Deputy Prime Minister for Security and Coordinator of the Intelligence-Security Sector, I am particularly proud of this effort.

The recognition of these efforts is evidenced by the “Champion of the Fight Against Corruption” award, bestowed by the U.S. State Department in late 2023 to Montenegro’s Chief Special Prosecutor.

For the first time in Montenegro’s history, we are conducting a form of vetting within the Police Administration, thoroughly examining the integrity, assets, contacts, and lifestyles of every police officer.

Out of 3,500 officers, approximately 100 have been suspended in recent months alone. Hundreds of additional security checks, procedures, operational analyses, and audits are underway, all with a single goal: to ensure that the police badge is worn only by those who carry it with honor.

No fight is serious unless it begins within one’s own system. We have had the courage to start there. For the first time in modern Montenegrin history, the law applies even to those who, until recently, interpreted it at their own discretion.

The excellent cooperation and trust between the security sector, competent prosecutors, and our international partners-where we have received significant support from our American friends-have led to historic results in the fight against crime. Over 2,000 prosecutions of organized crime group members and persons of operational interest, the arrest and prosecution of leaders and high-ranking members of drug cartels, a twelvefold increase in results in combating economic crime, historic seizures and returns of weapons and ammunition, and hundreds of arrested, prosecuted, or suspended police officers all testify to our determination to rid the state of crime and corruption.

Today, Montenegro is becoming a country where the law has both strength and authority. A country where the question is not “who are you?” but “what have you done?” A country where it is clear that the law is the boss, not the head of a clan.

Never again will organized crime stand above the state, above the law, or above the citizens. Today, Montenegro is becoming a country of justice and fairness. A country where verdicts have been delivered or indictments confirmed against two presidents of the highest judicial institutions, two directors of the Police Administration, the director of the National Security Agency, the chief and special state prosecutors, the director of the Agency for the Prevention of Corruption, and numerous other officials and officers.

Montenegro is becoming a country with no untouchables. A state firmly committed to peace and international stability. We confirm this commitment through concrete contributions within NATO, the modernization of our defense system, and participation in missions and battle groups. This contribution is further strengthened by a strategic investment: the construction of two patrol vessels in France, which will joir:i the Navy of the Armed Forces of Montenegro. These vessels are not merely a technical upgrade for our country; they symbolize our role as a reliable guardian of Adriatic security, in the interest of the entire Alliance.

For only a state free from crime, a state with strong institutions, a state where the rule of law prevails over fear, can be a strong international partner. Montenegro aspires to be that state. And we believe that, with the support of the United States, we can achieve this.

On behalf of all the citizens of Montenegro, I deeply thank you for that support. I am confident that everything we achieve together will benefit not only our peoples but also the future we jointly safeguard.

Long live the friendship between Montenegro and the United States!

Session V

2:00 p.m. – 3:00 p.m. ET    Empowering entrepreneurs: Driving integration convergence and innovation in Southeast Europe

Eric Hontz, Director, Center for Accountable Investment, CIPE

Bogdan Gecić, Founder and Partner, Gecić Law & Associates

Ilva Tare, Resident Senior Fellow, Europe Center, Atlantic Council

Moderator: Amb. John B. CraigSenior Fellow, Transatlantic Leadership Network

In Partnership With

Sasha Toperich
Executive Vice President
Transatlantic Leadership Network

Related Reading

The Europe Center promotes leadership, strategies, and analysis to ensure a strong, ambitious, and forward-looking transatlantic relationship.

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Russia and Ukraine are locked in an economic war of attrition https://www.atlanticcouncil.org/blogs/ukrainealert/russia-and-ukraine-are-locked-in-an-economic-war-of-attrition/ Tue, 17 Jun 2025 19:29:50 +0000 https://www.atlanticcouncil.org/?p=854539 As the Russian army continues to wage a brutal war of attrition in Ukraine, the two nations are also locked in an economic contest that could play a key role in determining the outcome of Europe’s largest invasion since World War II, writes Anders Åslund.

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As the Russian army continues to wage a brutal war of attrition in Ukraine, the two nations are also locked in an economic contest that could play a key role in determining the outcome of Europe’s largest invasion since World War II.

A little noticed fact is that the Ukrainian economy is actually doing relatively well in the context of the current war. The Russian onslaught in 2022 reduced Ukraine’s GDP by 29 percent, but in 2023 it recovered by an impressive 5.5 percent. Last year, Ukrainian GDP rose by a further 3 percent, though growth is likely to slow to 1.5 percent this year.

Any visitor to Ukraine can take out cash from an ATM or pay in shops using an international credit card. Countries embroiled in major wars typically experience price controls, shortages of goods, and rationing, but Ukraine has none of these. Instead, stores are fully stocked and restaurants are crowded. Everything works as usual.

How has this been possible? The main answer is that Ukraine’s state institutions are far stronger than anybody anticipated. This is particularly true of the ministry of finance, the National Bank of Ukraine, and the state fiscal service. After 2022, Ukraine’s state revenues have risen sharply.

In parallel, wartime Ukraine has continued to make progress in combating corruption. When Russia’s invasion of Ukraine first began in 2014, Ukraine was ranked 142 of 180 countries in Transparency International’s annual Corruption Perceptions Index. In the most recent edition, Ukraine had climbed to the 105 position.

Rising Ukrainian patriotism has helped fuel this progress in the fight against corruption. EU accession demands and IMF conditions have been equally important. Ukraine has gone through eight quarterly reviews of its four-year IMF program. It has done so on time and with flying colors. The same has been true of each EU assessment.

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Looking ahead, three critical factors are necessary for wartime Ukraine’s future economic progress. First of all, Ukraine needs about $42 billion a year in external budget financing, or just over 20 percent of annual GDP, to finance its budget deficit. The country did not receive sufficient financing in 2022 because EU partners failed to deliver promised sums. This drove up Ukraine’s inflation rate to 27 percent at the end of 2022. The Ukrainian budget was fully financed in 2023 and 2024, driving down inflation to 5 percent. The budget will be fully financed this year.

The second factor is maritime trade via Ukraine’s Black Sea ports. Shipping from Odesa and neighboring Ukrainian ports to global markets has been almost unimpeded since September 2023 after Ukraine took out much of the Russian Black Sea Fleet. The vast majority of Ukraine’s exports are commodities such as agricultural goods, steel, and iron ore, which are only profitable with cheap naval transportation, so keeping sea lanes open is vital.

The third crucial factor for wartime Ukraine’s economic prospects is a steady supply of electricity. Russian bombing of Ukraine’s civilian energy infrastructure disrupted the power supply significantly in 2024, which was one of the main reasons for the country’s deteriorating economic performance.

Ukraine’s economic position looks set to worsen this year. In the first four months of 2025, economic growth was only 1.1 percent, while inflation had risen to 15.9 percent by May. The main cause of rising inflation is a shortage of labor. The national bank will presumably need to hike its current interest rate of 15.5 percent, which will further depress growth. After three years of war, Ukraine’s economy is showing increasing signs of exhaustion. The country has entered stagflation, which is to be expected.

Russia’s current economic situation is surprisingly similar to Ukraine’s, although almost all trade between Russia and Ukraine has ceased. After two years of around 4 percent economic growth in 2023 and 2024, Russia is expecting growth of merely 1.5 percent this year, while official inflation is 10 percent. Since October 2024, the Central Bank of Russia has maintained an interest rate of 21 percent while complaining about stagflation.

The Russian and Ukrainian economies are both suffering from their extreme focus on the military sector. Including Western support, Ukraine’s military expenditure amounts to about $100 billion a year, which is no less than 50 percent of Ukraine’s GDP, with 30 percent coming from the Ukrainian budget in 2024. Meanwhile, Russia’s 2025 military expenditure is supposed to be $170 billion or 8 percent of GDP. Unlike the Ukrainians, the Russians complain about the scale of military spending. This makes sense. The Ukrainians are fighting an existential war, while Russia’s war is only existential for Putin.

Contrary to common perceptions, Russia does not have an overwhelming advantage over Ukraine in terms of military expenditure or supplies. Russia does spend significantly more than Ukraine, but much of this is in reality stolen by politicians, generals, and Putin’s friends. Furthermore, Western sanctions impede the Russian military’s ability to innovate. In contrast, Ukraine benefits from innovation because its economy is so much freer, with hundreds of startups thriving in areas such as drone production.

Russia is now entering a fiscal crunch. Its federal expenditures in 2024 amounted to 20 percent of GDP and are likely to stay at that level in 2025, of which 41 percent goes to military and security. However, the Kremlin has financed its budget deficit of about 2 percent of GDP with its national welfare fund, which is expected to run out by the end of the current year. As a result, Russia will likely be forced to reduce its public expenditures by one-tenth.

Low oil prices could add considerably to Russia’s mounting economic woes and force a further reduction in the country’s public expenditures. However, Israel’s attack on Iran may now help Putin to stay financially afloat by driving the price of oil higher.

Economically, this is a balanced war of attrition at present. Ukraine’s Western partners have the potential to turn the tables on Russia if they choose to do so. Ukraine has successfully built up a major innovative arms industry. What is missing is not arms but funds. The West needs to double Ukraine’s military budget from today’s annual total of $100 billion to $200 billion. They can do this without using their own funds if they agree to seize approximately $200 billion in frozen Russian assets currently held in Euroclear Bank in Belgium. This could enable Ukraine to outspend Russia and achieve victory through a combination of more firepower, greater technology, and superior morale.

Anders Åslund is the author of “Russia’s Crony Capitalism: The Path from Market Economy to Kleptocracy.”

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

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Are Albania and Montenegro on the fast track to EU membership? https://www.atlanticcouncil.org/blogs/new-atlanticist/are-albania-and-montenegro-on-the-fast-track-to-eu-membership/ Tue, 17 Jun 2025 17:30:41 +0000 https://www.atlanticcouncil.org/?p=852753 Albania and Montenegro are capitalizing on the European Union’s renewed momentum for enlargement as a result of Russia’s war on Ukraine.

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July 1 will mark a dozen years since Croatia joined the the European Union (EU), the most recent country to do so. In the years after Croatia’s accession, the bloc’s eastern enlargement process stalled almost entirely. The EU’s enthusiasm for admitting new members waned, driven by rising anti-EU sentiment within member states and fears that further expansion could strain the bloc’s already burdened consensus-based decision-making. Meanwhile, democratic backsliding and disputes between candidate countries further undermined their cases for accession.

Then in 2022, Russia’s full-scale invasion of Ukraine revived the geopolitical imperative for enlargement in Brussels by highlighting Europe’s vulnerability to “gray zones.” Ukraine, Moldova, and Georgia swiftly advanced along their accession paths, and hopes were somewhat revived in the six countries of the Western Balkans.

While Montenegro is the most advanced in accession negotiations today, Albania is also capitalizing on this new enlargement momentum. On May 11, Albania held parliamentary elections in which the Socialist Party, led by Prime Minister Edi Rama, won its fourth consecutive mandate, promising EU membership by 2030. After gaining EU candidate status in 2013 and waiting over a decade for the next formal step, Albania and the EU have been on an unprecedented roll since October 2024. Over the span of several months, the EU opened four clusters of negotiation chapters with Albania—covering twenty-four out of thirty-three chapters—and may open the remaining ones by the end of June. The opening of chapters signals that Albania has met initial EU benchmarks in those policy areas and will now negotiate to close the chapters—which aim to align Albanian laws, institutions, and practices with EU law.

The prevailing narrative among EU leaders, including European Council President António Costa, is that Albania and Montenegro are now leading the race to become the EU’s next member states. Both Albanian and EU officials have set 2027 as the target year to conclude the technical accession talks, paving the way for a membership vote. In May, that ambitious goal received a boost from French President Emmanuel Macron—once a skeptic of enlargement—who called it “realistic” during a visit to Tirana.  

Albania is moving fast, but will face headwinds

Several factors explain why Albania and Montenegro are pulling ahead of everyone else. To begin with, both are NATO members and—unlike Russia-friendly Serbia—are fully aligned with the EU’s Common and Foreign Security Policy. Albania, in particular, is seen as a reliable pro-Western security anchor in a volatile region where ethnic Albanians dominate in neighboring Kosovo and are a politically significant bloc in NATO members North Macedonia and Montenegro. Unlike Kosovo, which remains unrecognized by five EU member states, and North Macedonia, which is blocked by Bulgaria over historical disputes, Albania faces no such bilateral hurdles to its accession path from EU members—aside from intermittent tensions with neighboring Greece over ethnic Greek property rights and maritime borders.

Yet perhaps the main driver of Albania’s recent progress has been its sweeping EU- and US-sponsored reforms in the justice sector. Over nearly a decade, Albania has overhauled its judicial institutions and established new bodies, such as the Special Structure Against Corruption and Organised Crime (SPAK). While corruption remains high, the reformed institutions have shaken the culture of impunity that has plagued the country since the fall of communism. High-profile indictments—ranging from former presidents and prime ministers to powerful mayors—have started to build a credible track record in the fight against corruption and are helping to restore public trust in the rule of law. Yet SPAK’s results need to be sustained, and political commitment to the rule of law will increasingly be tested the deeper that investigations go.

Albania’s democracy also remains fragile and polarized. While the most recent parliamentary elections improved on earlier contests from an administrative standpoint, the political playing field continues to be uneven in favor of the ruling party. Corruption, the stifling effect of politics on media freedoms, the strength of organized crime, and weak administrative capacity—all persistent problems—could hinder the adoption of EU standards. 

Most importantly, the geopolitical mood in European capitals could easily shift away from its current support for enlargement. While Rama has secured strong political backing from major countries such as France and Italy, it is not clear whether it will receive support from the new government in Germany, which is not striking equally enthusiastic tones. The German government’s coalition agreement ties enlargement to necessary internal EU institutional reforms, which means that the EU must first ensure it can operate effectively before allowing other countries in. German Chancellor Friedrich Merz and his Christian Democrats seem to favor intermediate integration models—such as having the Western Balkans join the European Economic Area, or layering the EU into concentric circles of states with varying degrees of integration.

What’s more, getting EU governments to support accession is one thing; getting the support of EU members’ parliaments to ratify accession is another. European public opinion remains wary of enlargement in several countries.

Race to the top

The prospect of Albania and Montenegro joining the EU ahead of their neighbors also raises pressing regional questions. With the rapid pace at which Albania is opening negotiation chapters, it has effectively leapfrogged over the region’s largest country, Serbia, whose accession talks have remained frozen since 2021.

For the Western Balkans, EU enlargement has functioned not only as a tool for political transformation but also for peacebuilding. The EU has long pursued a strategy of integrating the region as a group, using accession as leverage to foster regional stability, set up bilateral formats to resolve bilateral disputes—such as the Kosovo–Serbia dialogue on normalization of relations—and promote cooperation through initiatives like the Common Regional Market.

Critics may warn that Albania and Montenegro advancing alone could reinforce Serbia’s narrative of marginalization, fuel anti-EU sentiment, and undermine frameworks for regional cooperation—especially given Serbia’s pivotal role and the size of its population. But the long-standing Serbia-centric approach to enlargement—which posits that the region cannot move forward without accommodating Serbia due to its power and influence over other countries—has not worked. Rather, it has merely emboldened Serbian President Aleksandar Vučić to wield even greater de facto veto power and leverage over regional countries and their EU trajectory, even as he slips deeper into authoritarianism, sustains close ties with Russia, and has helped erode support for EU accession among Serbians.

The EU—and Serbia itself—might be better served by fostering a merit-based “race to the top” that either rewards or fails Montenegro and Albania depending on how they deliver on reforms. Demonstrating that EU enlargement remains a real and attainable goal could create the kind of positive societal pressure the region has desperately needed and could incentivize other EU candidate countries to seize this historic window of opportunity by embracing an agenda of reforms.


Agon Maliqi is a nonresident senior fellow with the Atlantic Council’s Europe Center. He is a political and foreign policy analyst from Pristina, Kosovo.  

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The Western Balkans stands at the nexus of many of Europe’s critical challenges. Some, if not all, of the countries of the region may soon join the European Union and shape the bloc’s ability to become a more effective geopolitical player. At the same time, longstanding disputes in the region, coupled with institutional weaknesses, will continue to pose problems and present a security vulnerability for NATO that could be exploited by Russia or China. The region is also a transit route for westward migration, a source of critical raw materials, and an important node in energy and trade routes. The BalkansForward column will explore the key strategic dynamics in the region and how they intersect with broader European and transatlantic goals.

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Did Trump effectively nationalize US Steel with his ‘golden share’? https://www.atlanticcouncil.org/blogs/new-atlanticist/did-trump-effectively-nationalize-us-steel-with-his-golden-share/ Mon, 16 Jun 2025 21:42:28 +0000 https://www.atlanticcouncil.org/?p=854130 The Atlantic Council’s Sarah Bauerle Danzman delves into the details of the recently finalized deal between Nippon Steel and US Steel.

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Steelmaking takes iron and carbon, and now some gold, too. On Friday, US President Donald Trump approved the long-in-limbo merger of US Steel with Japanese company Nippon Steel, which had been held up for months by the US government on national security concerns. A breakthrough only came after the companies agreed to give the US government veto power over certain aspects of corporate governance, US production, and trade. “We have a golden share, which I control,” Trump explained on Thursday, adding that it would give him “total control” over relevant US Steel business decisions.  

Over the weekend, new details emerged about how the share is intended to work, provoking some comparisons with nationalization schemes in other countries. Below, Sarah Bauerle Danzman, a resident senior fellow with the GeoEconomics Center’s Economic Statecraft Initiative, delves into where exactly this deal lands between free enterprise and state control—and what it might mean for other US businesses.  

A golden share typically refers to a special class of ownership stake in a publicly traded company reserved for a government. The golden share confers substantial shareholder rights that would otherwise be atypical given the size of the ownership position.  

For instance, the Brazilian government has a golden share in Embraer, its national aviation champion, that amounts to an approximately 5 percent equity stake in the previously state-owned company. The arrangement also provides the government substantial governance rights, such as the ability to direct the company’s strategic director or veto a takeover or joint-venture arrangement involving the company.

The United Kingdom has used golden-share arrangements extensively to retain influence over strategically important companies, such as BAE (a major defense contractor) and NATS (its air traffic control provider) after they were privatized.  

Reporting suggests that the US government’s golden share is in US Steel rather than in Nippon Steel. This distinction is important because it means that the US government’s formal influence over Nippon will only relate to its US business (called US Steel) and not to its business operations in other locations. By tying the golden share to US Steel, the US government has also ensured that it will be able to fully control any future sale of the company. 

The golden share is “noneconomic,” meaning that it did not require the US government to make an investment in the company, and it also does not provide the United States with an equity stake in the company. This means that the US government will not be earning an economic return on its share, nor would it be eligible to accrue dividends. Additionally, the United States is not going to be involved in the day-to-day operations of US Steel. Because of this, and because the United States is not taking equity stakes away from owners, this is not a nationalization. 

However, the golden share gives the US government an extraordinary amount of control over the company. The company’s governance documents will outline the areas of strategic and operational decision making over which the US president will now have veto authority. US Steel may not be state-owned, but it is certainly now controlled by the US government.  

The golden share will require presidential approval for a range of strategic and operational decisions, including capital allocation and investment decisions. Plainly, Nippon has agreed to an arrangement in which it would need to seek presidential approval if market conditions changed, and it decided it could not fulfill its commitment to invest another fourteen billion dollars into US operations over the next several years.  

This raises several questions: How will these requirements be enforced? What if Nippon reduced investments even without presidential approval? How would the US government compel Nippon to increase investments to its promised amount? The enforcement options of the US government are relatively weak here, especially if Nippon finds itself in a fragile economic position. A golden share gives the government substantial strategic control on the cheap, but the US government may find that some elements of its authority would be hard to enforce in a soft economy. 

A golden share reduces the economic value of the company for other investors, even if the government only takes a “noneconomic” position. That is because the government is reducing the ability of equity shareholders to control the strategic and operational decision making of the company, which could generate costs and inefficiencies for the corporation. If golden shares were ubiquitous, then financing costs would increase and the attractiveness of the United States and US businesses as investment opportunities would decline. 

The Committee on Foreign Investment in the United States, known as CFIUS, and the president should release more guidance as quickly as possible to make clear the circumstances under which CFIUS would seek to mitigate national security risks through a golden-share arrangement. These should be very rare cases, and the government should make clear its commitment to restraint. Otherwise, what is to stop the US government from always taking a golden share in any cross-border merger of interest? 

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Ullman in the Hill on how the simultaneity of crises threaten US national security https://www.atlanticcouncil.org/insight-impact/in-the-news/ullman-in-the-hill-on-how-the-simultaneity-of-crises-threaten-us-national-security/ Mon, 16 Jun 2025 20:05:02 +0000 https://www.atlanticcouncil.org/?p=853713 On June 16, Atlantic Council Senior Advisor Harlan Ullman published an op-ed in the Hill warning of a potential “crisis point” for the US government if domestic immigration protests intensify while tensions escalate in the Middle East. He argues that convergence of crises at home and abroad could overwhelm policymakers and stain the US government’s […]

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On June 16, Atlantic Council Senior Advisor Harlan Ullman published an op-ed in the Hill warning of a potential “crisis point” for the US government if domestic immigration protests intensify while tensions escalate in the Middle East. He argues that convergence of crises at home and abroad could overwhelm policymakers and stain the US government’s ability to respond effectively.

International Advisory Board member

Harlan Ullman

Senior Advisor

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How the US can reduce the risk of wider war in the Middle East https://www.atlanticcouncil.org/blogs/new-atlanticist/how-the-us-can-reduce-the-risk-of-wider-war-in-the-middle-east/ Mon, 16 Jun 2025 19:45:01 +0000 https://www.atlanticcouncil.org/?p=853960 Five steps taken now can help put the White House in a better position to manage the spiral of escalation between Israel and Iran.

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Israel has again demonstrated an uncanny ability to rewrite the regional playbook with a multi-pronged, multi-day attack on Iran’s nuclear program, air defenses, and military leadership. The first phase of attacks in particular—strikes at the heart of Iran’s nuclear and missile programs, the decapitation of the Islamic Revolutionary Guard Corps’ (IRGC) Quds Force leadership, and nuclear scientists—caused many to marvel at the boldness of David against Goliath. 

As the Trump administration navigates this chapter, the key will be to contain and defuse the situation as the regional players sort through the changed landscape. De-escalation in the near term is not a foregone conclusion. It will require heavy lifting from the US military, which remains indispensable in times of crisis.

Details of the battle damage are still emerging, and Israel, Iran, and the United States do not yet fully know what these attacks mean for Iran’s defensive and counter-strike capabilities. Israeli Prime Minister Benjamin Netanyahu’s objectives may not be static: As he sees additional opportunities to set back Iran’s nuclear and missile programs, his campaign may expand and go on far longer, as was the case in the operations against Hamas and Hezbollah. Iran may be on its back foot, but it will likely be compelled to respond with its remaining capabilities, as it began to do over the weekend with its waves of missile strikes across Israel.

Usually, the United States has greater leverage and sway with its allies and partners than its adversaries, born from the military, economic, and diplomatic threads that each ally can pull to compel the other toward an outcome. In this friendly tug-of-war over national interests, the heavyweight United States pulls toward its preferred outcomes. However, in the unique case of Israel, the smaller partner may outpace US efforts to de-escalate if additional deliberate steps are not taken. 

Washington does have some leverage over a weakened Tehran. Iran does not want an all-out war with the United States. For this reason, Iran has historically relied on its proxy network of Hezbollah, Hamas, the Houthis, and Shia militia groups for indirect and small-scale attacks on US forces and interests. This helps explain why Israel wants to link arms with the United States now, signaling to Iran that an attack on Israel is an attack on the United States. Iran’s Supreme Leader Ayatollah Ali Khamenei and Iranian officials have played along, stating that the United States is complicit. That may be directed toward Iranian domestic audiences—and a warning for the United States to rein in Israel. 

Regardless of Iranian intent, the situation requires the US military to be in position to defend and respond to Iranian aggression. How then should the White House manage this spiral of escalation to avoid a wider regional war? Five initial steps are needed. 

1. Set the theater to defend US forces and Israel

The United States should continue to set the theater for Iranian responses—and it should telegraph how it is doing so. Ballistic missile defense-capable destroyers in the Eastern Mediterranean, more interceptors for air defense systems across the region, and additional air power in the Gulf and the Indian Ocean island Diego Garcia will position the US military for defending US forces and Israel, as well as providing options to strike Iran if necessary. Forces that have been deployed for extended periods should be backfilled with ready forces, and additional units can be placed on prepare-to-deploy orders. The force movements and heightened alert status, combined with clear messaging, can communicate to Iran that the price of attacking the United States is extraordinarily high, particularly given Iran’s significantly degraded proxy network and air defenses. Internally, there should be a conditions-based approach to redeploying the forces once the situation settles down.

The United States must also continue to help defend Israel itself, which is the clearest path to stabilizing the region. Surging additional US capabilities into the theater may embolden Israel to launch additional strikes on Iran, but the greater risk is not being in position to defend against attacks on US forces and blunt Iran’s subsequent attacks on Israel. 

2. Move from authorized departures to ordered departures

The White House should accelerate what it put in motion through voluntary departures from State Department facilities last week by moving to ordered departures at those same locations. Temporarily reducing the number of nonemergency personnel and dependents can reduce the demands on US forces to defend and evacuate those locations later. It also signals to the region that the price of escalation is a diminished US presence, which many US partners do not want, and it provides an incentive for these partners to work toward de-escalation.  

3. Refresh the plans for noncombatant evacuations (NEOs) from Israel and Jordan

The NEO plans have been refreshed repeatedly since October 7, 2023, though the in-extremis conditions that would precipitate large-scale evacuations have never been met. These worst-case scenario plans should be dusted off again, and US government officials should discuss internally what the trip wires would be to execute the NEOs, such as commercial airports losing functionality. The United States should also discuss NEO plans with allies and partners, who often expect assistance with their evacuations but too often do not communicate their assumptions about US assistance until late in the game. 

4. Prepare to strike Iran if Iran attacks the United States

The United States will need to strike forcefully if Iran does attack US forces or bases. To that end, the US military should refresh and expand response options that would exploit Iran’s newest vulnerabilities, such as military sites that are now without adequate air defenses or exposed headquarters that serve as nerve centers for IRGC operations. The Trump administration can choose how and when it responds, and some of the steps taken to set the theater for defense will help facilitate going on the offensive. 

5. Pace the crises across time and space

Any administration can only juggle a handful of crises at any given time. The Trump administration should consider which departments have comparative advantages in navigating which crises, given the finite bandwidth of senior leaders and high-demand US forces. The US military is uniquely and singularly manned, trained, and equipped to reduce the chance of a larger regional war that could have devastating human and economic costs for the United States—and the entire region. The White House should therefore prioritize de-escalating quickly in order to focus on other theaters and priorities. 

With steady, cool-headed leadership at this heated moment, the United States can reduce the possibility of a wider regional war that could spin out of control.


Caroline Zier is a nonresident senior fellow in the GeoStrategy Initiative within the Atlantic Council’s Scowcroft Center for Strategy and Security. She has over fifteen years of experience in national security and defense at the Department of Defense, most recently serving as the deputy chief of staff to former Secretary of Defense Lloyd Austin.

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Lipsky cited in Politico on expectations for the upcoming G7 summit https://www.atlanticcouncil.org/insight-impact/in-the-news/lipsky-cited-in-politico-on-expectations-for-the-upcoming-g7-summit/ Mon, 16 Jun 2025 13:58:36 +0000 https://www.atlanticcouncil.org/?p=853654 Read the full article here.

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Read the full article here.

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Kroenig quoted in the Wall Street Journal on Trump’s potential framing of Israel’s strikes on Iran https://www.atlanticcouncil.org/insight-impact/in-the-news/kroenig-quoted-in-the-wall-street-journal-on-trumps-potential-framing-of-israels-strikes-on-iran/ Sat, 14 Jun 2025 20:15:00 +0000 https://www.atlanticcouncil.org/?p=853917 On June 13, Matthew Kroenig, Atlantic Council vice president and Scowcroft Center senior director, was quoted in the Wall Street Journal on how President Trump may choose to present Israel’s strikes on Iranian military and nuclear installations, as well as its military leadership, in light of his “peacemaker” pledge.

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On June 13, Matthew Kroenig, Atlantic Council vice president and Scowcroft Center senior director, was quoted in the Wall Street Journal on how President Trump may choose to present Israel’s strikes on Iranian military and nuclear installations, as well as its military leadership, in light of his “peacemaker” pledge.

I think he can go to the traditional Reaganites and say, “Peace through strength, we’re not letting evil regimes build nuclear weapons”…But he can also go to the MAGA folks and say, “No Americans were killed, we didn’t do this, and allies are stepping up and taking care of security threats for us.”

Matthew Kroenig

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Zier in Military Times analyzes US military deployment at southern border https://www.atlanticcouncil.org/insight-impact/in-the-news/zier-in-military-times-analyzes-us-military-deployment-at-southern-border/ Fri, 13 Jun 2025 11:06:01 +0000 https://www.atlanticcouncil.org/?p=853256 On May 28, Caroline Zier, nonresident senior fellow in the GeoStrategy Initiative, was published in the Military Times examining the Trump administration’s policy of using miliary personnel at the US southern border. Zier argues that the military’s “unprecedented” role at the border diverts time and resources from national security operations that “only the military can perform” […]

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On May 28, Caroline Zier, nonresident senior fellow in the GeoStrategy Initiative, was published in the Military Times examining the Trump administration’s policy of using miliary personnel at the US southern border. Zier argues that the military’s “unprecedented” role at the border diverts time and resources from national security operations that “only the military can perform” like deterring China in the Indo-Pacific.

Previous administrations have […] supplemented Department of Homeland Security missions with [Department of Defense] support. But the US military’s role in border security has historically been extremely limited, for important reasons.

Caroline Zier

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Putin’s peace plan is a blueprint for the end of Ukrainian statehood https://www.atlanticcouncil.org/blogs/ukrainealert/putins-peace-plan-is-a-blueprint-for-the-end-of-ukrainian-statehood/ Thu, 12 Jun 2025 20:06:24 +0000 https://www.atlanticcouncil.org/?p=853329 Russia’s peace plan sends a clear signal that Moscow wants to erase Ukraine as a state and as a nation. If Western leaders wish to avoid this catastrophic outcome, they must convince Putin that the alternative to a negotiated peace is a Russian defeat, writes Tetiana Kotelnykova.

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The memorandum presented by the Russian Federation during recent bilateral talks with Ukraine in Istanbul was described by Kremlin officials as a constructive step toward a possible peace agreement. However, the demands outlined in the document tell an altogether different story. Russia’s memorandum makes clear that Moscow does not seek peaceful coexistence with an independent and sovereign Ukraine. Instead, the Kremlin’s goal evidently remains the systematic dismantling of Ukrainian statehood.

One of the key demands detailed in the Russian memorandum is the requirement for Ukraine’s complete withdrawal from four Ukrainian provinces that Moscow claims as its own but has so far been unable to fully occupy. For Kyiv, this would mean abandoning dozens of towns and cities along with millions of Ukrainians to the horrors of indefinite Russian occupation. It would also dramatically weaken Ukraine’s defenses and leave the rest of the country dangerously exposed to further Russian aggression.

Handing over the city of Kherson and the surrounding region would be particularly disastrous for Ukraine’s future national security. This would grant Russia a foothold across the Dnipro River in the western half of Ukraine, placing Odesa and the country’s other Black Sea ports in immediate danger. The loss of Zaporizhzhia, one of Ukraine’s largest cities with a prewar population of around seven hundred thousand, is similarly unthinkable.

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Territorial concessions are only one part of Russia’s comprehensive plan to undermine Ukrainian statehood. The memorandum presented in Istanbul calls for strict limits to be imposed on the size of Ukraine’s military along with restrictions on the categories of weapons the country is allowed to possess. Ukraine would also be banned from joining any military alliances or concluding bilateral security agreements with other nations. This would transform Ukraine into a disarmed and internationally isolated buffer state with no means to defend itself, leaving it entirely at Putin’s mercy.

Beyond the battlefield, Russia’s memorandum proposes a series of sweeping changes to Ukraine’s internal political and cultural landscape that would allow Moscow to reestablish its dominance over the country. Key demands include official status for the Russian language, the reinstatement of the Russian Orthodox Church’s legal privileges, and a wholesale rewriting of Ukrainian history in line with Kremlin narratives.

One of the most sinister aspects of the Russian peace proposal is the call for a complete ban on all so-called “nationalist” Ukrainian political parties. This rather vague wording is open to interpretation and could easily be used to silence Ukrainian politicians opposed to Russian influence. Given the Kremlin’s long record of labeling anything that contracts Russian imperial orthodoxies as “extremist” or “fascist,” the idea of outlawing “nationalist” political parties represents an obvious threat to Ukraine’s sovereignty and the country’s democratic political system.

Moscow’s memorandum was presented at a time when Russia is escalating its invasion of Ukraine. In recent months, Russian drone and missile attacks on Ukrainian cities have increased significantly, leading to a sharp rise in the number of killed and wounded civilians. Along the front lines of the war, the Russian military is currently engaged in what most analysts believe are the early stages of a major summer offensive that seeks to break Ukrainian resistance. Russian troops are advancing in the east and have recently crossed the border in northern Ukraine to open a new front in the Sumy region.

The Ukrainian authorities cannot accept the punishing terms being proposed by Russia. Indeed, no sovereign state could do so and expect to survive. The real question is how the international community will respond. Russia’s memorandum is a blueprint for the end of Ukrainian statehood and the return of the country to Kremlin control. It makes a complete mockery of recent US-led calls for a compromise peace, and demonstrates beyond any reasonable doubt that Russia has no interest in ending the invasion.

This should be enough to persuade Western leaders that progress toward peace will only be possible if they increase the pressure on Putin. At present, the Russian leader clearly believes he is winning and is confident of outlasting the West in Ukraine. In order to change this calculus and force a rethink in Moscow, Kyiv’s partners must impose tougher sanctions on Russia while boosting military support for Ukraine. In other words, they must speak to Putin in the language of strength, which remains the only language he truly understands.

Russia’s recent memorandum sends an unambiguous signal that Moscow is undeterred by the current Western stance and remains fully committed to its maximalist goal of erasing Ukraine as a state and as a nation. If Western leaders wish to avoid this catastrophic outcome, they must convince Putin that the alternative to a negotiated peace is a Russian defeat.

Tetiana Kotelnykova is a graduate student at Yale University specializing in European and Russian Studies with a focus on conflict, postwar recovery, and regional geopolitics. She is the founder of Brave Generation, a New York-based nonprofit organization that supports young Ukrainians affected by war and invests in the next generation of Ukrainian leadership. She also leads the Ukrainian Recovery Youth Global Initiative.

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

Follow us on social media
and support our work

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Why the World Bank just gave nuclear power a surprising boost https://www.atlanticcouncil.org/content-series/fastthinking/why-the-world-bank-just-gave-nuclear-power-a-surprising-boost/ Thu, 12 Jun 2025 20:06:18 +0000 https://www.atlanticcouncil.org/?p=853317 On June 11, the US-based international development bank lifted its longstanding ban on funding nuclear energy projects.

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GET UP TO SPEED

It’s causing a big reaction. On Wednesday, World Bank President Ajay Banga announced that the development bank’s board has lifted its longstanding ban on funding nuclear energy projects. The decision could surge funding for the emissions-free power plants in developing countries, and it comes amid a broader shift in attitudes toward atomic energy around the world. Below, the Atlantic Council’s top nuclear energy policy experts get to the core of the matter.

TODAY’S EXPERT REACTION BROUGHT TO YOU BY

  • Jennifer Gordon: Director of the Nuclear Energy Policy Initiative and the Daniel B. Poneman chair for nuclear energy policy at the Atlantic Council’s Global Energy Center.
  • Lauren Hughes: Deputy director of the Nuclear Energy Policy Initiative.

The decision

  • “This is not the bank’s first foray into nuclear power as a means of promoting sustainable economic growth and shared prosperity,” says Lauren. In 1959, the bank issued a forty-million-dollar loan to help finance construction of Italy’s first nuclear reactor. 
  • The 2011 Fukushima Daiichi accident contributed to the World Bank enacting a de facto ban on funding for nuclear power, Lauren explains. This ban was then reiterated in 2013, when the bank said that “safety of nuclear facilities and non-proliferation are not in the [World Bank Group’s] areas of expertise.” 
  • This week’s reversal “follows a number of other similar decisions on nuclear energy,” Jennifer tells us, including the Declaration to Triple Nuclear Energy that more than twenty countries signed in December 2023, as well as recent decisions by the European Investment Bank, Germany, and Canada to boost nuclear power. Taken together, these decisions “indicate that nuclear is coming back into favor and being recognized for its ability to provide reliable baseload power.” 

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The impact

  • “Many emerging-market countries are interested in developing nuclear energy projects that could be prohibitively difficult to realize without financing,” Lauren explains, noting that upfront costs to build a power plant can run into the billions of dollars  
  • Lauren calls the bank’s decision a “pragmatic approach toward nuclear energy,” which recognizes “that the demand for reliable, affordable, clean energy will only increase in the coming decades” as populations grow in Sub-Saharan Africa, India, and Southeast Asia.  

The frontier

  • For the United States, the World Bank’s move “may indicate an eagerness to engage with the Trump administration on policy issues that the administration has indicated are at the top of its agenda,” Jennifer says. In late May, for example, the White House unveiled new executive orders on deploying advanced reactor technologies. 
  • Lauren adds that World Bank financing could help the United States “be more competitive against state-backed financing offers, especially from Russia and China.” By extension, the World Bank could reinforce the efforts of agencies such as the Export-Import Bank of the United States, the US International Development Finance Corporation, and the US Trade and Development Agency that are involved in nuclear projects in developing countries, she notes.
  • For Jennifer, the bank overturning its ban should be “viewed as the next frontier in unlocking funding to support new nuclear builds and leveling the playing field with Russia and China.” However, she adds, it’s “not the final frontier, because it could send a signal to other international financial institutions that they should follow suit and also support nuclear projects.” 

Global Energy Forum

June 17-18, 2025

The 9th Atlantic Council Global Energy Forum will take place in Washington, DC under the theme Collaboration, Competition, and Security: A new era of leadership shaping the future of the global energy system.

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Donovan cited in Newsweek on EC proposal to lower price cap on Russian oil https://www.atlanticcouncil.org/insight-impact/in-the-news/donovan-cited-in-newsweek-on-ec-proposal-to-lower-price-cap-on-russian-oil/ Thu, 12 Jun 2025 16:50:02 +0000 https://www.atlanticcouncil.org/?p=853673 Read the full article here.

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Read the full article here.

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Carney’s ‘hinge moment’ is about more than just Canadian defense spending. What does that mean for Washington? https://www.atlanticcouncil.org/blogs/new-atlanticist/carneys-hinge-moment-is-about-more-than-just-canadian-defense-spending-what-does-that-mean-for-washington/ Wed, 11 Jun 2025 19:35:15 +0000 https://www.atlanticcouncil.org/?p=852901 The Canadian prime minister gave his first major defense and security speech on June 9, describing an unraveling international order and an increasingly unreliable United States.

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It’s not just the money. On Monday, Mark Carney gave his first major defense and security speech as Canadian prime minister. In the speech, Carney pledged that Canada would reach the NATO benchmark of spending 2 percent of gross domestic product (GDP) on defense this year, well ahead of the previous government’s 2032 deadline. While this announcement garnered headlines, less attention went to Carney’s reasoning for the increase, which included both an unraveling international order and an increasingly unreliable United States. What might Carney’s view of the current moment and of Washington mean for the United States? Below, Imran Bayoumi, an associate director with the GeoStrategy Initiative in the Scowcroft Center for Strategy and Security, puts the new spending in its full context. 

Speaking at the University of Toronto, Carney described the current era as a “hinge moment” in Canada’s history. As “threats from a more dangerous and divided world are unraveling the rules-based international order,” Carney is doing what many leaders of all political stripes in Canada have pledged and failed to do—increase military and defense spending. 

Recognizing the increasingly volatile international security environment that Canada finds itself in, Carney announced sweeping plans for the government of Canada to increase its defense spending to the NATO target of 2 percent of its GDP by March 2026, ahead of the goal set by the government of former Prime Minister Justin Trudeau. Canada’s lagging defense spending has long drawn the ire of the United States and other NATO allies and served as a target for US President Donald Trump earlier this year. Carney likely timed this announcement for this weekend’s G7 Summit, during which Trump will travel to Alberta, and in advance of the NATO Summit in the Hague later this month. 

Aside from addressing short-term priorities with this month’s summitry, Carney also framed his announcement around the threats to Canada at this moment in history, stating, “a new imperialism threatens. Middle powers must compete for interests and attention, knowing that if they’re not at the table, they’re on the menu.”

Canada currently spends 1.37 percent of its GDP on defense, but the low spending numbers do not tell the full story of Canada’s defense woes. Ottawa only has one operational submarine, out of four, and only half of the Canada’s maritime and land vehicles are operational. 

Questions surround Canada’s ability to ramp up its domestic defense production at a scale needed to meet Carney’s new goals. The equipment used by the Canadian Armed Forces and Canada’s broader defense production as a whole are closely integrated with the United States. Despite this, Carney has pledged to diversify future defense spending away from an overreliance on the United States and look towards new partners, including Europe, as well as boosting its own capacity for domestic production.

In fiscal year 2025-26 alone, the Carney government will invest an additional $6.5 billion across the Department of National Defence (DND), the Canadian Armed Forces, and the Communications Security Establishment (Canada’s signals intelligence agency). The Canadian government aims to increase the number of full-time armed forces members and reservists alongside investing in the civilian workforce. Part of the spending increase will also come from moving the oversight of Canadian Coast Guard from the Ministries of Fisheries and Oceans to the DND. The investment strategy calls for further modernizing Canada’s military capabilities with a focus on the Arctic, such as Canada’s recent acquisition of a new over-the horizon radar system from Australia. To further Canada’s domestic defense production and innovation, the government plans to establish BOREALIS, the Bureau of Research, Engineering, and Advanced Leadership in Science, which will focus on focus on furthering research in frontier technologies such as artificial intelligence and quantum computing.

Washington has already welcomed Ottawa’s announcement, with US Ambassador to Canada Pete Hoekstra posting on X that the plan is “an important step toward strengthening the Alliance and reinforcing our shared security.” However, a key part of Carney’s strategy is to diversify Canada’s defense investments and partnerships away from the United States. The purchase of the JORN radar system from Australia was Canberra’s biggest ever defense export and took the United States by surprise. Ottawa is considering bids from both South Korea and a joint German and Norwegian bid to purchase new submarines. Canada’s planned purchase of eighty-eight F-35 fighter jets from the United States is also being reconsidered, with the DND now potentially looking toward European suppliers. 

While Washington will welcome Ottawa’s clear, if long-delayed, commitment to investing in its national defense and security, the era when Canada buys heavily from the United States is likely over. As Carney stated, “it is time for Canada to chart its own path and assert itself on the international stage,” and Washington should not take for granted its potential role in Canada’s defense future.

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Five questions (and expert answers) about the new EU sanctions plan for Nord Stream and Russian banks and oil https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/new-eu-sanctions-on-nord-stream-and-russian-banks-and-oil/ Tue, 10 Jun 2025 21:53:27 +0000 https://www.atlanticcouncil.org/?p=852821 Atlantic Council experts break down the details of the European Commission's proposed eighteenth sanctions package against Russia for its war on Ukraine.

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“Strength is the only language that Russia will understand.” That’s what European Commission President Ursula von der Leyen said Tuesday as she unveiled a proposed eighteenth European Union (EU) sanctions package against Russia for its war on Ukraine. Among the proposals are a ban on transactions with Russia’s Nord Stream gas pipelines, additional sanctions on more than twenty Russian banks, and a lowering of the oil price cap from sixty dollars to forty-five dollars. Approval for the package now rests with the twenty-seven EU member states, and some elements of the package, such as lowering the oil price cap, could prove contentious this coming weekend at the Group of Seven (G7) meeting in Canada. Below, our experts explain what was announced and what is at stake.

This package could put the final nail in Nord Stream 2’s coffin, providing a much overdue, decisive vision for the future of Russian pipeline flows to Europe. Ending this zombie project debate once and for all also sends a clear message to global liquefied natural gas producers, which may be hesitant to expand partnerships with the European buyers as long as a relapse to Russian gas dependence is a possibility. This checkmate move from the European Commission still needs approval from EU member states, as well as watertight language on sanctions implementation to prevent caveats or exemptions. Moreover, the Commissions’s bold action on Nord Stream 2 brings the Commission’s Roadmap to fully end EU dependency on Russian energy closer to reality, just as the roadmap’s legislative proposals are expected later this month.

Olga Khakova is the deputy director for European energy security at the Atlantic Council’s Global Energy Center.

***

The proposal is a welcome one to put an end to the questions about the restarting of the pipelines. The proposed rules would ban any EU operator from doing direct or indirect transactions for Nord Stream 1 or 2, making the operation of the pipelines impossible. More importantly, the proposal would end any rumors or quiet discussions around the future of the pipeline and shows the seriousness, at least in the Commission, around achieving energy independence from Russia. “There is no return to the past,” von der Leyen declared during Tuesday’s announcement. 

Jörn Fleck is the senior director of the Atlantic Council’s Europe Center.

***

After nearly two static decades of Germany’s Gazpromphilic foreign policy, and statements emerging in recent weeks from German politicians from the Social Democratic Party (SPD) and the Alternative for Germany (AfD) indicating openness to a revival of Nord Stream, today’s EU announcement of Nord Stream sanctions is nothing short of astonishing. That’s because it amounts to a de facto approval by new German Chancellor Friedrich Merz. Since assuming the Chancellery, Merz has taken steps toward a true Zeitenwende that were lacking in Germany since that political approach to Russia had been first announced by his predecessor Olaf Scholz, with Merz stating clearly and resolutely in late May that under his leadership, the German government will “do everything to ensure that Nord Stream 2 cannot be put back into operation.” 
 
Merz doubled down on this rhetoric while sitting next to US President Donald Trump in the Oval Office last week, declaring Nord Stream to have been “a mistake.” Saying this next to Trump is especially important given recent reports that a US-based investor has sought to lobby the Trump administration to drop sanctions on Nord Stream to allow for American ownership of the pipelines. According to the investor, this move is an attempt to supposedly achieve the “de-Russification” of the projects—despite the logical incoherence of how such infrastructure could ever be truly “de-Russified” if it were still delivering Russian gas. 
 
If the EU is able to successfully get this sanctions package through the gauntlet of member state ratification—no small task with the likes of Hungary and Slovakia waiting in the wings to go to bat for Russian President Vladimir Putin’s energy interests in Brussels—it will be a major step toward finally ending Russia’s energy grip over European political and security interests. 
 
—Benjamin L. Schmitt is a senior fellow at the University of Pennsylvania’s Kleinman Center for Energy Policy and Perry World House. 

That depends on how effectively the new price cap would be enforced and where the general price of crude would fluctuate. The impact would probably be significant but not as big as it would be if the United States could find a way to limit third-country purchases of Russian oil, either through US Senator Lindsey Graham’s bill or in another (and more practical) form. 

Daniel Fried is the Weiser Family distinguished fellow at the Atlantic Council and a former US ambassador to Poland. 

***

Russia still relies on revenue from oil exports, so lowering the price cap could negatively affect how much money they can bring in. However, the price cap has been very difficult to enforce. In response to the price cap, Russia developed an expansive shadow fleet to export its oil, which created an additional challenge for Western sanctions enforcement authorities.  

That said, lowering the price cap would be welcome considering the price of Brent Crude as of today, $67.24 per barrel, which is very close to the $60 price cap. When the price cap first went into effect in 2022, the price of oil was over $100 per barrel. Reducing the price cap is an acknowledgement that oil prices have dropped considerably since it was first introduced and reflects a commitment to restrict Russia’s ability to generate revenue. 

Kimberly Donovan is the director of the Economic Statecraft Initiative at the Atlantic Council’s GeoEconomics Center. She previously served in the federal government for fifteen years, most recently as the acting associate director of the Treasury Department Financial Crimes Enforcement Network’s Intelligence Division.

The most interesting aspect of this package is the “transaction ban” on “financial operators in third countries that finance trade to Russia, in circumvention of sanctions.” That sounds a lot like secondary sanctions, which historically have been controversial in the EU. If this passes, it could significantly strengthen EU sanctions by extending their reach. 

—Kimberly Donovan

It’s worth keeping in mind that this is still just a proposal, and there is a long way to go before it is finalized. These sanctions proposals require the unanimous support of the EU’s twenty-seven member states, which, in and of itself, is no simple process of negotiations. The proposal will likely face two immediate hurdles from the likes of Hungary and Slovakia, whose respective leaders have delayed or played spoiler on the previous efforts for political leverage until their demands were met. However, the fact that there have been seventeen successful rounds of sanctions in the past suggests that solutions, however messy, incomplete, or last-minute, are possible. There is an important transatlantic angle as well. The EU wants to move together with the United States on Russia. So European holdouts will certainly not want to be seen as roadblocks should the Trump administration decide, for example, to push for further sanctions on Russia. 

—Jörn Fleck 

***

I don’t know how much has been vetted with Hungary nor what kind of pressure the Commission is prepared to put on Budapest if it attempts to block the proposal. But the Commission seems serious about ramping up pressure and announcing steps before the G7 Summit, where they will have a chance to obtain Japanese and Canadian support, and thus to present the United States with some decisions. 

—Daniel Fried  

***

Brussels seems optimistic that the eighteenth sanctions package will pass. However, aspects of the sanctions package will need G7 support. This includes the proposal to reduce the price cap, which is why the Commission understandably announced the proposal in advance of G7 meetings this coming weekend in Canada. Further, support from Washington or lack thereof could sway how countries such as Hungary and Slovakia vote on the sanctions package. 

—Kimberly Donovan

That is a big question, and I can’t give a reliable answer. The European leaders at the G7 will have a chance to convince Trump that it is his own plan to end the war that the EU is backing, and that the United States ought to go all in to that end and agree to pressure Russia. But Trump, despite edging up toward imposing additional costs on Russia, has not yet done so, despite multiple opportunities and provocations from Putin. 

—Daniel Fried  

***

It’s unclear how Trump himself will react to the proposal. But what the US president should see in this proposal is a Europe that is a willing and serious partner. The administration has made clear that it expects Europe to step up for its own security and for Ukraine’s. This is part of Europe’s response to do just that. European leaders have been united on pushing for action on Russia given Moscow’s continued intransigence on cease-fire talks and devastating attacks on Ukraine. This proposal is another indication that Europe is putting real ideas on the table to boost US and Ukrainian leverage with Putin. 

—Jörn Fleck 

***

Members of Congress may welcome this package, as the spirit is consistent with the bill Graham introduced to get Putin to the negotiating table. However, we’ll have to wait and see how Trump reacts considering the stalled cease-fire talks and escalating violence on the battlefield. 

—Kimberly Donovan

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Modern Ukraine’s national journey can be traced on Kyiv’s central square https://www.atlanticcouncil.org/blogs/ukrainealert/modern-ukraines-national-journey-can-be-traced-on-kyivs-central-square/ Tue, 10 Jun 2025 21:18:16 +0000 https://www.atlanticcouncil.org/?p=852810 Since 1991, Kyiv's Maidan square has emerged from Ukraine’s post-Soviet identity crisis via two popular uprisings to become the sacred ground zero of a nation forged in the crucible of revolution and war, writes Peter Dickinson.

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Ancient Kyiv is drenched in more than a millennium of history and boasts a dizzying array of cathedrals, monasteries, and palaces dating back hundreds of years. However, the location most intricately associated with modern Ukraine’s national journey is far younger than any of these venerable landmarks and carried no particular spiritual significance until the very recent past.

Located in the geographical center of Kyiv, Independence Square is known to locals and foreign guests alike by its Ukrainian-language name, Maidan Nezalezhnosti, or simply Maidan. Over the past three decades, Maidan has undergone a dramatic transformation that has seen it emerge from Ukraine’s post-Soviet identity crisis via two popular uprisings to become the sacred ground zero of a nation forged in the crucible of revolution and war.

Today, Maidan is an obligatory point of pilgrimage on the itinerary of all visitors to the Ukrainian capital. People come to Maidan in order to honor those who have died in the fight against Russia’s invasion, or just to soak up the atmosphere of an iconic location that has witnessed some of the most consequential political events of the twenty-first century.

It was not always this way. When the modern square first began to take shape in the nineteenth century, it was a relative backwater in an elegant and aged city where the center of gravity remained firmly fixed elsewhere. Tellingly, when Ukrainian officials gathered in Kyiv on January 22, 1919, to publicly sign the unification act between the Ukrainian People’s Republic and the West Ukrainian People’s Republic, they chose to stage this historic event on Sophia Square rather than Maidan.

As Kyiv rose from the ashes following World War II, the square became more architecturally impressive and gained in logistical importance, but it continued to lack the aura attached to the city’s true heirlooms. Instead, Maidan remained a fairly identikit Soviet public space noted for its large fountains and even larger Lenin monument.

Maidan first became associated with political activism during the dying days of the Soviet Empire in 1990 when it hosted a two-week student protest dubbed the Revolution on Granite that played a significant part in Ukraine’s independence struggle. At the time, it was known as October Revolution Square. Maidan would receive its current name on August 26, 1991, two days after the Ukrainian declaration of independence, but it would be many years before the square began to earn its current reputation as a genuine symbol of Ukrainian statehood.

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During the first decade or so of Ukrainian independence, Maidan was anything but inspiring. The square remained largely empty, with no monuments or memorials to celebrate the newly independent state. Instead, the cult of communism was replaced by crass commercialism. On the spot once occupied by Lenin, a giant TV screen was installed broadcasting an eclectic mix of adverts, pop videos, cage fights, and catwalk shows. Taxi drivers would line up nearby and watch absentmindedly while waiting for new fares.

High above Maidan, the skyline was dominated by the Hotel Moscow. In 2001, the Ukrainian authorities finally decided that this branding was probably inappropriate for a country looking to shake off the shackles of empire, and the hotel name was duly changed from Moscow to Ukraine. Likewise, a colossal Soviet hammer and sickle was allowed to loom large over Maidan until 2003, when it was belatedly removed from the facade of the Trade Union building. The continued prominence of the Soviet crest made a mockery of Independence Square and spoke volumes about the often ambiguous attitudes toward Ukrainian statehood that characterized the early post-Soviet period.

The first big turning point in Maidan’s transformation came following Ukraine’s November 2004 presidential election. Amid massive public anger over a crude Kremlin-backed bid to steal the vote, huge crowds flooded into Kyiv from across the country and congregated on Maidan, establishing a tent city and a round-the-clock presence. This protest movement lasted for over two months and came to be known as the Orange Revolution. Millions of Ukrainians participated. They eventually succeeded in overturning the rigged election and forcing a rerun which was won by the opposition candidate, representing a watershed moment in modern Ukrainian history.

Maidan itself was synonymous with the Orange Revolution and occupied a central position in the mythology that grew up around it. From that moment on, Maidan became not just a place but also an event. To stage a Maidan meant to organize a grassroots protest and hold power to account. This was a particularly terrifying concept for the neighboring Russian authorities. Dread of a Moscow Maidan soon began to haunt the Kremlin, feeding Putin’s obsession with Ukraine and laying the foundations for the horrors that were to follow. The Russian propaganda machine promptly adopted Maidan as a buzzword signifying wicked foreign plots, and continues to use it two decades later without any need for further explanation.

Nine years after the Orange Revolution, Maidan would be the scene of a second Ukrainian revolution. This time, the spark came when Ukraine’s pro-Kremlin president, Viktor Yanukovych, pulled out of a long anticipated EU association agreement and unleashed the riot police against students who objected to this drastic geopolitical U-turn. Once again, millions of Ukrainians flocked to the capital and gathered on Maidan. This time, though, it would not be bloodless.

With strong backing from Russia, the Ukrainian authorities took a hard line approach to the protests, leading to weeks of running battles on Maidan and in the surrounding streets. The nadir came in late February 2014, when dozens of protesters were shot and killed in the city center. This Maidan massacre brought down the Yanukovych regime. With his support base evaporating, the disgraced Ukrainian president fled to Russia. Days later, Putin responded by invading Crimea. Russia’s war to extinguish Ukrainian statehood had begun.

The tragic events of February 2014 had a profound impact on Ukraine’s collective psyche and served to consecrate Maidan in the national imagination. Up until that point, the square had regularly hosted public holidays, pop concerts, and Christmas fairs. In the aftermath of the killings, such events were moved to other locations in the Ukrainian capital. Maidan itself would now be reserved for the most somber and significant occasions in the life of the nation, such as the funerals of soldiers, vigils for Ukrainians held captive in Russia, and memorials marking important Ukrainian anniversaries.

Since 2022, Maidan’s transformation has gained further momentum amid the shock and trauma of Russia’s full-scale invasion. During the initial stages of the war, people began planting flags on the square in memory of fallen soldiers. This impromptu memorial has since expanded organically to become a sea of flags and portraits commemorating those who have lost their lives in the defense of Ukraine. It is an authentic grassroots tribute that is entirely in keeping with the spirit of Maidan.

As Russia’s invasion has unfolded, Maidan’s role as the principal site for wartime mourning and reverence has served to confirm the square’s position at the heart of modern Ukraine’s national story. There could hardly be a more fitting location. After all, Vladimir Putin launched the current war because he viewed the emergence of an independent Ukraine as an intolerable threat to his own authoritarian regime and a potential catalyst for the next stage in Russia’s long retreat from empire.

Maidan embodies Putin’s darkest fears. The Russian dictator’s goal remains the destruction of Ukraine as a state and as a nation, but he is acutely aware that the country is slipping inexorably out of the Kremlin orbit. This is nowhere more evident than on Kyiv’s central square, which has become the ultimate symbol of Ukraine’s escape from empire and embrace of an independent identity.

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

Follow us on social media
and support our work

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Yes, now is the time to double down on the Abraham Accords https://www.atlanticcouncil.org/blogs/new-atlanticist/yes-now-is-the-time-to-double-down-on-the-abraham-accords/ Tue, 10 Jun 2025 19:46:13 +0000 https://www.atlanticcouncil.org/?p=852628 The United States and its partners cannot simply wait for the war in Gaza to end or for Saudi Arabia to normalize relations with Israel. They must take steps now.

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At a time when the headlines regularly announce violence in Gaza and Houthi attacks on Israel, it may seem incongruous to speak of the Abraham Accords. But navigating out of the Middle East’s continued turmoil demands a clear, realistic vision of where the United States wants the Middle East to end up. There are powerful trends across the region—from the United Arab Emirates (UAE), to Syria, to Morocco—favoring cooperation and dialogue among former foes and rivals, rather than confrontation. The conflict in Gaza will delay some of these trends and pose a threat to regional stability as long as the war continues and a more durable solution remains elusive. But there is clear momentum for change in a region weary of war and following a decade of US intent to downsize its military engagement in the Middle East.

The Abraham Accords—one of the signature foreign policy accomplishments of the first Trump administration—provide a valuable platform for harnessing these trends. But to achieve a more stable and prosperous Middle East consistent with the vision US President Donald Trump recently outlined in Riyadh, the accords must be adapted and strengthened. The United States and its partners cannot simply wait for the war in Gaza to end or for Saudi Arabia to normalize relations with Israel. They must take steps now to strengthen the accords in order for them to provide an effective path forward for the Middle East. 

Where to start?

First, to deliver strategic benefits for both the region and the United States, accords countries must go beyond normalizing relations with Israel. They should build on normalization to actively commit to core principles related to religious tolerance, broad-based economic growth, and a forward-looking approach to tackling shared challenges in cooperation with the United States. 

Second, those principles should be operationalized through a flexible mini-lateral structure that transforms the accords from a loose label into an effective network of countries spanning the Middle East and neighboring regions. This structure could learn from the successes and challenges of the Negev Forum launched under then US President Joe Biden in 2022. To succeed, this new mini-lateral forum must help identify meaningful, broad-based areas of cooperation that regularly bring together senior officials from participating countries even as political differences between some of those countries persist. In this regard, the Association of Southeast Asian Nations, or ASEAN, is a useful model, as argued previously by the Atlantic Council’s Dan Shapiro.

At the same time, the accords countries must avoid a cumbersome bureaucratic structure that creates work without delivering results and is not conducive to the private-sector engagement that should remain central to the accords network. Moreover, this structure should seek to coordinate with civil society actors—universities, hospitals, and nongovernmental organizations—that can help build people-to-people ties across countries and cooperation from the ground up. Given enough time, this network might even provide functions ranging from a voting bloc in the United Nations to an economic corridor, building on promising initiatives such as the proposed India–Middle East–Europe Economic Corridor (IMEC). 

Third, countries in the Middle East—particularly Israel—must take a greater leadership role in operationalizing that network and ensuring that new members see tangible benefits. For instance, Israel could be much more active in sharing technological expertise, financing, and building partnerships that continue to strengthen relations long after the signing of an accord document. Reviving the Abraham Accords Caucus in the Knesset could help facilitate such leadership. The UAE, which has been a consistent champion of the accords, should continue its outreach, leveraging its leadership in strategic sectors such as emerging technology, food security, and renewable energy. For its part, the United States can and should provide strong diplomatic support for the accords. Yet, as Trump made clear in Riyadh, the momentum must come from the Middle East itself. 

Early returns: How the accords are already delivering strategic benefits

An important reason to double down on the accords now is that they are already delivering meaningful results toward a more stable Middle East. Advocates of the accords often use increased trade as a metric of success, but the strategic benefits, while harder to measure, are more significant. For example, the UAE is currently leveraging its growing partnership with Israel to mediate between Jerusalem and the new government in Syria, helping to avert a major military confrontation in the Middle East whose consequences could reverberate for decades. Such talks are only possible because of the trust Emirati and Israeli officials have built over the past five years, constructing lines of communication across what previously seemed like insurmountable divides. Moreover, the fact that Arab partners helped shoot down Iranian drones and missiles launched against Israel in April 2024 demonstrates the willingness of those partners to take steps previously considered unthinkable to prevent military escalation in the region. 

The Abraham Accords have also revived or enabled economic connectivity projects that better leverage the Middle East’s role as a link between Asia and Europe. Continued success in this area through initiatives such as IMEC could benefit the global economic landscape while expanding economic opportunity for Middle Eastern countries. For the United States, such projects provide an alternative to China’s Belt and Road Initiative and help reduce opportunities for Chinese exploitation in the region. As a result, the accords reinforce US economic leadership in the Middle East—and they should continue to, especially in critical sectors such as artificial intelligence and emerging technology, where Gulf countries are increasingly asserting a major role.

What comes next

Many in the US foreign policy community assume the Abraham Accords are on pause until Saudi Arabia joins the accords. This is a dangerous assumption that risks jeopardizing the potential of the accords to deliver transformative change for the region. It’s true that Saudi Arabia is unlikely to formally normalize relations with Israel in the immediate term: Saudi officials have stressed the need not just for an end to the war in Gaza but also consensus on a credible path to a Palestinian state, and the current political realities of the region make this extremely difficult. Nonetheless, there is significant work that can and should be done to reinforce the existing accords and lay the groundwork for their meaningful expansion to other countries.

The Trump administration should build on the accomplishments of Trump’s first term by working with US partners to revive a regionally led mini-lateral forum for the accords based on clearly articulated principles. The United States and its partners should use this forum to advance tangible initiatives that strengthen collaboration between both existing and prospective accords countries so that when the accords are expanded, they are building on a solid foundation. This should include Muslim-majority countries in areas neighboring the Middle East that have natural economic, political, and security ties with the region and thus can play a meaningful role in promoting stability and prosperity. In doing so, the Trump administration should reassure its partners that the US vision for the Abraham Accords is premised on the assumption that the Palestinian issue must be resolved in a manner that is acceptable to moderate Palestinians. Doing so is essential not just to secure Saudi Arabia’s eventual participation in the accords, but to resolve a persistent threat to the Trump administration’s vision for a more stable and prosperous Middle East.

Only if this work is done now will the United States and its partners be prepared to seize the potential the accords provide for greater regional change after the war in Gaza comes to a close.


Allison Minor is the director of the N7 Initiative, a partnership between the Jeffrey M. Talpins Foundation and the Atlantic Council. She previously served as the deputy US special envoy for Yemen and the director for the Arabian Peninsula at the US National Security Council.

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Turkmenistan’s deepening water crisis could have far-reaching regional consequences https://www.atlanticcouncil.org/blogs/new-atlanticist/turkmenistans-deepening-water-crisis-could-have-far-reaching-regional-consequences/ Mon, 09 Jun 2025 20:23:38 +0000 https://www.atlanticcouncil.org/?p=852381 Turkmenistan’s water crisis could have significant economic and political ramifications well beyond its borders.

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The vast, arid landscapes of Turkmenistan, stretching across Central Asia, are facing a profound and growing threat—a deepening water crisis that casts a shadow over its future stability, as well as over the security of the entire region. While often overshadowed by other domestic problems, the struggle for water in Turkmenistan is a critical issue demanding immediate attention. Exacerbated by a changing climate, almost a century of unsustainable practices, and new regional developments, this crisis is not just an environmental problem—it’s an unfolding human tragedy that could have significant economic and political ramifications well beyond its borders.

The roots of scarcity

Turkmenistan’s vulnerability to water stress is the highest in Central Asia, a precarious position resulting from a complex interplay of factors. Much of the country’s water infrastructure is a relic of the Soviet Union, including open canals and irrigation ditches that are tragically inefficient. Estimates suggest that anywhere between 30 percent and 60 percent of the water transported through these systems is lost to evaporation or seeps into the sandy soil before reaching its intended destination. These physical conditions are compounded by systemic mismanagement. A cohesive national strategy for water conservation and distribution remains elusive, hampered by a lack of coordination among governing bodies.

This inefficiency is particularly damaging given the demands placed upon the water supply, primarily by agriculture, which consumes an estimated 94 percent of the nation’s water resources. The heart of the problem lies in the legacy of Soviet-era planning: industrial production dedicated to cotton, a thirsty crop ill-suited to Turkmenistan’s naturally arid climate. This reliance on water-intensive agriculture depletes precious reserves. A shift toward drought-resistant crops, modern techniques such as drip irrigation, and greater agricultural diversification is long overdue to alleviate the immense pressure on the water supply.

Compounding these internal challenges are external pressures. Turkmenistan relies on the Amu Darya river, which flows along its border with Afghanistan and Uzbekistan, for roughly 90 percent of its water. The construction of Afghanistan’s Qosh Tepa Canal upstream represents a significant new threat. By diverting substantial amounts of water from the Amu Darya for its own agricultural ambitions, the canal project could reduce the flow reaching Turkmenistan, further straining an already stressed system. The absence of robust transboundary water-sharing agreements and effective diplomatic channels risks tensions, highlighting the urgent need for dialogue, potentially facilitated by neutral international mediators, to navigate this issue peacefully.

Overlaying all these factors is the undeniable impact of climate change. Projections indicate that temperatures in Turkmenistan are set to rise faster than the global average, inevitably leading to more frequent and severe droughts, further diminishing already scarce water resources and pushing the nation closer to the brink.

The human and environmental toll

The consequences of this escalating water scarcity are already being felt across Turkmenistan. Food insecurity is on the rise, with reports indicating that 12 percent of the population faces severe challenges in accessing sufficient food—among the highest rate among former Soviet nations. Access to safe drinking water is also becoming increasingly precarious. Residents across the country, including in the capital city of Ashgabat, report frequent water cuts and shortages. The tap water that is available is often of questionable quality, forcing many to rely on more expensive bottled water.

Reduced water flow and dying vegetation leave the soil vulnerable to erosion, intensifying the dust, sand, and salt storms that plague the region. In the northern Dashoguz province, vast tracts of agricultural land are severely affected by salt storms originating from the desiccated Aral Sea, posing significant risks to respiratory health and further degrading farmland. This vicious cycle of soil salinity, exacerbated by inefficient irrigation and poor drainage, diminishes air quality and agricultural productivity. Altogether, this creates an increasingly hostile environment for both people and wildlife.

The economic repercussions are also significant. Turkmenistan’s economy relies on natural gas exports, which constitute nearly 90 percent of its export revenue. However, the natural gas industry itself is water-intensive, requiring substantial amounts for cooling systems, equipment cleaning, and extraction processes. Water scarcity could directly impede the nation’s ability to maintain current natural gas production levels, potentially impacting national revenue and the funding of essential public services.

Furthermore, the unique ecosystems adapted to Turkmenistan’s arid conditions, including the vast Karakum Desert, are under threat. Rivers, wetlands, and oases—vital habitats for diverse flora, fauna, and migratory birds—risk shrinking or disappearing entirely, leading to biodiversity loss and pushing vulnerable species toward extinction.

Finally, the crisis is beginning to drive climate migration. Faced with failing crops, soil degradation, rising food prices, and dwindling agricultural employment (a sector that employs over 40 percent of the workforce), people are increasingly forced to migrate in search of better living conditions, both within the country and abroad. This displacement adds another layer of social and economic strain.

A call to action to maintain regional stability

The water crisis unfolding in Turkmenistan is not merely a domestic issue; its ripples will likely be felt regionally and globally. Declining agricultural output could increase Turkmenistan’s reliance on international food markets, potentially contributing to fluctuations in global food prices. More critically, the potent combination of environmental degradation, economic hardship, and potential social unrest fueled by water scarcity could destabilize the country and, by extension, the wider Central Asian region. History, including the the Syrian uprising, serves as a warning of how severe drought and resource mismanagement can exacerbate existing tensions and lead to conflict. Such instability could create power vacuums, ripe for large global powers.

Therefore, addressing Turkmenistan’s water challenge is a matter of international concern. Proactive engagement from the United States and the European Union could play a crucial role in promoting sustainable solutions and regional cooperation. In addition, supporting comprehensive research and data collection on water resources, climate impacts, and agricultural practices is essential for informed policymaking. The United States and the European Union should take the lead in facilitating regional dialogues involving Turkmenistan, Afghanistan, Tajikistan, and Uzbekistan. Such initiatives will be critical for fostering transboundary cooperation and preventing conflicts over shared water resources such as the Amu Darya. Furthermore, technical assistance and funding from the United States and the European Union, potentially channeled through civil society organizations, could help implement sustainable water management practices on the ground—from promoting efficient irrigation techniques to supporting public education campaigns on water conservation.

Turkmenistan’s struggle with water scarcity is a powerful illustration of the interconnected challenges facing many parts of the world in the twenty-first century, where climate change, resource management, and geopolitical interests collide. Ignoring this looming crisis is not an option. Concerted action, grounded in cooperation and sustainable practices, is essential not only to secure a livable future for Turkmens but also to maintain stability in the region.


Rasul Satymov is a researcher with Progres Foundation with a focus on climate change, energy, and water issues in Turkmenistan.

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Charai in The National Interest: Governance Is Not a Start-Up Pitch https://www.atlanticcouncil.org/insight-impact/in-the-news/charai-in-the-national-interest-governance-is-not-a-start-up-pitch/ Sun, 08 Jun 2025 18:35:24 +0000 https://www.atlanticcouncil.org/?p=852347 The post Charai in The National Interest: Governance Is Not a Start-Up Pitch appeared first on Atlantic Council.

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G7 leaders have the opportunity to strengthen digital resilience. Here’s how they can seize it. https://www.atlanticcouncil.org/blogs/geotech-cues/g7-leaders-have-the-opportunity-to-strengthen-digital-resilience-heres-how-they-can-seize-it/ Fri, 06 Jun 2025 17:10:35 +0000 https://www.atlanticcouncil.org/?p=852065 At the upcoming Group of Seven Leaders’ Summit in Canada, member state leaders should advance a coherent, shared framework for digital resilience policy.

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The 2025 Group of Seven (G7) Leaders’ Summit in Kananaskis, Alberta, Canada, on June 15-17 will take place amid a growing recognition of the importance of digital resilience. This is especially apparent in Canada, the summit’s host country and current G7 president. Following his election win, Canadian Prime Minister Mark Carney announced the creation of a new Ministry of Artificial Intelligence and Digital Innovation. This bold step positions Canada to champion a digital resilience agenda at the summit that unites security, economic growth, and technological competitiveness while strengthening the resilience of its partners and allies.

The G7 must seize this opportunity to advance a coherent, shared framework for digital policy, one that is grounded in trust, reinforced by standards, and aligned with democratic values. To do so, it can build on some of the insights from the Business Seven (B7), the official business engagement group of the G7. The theme of this year’s B7 Summit, which was held from May 14 to May 16, in Ottawa, Canada, was “Bolstering Economic Security and Resiliency.” The selection of this theme emphasized the importance of defending against threats and enhancing the ability of societies, governments, and businesses to adapt and recover.

In the spirit of that theme, the Atlantic Council’s GeoTech Center, in partnership with the Cyber Statecraft Initiative and the Europe Center, convened a private breakfast discussion alongside the B7 in Ottawa on May 15. The roundtable brought together government officials, business leaders, and civil society representatives to discuss how digital resilience can be strengthened within the G7 framework. The participants laid out foundational principles and practical approaches to building digital resilience that support economic security and long-term competitiveness. As G7 leaders gather for the summit in Kananaskis later this month, they should consider these insights on how its member states can work together to bolster their digital resilience.

1. Develop a common language for shared goals on digital sovereignty

When developing a common framework, definitions (or taxonomy) are critical. Participants emphasized that shared vocabulary is a prerequisite for meaningful cooperation. Discrepancies in how countries define concepts such as digital sovereignty can lead to fundamental misunderstandings in critical areas such as risk, which creates friction and confusion.

For example, a G7 country might frame sovereignty in terms of national control over infrastructure while another country, such as China, defines it as regulating the digital information environment. In that case, this misalignment will hinder cooperation from the outset. Specifying precise definitions of each government’s goals, including “trust,” “resilience,” and “digital sovereignty,” would enable governments and industry to align on priorities and respond more effectively to emerging standards. This definitional clarity is crucial for policymaking and a prerequisite for compliance, implementation, and interoperability across borders.

2. Build on existing multilateral and regional frameworks

Participants stressed the importance of building on existing progress toward digital resilience, both in and out of the G7, rather than discarding it in pursuit of novelty. The G7 and its partners already possess a strong foundation of digital policy initiatives. Key milestones such as the Hiroshima AI Process, launched under Japan’s 2023 G7 presidency, established International Guiding Principles and an International Code of Conduct for the development and use of artificial intelligence (AI) systems, which included frontier models. Prior to the Hiroshima AI Process, several consecutive G7 Summits committed to developing the data free flow with trust framework, which prioritizes enabling the free flow of data across borders while protecting privacy, national security, and intellectual property.

Beyond the G7, participants cited European Union (EU) partnerships as examples of forward-leaning policy environments that balance innovation with safeguards. These included the EU AI continent action plan, which aims to leverage the talent and research of European industries to strengthen digital competitiveness and bolster economic growth, as well as Horizon Europe, the EU’s primary financial program for research and innovation.

With these partnership frameworks already in place, G7 leaders should build on existing work and avoid seeking to design unique solutions that may become time-consuming—particularly when it comes to gaining political buy-in. Even in areas like AI and the use of data, where policymakers have observed rapid changes since last year’s summit, the B7 discussion participants emphasized that governments can leverage work they’ve already completed in designing and implementing existing standards. If prior technical standards and regulations are inapplicable or insufficient, policymakers can still learn lessons from an in-depth assessment, including by taking note of where they’ve fallen short of their goals.

3. Start new initiatives with small working groups and pilot projects  

Ensuring digital resilience requires managing inevitable trade-offs between national security, economic vitality, and open digital ecosystems. As one participant remarked, “the digital economy is the economy,” so policies shaping cyberspace must consider both national security and economic impacts. The G7 provides a platform for frank discussions among allies and partners about how to get these trade-offs right. But waiting for buy-in from all like-minded partners risks missed opportunities in the short term.

Participants noted that by starting with smaller forums, policymakers can build consensus that can lead to real progress. Pilot projects and working groups among smaller clusters of G7 countries could build momentum and inform scalable solutions. Participants emphasized that despite the contentious nature of some of the issues surrounding digital resilience, such as protectionism and market fragmentation, G7 governments are operating with a shared set of values. These values can motivate collaboration across the G7 on the many areas of common ground they already share, but they can also provide the basis for projects among smaller groups within the G7 to get new ideas off the ground.

A pivotal summit for digital resilience

As G7 leaders meet in Kananaskis and work toward a common framework that balances digital security and economic growth, a few key lessons can be garnered from this B7 meeting. G7 member states should prioritize developing a common taxonomy and building on the progress made on digital resilience both inside and outside the G7, all while remaining responsive to shifting geopolitical dynamics.

Disagreements among member states should be viewed not as a barrier, but as evidence of a maturing policy landscape. Constructive tension can drive refinement so long as partners are clear about their priorities. The G7’s unique value lies in its ability to forge alignment among diverse actors. False consensus only delays progress. It will take transparency, specificity, and trust to move the digital resilience agenda forward.


Sara Ann Brackett is an assistant director at the Atlantic Council’s Cyber Statecraft Initiative.

Coley Felt is an assistant director at the Atlantic Council’s GeoTech Center.

Raul Brens Jr. is the acting senior director of the Atlantic Council’s GeoTech Center.

Further Reading

The GeoTech Center champions positive paths forward that societies can pursue to ensure new technologies and data empower people, prosperity, and peace.

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Even as courts step in, Trump still has plenty of tariff options. US trading partners should intensify negotiations. https://www.atlanticcouncil.org/blogs/new-atlanticist/even-as-courts-step-in-trump-still-has-plenty-of-tariff-options-us-trading-partners-should-intensify-negotiations/ Fri, 06 Jun 2025 14:58:33 +0000 https://www.atlanticcouncil.org/?p=852079 Section 301 may entail more work for the White House, but it could provide a relatively straightforward pathway to broad-based tariffs.

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US President Donald Trump’s tariff regime hit a legal stumbling block last week, with rulings by the US Court of International Trade in New York and the US District Court in Washington, DC. The rulings invalidated tariffs Trump has imposed under the International Emergency Economic Powers Act (IEEPA), though those tariffs remain in place for now after the court injunctions were stayed. 

Some US trading partners may be tempted to celebrate and retreat from or slow the pace of negotiations with the United States, perhaps to wait and see how appellate courts rule. But these US partners should not breathe easy, as Trump can impose substantial tariffs under other authorities that are less susceptible to legal attack—with Section 301 of the Trade Act of 1974 likely foremost among these authorities. And, importantly, if tariffs are imposed under this authority, then they will be more difficult to reduce or remove in response to positive negotiations. Therefore, trading partners should see the recent court decisions as an opportunity to reach a more stable agreement with perhaps a more eager counterpart, rather than a justification to escape engagement with the Trump administration.

When Trump announced IEEPA tariffs in early April on imports from nearly every country around the world, virtually all of them lined up to seek an agreement with the United States that would reduce or eliminate these “reciprocal” tariffs. They joined Mexico and Canada, who had already been engaging on separate IEEPA tariffs that were announced in early February in response to drug trafficking. Since then, the United States and United Kingdom have announced a high-level framework, and substantial progress reportedly has been made with India, Vietnam, and others. More difficult conversations with the European Union are ongoing. And after a series of escalations, China too reached a temporary truce, reducing the reciprocal tariffs on China-origin goods to 10 percent for the time being. Goods from Mexico and Canada also received a reprieve of sorts, with the Trump administration quickly exempting goods entitled to preferential treatment under the rules of the US-Mexico-Canada Agreement (USMCA).

The president’s use of IEEPA to impose tariffs, which two courts ruled unlawful, was novel. While IEEPA is frequently invoked to institute sanctions, it had never previously been used to impose tariffs. But other congressional delegations of authority exist—namely, Section 301 and Section 232 of the Trade Expansion Act of 1962—and legal challenges to their use to impose tariffs have largely been unsuccessful. 

During his first term, for example, Trump imposed broad-based tariffs on China-origin goods under Section 301, following an investigation into China’s unfair intellectual property-related trade practices, including forced technology transfer. US President Joe Biden expanded those tariffs, and they remain in place today. Trump also imposed tariffs under Section 232 on steel and aluminum from around the world during his first term. Those tariffs remained throughout the Biden administration with some country-specific modifications or product-specific exclusions, and Trump strengthened and expanded those tariffs in the early days of his second term.

The Trump administration likely will use Section 232 as the basis for some sector-specific tariffs. Already, the Department of Commerce is conducting Section 232 investigations on a hefty list of imports, from timber and lumber to copper and trucks; from semiconductors and semiconductor manufacturing equipment to pharmaceuticals and pharmaceutical ingredients; and from processed critical minerals and derivative products to commercial aircraft and jet engines. But I will focus on Section 301 because that is the more likely authority if Trump is looking to replicate the IEEPA tariffs, or more precisely, the leverage those tariffs afforded his negotiators.

How does Section 301 work?

Section 301, implemented by the US Trade Representative (USTR), investigates whether acts, policies, or practices of a particular country are unjustified, unreasonable, or discriminatory, and burden or restrict US commerce. By statute, the investigation must conclude within one year, but there is no minimum amount of time it must take. In the past, USTR has published a detailed report outlining its findings and evidence. This helps legitimize the findings and aids in discussions with allies and partners around the world by socializing and substantiating the concerns. But it is not required, and it could be slimmed down or scrapped in pursuit of speed. 

There are, however, limits to how quickly a Section 301 investigation can proceed. USTR must take public notice and comment on the substance of the investigation and hold a hearing if requested. If there is an affirmative finding, USTR must also subject any proposed remedial actions (e.g., tariffs) to public notice and comment. And, under a 2022 CIT ruling that such determinations are subject to the Administrative Procedures Act, USTR must take the time to provide in writing its reasoning for rejecting substantial lines of argument raised by commenters. Once implemented, Section 301 tariffs can be modified if “appropriate,” a largely untested but no doubt expansive standard that suggests courts will show a great deal of deference to the USTR. But any proposed modifications too must be subjected to a notice and comment process. Trump almost certainly opted for IEEPA in the first place because it obviates the need for such a time-consuming process.

Moreover, unlike the global framing of Trump’s IEEPA tariffs and Section 232 findings, Section 301 focuses on the acts, policies, or practices of one particular country. There are two ways to broaden its scope to approximate the more far-reaching impact of the invalidated IEEPA tariffs. First, USTR could simply initiate a series of parallel Section 301 investigations into a common concern among several countries, as it did in 2020 with respect to digital services taxes of eleven different jurisdictions. Second, although it has never been used, Section 301 includes a provision that allows for remedies to apply on a “nondiscriminatory basis”—that is, globally—even though the investigation focused on the acts, policies, or practices of one particular country.

So, while Section 301 may entail more process and certain constraints, it provides a relatively straightforward pathway to broad-based tariffs. Notably, the statutory objective of remedies under Section 301 is the elimination of the investigated acts, policies, or practices. The statue explicitly states that the USTR is authorized to take action “against any goods or economic sector . . . without regard to whether or not such goods or economic sector were involved in the act, policy, or practice that is the subject of such action.” Thus, regardless of which unfair practices the USTR chooses to investigate, an affirmative finding would unlock broad powers to tariff any goods. And it closely resembles the “leverage” justification for tariffs that the CIT rejected as insufficient in the IEEPA context.

What Section 301 tariffs would mean for bilateral negotiations?

Trump has demonstrated a clear determination to alter terms of trade, and he has been equally committed to using tariffs not just as policy, but to shape and respond to negotiating dynamics. Should certain bilateral negotiations prove unsatisfactory, it is very likely that the Trump administration would pursue tariffs under a different authority like Section 301. US trading partners would be wise to try to avoid that result.

The speed that IEEPA enabled for imposing or increasing tariffs is a two-way street, meaning that the Trump administration could quickly employ removals, decreases, or exceptions in response to positive momentum in negotiations. Some may welcome the added process around Section 301 because it could slow the pace of change. But that same process would make Section 301 tariffs stickier once imposed. It could also create difficulty in comprehensively pulling down tariffs against a particular country should that partner make concessions the administration finds valuable but are not germane to the investigated acts, policies, or practices. The Section 301 and Section 232 tariffs from Trump’s first term have proven very durable.

What about other authorities to impose tariffs?

While Trump may proceed with sector-specific tariffs under Section 232, they are not a good fit for replicating the IEEPA tariffs because they focus on threats to national security from particular products. That makes it hard to tariff a broad range of products and limits flexibility to alter the scope or rate of tariffed products as negotiations and economic dynamics shift.

The CIT opinion pointed to Section 122 as an option to rectify goods trade deficits, but Section 122 tariffs are capped at 15 percent and can remain in effect for only 150 days. Those limitations severely undermine the leverage Trump covets.  

Finally, the administration could attempt to invoke Section 338 of the Tariff Act of 1930 (often referred to as the Smoot–Hawley Tariff Act), which authorizes tariffs in response to a foreign country’s discrimination against US goods or the commerce of the United States. Section 338 not only predates the World Trade Organization, it predates the General Agreement on Tariffs and Trade (GATT), which first established the principle of most favored nation treatment in 1947. 

Section 338 imposes no temporal limitation on tariffs, but it does provide for a maximum tariff rate of 50 percent. While it appears to require no real time-consuming investigation, it has never been used, and there are virtually no mentions of it anywhere in the public record after the establishment of the GATT. Thus, there is uncertainty from novelty, which is what did in IEEPA, at least for the time being. Moreover, the administration would need to make sense of how mechanically to apply this previously unused, nearly century-old authority. Given these uncertainties, the Trump administration may favor using this authority as a tacit threat in negotiations, but not actually invoking it and inviting judicial scrutiny.

The bottom line remains that Trump still has many tariff tools at his disposal and, if implemented, they may prove harder to pull back. Therefore, US trading partners would be better served to treat the recent court rulings as an opportunity to drive ongoing discussions to their conclusion. The uncertainty created by the court decisions, the time required to reasonably replicate a large swath of tariffs through other authorities such as Section 301, and the procedural constraints those other authorities impose on the president’s flexibility, should make the administration more eager to reach deals it approves of and that allow it to avoid those difficulties. Where trading partners remain engaged and determined, the urgency on both sides presents the best opportunity for a mutually agreeable deal, which will provide greater near-term predictability that all can celebrate.


Brian Janovitz is a partner at DLA Piper. He previously served as director for international economics at the National Security Council and National Economic Council and chief counsel for trade enforcement strategy and competitiveness at the Office of the US Trade Representative, where he led the Biden administration’s comprehensive review of Section 301 tariffs.

Trump Tariff Tracker

The second Trump administration has embarked on a novel and aggressive tariff policy to address a range of economic and national security concerns. This tracker monitors the evolution of these tariffs and provides expert context on the economic conditions driving their creation—along with their real-world impact.

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Russian hybrid warfare: Ukraine’s success offers lessons for Europe https://www.atlanticcouncil.org/blogs/ukrainealert/russian-hybrid-warfare-europe-should-study-ukraines-unique-experience/ Thu, 05 Jun 2025 21:39:11 +0000 https://www.atlanticcouncil.org/?p=852020 As the Kremlin continues to escalate its hybrid war against Europe, Ukraine's unique experience since 2014 of combating Russian hybrid warfare offers important lessons, writes Maksym Beznosiuk.

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As Russia’s full-scale invasion of Ukraine continues, the Kremlin is also rapidly escalating its hybrid war against Europe. Intelligence officials from a number of European countries are now raising the alarm and warning that Russian operations are growing in number and becoming bolder, with potential targets including transport hubs and critical infrastructure.

The Kremlin employs hybrid warfare tactics to remain below the threshold that would trigger a unified and potentially overwhelming European response. This has led to a surge in sabotage, cyberattacks, political interference, and disinformation campaigns across Europe, with a particular emphasis on countries closer to Russia.

Moscow’s hybrid war against Europe mirrors the tactics used by the Kremlin in Ukraine following the start of Russia’s invasion in 2014. Ukraine’s response to the often unprecedented challenges posed by Russian hybrid warfare offers important lessons for Kyiv’s European partners.

The Ukrainian experience highlights the gravity of the hybrid threat and the importance of an integrated response. The overall message to Western policymakers is clear: Moscow views hybrid warfare as an important Russian foreign policy tool and will continue expanding its campaign. Europe cannot afford to wait for Russian hybrid attacks to escalate further before building the advanced capabilities required to counter this threat.

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There have been growing reports of Russian hybrid war-style attacks across the EU since the onset of Russian aggression against Ukraine eleven years ago. This trend gained significant additional momentum following the start of the full-scale invasion in February 2022.

Typical incidents include cyberattacks targeting infrastructure, sabotage including arson attacks, and attempts to disrupt military aid destined for Ukraine. Moscow is also accused of investing billions of dollars in sophisticated social media campaigns to influence the outcome of elections across Europe. The Kremlin’s hybrid operations are concentrated in central and eastern Europe, with Poland, Romania, and the Baltic states among the primary targets.

None of this is new to Ukraine. For more than a decade, Ukrainians have been learning to cope with the full range of Russia’s hybrid warfare toolbox. Russia’s attack on Ukraine began in February 2014 when Russian soldiers without insignias took control of Ukraine’s Crimean peninsula in a lightning operation that was accompanied by a massive wave of targeted disinformation.

Russia’s subsequent efforts to destabilize and subjugate the rest of Ukraine have involved a combination of conventional military aggression, sabotage, cyberattacks, disinformation campaigns, and support for pro-Russian actors in Ukraine. Thanks to this prolonged exposure to Russian hybrid warfare, Ukraine has been able to develop countermeasures that have helped build resilience and reduce the impact of Russia’s hybrid operations.

Ukraine’s response has been a collaborative effort involving the Ukrainian government, civil society, and the private sector. In the cyber sphere, efforts to improve Ukraine’s digital security have played a key role, with the launch of the country’s popular Diia platform and the establishment of the Ministry of Digital Transformation helping to drive important digital governance reforms.

This has enhanced Ukraine’s ability to maintain public services amid acts of cyber aggression and has improved engagement with the population. Ukraine’s progress in the digital sphere has been recognized internationally, with the country climbing from the 102 spot to fifth position in the UN’s annual Online Services Index in the seven years between 2018 and 2025.

Ukraine’s coordination structures, such as the Center for Strategic Communications and the Ministry of Digital Transformation, enable swift and well-coordinated responses across government, media, and digital channels. This offers a number of advantages in a hybrid war setting. For example, it allows the Ukrainian government to synchronize positions with proactive narrative-setting when countering the Kremlin’s disinformation campaigns.

Ukraine has also benefited from a decentralized approach involving digital volunteers, civil society, and public-private partnerships. A wide range of civic tech groups and open-source investigators are active in Ukraine detecting and countering Russian disinformation. These measures have made it possible to expose Russian narratives efficiently, coordinate messaging across government and civil society, and maintain coherence during military operations.

Since 2014, Ukraine has been able to reduce Russia’s overwhelming initial advantages on the information front of the hybrid war. While Russian disinformation tactics continue to evolve and remain a major aspect of the ongoing invasion, Ukraine has managed to increasingly leverage information to shape international opinion and influence diplomatic outcomes.

At present, the European response to Russia’s hybrid war lacks the institutional agility and coordination between public sector and civil society that is evident in Ukraine. Instead, the EU and NATO have developed a number of parallel structures such as NATO’s Joint Intelligence and Security Division and the EU’s East StratCom Task Force. While these agencies continue to make meaningful contributions to the fight back against Russian hybrid warfare, they have yet to demonstrate the kind of real-time operational coordination that has served Ukraine so well.

Ukraine’s model for combating Russian hybrid warfare can’t be replicated in full, but it could serve as a practical reference point for building more adaptive and integrated responses across the West. Given Ukraine’s unique experience, it might make sense to establish a trilateral consultative framework together with the EU and NATO to enable rapid hybrid threat evaluations and coordinate responses.

Ukraine’s long record of countering Russian hybrid warfare has also highlighted the role of civil society. Kyiv’s European partners should consider increasing support for initiatives such as investigative journalism, fact-checking platforms, and technical watchdogs that can serve as support elements in a broader European defense ecosystem. In an environment where information is increasingly weaponized, Ukraine’s experience has also underlined the need to embed media literacy into the education system to ensure European citizens are able to consume information critically and are less vulnerable to Russian propaganda.

Maksym Beznosiuk is a strategic policy specialist and director of UAinFocus, an independent platform connecting Ukrainian and international experts around key Ukrainian issues.

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

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Trump’s Russia policy must be rooted in realism https://www.atlanticcouncil.org/blogs/ukrainealert/trumps-russia-policy-must-be-rooted-in-realism/ Thu, 05 Jun 2025 20:50:06 +0000 https://www.atlanticcouncil.org/?p=852009 The Trump administration favors a realist approach to international relations, but a pragmatic assessment of Russia’s capabilities and objectives is needed to achieve the stated goal of bringing the war in Ukraine to an end, writes Agnia Grigas.

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US President Donald Trump has recently changed his tone toward Russian president Vladimir Putin, suggesting that he has “gone crazy” and is “playing with fire.” This highlights the ongoing difficulties of negotiating with the Kremlin. While the Trump administration broadly favors a realist approach to international relations, a more pragmatic assessment of Russia’s capabilities and objectives could better equip the US to achieve its stated goal of bringing the war in Ukraine to an end.

Almost three months ago, Ukraine accepted a US proposal for a thirty-day unconditional ceasefire. So far, Russia has refused to do likewise. Instead, the Kremlin continues to demand a series of preconditions. Meanwhile, Russia has intensified its missile and drone strikes against Ukrainian civilian targets. When Trump recently backed Putin’s proposal for direct negotiations between Russia and Ukraine, the Russian leader then boycotted the subsequent Istanbul talks, sending only a lower-level delegation.

Within the Trump administration, key figures such as Vice President JD Vance, Secretary of State Marco Rubio, and Secretary of Defense Pete Hegseth have all articulated their support for a realist view of international relations. This implies sidestepping abstract ideological objectives and focusing on tangible power factors such as economic size, population, geography, and military strength.

The realist viewpoint is reflected in Hegseth’s assertion that Ukraine returning to its pre-2014 borders is “unrealistic.” It can also be seen in Trump’s statements that Ukrainian President Volodymyr Zelenskyy “does not have the cards” in negotiations with Russia, an assertion that seems far less certain in the wake of Ukraine’s successful recent strikes on Russia’s long-distance bombers.

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Some advocates of foreign policy realism argue that the US should seek to accommodate Russia, even at Ukraine’s expense. However, this approach tends to exaggerate Russia’s strengths, while underestimating the importance of the Kremlin’s imperial objectives and the relevant fact that Russian national security doctrine identifies the US as its principal adversary. A more comprehensive realist analysis of Russia reveals that, despite its assertiveness, Moscow’s power is in fact often overstated, while its appetite for compromise is limited.

Compared to the United States, Europe, and NATO, Russia simply does not “hold the cards,” to use Trump’s phrase. Its $2 trillion economy ranks outside the world’s top ten, trailing behind the US, China, Germany, Japan, India, and others. Although Russia has weathered sanctions, the prolonged war since 2022 has left its economy overextended and vulnerable.

The Russian population of 145 million is shrinking and ranks ninth globally, far behind the US and the collective European Union. Militarily, Russia’s large conventional forces have under-performed during the invasion of Ukraine while sustaining heavy losses. Russia’s $146 billion military budget, though substantial relative to neighboring states, pales in comparison to the $968 billion US budget in 2023, or even the collective defense spending of EU member states.

Russia remains a formidable nuclear power and frequently reminds the international community of this fact. Since the very first days of the Ukraine invasion in February 2022, Putin and other Kremlin officials have engaged in regular nuclear saber-rattling. But while Russia is the only nuclear power to make such threats, Putin has repeatedly failed to act when his red lines have been crossed by the Ukrainians, and has been publicly warned by his Chinese allies not to cross the nuclear threshold.

Since 2022, Russia has lost much of its energy leverage and is no longer Europe’s key energy supplier. Meanwhile, the United States has consolidated its position as a leading global energy exporter, particularly in liquefied natural gas (LNG). This is enabling Europe to diversify away from Russia while starving the Kremlin of vital revenue and geopolitical influence.

In realist terms, Russia’s power surpasses that of its immediate smaller neighbors but falls well short of the US or the European Union as a whole. Countries in Northern, Central, and Eastern Europe view Putin’s ambitions through a realist lens based on centuries of painful experience with Russian imperialism. They understand that Putin’s current goal of reasserting Moscow’s dominance over the territories of the former Soviet Union and Russian Empire is deeply rooted in the Kremlin’s perception of Russian national interests.

President Trump should not fall into the same trap as his predecessors. Past US administrations, from George W. Bush onward, have sought to normalize relations with Moscow but have consistently underestimated Russia’s enduring imperialist objectives. In 2001, Bush famously called Putin “trustworthy” and said he has been able to “get a sense of his soul.” And yet before the end of Bush’s second term, Putin had become increasingly hostile to the West and had invaded Georgia. US President Barack Obama then pursued a “reset” in relations with Russia, only for Putin to invade Ukraine in 2014.

US President Joe Biden initially adopted a similarly optimistic stance toward Moscow, emphasizing the importance of predictable relations with Russia. In May 2021, Biden canceled sanctions on the Kremlin’s Nord Stream II gas pipeline. The following month, he met Putin in Geneva for a bilateral summit that was widely viewed as a further concession to the Russian leader. Less than a year later, Putin launched the full-scale invasion of Ukraine.

Looking back, it is clear that US policy toward Russia has often been shaped by the optimism of incoming administrations rather than a sober, realist understanding of Moscow’s longstanding ambitions. A deeper grasp of Russia’s objectives and capabilities could help the Trump administration, alongside European leaders, to negotiate a ceasefire in Ukraine and achieve a durable peace. Approaching the Kremlin from a position of strength, through the implementation of new sanctions on Russia and sustained military support for Ukraine, would be essential tools in securing that peace.

Agnia Grigas is senior fellow at the Atlantic Council and author of “Beyond Crimea: The New Russian Empire.”

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

Follow us on social media
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What explains the transatlantic rift? It’s all about threat perception. https://www.atlanticcouncil.org/blogs/new-atlanticist/what-explains-the-transatlantic-rift-its-all-about-threat-perception/ Thu, 05 Jun 2025 15:24:49 +0000 https://www.atlanticcouncil.org/?p=851699 NATO allies’ differing threat perceptions provide the backdrop for what could be a contentious summit in The Hague this month.

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NATO allies are preparing for their summit at The Hague this month amid a frenzy of promises about increased defense spending, following US President Donald Trump’s call for allies to spend an unprecedented 5 percent of gross domestic product (GDP) on defense. Since taking office in January, Trump has mused about pulling back US forces from Europe while signaling a willingness to improve relations with Russia and even seize Greenland, a territory of NATO ally Denmark.

European policymakers have reacted to Trump’s moves with shock and doubt about the US commitment to NATO, and some have stepped up their defense pledges accordingly. “We still believe that the ‘N’ in NATO stands for North Atlantic and that our European allies should maximize their comparative advantage on the continent,” US Secretary of Defense Pete Hegseth said last week at the Shangri-la Dialogue in Singapore. “And thanks to President Trump, they are stepping up. An alliance cannot be ironclad if in reality or perception it is seen as one-sided.”

For its part, the European Union (EU) has approved a €150 billion defense funding loan program and allowed its members to exceed normal debt limits for military expenditures. Even before the EU’s moves, allies such as Poland and the Baltic States—who Hegseth called “model allies” in Singapore—were ramping up spending and sounding the alarm over the threat they face from Russia. But too many European allies have not yet increased their defense spending sufficiently.

What explains this contrast? Leading NATO allies (France, Germany, Italy, Poland, the United Kingdom, and the United States) diverge from one another because they face different threats and levels of threat perception. These differences explain each ally’s major defense decisions (defense spending, military structure, and military posture) as well as the ally’s role in and relationship to NATO. I explore this issue more deeply in my forthcoming book on NATO, drawing from ninety-eight interviews with current and former policymakers.

NATO allies’ different threat perceptions can explain much of the current crisis within the Alliance, and they provide the backdrop for what could be a contentious summit.

The United States: China trumps Europe

The Trump administration sees China as the most significant state security threat to US interests. The 2025 Annual Threat Assessment says that “China stands out as the actor most capable of threatening US interests globally.” The administration’s Interim National Defense Strategic Guidance reportedly focuses on the threat of a Chinese invasion of Taiwan as one of two priorities for the Pentagon, along with combating drug cartels.

The Trump administration has cited the threat from China to explain its European security policy. Hegseth said in February that the United States could not remain the primary guarantor of European security, telling allied military leaders in Brussels: “The US is prioritizing deterring war with China in the Pacific, recognizing the reality of scarcity, and making the resourcing tradeoffs to ensure deterrence does not fail.” The Interim National Defense Strategic Guidance reportedly concludes that because of the focus on China, European allies must do more for their own defense.

This view of China can also explain the Trump administration’s policy toward Greenland, an autonomous territory of NATO ally Denmark. Melting sea ice means that Greenland’s location will be critical for those seeking to control Artic sea lanes and it is home to large quantities of rare-earth minerals. US Secretary of State Marco Rubio has stressed that the United States would not use force to seize Greenland but only to protect it from encroachment by China.

This can also explain Trump’s significant, though inconsistent, turn toward Russia. Some have argued that the Trump administration is attempting a “reverse Kissinger,” aligning with Russia to weaken its ties to China. The Trump administration may even be turning toward Russia to pressure NATO allies into taking more responsibility for their own defense, as Victoria Coates, a former deputy national security advisor in Trump’s first term, has argued. Even though Trump has criticized Russian President Vladimir Putin, it is reasonable for European leaders to fear that a grand bargain between Washington and Moscow remains a distinct possibility.

Europe: Divided by diverse levels of threat

Europe is unable to defend itself without the United States. Europe lacks integrated air and missile defense, long-range precision strike, transport aircraft, as well as intelligence, surveillance, and reconnaissance capabilities. European allies are struggling to recruit, train, and equip sufficient troops for NATO’s new force model—doing so in the next decade without the United States would most likely be a bridge too far.

But even faced with these challenges, not every European NATO ally has shown the same level of urgency when it comes to increasing defense spending. The reason is that leading European allies face different threats and levels of threat, limiting the incentives of some allies to act. 

The overwhelming consensus among Italian officials, for example, is that instability in the wider Mediterranean is the most important security threat facing the country. Because addressing this threat does not primarily entail military means, Italy has not felt an urgent need to increase defense spending in response to Trump’s policies. While Italian Prime Minister Giorgia Meloni announced in April that Italy would spend 2 percent of its GDP on defense this year (up from 1.5 percent in 2024), no new funding has been allocated for this yet. What’s more, reporting suggests that the government could reach the 2 percent benchmark largely through accounting changes, such as including its Coast Guard in defense spending.

Meanwhile, from strategy documents and official statements, it is clear that Poland, Germany, France, and Britain all view Russia as their greatest security threat. However, they each have different levels of threat perception, which informs the differing approaches they have taken toward military spending.

Poland provides the starkest contrast with Italy. Warsaw plans to spend 4.7 percent of GDP on defense this year, up from 4.1 percent last year. Poland’s level of defense spending makes sense given the intensity of the threat it faces from Moscow and its proximity to Russia. Poland’s view is that only a US-led NATO can provide collective defense against the threat from Russia, so it is focused on pushing allies to comply with US demands to keep Washington committed to European security.

Concern that the United States could shift away has also led Germany to spend more on defense. Following Germany’s February election, German Chancellor Friedrich Merz led a successful effort to revise Germany’s constitution to allow borrowing above 1 percent of GDP for defense spending. On April 9, Merz announced a coalition agreement with the Social Democrats, which included a pledge to ramp up defense spending “significantly” to fulfill Germany’s NATO commitments. Germany views any US moves to withdraw from Europe with alarm, and Merz continues to insist that Germany and Europe do more to keep the United States engaged in NATO. Last month, Foreign Minister Johann Wadephul said Germany will “follow” Trump’s demand that allies spend at least 5 percent of GDP on defense.

France’s independent nuclear arsenal gives it an added degree of security against the threat from Russia. While France has used the Trump administration’s statements to push for European defense independence, Paris has not reacted with urgency in terms of its own defense spending. French President Emmanuel Macron has called for a new NATO spending target of 3 percent of GDP on defense but has not proposed a new figure for French defense spending (currently at 2.1 percent of GDP).

While Britain’s nuclear arsenal would normally provide it with an extra measure of security against Russia, the United Kingdom relies on the United States for its nuclear submarines. As such, the British government has doubled down on its relationship with the United States. British officials have embraced Trump’s criticism of allies who underspend on defense, and Foreign Secretary David Lammy has called for a NATO that is “stronger, fairer, and more lethal.” Just prior to Prime Minister Keir Starmer’s visit to the United States in February, the British government announced that Britain will spend 2.6 percent of GDP on defense by 2028, up from 2.3 percent this year.

Preserving a mutually beneficial relationship

The United States’ greater focus on China and push for Europeans to take more responsibility for their defense are likely irreversible trends. But the NATO Summit in The Hague later this month provides an opportunity for the United States and its European allies to reaffirm their commitments to the Alliance amid these shifting dynamics.

First, the Trump administration should use the summit to work with its European allies on a phased and structured exchange of responsibility for European security over the next decade. Under such a plan, the United States would work with European allies to develop defense capabilities they do not currently have while maintaining the commitment of the US nuclear deterrent.

Second, Trump should take the opportunity to reassure European allies. He should affirm that the United States would come to the aid of any NATO ally that is attacked. Trump should also state plainly that his administration will work with Denmark to bolster the defense of Greenland and that it does not intend to acquire the island by force.

Third, European countries should use the summit to announce further commitments on defense spending. Following through on such commitments will entail costly domestic tradeoffs. The present moment requires courage: European leaders must make the case that significantly more defense spending is necessary because of the threat Russia poses and the United States’ turn toward the Indo-Pacific. Italy’s government in particular will have a challenging task. Because Italians are focused on threats from the Mediterranean, officials in Rome will have to make the case that Russia’s threat to European security matters for Italy. European governments like Italy’s can also make a compelling case that spending more on defense may boost overall economic growth.

If NATO allies take these steps at this year’s summit, they can help build a future Europe more capable of defending itself and an Alliance that better serves both US and European interests.


Jason Davidson is a nonresident senior fellow at the Atlantic Council’s Transatlantic Security Initiative in the Scowcroft Center for Strategy and Security. He is also a professor of political science and international affairs and director of the Security and Conflict Studies Program at the University of Mary Washington in Fredericksburg, Virginia.

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The world needs a maritime ‘elite league’ to combat rogue shipping https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/the-world-needs-a-maritime-elite-league-to-combat-rogue-shipping/ Thu, 05 Jun 2025 15:00:00 +0000 https://www.atlanticcouncil.org/?p=849984 The International Maritime Organization was created to address ocean safety. As member states have begun to erode and undermine the organization, there is need for coalitions of the willing or a maritime "elite league' to come together and enforce stricter enforcement of international maritime rules and regulations.

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Key Takeaways

  • In April 2025, the International Maritime Organization approved an agreement reducing the shipping sector’s greenhouse gas emissions, making shipping the “first industry to legislate to decarbonize.”
  • That this happened without—and potentially despite—the United States signals that the mostly apolitical system that has regulated shipping since the 1950s is subject to the same geopolitical tensions weakening the postwar order.
  • With several large states undermining the organization, countries interested in curtailing the rise of shadow vessels and the associated risks of accidents and environmental damage should band together to keep their waters places where the highest standards apply.

A small group of nations established the International Maritime Organization in 1948 to create a modicum of global governance. Since then, IMO (as insiders call it) or the IMO (as most others call it) has fulfilled its task of functioning as a global parliament and secretariat for matters relating to ocean safety. Yet, like all other multilateral organizations, IMO depends on its member states’ goodwill and compliance. Today several large member states undermine the organization, and the United States left its negotiations over greenhouse gas reduction. IMO will continue to function as a steward of global ocean safety. But to achieve better maritime order, states should also join forces in coalitions of the willing or a maritime “elite league.” Countries in such formations could, for example, introduce stricter pollution or protection and indemnity (P&I) insurance rules.

Like many other organizations within the United Nations (UN), and the UN itself, IMO was established in the years immediately following World War II. Even with a Cold War rapidly forming, the world’s nations knew that they would need to share the oceans and that improving maritime safety was in everyone’s interest. Convening in Geneva in 1948, sixteen pioneering nations—ranging from Canada to Pakistan and including one country, Poland, from the emerging Soviet-led East bloc—formed the Inter-Governmental Maritime Consultative Organization (IMCO). 1

The Convention on the Inter-Governmental Maritime Consultative Organization stipulated that the new organization would provide “machinery for co-operation among Governments in the field of governmental regulation and practices relating to technical matters of all kinds affecting shipping engaged in international trade, and to encourage the general adoption of the highest practicable standards in matters concerning maritime safety and efficiency of navigation. It would also “encourage the removal of discriminatory action and unnecessary restrictions by Governments affecting shipping engaged in international trade so as to promote the availability of shipping services to the commerce of the world without discrimination.”2

The IMCO’s mission was to facilitate safe and fair global shipping. It did so based on consultations and consensus-focused decisions by its members. The convention stipulated that “the functions of the Organization shall be consultative and advisory” and that the organization should “provide for the drafting of conventions, agreements, or other suitable instruments, and to recommend these to Governments and to intergovernmental organizations, and to convene such conferences as may be necessary.”3 That gave the IMCO’s secretariat no decision-making powers—decisions were to be made by the member states—and certainly no enforcement power.

In successfully founding the IMCO, the sixteen nations had proven that a shared maritime organization was possible even among nations that shared virtually nothing else. They were soon joined by a steady stream of other countries, with early joiners including nations as different as Austria and Myanmar.4

Mission: Facilitate safe and fair global shipping

The organization proved valuable. As Cold War power dynamics became more entrenched, global shipping continued to function, with ships able to call at any chosen port regardless of the port state’s geopolitical leanings, the ship’s flag state, or the ship’s country of ownership. Along the way, IMO’s members adopted a string of conventions that enhanced shipping safety, including the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter in 1972, Safety of Life at Sea (SOLAS) in 1974, and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage in 1971 with an amended version in 1992.5 The latter forms the basis of the International Oil Pollution Compensation Funds, a London-based multilateral organization that administers two compensation to victims of oil spills. Another marquee agreement—the International Convention on Oil Pollution Preparedness, Response and Co-operation—was adopted in 1990.6

In 1982, having decided that the name IMCO was bulky and confusing, member states renamed the organization the International Maritime Organization. It has continued to oversee the safety of global shipping, and the cargo traveling by sea has continued to grow. In 1980, ships transported 3.7 billion tons of cargo on international voyages; by 2023, the volume had grown to 12.3 billion tons.7

Today IMO is the world’s default maritime organization, though crucially it is not the custodian of the United Nations Convention on the Law of the Sea (UNCLOS), known as the constitution of the oceans. One hundred and seventy-six of the world’s nations now belong to IMO; the only ones that do not are landlocked countries that have very low gross domestic product (GDP) per capita (such as Burkina Faso, $887), a tiny population (such as Liechtenstein, 39,850 residents), or both.8 Taiwan, which has a large maritime industry but is barred from joining the United Nations system as China considers it a renegade province, is also not a member. The IMO Assembly, which approves IMO’s activities and budget and elects IMO’s executive organ, includes all the organization’s member states and meets every two years

Guy Platten, secretary general of the International Chamber of Shipping, said, “What IMO has achieved has been remarkable, things like the MARPOL Convention [the International Convention for the Prevention of Pollution from Ships] and so many other conventions and instruments. The decision-making process does take time, and it’s quite tortuous at times, but the whole idea is that the organization tries to work on a consensus. That means compromises, but it’s pretty effective.”9 It has indeed been effective. Even though the 176 member states have widely divergent views and priorities, IMO has managed to become a global protector of safe shipping, albeit a slow-moving one that lacks enforcement powers. Instead, like other UN agencies, it relies on its member states to follow the rules to which they have committed themselves.

Geopolitics, greenhouse gases, and an abrupt US exit

In April 2025, the IMO Marine Environment Protection Committee convened in London to negotiate an agreement reducing the shipping sector’s greenhouse gas (GHG) emissions. The emissions account for about 3 percent of GHG emissions, and IMO member states had been debating and discussing stricter emission rules for several years. Intense negotiations at the April meeting eventually resulted in an agreement that “will progressively lower the annual greenhouse gas fuel intensity of marine fuels, and a greenhouse gas pricing mechanism requiring high-emitting ships to pay for their excess pollution.”10 The agreement is to be “mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total [carbon dioxide] emissions from international shipping.”

The agreement was adopted by a majority of member states (sixty-three, including the twenty-seven European Union (EU) members, the United Kingdom, Brazil, India, China, Norway and Singapore) voting in favor. Sixteen countries (including Saudi Arabia, the United Arab Emirates, and Russia) voted against it, and twenty-five countries (including Argentina and Pacific Island states) abstained.11 The agreement must be formally adopted by a two-thirds majority in October 2025; if that happens, it will enter into force in 2027.12 However, an unusual event occurred during the negotiations. On instructions from Washington, the US delegation abruptly departed; the US government also sent a note to the other member states, urging them to reconsider their “support for the GHG emissions measures under consideration.” According to two people close to the process who spoke to the author, the US government privately put further pressure on countries to reject the agreement or abstain. Referring to the greenhouse gas emission proposal, the US démarche added, “Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to U.S. ships and compensate the American people for any other economic harm from any adopted GHG emissions measures.”13

Brian Adrian Wessel, the director general of the Danish Maritime Authority and leader of the Danish negotiating team, said, “Geopolitics entered IMO with these negotiations. There was a coalition of oil-exporting states led by Saudi Arabia and a group of sanctioned states comprising Russia, Iran, Venezuela, and North Korea that opposed the agreement, and then the US de facto joined them in trying to block it. So it was left to the rest of the member states, including the EU and China, to work together to find a solution.”14

He added, “IMO stood its ground with a significant majority vote. In this day and age, a multilateral agreement on green transition is not a given in any way. The first maritime regulation on greenhouse gas emission, passed with a vast majority, that’s historic.”15

Platten said, “This is the first time in around fifteen years that an IMO agreement went to vote. It was quite a moment to be in the plenary hall when that happened. But nonetheless, we have an agreement now, which makes shipping the first industry to legislate to decarbonize, putting a carbon price for the first time, and some reward elements to it as well. What other industries have done anything like that? The answer is none whatsoever.”16 He continued, “IMO is one of the last UN bodies which is still functioning as a multinational body. I think that’s because shipping needs to be globally regulated. It cannot do anything else.”17

 

IMO is one of the last UN bodies which is still functioning as a multinational body. I think that’s because shipping needs to be globally regulated.

Guy Platten, secretary general of the International Chamber of Shipping

The deterioration of the global maritime order

The US departure from the negotiations, however, reflected a wider reality. The global maritime order, which nations and the maritime industry have painstakingly constructed over the last century, faces serious travails. To be sure, commitment to maritime treaties has never been complete. Some shipowners and flag states have been indifferent or reckless when it comes to pollution by their ships and, especially in recent years, countries have regularly violated UNCLOS. That was the case with the 1980s Tanker War between Iran and Iraq; the shadow maritime war targeting Iranian and Israeli merchant vessels in the Strait of Hormuz; the Houthis’ attacks on merchant shipping in the Red Sea; and China’s maritime harassment of civilian vessels in the South China Sea.

But nations and companies have largely adhered to IMO’s overwhelmingly technical conventions. One reason for this compliance is that better safety practices benefit everyone. Another is that any ship calling at a port is subject to port state control, the maritime equivalent of a safety inspection, which means that independent inspectors register any rule violations. Owners and flag states must address these deficiencies before ships can continue their journeys.

As the rules-based international order continues to deteriorate, commitment to IMO rules is also slipping. Even though the MARPOL Convention bars ocean pollution (whether involving oil or other substances) by merchant vessels, the world’s growing shadow fleet willingly and systematically accepts a disproportionate risk of oil spills.18 In May 2023, the shadow tanker Pablo exploded off the coast of Malaysia, causing oil spills in local waters, and other shadow vessels have spilled oil elsewhere.19 Despite such dangerous incidents, IMO has been unable to ensure compliance with its rules—even though its member states include several “flags of extreme convenience” (my term) that primarily flag shadow vessels. Insisting on compliance is made yet more difficult by the fact that shadow vessels don’t call at ports of Western countries, where post state controls are typically fully implemented, but instead sail straight to their destination or perform ship-to-ship transfers before returning to their ports of origin. “It’s very tempting to start saying, if they don’t play by the rules, why should we then play by the rules?” Wessel noted.20

Response options for nations committed to maritime governance

IMO member states could introduce proposals aimed at curtailing dangerous shadow vessel practices or, for that matter, proxy group attacks on merchant shipping. Indeed, some IMO member states are teaming up to at least bring attention to systematic violations. “We try to work closely together where we see such issues, whether it’s in Asia or in our own neighborhood, and then take it into the IMO,” Wessel said.21Interview with the author, April 22, 2025.22 Yet most attempts at strengthening rules or creating new ones are likely to be unsuccessful, as nations benefiting from the practices would vote against the measures and encourage other countries to do the same.

“What IMO can do is act as a facilitator,” Platten said. “Everyone wants safe shipping, and that’s what IMO regulates. People make grand statements at IMO, whether it’s on the Ukraine issue or anything else, but ultimately it’s a technical body that decides on regulation for shipping. It’s never at its best when there’s political grandstanding. It’s much better when it gets on with things as it did with the greenhouse gas agreement, which is people working late, late, late into the night to try and find some landing ground.”23

Within IMO, a significant number of countries around the world are indisputably committed to maintaining and enhancing maritime governance. By definition, shipping encompasses the whole world, and IMO remains irreplaceable as the forum through which the world’s nations can maintain standards. However, it can no longer be assumed that all members want to enhance the global maritime order.

The fact that IMO depends on its global membership for any action, and that leading nations now openly undermine the maritime order, means there is a gap in global maritime governance. It’s clearly in no country’s interest to impose more governance on itself while other countries use the world’s oceans impeded by fewer rules, but countries could team up in self-selecting groups to enhance maritime rules in their waters.

For example, while UNCLOS’s right to innocent passage is sacrosanct, countries affected by the shadow fleet could collectively adopt pollution rules that go beyond MARPOL. The countries that could initiate such an undertaking include coastal states in the Baltic Sea and the North Sea, as well as Malaysia, Indonesia, Singapore, and other countries whose territorial waters and exclusive economic zones shadow vessels regularly traverse.

As the shadow fleet has also led to systematic subversion of maritime incident insurance (known as the P&I club system), coastal states in different parts of the world now share the seemingly intractable problem that suspected shadow vessels sail through their waters with insurance barely worth the paper on which it is written. They, too, can team up to adopt stricter insurance rules. Adopting stricter pollution rules, P&I insurance rules, or both would enhance maritime safety without detracting from IMO. In that way, they would resemble initiatives by NATO member states that have a regional focus and take place outside NATO but don’t undermine the Alliance. They include, most prominently, the Joint Expeditionary Forces, which encompass ten northern European countries.24

Sailing in safer waters

The International Maritime Organization serves the world’s nations and the shipping industry well, but it is undermined by growing geopolitical tensions and decreasing commitment to global rules and institutions. While IMO can continue serving a crucial function as the world’s default maritime convener, nations committed to the maritime order can enhance safety in their waters by forming coalitions of the willing that share, for example, stricter rules on pollution or P&I insurance. That would make sailing in their waters more expensive. It would also, however, help nations committed to the maritime order establish a maritime “elite league” in whose waters all maritime participants would know that the highest standards apply.

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1    “Member States,” International Maritime Organization, last visited April 25, 2025, https://www.imo.org/en/OurWork/ERO/Pages/MemberStates.aspx
2    “Convention on the International Maritime Organization,” International Maritime Organization, last visited April 25, 2025, https://www.imo.org/en/About/Conventions/Pages/Convention-on-the-International-Maritime-Organization.aspx
3    “Convention on the International Maritime Organization,” International Maritime Organization, last visited April 25, 2025, https://www.imo.org/en/About/Conventions/Pages/Convention-on-the-International-Maritime-Organization.aspx
4    “50 Years of Review of Maritime Transport, 1968–2018: Reflecting on the Past, Exploring the Future,” United Nations Conference on Trade and Development, 2018, https://unctad.org/system/files/official-document/dtl2018d1_en.pdf
5    “International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage,” International Maritime Organization, last visited May 12, 2025, https://www.imo.org/en/About/Conventions/Pages/International-Convention-on-the-Establishment-of-an-International-Fund-for-Compensation-for-Oil-Pollution-Damage-(FUND).aspx
6    “List of IMO Conventions,” International Maritime Organization, last visited May 12, 2025, https://www.imo.org/en/About/Conventions/Pages/ListOfConventions.aspx
7    “50 Years of Review of Maritime Transport, 1968–2018”; “Review of Maritime Transport 2024,” United Nations Conference on Trade and Development, 2024, https://unctad.org/publication/review-maritime-transport-2024
8    “Member States,” International Maritime Organization, last visited April 25, 2025, https://www.imo.org/en/OurWork/ERO/Pages/MemberStates.aspx; “GDP Per Capita (Current US$)—Burkina Faso,” World Bank Group, last visited May 12, 2025, https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=BF; “Population, Total—Liechtenstein,” World Bank Group, last visited May 12, 2025, https://data.worldbank.org/indicator/SP.POP.TOTL?locations=LI
9    Interview with the author, April 14, 2025.
10     Vibhu Mishra, “Countries Reach Historic Deal to Cut Shipping Emissions,” UN News, April 11, 2025, https://news.un.org/en/story/2025/04/1162176
11     John Snyder, “The ‘Great’ Compromise: IMO Agrees to Global Carbon Price for Shipping,” Riviera Maritime Media, April 14, 2025, https://www.rivieramm.com/news-content-hub/the-great-compromise-imo-agrees-to-global-carbon-price-for-shipping-84527; “IMO Approves Net-Zero Regulations for Global Shipping,” International Maritime Organization, April 11, 2025, https://www.imo.org/en/MediaCentre/PressBriefings/pages/IMO-approves-netzero-regulations.aspx
12    Mishra, “Countries Reach Historic Deal to Cut Shipping Emissions.”
13     Jonathan Saul, Michelle Nichols, and Kate Abnett, “US Exits Carbon Talks on Shipping, Urges Others to Follow, Document Says,” Reuters, April 9, 2025, https://www.reuters.com/sustainability/boards-policy-regulation/us-exits-carbon-talks-shipping-urges-others-follow-document-2025-04-09
14    Interview with the author, April 22, 2025.
15    Interview with the author, April 22, 2025.
16     Interview with the author, April 14, 2025.
17     Interview with the author, April 14, 2025.
18    Elisabeth Braw, “From Russia’s Shadow Fleet to China’s Maritime Claims: The Freedom of the Seas Is under Threat,” Atlantic Council, January 23, 2025, https://www.atlanticcouncil.org/in-depth-research-reports/report/from-russias-shadow-fleet-to-chinas-maritime-claims-the-freedom-of-the-seas-is-under-threat/
19    “Oil Suspected from Pablo Wreck Washes Ashore in Indonesia,” Maritime Executive, May 5, 2025, https://maritime-executive.com/article/oil-suspected-from-pablo-wreck-washes-ashore-in-indonesia; Braw, “From Russia’s Shadow Fleet to China’s Maritime Claims.”
20    Interview with the author, April 22, 2025.
21    
22    
23     Interview with the author, April 14, 2025.
24    “The Joint Expeditionary Force,” Joint Expeditionary Force, last visited May 12, 2025, https://jefnations.org/.

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Bayoumi in the Washington Post on strengthening US-Canada ties through defense cooperation https://www.atlanticcouncil.org/insight-impact/in-the-news/bayoumi-in-the-washington-post-on-strengthening-us-canada-ties-through-defense-cooperation/ Thu, 05 Jun 2025 11:21:56 +0000 https://www.atlanticcouncil.org/?p=853526 On June 5, Imran Bayoumi, associate director of the GeoStrategy Initiative, co-authored an op-ed in the Washington Post with Greg Pollock, former acting deputy assistant secretary of defense, highlighting the importance of strong US-Canada relations for both countries’ economic and defense interests. They argue that one way to strengthen ties between the two neighbors is […]

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On June 5, Imran Bayoumi, associate director of the GeoStrategy Initiative, co-authored an op-ed in the Washington Post with Greg Pollock, former acting deputy assistant secretary of defense, highlighting the importance of strong US-Canada relations for both countries’ economic and defense interests. They argue that one way to strengthen ties between the two neighbors is for Canada to boost its defense spending—particularly in the geopolitically critical Arctic region.

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Ukraine just gave us a glimpse into the future of European defense https://www.atlanticcouncil.org/content-series/inflection-points/ukraine-just-gave-us-a-glimpse-into-the-future-of-european-defense/ Thu, 05 Jun 2025 11:00:00 +0000 https://www.atlanticcouncil.org/?p=851736 European allies need both military capabilities and technological innovation to deter Russia, as Ukraine’s recent drone strikes on Russian air bases underscore.

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Ukraine’s audacious attack on Russian strategic bombers this past weekend, damaging more than a third of Russian President Vladimir Putin’s capabilities, provided an encouraging glimpse into what should be the future of European and transatlantic defense.

Imagine a world in which Ukraine, working alongside European and North American partners, so convincingly wields advanced technological and defense capabilities that Putin stops his murderous war and agrees to a sustainable peace. That also would send an unmistakable message of transatlantic common cause to Russia’s partners: China, North Korea, and Iran.

However, that outcome can only be achieved if the European Union (EU), after decades of neglect, turns Ukrainian inspiration and a flood of new defense spending announcements into real capabilities and technological innovation. It will also require that the Trump administration unambiguously back its European allies at the June 24-25 NATO Summit in The Hague as the Alliance makes new spending and defense production commitments.

‘A fusion of World War I and World War III’

The good news is that most NATO countries appear ready to agree at the summit to increase their defense spending to 3.5 percent of gross domestic product by 2035, along with an additional 1.5 percent for defense- and security-related infrastructure. For its part, the EU has already approved 800 billion euros in new defense spending across the bloc over the next four years.

The bad news comes in three categories: production, policies, and politics. First, even a great deal more money won’t necessarily result in the production, innovation, and capabilities required to deter Russia. Second, policies and regulations on both sides of the Atlantic provide impediments to effective defense industrial cooperation. Third, political strains and distrust have increased across the Atlantic over US President Donald Trump’s trade wars and his administration’s decision to withhold arms and intelligence from Ukraine for about a week in March. 

Trump’s phone call with Putin yesterday, after which he said without comment that the Russian leader felt a strong need to respond to Ukraine’s strikes inside Russia, didn’t help. Ukraine and its European partners would have preferred clear recognition that Putin started the war, has the power to end it, and should do so now.

Even with all of that said, Europe’s most immediate and important task is to demonstrate that it can provide for its own security, given the Trump administration’s understandable reluctance to do more for US allies than they are willing to do for themselves. 

“Ukraine has shown that modern warfare is a fusion of World War I and World War III—combining trench warfare with cutting-edge technologies,” write Ann Mettler and Mark Boris Andrijanič in a must-read piece in Euractiv. “Unless Europe learns to master both, its security, sovereignty, and very survival will be at stake.” 

Few know the stakes better than Mettler, a former director-general at the European Commission, and Andrijanič, a former Slovenian minister for digital transformation and a current Atlantic Council Europe Center senior fellow. They outline a compelling course of action to reverse EU security weaknesses.

“As Russia’s aggression edges closer to EU borders and the transatlantic alliance weakens,” they write, “Europe stands at an inflection point.” European defense budgets are finally increasing, they note, “but if past performance is any indication of future results, there is cause for concern.”

For example, despite hundreds of billions of euros of investments into digital and green agendas, the EU remains reliant on American software and Chinese hardware, from solar panels to batteries. “This reveals a harsh truth,” they write, “spending alone doesn’t guarantee innovation. And in defence, failure won’t just be costly—it could be fatal.” 

‘Something we should have done years ago’

I came away from a recent Atlantic Council delegation trip to Brussels, where we met with top NATO and EU defense planners, with new hope for European security but also growing concern about transatlantic division in the face of persistent Russian threats. 

It’s clear that Europe has been shocked into action by two leaders: Putin and Trump. The Russian president’s full-scale invasion of Ukraine in February 2022 was a wake-up call for a complacent Europe. Yet it was only Trump’s return to the presidency this year that injected Europe with a greater sense of urgency.

It’s telling that Mettler and Andrijanič don’t include a transatlantic dimension in their proposals in Euractiv. I asked Andrijanič about this omission, and he said, “Unless Europe gets serious about defense, we can’t be a credible partner for the United States.” He added, “Suddenly we are doing something we should have done years ago. Europe is now laser-focused on developing as many critical capabilities as possible—and doing it fast.”

In their Euractiv article, Mettler and Andrijanič list as their priority the creation of a common market for defense, stretching from the EU to partners such as the United Kingdom, Norway, Switzerland, and, in particular, Ukraine. For the moment, the only European-headquartered company among the global top ten defense firms is the United Kingdom’s BAE Systems.

The authors also call for new EU regulatory guidance that would remove the stigma against defense and dual-use investments to unlock private and institutional capital. They also want to shake up Europe’s “sluggish defense procurement rules and procedures.” 

To achieve greater innovation, the authors want to create a European ecosystem of “established industry players, startups and scaleups, investors, governments, and research institutions.” One intriguing proposal is for a dedicated collaboration platform to create a “wall of drones” along Europe’s eastern flank, so that Ukraine’s weekend success isn’t a one-off but is underpinned by “a coordinated deployment of autonomous drone swarms for surveillance and defense.” 

The authors seize upon two successful US models to accelerate this European effort. One would be the creation of a European DARPA, modeled on the Pentagon’s Defense Advanced Research Projects Agency, which has focused on developing emerging technologies for national security. They would do that through transforming the existing European Defence Fund into “a better-resourced, more agile, and mission-driven institution.”

A second idea would be to use the US Defense Innovation Board, first chaired by former Google CEO Eric Schmidt, as a model for a European Defence Innovation Council. This high-level, independent group would provide strategic advice to the EU and member states on defense-related tech.

Write the authors, “The good news for Europe is that the world’s leading defence innovator is already among us, and on our side—Ukraine. Despite intense wartime pressures, the country has emerged as a frontrunner in drone technology, cyber warfare, and the integration of artificial intelligence on the battlefield. In contrast to Europe’s slow and costly model of incremental innovation, Ukraine excels in frugal innovation to rapidly deliver scalable, cost-effective, and highly impactful solutions.”

Two awful words

One way or the other, the upcoming NATO Summit will be one of historic importance. What’s positive is an Alliance-wide commitment, after pressure from Trump, for greater spending aimed at producing cutting-edge capabilities. What’s negative is insufficient recognition that transatlantic common cause on Ukraine and beyond is more crucial than ever.

Speaking to the NATO Parliamentary Assembly in Dayton, Ohio, last week, NATO Secretary General Mark Rutte put it this way: “Russia has teamed up with China, North Korea, and Iran. They are expanding their militaries and their capabilities. They are preparing for long-term confrontation.”

Quoting Winston Churchill from 1936, Rutte asked, “Will there be time to put our defenses in order? . . . Will there be time to make these necessary efforts, or will the awful words ‘too late’ be recorded?” 


Frederick Kempe is president and chief executive officer of the Atlantic Council. You can follow him on X: @FredKempe.

This edition is part of Frederick Kempe’s Inflection Points newsletter, a column of dispatches from a world in transition. To receive this newsletter throughout the week, sign up here.

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Why Iraq should build bridges with its ‘new’ neighbor, Syria https://www.atlanticcouncil.org/blogs/menasource/iraq-syria-baghdad-summit/ Wed, 04 Jun 2025 18:34:01 +0000 https://www.atlanticcouncil.org/?p=851621 Iraq's position on the Syria transition is split between two camps: the official government, and that of the powerful non-state actors.

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Since the opposition ousting of Bashar al-Assad in Syria, Western powers have cautiously embraced Interim President Ahmad al-Sharaa as the country’s new legitimate leader. The new Syrian government, consisting of technocrats and high-profile former dissidents of the Assad regime, is actively reaching out to international actors in a quest to rebuild bridges.

The Syrian president’s diplomatic visits to Saudi Arabia, the United Arab Emirates (UAE), Qatar, Jordan, France, and Turkey seemed auspicious and held promising potential. However, his potential in-person attendance at the Arab Summit in person was the center of some controversy.

Baghdad’s position on the rapid developments in Syria is split between two camps: The official government and that of the powerful non-state actors.

The Iraqi government’s initial response to Syria was cautious, including the closure of border crossings and the deployment of troops to the 630-kilometer border with Syria. But Baghdad slowly shifted towards a more pragmatic approach and eventually sent its officials on formal visits to Syria, in a move that acknowledged the legitimacy of the new regime. These efforts culminated with the Iraqi prime minister’s April meeting with al-Sharaa in Doha, where he extended a formal invitation to the Arab Summit, which Baghdad hosted in mid-May.

Alternatively, Iran-affiliates in Iraq have vocally opposed such normalization efforts. Over fifty members of the Iraqi parliament, many of whom have close ties to the Shiite Coordination Framework, signed a petition to reject al-Sharaa’s Baghdad visit, and parliament member Mustafa Sanad even organized a protest against his presence at the summit. Additionally, militia leaders such as Qais al-Khazaali and Abu Ali al-Askari, who command militia groups that were active in Syria until recently, posted direct threats on their X accounts towards the Syrian president. Media platforms with Iranian affiliations have been working in parallel with politicians to promote a disinformation campaign about al-Sharaa’s criminal record in Iraq, by issuing fake documents and tampered proof of incarceration.

Iraqi militias have a long history of hostility towards some of the Sunni militant groups with which al-Sharaa was involved in previous years. These Islamist Jihadist groups rose to power in Iraq in 2014 and took over one third of Iraqi territories, subsequently the liberation of these areas was a lengthy and costly process for the Iraqis. Iraqi militias continue to use the same justification for their military intervention in Syria in the past years, which is the need to “protect” holy Shiite sites, and continue to insist that it remains a pressing issue even under the new regime.

Quiet hostilities and alliance of necessity

Under Baathist control, Syria had longstanding grievances with Iraq. Before the spark of turmoil in Syria, for example, Iraq’s former prime minister Nouri al-Maliki had accused Assad of sending militants and terrorists into the country. But economic ties, in part due to the movement of 1.2 million Iraqi refugees into Syria during the early aughts, softened hostilities. During this period, economic trade between Syria and Iraq reached its peak at four billion US dollars annually. At the time, 60 percent of Iraq’s imports came from Syria.

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But this dynamic shifted drastically after 2011 with the eruption of the Arab Spring and the anti-Assad uprising in Syria. Iran seized the opportunity to broker a new relationship between the two countries, where political and security interests were tied and emphasized, and sectarian fault lines were deliberately exploited. Iraqi militias, along with Iranian forces and the Assad regime, took part in suppressing the rebels’ seizure of Syrian cities during these years. Over fifteen Iraqi militias, with just over 75,000 fighters, were estimated to have participated in battles in Syria over thirteen years. In parallel, Iraqi territories provided a safe land corridor for Iranian reinforcement and personnel traveling to Syria, and three domestic drug trafficking corridors from Syria and Iran to neighboring countries.

Economic relations endured despite the security shakeup. Even after 2011, Iraq continued to import agricultural products from Syria in addition to food, textiles, plastic goods, medicine, and many other commodities. Syrian products comprised 80 percent of Iraqi markets; however, this percentage declined to only 5 percent after December 2024.

The new reality and future prospects

Iraq underutilized its agricultural capacity for years and depended on Syria for food security. By solidifying economic relations with the new Syria through trade agreements, transportation infrastructure, and meaningful investments, Iraq can further multiply the fruits of cooperation and guarantee water, food, and fuel security. 

Since the historic overthrow of the Assad regime in Syria, Baghdad has sent three delegations with high-profile officials to meet with officials from the new government in Damascus.

The latest, in April, held the highest significance and marked the new Iraqi pragmatist approach to the recent developments with its neighbor. It included more specialized Iraqi officials like the head of the Iraqi National Intelligence Service, along with representatives from the Department of Border Enforcement, the Ministry of Trade, and the Ministry of Oil.

This delegation directly addressed economic interests in Syria, most notably the Kirkuk-Baniyas oil pipeline. Iraq currently exports oil through Basra Sea ports, land, and the Kirkuk-Ceyhan pipeline. However, resuming operations on a direct pipeline to the Mediterranean would result in substantial economic gains, increasing Iraq’s oil export capacity by 300,000 Bpd. Negotiating access for Iraq to the Syrian Mediterranean ports will diversify Iraq’s options in trade and the global supply chain. It will also decrease the costs of importing European goods and commodities to Iraq and other parts of the region.

Meanwhile, as the West slowly opens up to the new Syrian government, Iraq should also take part in the country’s efforts to rebuild as an influential neighbor. Iraq’s energy sector, in particular, is an institutionalized and mature one, and Iraq’s national oil companies can offer their investments in Syria’s natural resources. Iran’s power decline in the region not only left a political vacuum but also an economic one, too. And as Tehran’s expenditures in Syria ranged from thirty billion US dollars to above fifty billion dollars, and Iranian investments worth hundreds of millions of dollars were under construction at the time of regime change.

Additionally, Iraq hosts between 800 thousand to a million foreign workers, many of whom transfer their earnings in dollars back to their home countries— mostly southeast Asia—draining eight billion US dollars of foreign currency. Baghdad now has a golden opportunity to strengthen both its economy and regional ties by facilitating the legal entry and employment of Syrian workers into the private sector. As a source of affordable and skilled labor, Syrian workers can help meet domestic labor demands in the private sector, while their earnings, reinvested into the Syrian economy, can further deepen economic interdependence between the two countries.

The security question

However, stability must come first before economic prosperity.

While the international discourse is focused on minority rights and power-sharing guarantees, Iraq and Syria have a deeper understanding of the security challenges that are unique to them. The Iraqi-Syrian border witnessed the rise and fall of extremist groups that were behind some of the deadliest conflicts for civilians in recent years. The Iraqi government failed for years to secure the porous border with Syria and control illicit economic activities that thrived on the vulnerable periphery. Furthermore, the northern parts of both countries have suffered spillover effects of conflict between their neighbor, Turkey, and Kurdish rebel groups.

After the global coalition against the Islamic State (ISIS) successfully defeated the militant group, al-Hol prison and similar camps isolated ISIS families and the remnants from their surrounding populations. This ended up dragging many innocent civilians into these enclosures, including three thousand missing Yazidi women and girls who are believed to be entrapped in this camp and whose situation remains a pressing issue. Moreover, two thousand Assadist soldiers fled to Iraq in the first few hours of the regime’s fall, and were later returned to Syria by the Iraqi authorities.

Such incidents are likely to continue in Syria’s transitional period and can only be combated through cooperation with Iraq. Lastly, Israeli Prime Minister Benjamin Netanyahu’s explicit comments about dividing Syria into four administrations to establish a so-called ‘David’s Corridor’ pose a direct threat to Iraq’s border integrity and internal security. Iraq—among other regional actors—must establish a joint approach to refute this hollow and short-sighted political agenda. A fragmented Syria risks becoming a persistent epicenter of regional instability.

Policy recommendations for the Iraqi government

At this turning point in the region’s history, Iraq has a rare opportunity to start a new chapter with Syria.

Welcoming the Syrian president in Baghdad to the Arab Summit could have served as the first practical step towards a new relationship, but this was not achieved due to continuous militia intimidation.  The threats made by non-state actors resulted in the withdrawals and cancellations of many heads of state from the summit, including al-Sharaa, and instead sent low-level delegations. The Iraqi government should implement mechanisms to regulate and hold accountable militias and other non-state actors whose public positions contradict official state policy and risk undermining Iraq’s diplomatic relations.

Syria’s interim President Ahmed al-Sharaa attends an interview with Reuters at the presidential palace in Damascus, Syria, March 10, 2025. REUTERS/Khalil Ashawi

Opening effective channels of communication between the Iraqi and Syrian governments will be critical in efforts to stabilize and normalize. The Iraqi government should continue with regular, high-profile official visits to Syria. This will ensure Iraq’s input in critical and strategic decisions faced by the Syrian government and guarantee a seat at the transition table.

These communications should be inclusive beyond government officials and extend to civil society, local communities, and tribal or religious leaders. In the midst of the current storm of misinformation and disinformation around the situation in Syria, granular relationships will help local communities adapt and respond to rapid transitions, especially with population movement and voluntary return of refugees.

To truly deepen a partnership between the two countries, Iraq should also work closely with the new Syrian regime to establish a high-level security cooperation, including immediate investments in border crossings and towns, to prevent the resurgence of extremist groups and smuggling activities across the joint border. These areas were neglected and under non-state actors’ control for years, and government takeover will mean a regulated, taxed, and monitored movement of goods and travelers.

And to enable prosperity after ensuring security, Baghdad should continue to identify economic opportunities and solidify them with memoranda of understanding, trade agreements, and investment deals. In the six months since the regime change in Syria, there has been a significant investment momentum and capital interest from regional and international actors. Therefore, supporting the Syrian-Iraqi business council has become a pressing necessity, as the efforts to rebuild Syria are mounting through direct foreign investments, as the Syrian economy recovers after lifting the sanctions. Feedback from businessmen on both sides will provide input on market gaps, demand potential, stakeholder engagement, industry trends, and trade dynamics. All of which can be used as a blueprint for economic cooperation.

Part of this picture should include Baghdad legalizing the status of Syrians who wish to stay in Iraq as part of the labor force. Iraq’s Ministry of Labor should create a legal framework to incentivize Syrian skilled workers’ employment in the Iraqi private sector. Doing so will curb the influx of undocumented and unregulated immigrant workers from outside the region, limit foreign currency outflow, and meet the private sector employment needs.

Over the past thirteen years, Iraq’s role in Syria has been marked by hardship and complexity. Now, the current Iraqi administration holds the opportunity to turn a new page and help shape a future defined by peace and regional cooperation.

Shermine Serbest is an Iraqi researcher and international relations analyst. She leads many data-focused projects covering Iraq, Iran, and the Middle East, focusing on misinformation and disinformation and the political economy.

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US interests can benefit from stronger congressional ties with the Caribbean   https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/us-interests-can-benefit-from-stronger-congressional-ties-with-the-caribbean/ Wed, 04 Jun 2025 18:00:00 +0000 https://www.atlanticcouncil.org/?p=851385 The US has a northern border, a southern border, and a third border: The Caribbean. Inconsistent US policies have weakened ties. Stronger and more consistent congressional engagement can build lasting cooperation, safeguard US interests, and support regional growth.

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Toplines

  • The Caribbean’s geographic proximity to the United States—as well as its use as a transit point for US citizens, goods, and financial services—makes it a crucial hub for US national interests. However, the relationship has suffered from inconsistent and infrequent assistance. Changes in US policy priorities bring ever-changing adjustments to US engagement, leaving the Caribbean, its leadership, and its institutions with insufficient time to benefit from US policy action.
  • For Caribbean countries, policy continuity is critical for implementation and to see tangible and meaningful development. The region’s small populations and markets, vulnerability to natural disasters and changing global commodity prices, and limited institutional capacity slow the pace of receiving and utilizing development assistance and support.
  • Underpinning US-Caribbean ties with stronger US congressional engagement can provide needed longevity to the relationship. Congressional actions—like newly appropriated resources and committee hearings—can bring tangible benefits to US-Caribbean relations.

Where should the US Congress put its attention?

The heterogenous nature of the Caribbean offers various opportunities to strengthen relations with the region and, by extension, advance US interests. From natural gas to geothermal energy, Caribbean countries offer new opportunities for US investment. Reducing crime and gang proliferation across the region can protect US citizens traveling abroad and stem the potential flow of illicit goods and services.

Energy security

The United States can strengthen its positioning in the Caribbean by supporting regional energy security. At current estimated reserves, Guyana, Suriname, and Trinidad and Tobago house almost 30 trillion cubic feet of natural gas, with further offshore exploration expected to increase the size of reserves. At the same time, other countries require reliable power generation–which can be provided by liquified natural gas (LNG) imports–to provide resilience to their electricity grids during natural disasters, improve economic competitiveness, and to underpin ambitions to add renewables to their energy matrix.

Here, the United States will find opportunities on three fronts. First, natural gas exploration opportunities, liquefaction infrastructure, and building pipelines and LNG storage are areas where US oil and gas companies and mid-size service-based companies can invest. Second, imported oil from Guyana, Suriname, and Trinidad and Tobago can be low-cost and competitive options vis a vis other suppliers to satisfy growing US energy demand and supplement domestic shale supply in Texas and Midwestern states. Finally, congressional members can work with the Southern Caribbean hydrocarbon producers to support energy security in Europe and lessen demand for Russian energy resources by increasing cargo exports to EU members.

Greater Caribbean energy security can also lead to lower electricity prices, which can benefit constituents of US congressional members traveling to the Caribbean and potentially reduce migration to the United States. Most of the region (except for Suriname and Trinidad and Tobago) pays some of the highest electricity in the Americas (see Figure 3), which is on average, double or triple what US consumers pay. At the same time, electricity costs can account for almost 70 percent of a hotel’s utility due to air conditioning, lighting, and heating, among others.

Therefore, to keep profits stable, the high costs translate to the consumer–in this case, US tourists. This means that by bringing down electricity costs and lowering the cost to travel and having overnight stays in the Caribbean, US tourists benefit and have more purchasing power to buy in-country goods (most of which are imported from the United States). Further, reducing electricity prices can stem Caribbean emigration flows to US shores given that high costs of living are a key migratory push factor.

Reducing violent crime and gang activity

Security concerns in the Caribbean are on the rise. Figure 4 shows that Caribbean countries have high homicide rates (per 100,000) relative to their Latin American neighbors. Rates have been on the rise due to increased gang proliferation and illegal imports of small arms–many of which originate from the United States. For example, countries like Trinidad and Tobago, declared a state of emergency late 2024 due to increased gang activity and the usage of high-powered assault weapons. Gang proliferation is also on the rise. While Caribbean countries do not house large gangs, smaller gangs pervade the region, using the informal ports of entry to move illicit guns, goods, and services. In 2021, Jamaica identified 379 different gangs with 140 named in 2023 for Trinidad and Tobago. The decentralized nature of criminal and gang networks in the region inhibits Caribbean governments and police forces’ abilities to combat gang operations. Further, gangs in the Caribbean, especially in Jamaica, are turf oriented. This allows smaller gangs to gain a foothold in local communities, sometimes acting as community leaders and providing needed social services and protection from rival gangs.

Addressing the Caribbean’s security challenges can protect US citizens traveling to the region and curb gang activity and illicit trafficking before they reach US shores. Travel destinations for US citizens, such as Jamaica and islands in the Eastern Caribbean are among the most violent in the region. Therefore, improving citizen safety in the Caribbean ensures US citizens’ safety as well. Given that gun-related activities are a primary driver of citizen insecurity, one solution is for US agencies to work closer with Caribbean defense and police forces to improve monitoring, tracking, and seizures of illegal small arms.

Further, stemming gang activity in the region can also disrupt transnational criminal organizations’ operations. Specifically, Caribbean countries are used as a transit point for drugs, many of which end up in the United States. Enhanced maritime security and interdiction in the Caribbean Sea can help interrupt illegal drug supply chains and weaken transnational criminal organizations. However, the capacity to monitor drug flows is a challenge. Partnerships with the United States to gain access to satellite imagery and drone technologies to identify drug shipment routes can provide Caribbean governments the needed tools to tackle drug flows.

Bottom lines

  • The challenges facing Caribbean countries are growing and have consequences that are not constrained to the region’s geographic borders, likely to directly or indirectly affect US interests. This can be avoided if there are consistent and strong partnerships between the Caribbean and the United States. This can and should start with stronger US congressional engagement to the region.
  • US congressional members should consider legislation that prioritizes a holistic strategy with appropriated resources to the Caribbean. While CBSI tackles security challenges, support is needed across the energy, infrastructure development, agricultural, and financial services, among others.
  • Given the importance of the Caribbean to US interests, the House Foreign Affairs Committee should consider a hearing that highlights new opportunities to strengthen US interests in the Caribbean and the broader US-Caribbean partnership.
  • Strengthening US-Caribbean ties start with building a foundation for a long-term partnership. US congressional engagement can help turn four-year policies into decades of friendship, all while protecting US interests along its “third border.”

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The Adrienne Arsht Latin America Center broadens understanding of regional transformations and delivers constructive, results-oriented solutions to inform how the public and private sectors can advance hemispheric prosperity.

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Can Gabon become a beacon of democratic entrenchment for West and Central Africa? https://www.atlanticcouncil.org/blogs/new-atlanticist/can-gabon-become-a-beacon-of-democratic-entrenchment-for-west-africa/ Wed, 04 Jun 2025 14:22:04 +0000 https://www.atlanticcouncil.org/?p=851023 Brice Oligui Nguema’s post-coup election as president of Gabon offers an opening for democratic reforms and greater prosperity.

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Among West and Central African countries that have experienced coups in recent years, Gabon offers a small sliver of hope.

In 2023, Brice Oligui Nguema, the former head of Gabon’s Republican Guard, took power in a bloodless coup. This coup was carried out just one day after aging President Ali Bongo was reelected in a contest that many within the country viewed as a fraudulent attempt by Bongo and his allies to perpetuate the nearly sixty-year political dynasty that began when his father took power in 1967.

While it would be easy to wrap this event in the same blanket as the many other West and Central African military coups between 2020 and 2024 that disrupted an unprecedented period of peaceful civilian rule across the region, Gabon’s situation is different in several ways.

The military coups and their aftermaths in Mali, Guinea, Burkina Faso, and Niger have followed a similar pattern: They all occurred in poor and unprosperous countries; they were all followed by some sort of in-fighting or conflict within interim governments (and a second coup in the case of Burkina Faso); and the elections promised in all four countries have yet to take place.

By contrast, Gabon enjoys a comparatively enhanced level of national wealth and societal prosperity. With a population of just 2.3 million people and vast reserves of oil, gold, and manganese, Gabon boasts the second-highest gross domestic product (GDP) per capita in continental Sub-Saharan Africa. It also has the third-highest prosperity score among the region’s countries in our Freedom and Prosperity Indexes, which measure prosperity levels across 164 countries by tracking income, health, inequality, environmental health, the treatment of minorities, and education. While Gabon suffers from a level of income inequality that rivals other countries in the region, on the whole, it is more prosperous than its West and Central African counterparts. Furthermore, while Gabon’s coup did give way to an interim military government, there was little to no post-coup conflict. And Gabon held democratic elections on April 12, 2025, that, while not without significant flaws, were nevertheless acclaimed by local, regional, and international observers as peaceful, lawful, and fair.

Gabon is more prosperous than its neighbors

Turning the page on the Bongo dynasty

In the weeks leading up the first election since the 2023 coup, Nguema’s picture could be seen plastered all over the capital city of Libreville. After serving as interim president for nineteen months, he was officially elected president on April 12, winning more than 90 percent of the vote. Both before and after the election, Nguema pledged to “restore dignity to the Gabonese people” and to root out the country’s corruption, which the legal subindex of our Freedom Index indicates is among the worst in Sub-Saharan Africa.

Despite these popular goals, the president has not been without his detractors. Such high vote shares are often indicative of corruption, and critics of Nguema note that he has long been a part of the corrupt political system he pledges to dismantle and that he broke his promise to relinquish power after deposing Bongo. In fact, Nguema is Bongo’s cousin and recently allowed Bongo and his wife to relocate to Angola despite them facing ongoing (but unspecified) corruption charges.

And although voter turnout was high and local observers were largely satisfied with the integrity of the election, Nguema’s most prominent opponent—former Prime Minister Alain Claude Bilie-By-Nze—accused Nguema of taking advantage of state resources to fund his campaign.

Furthermore, his interim government adopted a new constitution in 2024 that the Africa Center for Strategic Studies argues grants too much power to the executive and specifically favored Nguema. For example, the new constitution prevented a major political opponent from running in the election by banning candidates over seventy years of age. It also broke from past tradition by including a clause that allows military members to run in elections, extended the length of presidential terms to seven years, and eliminated the position of prime minister altogether. During Nguema’s time leading the interim government, he also suspended all political parties in a move that critics say gave him a distinct electoral advantage.

While Nguema was greeted with scenes of celebration after carrying out the 2023 coup and won an election victory indicative of overwhelming public support, it remains to be seen whether he is willing and able to instigate meaningful democratic reforms.

Yet, even if competition was restricted in this election, the very fact that it happened and that the Gabonese people were able to peacefully vote for someone other than a member of the Bongo family shows that there is an appetite for change and a willingness to engage in the most fundamental act of democracy.

In short, the years since the coup have provided both reason to believe that a more democratic future in Gabon is possible and reason to fear that Nguema is simply replacing the Bongo family’s form of autocracy with his own.

What the data tell us

The Freedom and Prosperity Indexes highlight a number of trends indicating that a country’s surest path to prosperity involves improving political and economic freedom, as well as the rule of law. Conversely, the data tell us that restricting freedom is a proven way to diminish societal well-being.

When a country experiences a freedom shock—meaning the one-year drop in its Freedom Index score is among the top 20 percent globally since 1995—its progress on prosperity tends to stall or even reverse as time goes on.

A country’s prosperity tends to stall or decline after experiencing a freedom shock

The drop in Gabon’s freedom score from 2022 to 2023 was among the most severe freedom shocks ever recorded—within the top 5 percent of one-year declines over the past thirty years. This decline was driven by a sharp dip in the country’s political freedom score, which was in turn driven by an even sharper fall in its elections score, which measures the extent to which political leaders are chosen in open, clean, and fair elections.

Gabon’s political freedom has declined sharply in recent years

Furthermore, out of the forty-six countries in Sub-Saharan Africa for which we have data, Gabon ranks thirtieth in the judicial independence and effectiveness indicator and thirty-eighth in the legislative constraints on the executive indicator.

Gabon’s judicial independence is below the regional average

Gabon’s executive has fewer legislative constraints than the regional average

It is important to recognize that these issues were fomented by the Bongo regime. However, the disempowered nature of the judiciary and legislature and the recent broad decline in political freedom show that Nguema must act quickly to reverse course before declines in freedom hinder Gabon’s long-term progress on prosperity. The country’s freedom score has changed very little in the time that Nguema has held power as interim president, with political freedom in further, albeit minimal, decline.

Despite Gabon’s impressive prosperity levels and per capita GDP in relation to its neighbors and to the broader Sub-Saharan Africa region, over one-third of the population currently lives in poverty. The Bongo family was known for gorging themselves on resource wealth while much of the population was left to suffer. Despite its high overall prosperity score, Gabon ranks in the bottom third of all Sub-Saharan African countries in the inequality component of the Prosperity Index. It has the fourth-highest unemployment rate in Sub-Saharan Africa, with over 20 percent of the total labor force—and 40 percent of young people—currently unemployed. If Nguema falls back on the autocratic habits of his predecessor and chooses personal wealth over the well-being of his country, any hope for democracy in Gabon that followed the 2023 coup will quickly die out.

The path to enduring freedom and prosperity

The data clearly show that establishing democracy as the political norm will help Gabon set itself apart from its neighbors and enhance national prosperity.

To create a strong and vibrant democracy, Nguema must first come to terms with the idea that his tenure as president is not indefinite. He must also commit himself to empowering core institutions of democracy such as the legislative branch and courts, and he must protect the societal freedoms that are fundamental to thriving democracies. This should include allowing political parties to exist and organize and lifting targeted age limits for presidential candidates.

By committing to competitive democracy and political freedom, Nguema can most effectively enhance prosperity and, in particular, reduce the inequality that has plagued Gabon for so long. It is too early to tell for sure whether Nguema has assumed the presidency with the intention of institutionalizing democracy and reducing inequality in Gabon or with the intention of ruling as an autocrat. What is certain is that the end of the Bongo regime—and the democratic impetus provided by the national election—provides Nguema with the opportunity to turn Gabon into the success story that West and Central Africa has been yearning for. For the good of the people who elected him, Nguema should do everything in his power to capitalize on it.


Will Mortenson is a program assistant at the Atlantic Council’s Freedom and Prosperity Center.

Correction: This article was updated on June 4, 2025, to reflect the fact that Gabon is located in Central Africa, not West Africa.

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What Lebanon’s municipal election results mean for Hezbollah https://www.atlanticcouncil.org/blogs/menasource/lebanon-elections-hezbollah/ Wed, 04 Jun 2025 13:37:06 +0000 https://www.atlanticcouncil.org/?p=851499 Municipal election results did not demonstrate the militant group’s dominance over Lebanon’s Shiites, but Hezbollah nevertheless retains popularity.

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Lebanon’s political machine is moving again.

In May, the Lebanese concluded country-wide municipal and mayoral elections—their first in nine years—on the heels of Joseph Aoun filling Beirut’s two-year presidential vacancy, and an uncharacteristically speedy appointment of a prime minister and cabinet.

Mere momentum should not be equated with long-term progress towards stabilization, particularly with respect to Hezbollah’s disarmament. The municipal election results did not demonstrate the prominent militant group’s outright dominance over Lebanon’s Shiites. However, Hezbollah nevertheless retains preponderant popularity among them and influence over their electoral and political choices. However, as Hezbollah dubbed them, these elections were a “promotional event” for the real prize: the May 2026 legislative elections. If the group can then expand upon its recent electoral success, and if Aoun’s interminable dialogue with Hezbollah over its arms ever becomes serious,  then it can leverage its popular and political weight to steer those discussions toward an outcome allowing it to retain its arms.

Unpacking the results

Hezbollah boasts that its sweep of the municipal and mayoral elections in Beirut, Baalbek-Hermel, and south Lebanon was a virtually unmitigated “tsunami.”

At face value, the group’s claims are true.  In south Lebanon’s Nabatieh and South Governorates, Hezbollah’s joint electoral list with the Amal Party, dubbed the “Development and Loyalty” list, ran unconstested and won 109 of 272 municipalities by default. In some municipalities, this victory was due to overwhelming local support for Amal and Hezbollah, and in others, to pressure from those parties forcing opponents to withdraw their candidacy or forgo running altogether.

The Amal-Hezbollah lists also took the overwhelming majority of the remaining municipalities, where the elections came down to a contest, with the exception of a handful of seats. But even there, the self-described Amal-Hezbollah Shiite Duo largely did not lose out to outright ideological opponents, apart from Amal’s loss of two municipal seats in Deir Al Zahrani to the Communist Party. Instead, in many cases, the group lost to familial or clan lists, otherwise seemingly neutral on the question of Hezbollah’s private arsenal.

In the Sidon District’s Zrarieh, for example, Development and Loyalty won only six of the fifteen contested seats against the opposition, development-focused “Build It Together” list.  But opposition figure Riad al-Asaad—who has previously bemoaned American-led attempts to weaken Hezbollah as “an Israeli goal” and who backed Build It Together— insisted that “competition [with Hezbollah] isn’t over the choice of resistance, but development.”

These successes replicated earlier wins in the Baalbek-Hermel Governorate, which witnessed significantly higher voter turnout over the last municipal elections in 2016. Here, Development and Loyalty won all eighty municipalities—twenty-eight by default, twenty-nine through electoral contests, and twenty-two where independent pro-Hezbollah lists competed with each other. In many cases here as well, the Amal-Hezbollah list faced off against ostensible independents, but who were nevertheless ideologically aligned with Hezbollah, as in Bednayel, where Development and Loyalty confronted the explicitly pro-Hezbollah “Loyalty to the Resistance” list, or in Brital, where the Hezbollah-Amal backed “Brital Families” list faced openly pro-HezbollahLoyalty and Development” list.

For example, Hezbollah-backed candidates swept the municipal council after a hard-fought electoral battle in the city of Baalbek. But voting numbers painted a more complex picture: of 37,142 eligible voters—22,573 of whom are Shiites—a range of 11,674-12,199 voted for Development and Loyalty, while the political opposition list “My City Baalbek” garnered 5,258-5,802 votes. The latter only attracted four hundred to 790 Shiites, compared with 11,290 Shiites for Development and Loyalty, demonstrating the continued loyalty of Hezbollah’s sectarian base. Meanwhile, Hezbollah increased its inroads into Baalbek’s Sunni population, drawing close to 1500 of their votes, and widened its victory margin over My City Baalbek from the 2016 municipal elections.

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But these results, good as they are, were far from the unmitigated success that Hezbollah’s propaganda organs sought to spin. In a main Hezbollah stronghold like the city of Baalbek, the group should consider its victory margin too close for comfort, especially as voter turnout in the city itself, in sharp contrast to the District and Governorate level, stood at approximately 47.2 percent generally, and 53.51 percent among Shiites specifically. This was higher than 2016’s level of 44 percent turnout of 31,510 eligible voters. However, it was still low considering the group’s great efforts to encourage its base’s participation in an election painted as a referendum on Hezbollah’s arms and existence, occurring at a historical inflection point for Lebanon.

The electoral battles in the more populous South Lebanon and Nabatieh Governorates offered a starker warning to the group. These areas collectively witnessed similarly depressed voting levels—36.94 percent overall (43.17 percent in South Lebanon and 36.65 percent in Nabatieh) compared to 48.15 percent in 2016. Hezbollah’s results were also spottier at face value, with opposing lists, if not outright ideological opponents, making deeper inroads among the electorate despite ultimately failing to unseat the Hezbollah-Amal Duo.

The apathy factor

One plausible explanation is that Hezbollah has lost at least some of its ability to mobilize its loyal masses. This could stem, from, as some have alleged, growing Shiite discontent with the party, particularly over instigating the recent ruinous war with Israel—which could portend a massive backlash against Hezbollah coupled with sizable defections from its base’s ranks. But the materialization of this scenario depends on a complex set of currently absent factors, particularly the existence of a credible and unified Shiite opposition, with the means and ability to deliver on these people’s needs, and thus attract this alleged silent anti-Hezbollah majority.

It is more plausible that the depressed voter turnout had nothing to do with Hezbollah. After all, the silent—and allegedly anti-Hezbollah—majority of Lebanese southerners didn’t go out and vote for the group’s opponents either. They stayed home.

Therefore, rather than a silent vote against Hezbollah, their abstention seems to have stemmed from overall Lebanese political disillusionment and loss of hope in the system’s ability to bring about change, leading to complacency. In September of 2024, for example, Arab Barometer found 76 percent of all Lebanese “uninterested in politics,” while 45 percent described themselves as highly apathetic. Two years prior, 65 percent of Lebanese had even said they didn’t care if their country remained a democracy—more accurately, a procedural democracy—as long as it “can maintain order and stability.” 

Political apathy isn’t ideal for Hezbollah. But a Shiite population as politically quiescent and disinterested as the rest of the Lebanese would not undermine the group’s political power, and is thus preferable to an actively hostile one. This, coupled with other factors, like fear of being caught in the midst of Israel’s ongoing military actions that escalated in the days preceding the election, and the difficulty of traveling to south Lebanon for voters displaced by the recent war, could have also impacted voter turnout.

Delayed disarmament

The municipal elections were the last in several significant, post-war milestones during which Hezbollah needed to demonstrate that it remains the primary political and social representative of Lebanese Shiites. But this victory is fragile, delaying, for now, he group’s disarmament, despite the calls for such action gaining increasing momentum.  But delaying that prospect does not eliminate it altogether. That specter will continue to haunt Hezbollah unless and until it can expand its municipal election successes come 2026’s parliamentary plebiscite—sweeping all seats it contests while denying Shiite opposition figures any electoral victories, drive up the voting rate among its supporters, and broaden its share of the popular vote. It’s a tall order, but Hezbollah has long proven itself a learning organization, and it will use all the carrots and sticks at its disposal to achieve that result. Here, a combination of delivering on post-war reconstruction of predominantly Shiite areas damaged during the recent war with Israel, while cowing potential opponents with threats, legal action, and actual force, will prove critical to the group’s chances of success.

The question is, will its opponents likewise learn from their mistakes and failure to challenge the group’s Shiite hegemony at a time when they allege its sway over that sect is at its weakest ever—or will they once again rest on the laurels of their empty slogans and symbolic or imaginary triumphs, leaving the “Party of God” to once again be the victors?

David Daoud was a nonresident fellow with the Atlantic Council’s Rafik Hariri Center and Middle East Programs and a research analyst on Hezbollah and Lebanon at United Against Nuclear Iran (UANI).

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Putin’s punitive peace terms are a call for Ukraine’s complete capitulation https://www.atlanticcouncil.org/blogs/ukrainealert/putins-punitive-peace-terms-are-a-call-for-ukraines-complete-capitulation/ Tue, 03 Jun 2025 21:42:17 +0000 https://www.atlanticcouncil.org/?p=851471 Vladimir Putin's punitive peace terms for Ukraine would leave the country at the mercy of the Kremlin and confirm his unwavering determination to erase Ukrainian statehood, writes Peter Dickinson.

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Russian and Ukrainian delegations failed to achieve any meaningful breakthroughs when they met for peace talks in Istanbul on Monday. The event was not a complete waste of time, however. Aside from agreeing on another welcome round of prisoner swaps, the two sides also exchanged peace proposals that confirmed the complete lack of middle ground for any kind of meaningful compromise to end the fighting.

While Ukraine’s proposal laid out a fairly pragmatic vision based on battlefield realities and security concerns, Russia presented punitive peace terms that would reestablish Kremlin control over Kyiv and doom the postwar Ukrainian state to a slow but inevitable death. This uncompromising Russian position should serve as a wake-call for anyone who still believes Putin is negotiating in good faith. In reality, the Russian dictator is more determined than ever to destroy Ukraine, and is merely exploiting US-led peace talks in order to strengthen his hand and divide the West.

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The demands unveiled by the Russian delegation this week in Istanbul came as no surprise and closely mirrored the conditions outlined on numerous prior occasions by Putin and other Kremlin leaders. Nevertheless, at a time when US President Donald Trump is publicly pressing for progress toward peace, the Russian decision to deliver such a maximalist memorandum sent a clear message of defiance to Washington DC.

As expected, Moscow reiterated its call for Ukraine to withdraw completely from four Ukrainian provinces that Russia currently claims as its own but has been unable to fully occupy. This would oblige the Ukrainian authorities to hand over a number of major cities and condemn millions of their compatriots to indefinite Russian occupation. Kyiv would also be expected to officially cede these regions together with Crimea, paving the way for international recognition of Russia’s conquests.

This crushing territorial settlement is only one aspect of Russia’s vision for the comprehensive dismantling of Ukrainian statehood. In line with Putin’s peace terms, Ukraine would be forced to accept limitations on the size of its army and on the categories of weapons it is allowed to possess. The country would be also be barred from joining any military blocs or concluding alliances with foreign nations. It does not take much imagination to guess what Putin has in mind for Ukraine once it has been successfully disarmed and internationally isolated.

Nor is that all. The Kremlin’s conditions actually go much further and aim to transform Ukraine from within in ways that would erase Ukrainian identity along with the country’s political independence. Moscow’s memorandum called on Ukraine to grant Russian the status of official state language, reinstate the privileges of the Russian Orthodox Church, and adopt a Kremlin-friendly version of Ukrainian history. Meanwhile, all so-called “nationalist” Ukrainian political parties would be banned, paving the way for the installation of a puppet regime in Kyiv.

On the morning after this week’s bilateral meeting, former Russian President Dmitry Medvedev confirmed the true objective of Russia’s participation in peace talks. “The Istanbul talks are not for striking a compromise peace on someone else’s delusional terms,” commented Medvedev, who currently serves as deputy chairman of Russia’s powerful National Security Council. Instead, Medvedev stated that Russia’s goal was to secure victory and ensure “the complete destruction of the neo-Nazi regime,” which is widely recognized as Kremlin code for the Ukrainian state. “That’s what the Russian memorandum published yesterday is about,” he noted.

Medvedev’s frank appraisal of the Russian position won him sarcastic praise from US Senator Lindsey Graham. “Congratulations to Mr. Medvedev for a rare moment of honesty coming from the Russian propaganda machine,” commented Trump ally Graham. “I appreciate you making it clear to the world that Putin and Russia are not remotely interested in peace.”

It is hard to argue with Graham’s assessment. For the past few months, Putin has gone out of his way to demonstrate that he has absolutely no intention of ending the war. While Ukraine has accepted a US proposal for an unconditional ceasefire, Putin has repeatedly refused to do so. Instead, he has engaged in transparent stalling tactics that make a mockery of the entire peace process.

Away from the negotiating table, Putin has dramatically increased drone and missile attacks on Ukrainian cities, killing and wounding hundreds of civilians. On the battlefield, his armies are currently engaged in the early stages what is shaping up to be one of the biggest Russian offensives of the entire war. These are not the actions of a man who seeks peace.

After this week’s fresh confirmation of Moscow’s undiminished imperial ambitions in Ukraine, it is now surely time to abandon any lingering delusions and accept that the Russian dictator will not stop until he is stopped. Putin believes he is on a messianic mission to extinguish Ukrainian statehood and revive the Russian Empire. He currently thinks he is winning this historic struggle and will not be swayed by Trump’s comparatively trivial talk of tariffs and trade deals.

The only thing that can change Putin’s mind is Western strength. As long as Putin is confident of eventual victory, he will continue. But if the alternative to a peace deal is a potentially crushing defeat, he may reconsider. To achieve this change, Western leaders must demonstrate a degree of collective resolve that has often been absent over the past three years. They must sanction Russia to the max and arm Ukraine to the teeth. This will require considerable political will and good old-fashioned courage in Western capitals. Ukraine will do the rest.

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

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Experts react: What does South Korean President Lee Jae-myung mean for Indo-Pacific security? https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/what-does-president-lee-jae-myung-mean-for-south-koreas-future/ Tue, 03 Jun 2025 20:30:30 +0000 https://www.atlanticcouncil.org/?p=851267 Democratic Party candidate Lee Jae-myung has been elected as South Korea’s next president. Atlantic Council experts delve into what his administration could mean for Indo-Pacific security and more.

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No time for a victory party. Early Wednesday morning, Democratic Party candidate Lee Jae-myung was named the winner of South Korea’s presidential election, and later the same day he will be sworn into office, without the typical two-month transition period. The election and immediate instatement follow a stretch of political upheaval in South Korea. In April, conservative President Yoon Suk Yeol was removed from office, after he declared a short-lived state of martial law in December 2024. So, will Lee’s leadership mean a calmer political future for the country? Looking at the wider region, how will the leadership shift from right to left affect South Korea’s policies toward the United States, North Korea, China, and Japan? Atlantic Council experts are on the job today answering these questions and more below.

Click to jump to an expert analysis:

Sungmin Cho: For Lee, the economy comes first, but expect foreign policy shifts nonetheless

Kayla Orta: Lee’s “pragmatic” approach comes as Seoul faces a more hostile security environment

Shawn Creamer: Military spending and shipbuilding are two areas of engagement with the Trump administration

Ryo Hinata-Yamaguchi: Lee seems poised to take a pragmatic and balanced approach to regional security


For Lee, the economy comes first, but expect foreign policy shifts nonetheless 

To understand Lee’s foreign policy orientation, it is more useful to compare his positions with that of former President Moon Jae-in, rather than that of Yoon, his conservative predecessor. 

Lee’s foreign policy will generally align with the Democratic Party’s traditional approach, promoting dialogue with North Korea and maintaining stable ties with China. But he is notably more pragmatic than Moon. While Moon emphasized peace and inter-Korean reconciliation, Lee advocates conditional dialogue with Pyongyang, taking a step-by-step approach toward denuclearization. His foreign policy advisers, Wi Sung-lac and Kim Hyun-chong, are known more as internationalists than nationalists, reinforcing Lee’s pragmatic stance. 

Lee prioritizes economic issues, and he has repeatedly stated that economic recovery is his top priority. During the campaign, for example, he pledged to establish an “Emergency Economic Taskforce” if elected. Given this focus, Lee is unlikely to pursue major foreign policy initiatives at first, avoiding Moon’s active diplomacy among Washington, Pyongyang, and Beijing. 

South Korea’s foreign policy shifts may instead stem from external developments, especially if US President Donald Trump reengages with North Korean leader Kim Jong Un. Lee would likely support a third Trump-Kim summit and would not oppose US troop reductions if Washington insists. While such moves could reduce tensions on the Korean Peninsula in the short term, there is concern that North Korea might exploit weakened deterrence to launch limited attacks against South Korea whenever it sees fit, as occurred during the 2010 crises. 

Taiwan issues will test Lee’s pragmatism. Under US pressure for support, he will likely exercise strategic ambiguity to the maximum—quietly discussing contingency plans with Washington while avoiding public commitments. He will neither support nor oppose United States Forces Korea’s strategic flexibility. At the same time, Lee is likely to emphasize South Korea’s acknowledgment of the “One China” policy to maintain balance in its relations with Beijing. 

In sum, Lee’s foreign policy is marked by pragmatism and economic urgency, distinguishing him from Moon’s more ideological and nationalistic approach. 

Sungmin Cho, PhD, is a nonresident senior fellow in the Indo-Pacific Security Initiative at the Atlantic Council’s Scowcroft Center for Strategy and Security and an associate professor in the Department of Political Science at Sungkyunkwan University.


Lee’s “pragmatic” approach comes as Seoul faces a more hostile security environment

Lee ran on the platform of a “pragmatic” foreign policy, but whether his administration will be able to rise above the nation’s entrenched partisan divides to strengthen South Korea’s geostrategic position within the Indo-Pacific region remains to be seen.

Six months to the day since Yoon declared martial law, South Korean citizens took to the voting booths to elect a new leader. Lee’s win over the People Power Party nominee Kim Moon-soo heralds another pendulum swing in South Korea’s political leadership. As the liberal party returns to the presidency, the battle to address South Korea’s domestic political turmoil is only just beginning, and the nation’s fierce partisan divide is likely to continue. 

The political aftermath of Yoon’s call for martial law shocked the nation, weakening confidence in South Korea’s decades-long democratic institutions. The next South Korean president will have a challenging five-year term ahead to reestablish public confidence in the government at home while simultaneously addressing South Korea’s foreign policy concerns abroad.

North Korea’s ongoing weapons of mass destruction and missile programs—and its expanded security partnerships with Russia and China—present an immediate and existential threat to South Korea. Seoul faces a more hostile security environment today than it did under Moon, Lee’s liberal predecessor who leaned into diplomatic engagement with Pyongyang. Many in South Korea are increasingly concerned about North Korea’s “irreversible” nuclear arms buildup and more than 70 percent of polled citizens consistently call for South Korea’s own nuclear armament in the near future. 

Amid growing regional insecurity, Seoul’s relationships with Washington and Tokyo will matter. Despite previous statements, Lee campaigned on continuing to strengthen South Korea–Japan relations, building upon his predecessor’s US–South Korea–Japan trilateral security cooperation to address the growing instability in the Indo-Pacific region. However, balancing proactive foreign policy and intensifying domestic demands, as previously seen, is not an easy task.

Overall, Lee’s “pragmatic” diplomacy may signal strategic policy investment in bridging the conservative-liberal political divide. Lee may yet step up foreign policy initiatives in South Korea’s interest, building upon his predecessor’s foreign policy agendas.

Kayla T. Orta is a nonresident fellow in the Indo-Pacific Security Initiative at the Atlantic Council’s Scowcroft Center for Strategy and Security.


Military spending and shipbuilding are two areas of engagement with the Trump administration 

Lee’s election as president of South Korea is an opportunity to restore domestic political stability and resurrect Seoul’s reputation on the international stage following the martial law declaration, impeachment, and court drama surrounding the removal of Yoon from office. Domestic stability is made possible more from the political unity of the executive and legislative branches of government under the progressive Democratic Party than from a popular mandate. Political unity will likely allow the South Korean government to break out of partisan gridlock and make gains on efficient and effective governance. 

While Lee will have party unity, there is a sizable conservative opposition that maintains low degrees of trust in the more leftist elements of the Democratic Party, including the new president. Time will tell whether Lee governs more like the centrist candidate or the leftist opposition politician of his past. 

If the past is representative of the future, Lee will progressively evolve toward the center on foreign policy over his five-year term, as his Democratic Party predecessor Moon did. Moon learned, despite a troubled relationship with Trump, that South Korean sovereignty was best served by close alignment with the United States rather than an arrangement that subordinates it to the People’s Republic of China. Moreover, Moon learned that a deal with the Kim regime in North Korea would not be worth the paper it was printed on. Regrettably for peace and security in Northeast Asia, the Korea-Japan relationship will likely remain cool under Lee for the duration of his term based on the entrenched views of the Democratic Party.  

There is both risk and opportunity for Lee in South Korea’s alliance with the United States. Lee holds some strong cards if he plays them well. 

South Korea already funds its defense at 2.8 percent of its gross domestic product (GDP), and it has one of the most capable armed forces of all US allies. Lee should set in motion an increase in defense spending to above 3 percent of GDP in 2026 and chart a path for this to increase to at least 3.5 percent by 2030, demonstrating that South Korea is the US security partner of choice. Continued maturation of the Korean armed forces will also position South Korea to defend its interests in a very difficult neighborhood, while meeting alliance transformation benchmarks and increased Korean roles in combined defense. 

Second, Korean manufacturing is extremely strong, particularly in shipbuilding. Lee should leverage Korean dominance in shipbuilding to help Trump rebuild the US Navy, giving Trump a political win and assisting the United States in maintaining its global extended deterrence commitments. South Korean advanced manufacturing capacity offers additional opportunity for the United States and European rearmament efforts. Lee can leverage this assistance to advance Korea’s global economic interests on more favorable terms.   

There are also risks to the relationship with Washington, especially if Lee and Trump have a personality conflict. Lee will also find trouble with the US relationship if he seeks to deepen Korea’s relations with China or is overly antagonistic to Japan, the other major US ally in East Asia.      

Shawn Creamer is a nonresident senior fellow in the GeoStrategy Initiative, Scowcroft Strategy Initiative, and Indo-Pacific Security Initiative at the Atlantic Council’s Scowcroft Center for Strategy and Security.


Lee seems poised to take a pragmatic and balanced approach to regional security

Lee’s victory in Tuesday’s presidential election was expected, given his ability to court the centrist majority and the conservative camp’s feuds to field a united force. But while Lee’s election is a victory for the Democratic Party, his populist but realist orientation is likely to make him a different type of revisionist than his more ideological predecessor Moon. Still, given the controversies surrounding Lee, as well as uncertainties over his and the Democratic Party’s policies, the new administration will struggle to unite the deep divisions in South Korea.  

On the foreign policy and security front, it is possible that the new administration will take a balanced and pragmatic approach rather than a revisionist one. During the campaign, Lee talked about peace on the Korean Peninsula and restoring the 2018 military agreement with Pyongyang—trademark positions of the progressives. At the same time, he recognized the importance of the alliance with the United States and trilateral coordination with Japan—priorities for the conservatives. Even though much of this balanced approach was certainly part of Lee’s election strategy, it also reflects the strong recognition within South Korea about the importance of US-Japan-South Korea trilateral security coordination; threats posed by North Korea, China, and Russia; and the limited prospects of improving inter-Korean relations.  

While there are many uncertainties about the Lee administration, Tokyo and Washington should continue working with Seoul to ensure strong, resilient, and sustainable trilateral security cooperation, which is imperative for stability in the Indo-Pacific region.  

Ryo Hinata-Yamaguchi is a nonresident senior fellow in the Indo-Pacific Security Initiative, an associate professor at Tokyo International University, and a senior adjunct fellow at Pacific Forum.

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India-Gulf relations are muted—but mobilizing https://www.atlanticcouncil.org/blogs/menasource/india-gulf-relations-are-muted-but-mobilizing/ Tue, 03 Jun 2025 17:12:36 +0000 https://www.atlanticcouncil.org/?p=851288 The depth of Indian-Gulf relations creates a strong foundation for increased India-Middle East integration over the coming decades.

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The day the current India-Pakistan conflict ignited, with the April 23 terrorist attack by a Pakistan-based militant group on tourists in India-administered Kashmir, Indian Prime Minister Narendra Modi was in Jeddah holding meetings with Crown Prince Mohammed bin Salman. 

This was his third visit to Saudi Arabia as prime minister, and the focus was on enhancing a relationship that has grown significantly in recent years.  Modi first went to the Kingdom in 2016 and then again in 2019, when the bilateral Strategic Partnership Council was established.  This mechanism has been used to facilitate approximately fifty deals, including construction, telecommunications, and tech projects, and to establish a joint committee to bring one hundred billion dollars of Saudi investments into India. 

With rising tensions between India and Pakistan, paired with the Israel war’s continuing destruction of Gaza, it’s natural that talk of India-Gulf Cooperation Council (GCC) relations has been muted lately.  However, the depth of Indian-Gulf relations, combined with recent momentum behind these partnerships, creates a strong foundation for increased India-Middle East integration over the coming decades.  

Asia–Gulf relations: Not just China

When we talk about Asia-Gulf relations, China tends to get the lion’s share of the attention.  India, however, is a major Gulf actor.  The non-resident Indian population in GCC countries reached nine million in 2024, accounting for 25 percent of Indian expatriates globally.  There are longstanding social, cultural, religious, and family connections between the people of the Arabian Peninsula and South Asia, and this familiarity supports growing political, economic, and increasingly strategic cooperation.

In contrast, China remains an important partner but one with fewer tangible cultural ties. It is perceived as a more transactional actor, whereas India is deeply enmeshed in the social fabric of the Gulf. 

The importance of these people-to-people connections gets augmented by the substantial economic relations.  India’s GDP hit 3.56 trillion dollars in 2023, up from 2.68 trillion dollars in 2020, and is expected to grow by 6.5 percent in 2024.  As a result, it consumes a lot more energy, and it is now the world’s third-largest consumer of oil, behind China and the United States.  The Gulf countries, naturally, play a significant role in India’s energy security.  Of the top five commodities exporters to India, the UAE is number one, Saudi Arabia is number two, and Iraq is number four.  The volume of trade is significant.  In 2023, India imported just under 103 billion dollars from the GCC, Iran, and Iraq, and exported 57 billion dollars, making it one of the most important trade partners for the Gulf. 

India’s footprint on the Arabian Peninsula

Lesser noticed are the growing strategic relations and the formalized development of bilateral mechanisms.  New Delhi and Riyadh signed a 2014 defense cooperation agreement, which allowed for “shared use and exchange of defense-related information, military training and education, as well as cooperation in areas varying from hydrography and security to logistics.”  Since then, there have been regular joint army, naval, and air force joint exercises, and a Joint Committee on Defence Cooperation has held six rounds of meetings.  On April 23-24, the Indian Army and Royal Saudi Land Forces held the first round of Army-to-Army Staff Talks to discuss strengthening defence ties. 

Oman has even denser security ties to India, signing a military protocol agreement in 1972 and a Memorandum of Understanding on defence cooperation in 2005.  During a 2018 visit to Muscat, Modi signed an access agreement for the Indian Navy to use Duqm port for logistics, support, and maintenance. 

The UAE is also ramping up defense and security relations with India. During an official visit to India last month, Minister of Defence Sheikh Hamdan bin Mohammed Al Maktoum built upon existing security-related mechanisms to formalize cooperation between their coast guards and defence industries.  The readout from their meeting stated that “the two sides agreed that defence cooperation should be scaled up to match the progress in trade and business.”

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This is part of what is really India’s most highly developed Middle East relationship.  With dramatic effects, it signed a Comprehensive Economic Partnership Agreement with the UAE in 2022.  Bilateral trade in goods was 43.3 billion dollars in 2020 and is projected to surpass one hundred billion dollars this year.  The Emirates see India as an important feature of their drive to diversify international partnerships and their domestic economy.  Cooperation with India supports tech, skilled, and unskilled manpower, food, and medicine. 

Importantly, cooperation comes without the same kinds of geopolitical complications inherent in working with China.  According to an observer I recently spoke with, the only impediment to deeper India-UAE ties is the institutional capacity to keep pace with the demand for implementing and overseeing the wide range of projects that both sides want to pursue—the two governments need to develop more personnel to steer the bilateral relationship.  

This is to say that India is present in the Gulf with a depth and breadth that is not always realized from outside the region. India is becoming more confident in its role as a global actor with interests and influence beyond South Asia, and regional perceptions are shifting, with Gulf countries looking at New Delhi as a consequential partner on a growing set of issues.

The IMEC factor

The India-Middle East-Europe Economic Corridor (IMEC) is perhaps the most interesting manifestation of this burgeoning regional partnership. 

Announced during the G20 summit in September 2023, IMEC is a proposed set of projects that would link India, the Arabian Peninsula, Israel, and Europe.  China’s Belt and Road Initiative (BRI) was defined early as a set of corridors, so naturally, many see IMEC as a response to the BRI.  It does share the underlying logic of connecting markets and supply chains, but has a narrower focus.  Fairly or unfairly, BRI quickly became a buzzword for nearly everything in Chinese foreign policy.  IMEC, on the other hand, looks to build upon mostly existing physical infrastructure to develop three “connectivity verticals”: transport, digital, and energy.  The Arabian Peninsula is a central node in this, linking the Arabian Sea via rail networks to Israel’s Haifa Port on the Mediterranean, ultimately reaching the European market. 

Within the GCC, this is a very attractive idea that aligns with country-specific “Vision” development plans.  One of the most alluring futures that Gulf leaders plan for is a post-hydrocarbon economic model where new industries, fueled by foreign direct investment and partnerships with leading global technology companies, create jobs and political stability.  IMEC is seen as an ambitious set of projects that can contribute to this. 

While IMEC has strong support from India and most Gulf governments, progress on some elements of the corridor could face challenges in the immediate term, given tensions in the Middle East, particularly transport links between Saudi Arabia and Israel.  When IMEC was unveiled, the idea of Saudi Arabia connecting to Haifa via Jordan was increasingly plausible.  After nineteen months of brutal war in Gaza, the political costs have risen significantly for Riyadh.  Government and business leaders see tremendous potential in IMEC connectivity, but are intensely aware that public perceptions of Israel have hardened throughout the war. Still, other transport, digital, and energy elements of IMEC are viable in the current environment and continue to enjoy strong support from Indian, Gulf, and European partners. Beyond IMEC, we can expect to see more projects that address bilateral concerns, like energy and food security or tech cooperation, as Gulf countries find ways to increase engagement with India.

Opportunities for the United States

With GCC-US relations at a high point following President Donald Trump’s visit to Saudi, Qatar, and the UAE, growing momentum in GCC-India relations is in Washington’s interests as well.  An Indo-Pacific partner with a deep presence in the Gulf makes a more competitive environment for China, while supporting GCC efforts to build more dynamic and sustainable economies. 

With overlapping interests in energy security, maritime stability, and economic diversification, the US, India, and GCC should consider institutionalizing cooperation, such as a multilateral platform to enhance policy coordination, increase trust, and create a channel for project planning and strategic alignment.

Jonathan Fulton is a nonresident senior fellow for Atlantic Council’s Middle East Programs and the Scowcroft Middle East Security Initiative and an associate professor of political science at Zayed University in Abu Dhabi.

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Beyond the gridlock: The case for Tunisia-Israel normalization https://www.atlanticcouncil.org/blogs/menasource/israel-tunisia-normalization/ Tue, 03 Jun 2025 16:28:44 +0000 https://www.atlanticcouncil.org/?p=851130 The potential for normalization may seem farfetched, but there are many strategic benefits for Tunisia and Israel beyond what meets the eye.

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Tunisian President Kais Saied has made no secret of his staunch opposition to the landmark Abraham Accords and Israel’s normalizing ties with its Muslim-majority neighbors. At times, he has even veered into outwardly anti-Semitic remarks to address his disdain for the Jewish State.

Yet despite Saied’s apparent opposition to joining the Abraham Accords, his decision in November 2023 to halt the Tunisian parliament’s controversial bill criminalizing normalizing ties with Israel provided a glimpse into the president’s cost-benefit analysis over measures that could alienate the West completely. It signaled an opening, even if a very narrow one, that the possibility of Tunisian—Israel rapprochement might not be as far-fetched as experts predict, and that even a rogue actor like Saied sees the benefits in joining a Westernized coalition during times of war.  Yet in the long run, especially after the war in Gaza, Tunisia’s historical openness to the West might present an opportunity to advance normalization between the two countries.

Stubborn challenges: Israel and Tunisia’s rocky relations

Israel and Tunisia do not currently maintain any kind of formal relations, but this has not always been the case.

Beginning in the 1950s, under former Tunisian President Habib Bourguiba, limited ties developed between the two countries. These included informal connections and meetings between politicians from both sides, initiated by diplomats from each country. The relationship served mutual interests—Israel sought recognition from an Arab state, while Tunisia aimed to secure support for its development, particularly in sectors such as agriculture and tourism. Consequently, in the nineties, Tunisia and Israel established low-level diplomatic relations (culminating in the opening of “interest sections” in each other’s countries, serving as de facto embassies), making the relations between the countries formal.  

However, the Palestinian issue has long been a central element of Tunisia’s foreign policy, causing attrition between Israeli and Tunisian diplomatic relations. Tunis has long expressed solidarity with the Palestinian people and their struggle for self-determination and has historically defended the two-state solution. More importantly, Tunisia hosted the Palestinian Liberation Organization (PLO) headquarters from 1982 to 1993 after Yasser Arafat was forced to flee Beirut, Lebanon, then under siege by the Israelis during the first Israel-Lebanon War. Tunis hosted the PLO headquarters until the Oslo Accords, when it relocated to Gaza and the West Bank.  

This period helped cement closeness between Tunisians to the Palestinian cause, a sentiment further solidified by Israel’s deadly aerial attack on Hammam Chot on the PLO headquarters in 1985, killing a number of civilians and causing further resentment among Tunisians. Tunisians never forgave Israel for what they perceived to be an illegal incursion on their territory.

In 2000, with the outbreak of the Second Intifada in Israel and Palestine, relations between Israel and Tunisia entered a period of further crisis, leading to the suspension of official ties. While the relationship had deteriorated significantly already, the outbreak of violence between Israelis and Palestinians rendered diplomatic efforts virtually impossible.

A continuation of the deteriorating relations underpinned the decades that followed. During Tunisia’s Jasmine revolution, Israel remained on the fence about improving ties with the new political forces, fearing the rise of an anti-Israel posture. Meanwhile, the Tunisians passed a new Constitution in 2014, underscoring its commitment to the Palestinian cause, and open letters signed by academics and researchers calling for criminalizing ties with Israel circulated among political forces.

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Under Saied’s current rule, these tensions have escalated significantly, including when he rejected Israel’s 1948 borders and called for the “full liberation of Palestine,” while avoiding any overt condemnation of Hamas after its October 7, 2023, attacks on Israel. On some occasions, Saied adopted an overtly antisemitic posture, accusing “the Zionists” of plotting the deadly 2023 floods in  Libya that killed some four thousand people, a trope linked to the long-held antisemitic prejudice that Jews somehow control the world. His remarks sparked outrage across Israeli media.  

Tunisia’s foreign policy has recently shifted markedly into a more anti-Western stance, cozying up to Iran in the process.

In May 2024, Saied visited Tehran to pay respects to the late President Ebrahim Raisi, marking the first-ever visit of a Tunisian president to  Iran. That same month, rumors swirled in Italian and French news outlets of unusual air movements by Russian aircraft in the coastal city of Djerba, raising eyebrows at a potential Tunisia-Russian alignment. In August of the same year, Russian Foreign Minister Sergei Lavrov visited Tunis for the second time in over a year, pledging to help the country grapple with its wheat drought.

Why would Tunisia choose to normalize ties with Israel?

But there is even historical precedent to disrupt this trend.

Historically, Tunisia has tended to align more with the West than with the broader Arab world. However, its geographic location has made it essential to maintain strong relations with neighboring countries, particularly Algeria and Libya. While Tunisia has strategic interests in its ties with Algeria, especially in the areas of energy, trade, and finance, former Tunisian President Zine El Abidine Ben Ali sought to moderate the country’s financial connections to Arab countries and aimed to avoid the kind of reliance on crude oil revenues seen in other Arab states in the region.

Beyond the more apparent economic and trade incentives for Tunisia to normalize relations with Israel, Tunis could also gain from reigniting this closer alignment with the West, particularly as Iran and Russia, with whom it has recently signaled an openness to closer ties, face mounting setbacks that may force them to turn inward. Both Moscow and Tehran have faced major setbacks on the international stage. The former is dealing with the ongoing conflict in Ukraine and an exorbitant number of human losses, and the latter is temporarily retreating after receiving a significant blow from Israel during the ongoing regional war between Israel and Iranian proxies. Tunisia is far from being a strategic priority for either power, and these setbacks should worry Tunisia, which might be left on its own to deal with an increasing migration threat from sub-Saharan Africa and an impending economic crisis.  

Another factor that might lead Tunisia to normalize ties with Israel is the potential for hedging between regional powers. Tunisia is particularly susceptible to external influences from countries with greater international stature, particularly when looking at its ongoing relationship with Algeria. Algeria, for its part, has steadily been courting Tunisia by supporting Tunis economically and politically, including a 2022 grant worth 200 million dollars from President Abdelmadjid Tebboune to help with the country’s struggling economy, and offering leniency and cheaper prices on electricity and gas from the Transmed pipeline. Tunisia, grappling with high public debt and stagnant growth, and with the economy desperately reeling since the Covid-19 pandemic, has had little choice other than to accept Algeria’s offerings. Algeria’s rationale for influencing Tunisia stems from a need to counter perceived external Western interference—exacerbated by the signing of the Abraham Accords between its regional rival Morocco and Israel—which has heightened its sense of isolation and vulnerability.

Normalizing ties with Israel could allow Tunisia to hedge between regional powers to avoid full alignment with Algeria and maximize its personal gains. It would reduce Tunis’ risk of overdependence on Algeria, and limit the risk of collateral damage should the relationship sour and challenges emerge for Algeria itself.

Israel’s interest

Normalization between Israel and Tunisia could offer Israel several potential advantages. These include contributing to regional stability and peace, expanding international recognition and support, and possibly encouraging other countries to engage more openly with Israel. Additionally, normalization could pave the way for stronger ties in trade, tourism, and investments, especially in the field of agriculture and irrigation. It would also promote Israeli legitimacy in the region, reducing international efforts to isolate it, increasing its international standing, and opening new business opportunities in Arab markets.

From a strategic perspective, improved relations with Tunisia might also help limit Tunisia’s cooperation with countries hostile to Israel, such as Algeria, Libya, and Iran. It could even reduce the potential for renewed activity by terrorist groups operating in or from the region.

That said, many of these benefits are not unique to Tunisia—they reflect the broader advantages Israel could gain from normalizing relations with any additional Arab country.

Threats and pathways to improvement

On the other hand, normalizing with Israel poses a severe threat to Tunisia, which Saied may not be apt to overlook. Firstly, it will inevitably fracture its relationship with Algeria, alienating Tunis’ primary economic backer. Algeria has had no qualms in stressing its disdain for the Abraham Accords, recently reiterating its historic backing of a full Palestinian state, the support of which is enshrined in its constitution. Algeria would certainly take it personally and would do everything in its power to retaliate, including rescinding its economic partnership, nullifying diplomatic ties, and reinstating tighter controls on late payments.

Secondly, Saied will face severe internal backlash. Tunisians have been at the forefront of pro-Palestinian demonstrations, the likes of which the country has not witnessed since the 2011 revolution. In a time when Saied is tightening control over the country, he still understands the importance of maintaining public support, and normalizing ties with Israel may pit the population against him, lessening his power and legitimacy.  

While Israel perceives normalization with Tunisia as naturally beneficial, the same cannot be said in reverse, and normalization between the two does not seem feasible as long as the war in Gaza continues.

If the West wished to see normalization between these two countries prevail, it would have to provide Tunis with significant concessions. These could take the form of economic support through International Monetary Fund (IMF) loans with fewer austerity measures, or simple economic bailout packages with few strings attached.

However, such a decision carries significant risks, namely the potential erosion of the IMF’s credibility and legitimacy on the international stage. Additionally, the West, particularly the United States, can seek to leverage its ongoing military partnership with Tunisia to retain strategic influence.  This could involve conditioning Tunisian aid to agreements such as the obligation to maintain secrecy over military knowledge and capabilities, especially when dealing with enemies such as Iran. This could restrict Tunisia’s movement while placing greater value on Washington’s ongoing support.

Normalization between Arab countries and Israel is still a top foreign policy agenda for US President Donald Trump’s administration. While Israel’s war rages on in Gaza, Trump has made no secret of his wish to see Saudi Arabia join the Abraham Accords, a feat which will undoubtedly help him reach his objective of becoming the peacemaker of the century.

While the potential for these two countries to normalize may seem farfetched, there are many strategic benefits for both that go beyond what meets the eye. Analysts may do well to keep an eye out for potential signs of rapprochement, as even small shifts may signal deeper political changes in the region.

Alissa Pavia is the Associate Director of the Atlantic Council’s North Africa Program.

Maayan Dagan is a visiting research fellow at the Atlantic Council’s Middle East Programs.

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How Kazakhstan can anchor a resilient rare‑earth supply chain for the West https://www.atlanticcouncil.org/blogs/new-atlanticist/how-kazakhstan-can-anchor-a-resilient-rare%e2%80%91earth-supply-chain-for-the-west/ Tue, 03 Jun 2025 10:00:00 +0000 https://www.atlanticcouncil.org/?p=850018 By partnering with Kazakhstan on rare-earth element mining, the United States can reduce its dependence on China and build a more secure critical minerals supply chain.

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The rare-earth supply crunch underscores a critical lesson: The United States cannot afford to rely on China’s goodwill for minerals essential to its economy and security.

China dominates the rare-earth supply chain, with Beijing supplying about 60 percent of global rare-earths output and controlling up to 90 percent of refining capacity. For the United States, which needs neodymium and dysprosium for F‑35 fighter jet engines as badly as it needs lithium for electric vehicles, continued dependence on Beijing is impossible. The solution is not wishful “onshoring” to the United States alone; it is establishing a portfolio of reliable partners. Kazakhstan, already the world’s leading uranium producer and a top‑ten copper and zinc exporter, is a prime candidate for such a partnership.

Rare earths have become a geopolitical flashpoint. In practice, that means Beijing can throttle supply at will. In April, for example, China abruptly restricted exports of several important rare earths and permanent magnets—actions triggered by trade disputes with the United States under the pretext of “energy security.” US firms and strategists described the move as China’s latest attempt to weaponize its rare-earths dominance.

Supply shocks will recur, not recede. After Beijing halted exports of rare-earth refining technology to the United States in late 2023, it spent 2024 steadily ratcheting up export-license requirements on strategic rare-earth oxides or outright banning its exports. These moves culminated in April of this year, with Beijing placing export restrictions on seven heavy and medium rare-earth elements (samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium) on dual-use national-security grounds.

The United States has only just begun to free its high-tech supply chain dependence on China. Over the past few years, for example, US policymakers have launched some domestic projects and lured allies in Europe and Australia to develop alternatives, but many of those efforts are still nascent. New supply lines will take years to mature. Washington needs a long-term partnership strategy that goes beyond homespun mining; it needs countries capable of supplying rare earths at scale. Since 2020, Kazakhstan has ramped up rare-earth mining, increasing its exports nearly fivefold by 2024. Still, both in 2023 and 2024, 100 percent of its rare-earth output is exported to China—a telling indicator that the resource is there, but does not currently flow to the West. By moving swiftly, the United States could hedge against future Chinese disruptions—and help build a secure, diversified global supply chain for these critical minerals.

Kazakhstan’s rare earths

Unlike some prospective supplier countries, Kazakhstan already knows it has rare-earth wealth. In early April, geologists in the country announced the “Zhana Kazakhstan” discovery: an estimated twenty million metric tons of rare-earths‑bearing ore in the Karagandy region, including sizable heavy‑rare‑earth concentrations. If even 10 percent of the ore proves recoverable at today’s grades, that equates to around 200,000 tons of rare-earth oxide content—enough to meet current US neodymium magnet demand for a dozen years. If validated, the site would give Kazakhstan the world’s third‑largest rare-earth element reserves, trailing only China and Brazil. While promising, these preliminary findings are no sure thing and will require deeper study.

This find is not an outlier. Soviet‑era data and recent airborne surveys point to additional prospects across southern and eastern Kazakhstan. The geology has been there; what was missing was investor certainty. That is changing fast. In just the past few years, the government has opened scores of new exploration projects.

Kazakhstan is no newcomer to big mining. In 2024, the country led the world in uranium output (about 38 percent of global supply) and ranked among the top ten producers of copper and zinc. The national mining concern, Tau-Ken Samruk, consolidates dozens of mines and has global joint ventures in everything from gold to base metals. Kazakhstan’s energy and transport infrastructure likewise favors large-scale mining, as it already accounts for 14 percent of the country’s gross domestic product.

Kazakhstan’s “multivector” diplomacy also plays a factor. Kazakh President Kassym-Jomart Tokayev courts Beijing and Moscow, yet he also seeks deeper ties with Washington and Brussels to balance against those giants. That instinct makes Astana a willing partner for the United States, and a less risky one than conflict-scarred alternatives such as Myanmar and the Democratic Republic of the Congo. At the same time, the United States should not expect Kazakhstan to choose only Western partners over the major powers along its eastern and northern borders.

Since 2018, Astana has overhauled its subsoil code on a “first come, first served” model. New legislation helps promote fiscal stability, offers value-added tax holidays on exploration equipment, and caps royalties. As a result, majors from Rio Tinto to Fortescue have launched joint ventures, while US‑backed Cove Capital began drilling rare-earths targets near Arkalyk in 2024.

Kazakhstan also has an edge in infrastructure. The Middle Corridor rail‑and‑port network—which runs from western China through Kazakhstan to the Caspian Sea and onward to Europe—was expanded last year with European Union (EU) financing. Aktau’s Caspian port already handles uranium concentrate bound for Canada and France; rare-earths concentrates could follow the same route with minimal modification.

In short, Kazakhstan offers what many mining countries do not: favorable geology and the business environment and infrastructure to exploit it. Kazakhstan already has smelters and refineries for many ores, and it boasts production of advanced materials such as purified manganese sulfate and titanium metal. It even produces gallium (used in semiconductors) and recycles rhenium, though admittedly it still lacks deep processing for rare-earth oxides.

The way forward

Washington has learned the hard way that pledges alone won’t break Beijing’s monopoly, and its next move should elevate quiet deals into an explicit strategy. On the Kazakh side, top leaders have made it clear that developing mining for Western markets is a priority. For example, Tokayev has called critical minerals the country’s “new oil,” and he has signed a number of memoranda with foreign partners on exploration and processing. Kazakhstan’s September 2024 “Kazakh-German” forum alone produced twenty-three agreements in mining, including rare-earth joint ventures.

Here are the three critical steps Washington and Astana should take next:

  1. Unlock normal trade by repealing the Jackson-Vanik Amendment and grant Permanent Normal Trade Relations (PNTR) to Kazakhstan. The United States should finish what H.R. 1024 has already teed up: removing Kazakhstan from the Soviet-era Jackson-Vanik Amendment and extend PNTR to Kazakhstan. Scrapping this relic costs no money, instantly signals strategic seriousness, and eliminates the legal ambiguity that still shadows US financing and offtake contracts with Kazakh mines. PNTR lets both sides write binding long-term supply agreements.
  2. Set up a US–Kazakhstan rare-earth task force to drive the deals. The United States and Kazakhstan should co-chair a cabinet-level task force comprised of the US State Department and US Commerce Department, as well as Kazakhstan’s Ministry of Industry. This task force would set annual, public targets for the number of exploration licenses issued to Western consortia, the amount of pilot separation plants financed and built on Kazakh soil, and the export tonnage of heavy and medium rare-earth elements to non-Chinese markets. The task force could instruct the US International Development Finance Corporation and Export-Import Bank of the United States to prioritize Kazakh rare-earth projects, while Kazakhstan fast-tracks permitting and guarantees site security. Early co-location of processing near the mine head would lock in long-term offtake for US buyers and complement EU infrastructure money already pledged for the Aktau port.
  3. Deploy a blended-finance and technology package along the full value chain. Washington should pair loan guarantees with technical assistance from the US Geological Survey, Oak Ridge National Laboratory, and the Department of Energy’s Critical Materials Institute. Kazakhstan should match that support by streamlining visas for engineering teams and auctioning new mine blocks on transparent terms. The Pentagon’s National Defense Stockpile could start purchasing Kazakh oxides, while the Department of Energy and Nazarbayev University co-fund recycling research and development to close the loop at home.

To be sure, there are challenges ahead, and mining remains a difficult, uncertain venture. Bringing a greenfield rare-earths mine to commercial output can take more than a decade. But doing nothing cements Beijing’s leverage for that same decade and beyond. By acting now, Washington can buy future resilience and signal to market actors that rare-earths diversification is real.


Miras Zhiyenbayev is the advisor to the chairman of the board for international affairs and initiatives at Maqsut Narikbayev University, Astana, Kazakhstan. He is also co-sponsoring the June 4 US-Central Asia Forum at the Atlantic Council.

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Experts react: Conservative Karol Nawrocki is Poland’s next president. What does it mean for Poland, Europe, and the world? https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/conservative-karol-nawrocki-is-polands-next-president-what-does-it-mean-for-poland-europe-and-the-world/ Mon, 02 Jun 2025 16:56:09 +0000 https://www.atlanticcouncil.org/?p=850964 On June 1, the historian and former boxer triumphed in Poland’s presidential election. Atlantic Council experts share their insights on the contest, the winner, and what’s next.

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The polls have spoken. Karol Nawrocki, a historian and former boxer backed by Poland’s conservative Law and Justice (PiS) party, narrowly triumphed over Warsaw Mayor Rafał Trzaskowski in Sunday’s presidential election. Nawrocki, whose candidacy was embraced by the Trump administration, will be the head of state opposite the centrist, pro-European head of government, Prime Minister Donald Tusk. With war still raging in next-door Ukraine and US-European relations under strain, what should the world expect from Nawrocki? We turned to our Poland experts for answers.

Click to jump to an expert analysis:

Daniel Fried: Nawrocki is well placed to encourage Trump to back Ukraine and European security

Aaron Korewa: Poland’s conservative nationalism is pro-American and pro-NATO

Marek Magierowski: Nawrocki’s politics defy hysterical labels

Danuta Hübner: Will the new president overcome Poland’s polarization?

Mark Scott: Social media was rampant in this election. But how much impact it had is unclear.


Nawrocki is well placed to encourage Trump to back Ukraine and European security

Some initial analysis may depict the Polish presidential election as a fight between democracy and autocracy, or between a pro-Trump and pro-European candidate. This seems exaggerated. The real challenge for Nawrocki will be deciding whether to find common ground with the Tusk government in the face of the threat from Russia and the need to work with the Trump administration on behalf of European and Ukrainian security. 

There are substantive grounds for at least some cooperation across partisan lines in Poland to help Ukraine resist Russian aggression and, to this end, to work with key European allies, such as Britain, France, and Germany, as well as with the United States. Unlike the Hungarian nationalist leader Viktor Orbán, Polish nationalists and outgoing President Andrzej Duda generally support Ukraine and resolutely oppose Russian aggression. In early 2022, for example, PiS party leader Jarosław Kaczyński publicly broke with Orbán over the latter’s lack of support for Ukraine at the time. Poland’s current rapid military buildup began during the previous PiS government and continued under the Tusk coalition. Both political camps support NATO and strong relations with the United States. 

The Trump administration backed Nawrocki during the election campaign. However unwise US official partisanship during an election might have been, this will give Nawrocki advantages as a perceived ideological ally making the case in Washington for continued US military presence in Poland and US support for NATO and Ukraine. Nawrocki may face challenges working with the European Union (EU), which is still a source of significant funding for Polish development and is trying to support military buildup in Europe, an objective Poles across the political spectrum tend to support. He will also have to contain the anti-German rhetoric common to much of the Polish nationalist right. Poland has had legitimate complaints about German policy toward Russia. But it has won those arguments, as many Germans themselves recognize; Nawrocki would do well to take the win and work with Germany to counter the Russian threat both countries face. 

Many Poles were supportive of Ukraine in the initial phases of the full-scale Russian invasion in 2022, providing extensive benefits to Ukrainian refugees and taking hundreds of thousands of them into their homes. While the presence of so many Ukrainian refugees has grown less popular over time, Polish support for Ukraine has remained steady. Still, influential Polish constituencies, such as farmers and some groups concerned with the difficult historical issues between Poles and Ukrainians, have been skeptical about the extent of Polish support for Ukraine. During the campaign, Nawrocki declared that he does not currently support Ukraine’s NATO accession. Now, Nawrocki will have to find a way to balance strategic and political imperatives on support for Ukraine. 

As president, Nawrocki will have to balance his campaign rhetoric and partisan interests with broader national interests. He’s hardly the first winning candidate to have to do so. 

Daniel Fried is the Weiser Family distinguished fellow at the Atlantic Council and a former US ambassador to Poland.


Poland’s conservative nationalism is pro-American and pro-NATO 

The Poles showed their dissatisfaction with the current government and the political establishment. Nawrocki was an outsider and that paid off. He managed to attract the voters who chose far-right candidates in the first round, while Trzaskowski did not manage to mobilize enough of the voters who supported Tusk’s coalition in October 2023.  

For Europe, this could mean that Poland will become more inwardly focused. At the same time, Tusk has previously signaled that he believes beating populism requires addressing some of the issues that drive it. Expect Poland to take a turn for the right on matters such as migration and the European Green Deal.  

Nawrocki was the only candidate who visited US President Donald Trump in the White House and received his endorsement. In late May, the Conservative Political Action Conference, known as CPAC, also held a rally in the southeastern town of Rzeszów that featured US Homeland Security Secretary Kristi Noem. Nawrocki’s people made conscious outreach to the US administration. In Poland, the movement that backs Nawrocki is very pro-American and pro-NATO, unlike several other parties in Europe that stand for conservative nationalism. The optimistic scenario is that as president, Nawrocki will establish a connection with Trump that will prevent any plans to withdraw US troops from Poland. At the same time, Tusk’s government will continue forging partnerships with other relevant European states, such as France and the Nordic and Baltic countries.   

Aaron Korewa is the director of the Atlantic Council’s Warsaw Office which is part of the Europe Center.


Nawrocki’s politics defy hysterical labels 

First and foremost, branding Nawrocki as “populist,” “hard-core Euroskeptic,” “far right,” “pro-Putin,” or “Trumpian” is preposterous. Polish politics is too complex to indulge in such simplistic terms. 

Poland’s president-elect is probably as “pro-Kremlin” as his entire political camp, which, while in power, provided Ukraine with hundreds of tanks, aircraft, howitzers, and communication gear, while pressuring all European partners to ramp up sanctions against Russia. 

Nawrocki is also as “Euroskeptic” as German Chancellor Friedrich Merz, given the attitude of both politicians toward migration policies and EU climate regulations. And he is as “Trumpian” as his Finnish soon-to-be counterpart Alexander Stubb, who charmingly played a spot of golf with the US president a few weeks ago. 

Nawrocki is doubtless a staunch conservative who adroitly capitalized on the nature of wide swaths of the Polish electorate, which, contrary to European trends, has remained—politically, socially, and emotionally—attached to the notion of freedom, sovereignty, tradition, and Christian values. The PiS-backed candidate has also largely banked on the rising unpopularity of Tusk’s government, especially among young voters (Nawrocki won the eighteen-to-twenty-nine-year-old cohort). 

Another major factor in Nawrocki’s win was the aristocratic style and aloofness of his rival, Trzaskowski, who was unable to connect with the working class and Poland’s rural constituency. This stood in contrast to Nawrocki, the former boxer and son of a toolmaker and a bookbinder. 

Marek Magierowski is a nonresident senior fellow with the Atlantic Council’s Europe Center and the director of strategy for the Poland program at the Freedom Institute in Warsaw. He previously served as Poland’s ambassador to the United States and to Israel.


Will the new president overcome Poland’s polarization?

Poles know that their vote can change the course of the history of their country. And they have known from day one of this presidential campaign that this election matters deeply for our future. However, as, sadly, the campaign was about preventing the other side from coming to power, it is an open question whether the president we have just elected will understand what is good for Poles in these times of uncertainty.  

Will our new president spare no effort to overcome the deep polarization of the Polish people? A polarized society is easy to manipulate and an easy target for Russian disinformation. This is the biggest challenge for the new president—understanding the importance of building bridges between Poles. It is an extremely difficult task, especially in times when many political careers have been built for decades on societal divisions. And I worry that this president-elect comes from a political tradition with little propensity to seek compromise. The presidency is an important part of the Polish system of checks and balances, and the new president will need to support the government in building a democratic Poland where everyone can live. 

Poles need a president who will understand that isolation has never done Poland any good, that the European Union is our place, and that it is crucial that Poland takes its share of responsibility for Europe. Will the new president support European efforts to build its defense capabilities and its security-based economic competitiveness? Will he work for peace on our continent?  

In addition, my hope is that the new president will work to keep the United States and Europe together. They need each other.  

Danuta Hübner is a distinguished fellow with the Atlantic Council’s Europe Center. She was Poland’s first-ever European commissioner, responsible first for trade, then with regional policy. She also established and oversaw the institutional structure to deliver Poland’s accession to the EU.


Social media was rampant in this election. But what impact did it have?

The narrow victory for Nawrocki in Poland’s presidential election is the latest example of why it’s hard to directly link any country’s electoral outcome with how voters engage with candidates, political operatives, and others across social media. There was a significant amount of hyper-partisan attacks across social media, from both sides, ahead of Sunday’s vote in the Central European country. There was also evidence—including via research from the Atlantic Council—that foreign governments attempted to sway voter outcomes.  

But how successful these efforts were, as well as the ongoing interventions from social media companies to possibly reduce such content’s impact, are almost impossible to quantify. Given the tightly run race, small shifts in voters’ behavior—potentially spurred on by what people may have seen in their online feeds—could have played a role. But, at this stage, that is more a theory than confirmed reality. 

The most recent Polish presidential election joins a growing list of both European and non-European elections in which social media and its impact on how people voted remain a black box. As much as EU policymakers have centered their attention on how the likes of TikTok and YouTube may have amplified anti-EU voices ahead of national elections, there has been a growing offline shift in public opinion across the bloc away from greater EU alignment that has nothing to do with the digital world. 

At best, this weekend’s vote is another example of how, in the middle of 2025, these digital platforms are now part of every country’s election cycle. But social media’s impact on such a closely fought election is mostly unknown. 

Mark Scott is a senior resident fellow at the Digital Forensic Research Lab’s (DFRLab) Democracy + Tech Initiative within the Atlantic Council Technology Programs.

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Turkish-American defense and energy partnerships suit the new transatlantic landscape https://www.atlanticcouncil.org/content-series/ac-turkey-defense-journal/turkish-american-defense-and-energy-partnerships-suit-the-new-transatlantic-landscape/ Mon, 02 Jun 2025 14:00:00 +0000 https://www.atlanticcouncil.org/?p=846801 In the new transatlantic landscape, a stronger US-Turkey partnership in many ways has become a strategic necessity.

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The week following last November’s US elections, the newly formed American Turkish Business Roundtable (ATBR) gathered in Istanbul for a press event where ATBR directors, General Jim Jones and General Tod Wolters (both retired and both former SACEURs), addressed the impact of Donald Trump’s election victory on US-Turkey relations. At that moment, bilateral ties were strengthening, primarily through defense partnerships in response to the ongoing war in Ukraine. The announcement of a joint venture between Repkon and General Dynamics, known as Repkon USA, to manufacture 155 millimeter ammunition for Ukraine underscored both the fragility of the US defense industrial base and the advantages of accelerating the partnership with Turkey and deepening its role in NATO’s supply chain.

The consensus at the Istanbul meeting was clear: The US-Turkey relationship was poised for further improvement. This expectation was based not only on the historically positive relationship between President Recep Tayyip Erdoğan and President Trump, but also on their shared approach to foreign policy: pragmatic, transactional, and focused on strategic economic and security interests. Yet, four months later, the transatlantic security landscape has again undergone a dramatic shift.

Trump’s foreign policy signals a shift toward burden sharing among NATO allies, prompting European nations to assume greater defense responsibilities and reconsider US defense partnerships. This shift has forced European leaders to take greater responsibility for their own security needs, significantly increasing pressure on NATO members to boost defense spending to 5 percent of gross domestic product—a level that many European governments had previously resisted. As a result, European defense markets are undergoing a transformation. European countries, once heavily dependent on the United States for defense procurement, are now directing increased defense spending toward their domestic industries rather than US firms. This is evidenced by the decline in US defense stocks and the rise in European defense stocks in recent months.

For US defense firms, this presents both a challenge and an opportunity. If American companies want to remain competitive in the European market, they might be well-served to partner with Turkish firms to access European domestic procurement programs. Turkish defense firms, already well-integrated with NATO supply chains, provide an ideal platform for US companies to keep a foothold in Europe. Turkish manufacturers like Baykar, Aselsan, and Roketsan produce cost-effective, high-quality systems that European nations increasingly need. The Repkon USA partnership is just the first step, and other joint ventures could enable US firms to leverage Turkey’s industrial base while meeting Europe’s demand for non-American suppliers.

Over the past month, European defense stocks have outperformed US defense stocks due to concerns over NATO’s future following Trump’s remarks suggesting the United States might not defend allies that do not meet spending targets. This has driven European nations to accelerate defense investments, with spending projected to rise dramatically. Countries across Europe are prioritizing domestic production to reduce reliance on US suppliers, while Turkey is expanding its defense industrial base and exploring partnerships with US firms. As a result, US defense companies are seeing declines in value amid expectations that European nations will shift procurement away from direct US purchases in favor of European suppliers.

Turkey’s role as an energy hub and regional leader is becoming more critical, serving as a key transit point for resources from Iraq, the Caspian region, and the Eastern Mediterranean to Europe. The expected reopening of the Iraq-Turkey Pipeline (ITP) and the potential expansion of Trans-Caspian energy routes further reinforce Turkey’s strategic importance. In March, Turkey reinforced its regional energy leadership as Energy Minister Alparslan Bayraktar met with Iraqi Prime Minister Mohammed Shia’ al-Sudani to discuss resuming Kurdish oil exports and exporting Basra oil via the Iraq-Turkey pipeline. With the United States revoking Iraq’s waiver to import Iranian electricity, talks also focused on expanding Turkey’s electricity and gas supplies to Iraq. In Erbil, Bayraktar and Kurdistan Region Prime Minister Masrour Barzani agreed to remove barriers to Kurdish oil exports through Turkey’s Ceyhan port. These efforts reflect Turkey’s strategy to deepen regional energy ties and enhance regional energy security. As US firms look to offset margin pressures at home, investment in Turkey’s energy sector will only increase, aligning with Ankara’s ambitions to diversify its energy partnerships and solidify its role as a key transit hub for Europe.

The Trump administration’s focus on reducing inflation by lowering oil prices has also had significant consequences for global energy markets. As expectations for cheaper oil rise, many US producers are hesitant to expand domestic drilling, knowing that lower prices will reduce their profit margins. Instead, US energy firms are seeking new markets abroad, with Turkey, Iraq, and Libya emerging as key investment destinations. Recent deals underscore this trend, including the Continental Resources-TPAO partnership, which will explore and develop unconventional energy resources, and the ExxonMobil-BOTAS liquified natural gas agreement, which expands gas trade between the two countries.

The US-Turkey relationship is evolving in response to shifting transatlantic dynamics in defense and energy. The withdrawal of US financial and intelligence support for Ukraine amid Trump’s ceasefire push, later restored, pushed European nations toward self-reliance, creating both risks and opportunities for American defense firms. To maintain access to European defense markets, US companies will need to adapt by forming strategic partnerships including with Turkish firms. At the same time, the changing energy landscape is driving American energy firms to invest in Turkey and the broader region, ensuring continued economic ties between the two nations. While geopolitical tensions remain, defense and energy cooperation offer a pragmatic path forward for US-Turkey relations in this new era.

Few things are simple in US-Turkish relations, and the current environment presents obstacles as well as opportunities. Tariff effects on transatlantic trade remain uncertain in the first half of 2025, including in the area of defense industrial cooperation, though for now it seems the 10 percent tariff on Turkey may end up being relatively advantageous compared to some markets. The instinct to localize and nationalize industrial production in both the United States and Turkey represents something of a headwind for larger projects. Domestic political unrest in Turkey may also create caution in Washington or hesitance among US firms out of concern over instability impacting Turkish markets or suppliers.

Yet these concerns, while real and significant, do not outweigh the glaring and growing need that prompted formation of the ATBR. Greater US-Turkey engagement is essential for maintaining US strategic influence in NATO, European defense markets, and regional energy security; that engagement also facilitates supply chain resilience and surge capacity for future military contingencies.

Congress would be wise to support deeper defense industrial cooperation, including joint production agreements, to keep US firms competitive in Europe and engaged with Turkey. Strengthening US investment in Turkey’s energy sector would bolster transatlantic energy security and reduce reliance on adversarial suppliers. Additionally, renewed high-level diplomatic and security dialogues would help counterbalance Russian and Chinese influence while ensuring long-term US economic and security interests. A stronger US-Turkey partnership is not just beneficial—it is in many ways a strategic necessity.


Gregory Bloom is a senior advisor at the Atlantic Council’s Scowcroft Center for Strategy and Security and a nonresident senior fellow at the Atlantic Council’s Turkey Program. He also serves as the chief operating officer of Jones Group International (JGI).

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In Syria’s fragile transition there’s a glimmer of a more stable Middle East https://www.atlanticcouncil.org/content-series/ac-turkey-defense-journal/in-syrias-fragile-transition-theres-a-glimmer-of-a-more-stable-middle-east/ Mon, 02 Jun 2025 14:00:00 +0000 https://www.atlanticcouncil.org/?p=846817 Despite the risks and unknowns, prioritizing on shaping a stable and capable central government in Syria should be the only option on the table for the US and NATO.

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For the better part of half a century, Syria has been an open wound in the heart of the Middle East, provoking instability, fueling conflict, and brutally suppressing its own people. Throughout Syria’s nearly fourteen-year civil crisis, a long list of destabilizing knock-on effects spilled over into neighboring countries and the world at large. The long-standing moniker of “what happens in Syria never stays in Syria” perfectly encapsulated what for most of the past decade looked to be a truly intractable crisis.

All of that changed on December 8, 2024, when Bashar al-Assad fled his palace in Damascus en route to a hurried and unexpected asylum in Russia. After a sudden and lightning-fast offensive, a coalition of armed opposition groups toppled Assad’s regime like a house of cards—in the space of ten days. All of a sudden, the international community has been presented with a historic and strategic opportunity to reshape the heart of the Middle East into a more stable, more integrated, and more constructive part of the region.

Syria’s ongoing transition is profoundly fragile. It faces enormous challenges, but it also presents the international community with a dilemma. Since day one, the transition has been led and dominated at the top by Hayat Tahrir al-Sham (HTS), a former affiliate of al-Qaeda that was originally born out of the Islamic State group’s predecessor movement, the Islamic State of Iraq and al-Sham (ISIS). That historical baggage provides reason for pause when it comes to engaging Syria’s interim authorities.

However, the HTS of today is the outcome of nearly a decade of change. After splitting from ISIS in 2013, it went to war with the terror group. It publicly broke ties with al-Qaeda in 2016 and proceeded to facilitate the entry of thousands of soldiers into its territory by NATO member Turkey; agreed to and complied with a yearslong ceasefire brokered by Turkey and Russia; established a technocratic “salvation government” in northwest Syria that delivered a higher level of services than other regions of the country; launched crippling crackdowns on both ISIS and al-Qaeda; and began engaging with the international community behind closed doors. Throughout this formative post-2016 period, HTS’s ideology changed in ways that are arguably unprecedented in the history of the jihadist movement, with it not just turning away from global jihad, but turning against it—while embracing “revolution” and the green flag of Syria’s popular uprising.

Despite HTS and its leader Ahmed al-Sharaa being at the helm in Damascus, much of the international community has rushed to engage—calculating that contact and engagement offers a far greater chance of shaping the outcomes of a fragile transition than a policy of isolation. Initially, the European Union, the United Kingdom, and Switzerland eased many sanctions linked to Syria’s economy, in the hope of breathing some life back into the country. For its part, the outgoing Biden administration introduced a six-month “general license” in January 2025, temporarily waiving some restrictive measures. But this had no effect in facilitating transactions with governing institutions in Syria.

After years of extraordinary conflict, Syria’s economy is broken and the humanitarian crisis worse than ever. Ninety percent of Syrians live under the poverty line; 70 percent of Syrians rely on aid; 99 percent of the Syrian pound’s value has been lost; 50 percent of the country’s basic infrastructure is destroyed; and fuel supplies have dropped to nearly zero. No matter who was running Syria’s transition, the prospects of successfully escaping such catastrophic conditions would be impossible without sanctions relief. Regional states—Saudi Arabia, Turkey, and Qatar, in particular—stand poised to flood Syria with investment, oil, electricity, and cash, but not while American sanctions prohibit them.

Taking advantage of the historic opportunity provided by Assad’s fall requires doing away with short-term tactical approaches and embracing a long-term view focused on Syrian and regional stability. On December 8, transitional authorities in Damascus were restricted only to HTS. Three months later, some things had changed: A national dialogue and conference had been held; broad committees had been formed to frame a constitutional declaration; and a transitional government was formed that significantly widened representation and technocratic rule in Syria’s ministries. The latter marked a significant broadening of government representation, with just four HTS members out of twenty-three ministers. More than half of the new cabinet members were educated and worked professionally in Europe and the United States. All in all, it marked a shift toward genuine, technocratic government.

Nevertheless, some instability continues. Deeply entrenched sociopolitical and sectarian tensions remain a source of acute concern, but a major spike in violence—as was seen on March 7-8, 2025—was short lived. A government-appointed investigative committee has been tasked with determining culpability for crimes. Meanwhile, structural issues relating to disarmament, demobilization, and reintegration (DDR), foreign fighters, and challenges posed by ISIS and an Alawite armed resistance all persist, but ultimately, a fragile transition still offers the best hope for gradual stabilization.

The United States and NATO face two options: to engage and conditionally support Syria’s transition in the hope that it will continue to consolidate control and broaden its representation; or to disengage and isolate the transition in favor or some other alternative. Neither is without risk, but the latter guarantees severe instability while the former aims to avoid it. President Trump’s announcement in Saudi Arabia in May 2025 that he intends to end all sanctions on Syria is a sign that strategic calculations are returning to the forefront of US policymaking on Syria. Subsequent public comments by Secretary of State Marco Rubio in front of Congress underlined that shift, as he suggested that if the United States did not lift sanctions, Syria was destined to collapse back into civil conflict. The key here will be time – how swiftly can executive waivers be issued to de facto remove sanctions restrictions on Syria’s economy? The EU’s decision on May 20 to lift all sanctions would suggest that things are set to move quickly. Should US diplomats return to Damascus, Syria could confidently be placed on a new trajectory of recovery.

Meanwhile, US Central Command (CENTCOM) has continued to play an instrumental role in facilitating negotiations between the Syrian Democratic Forces (SDF) and Damascus, and in pressing the SDF to accept the framework agreement signed on March 11. Beginning in mid-December 2024, CENTCOM contact has included meetings with Sharaa and an established line of communication with the Defense and Interior ministries, through which counter-ISIS activities are coordinated, deconflicted, and planned. Since January 2024, at least eight ISIS plots have been foiled by the interim government in part due to intelligence provided by the United States. A surge in US drone strikes targeting legacy al-Qaeda operatives in Syria’s northwest in February 2025 was also almost certainly the result of a similar exchange.

With the United States determined to minimize its military and strategic investments in the Middle East and with NATO increasingly distracted by concerns in Europe, the prospect for stabilizing one of the thorniest and most destabilizing conflict theaters in recent history should be a no-brainer. Despite the risks and the many unknowns, prioritizing a strategy on Syria that is focused on shaping a stable and capable central government that is integrated into its neighborhood and capable of collectively resolving its own issues should be the only option on the table. That is the choice already made by Europe and the Middle East and the United States should follow suit. Should the Trump administration decisively join that track of engagement, the chances of Syria charting a course of stability will rise significantly.


Charles Lister is a senior fellow and head of the Syria Initiative at the Middle East Institute. Follow him on X at @Charles_Lister.

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2024 in the rear view https://www.atlanticcouncil.org/content-series/ac-turkey-defense-journal/2024-in-the-rear-view/ Mon, 02 Jun 2025 14:00:00 +0000 https://www.atlanticcouncil.org/?p=846857 The developments and changes in the security and defense environment of 2024 carry significant implications for the US, Turkey, and their NATO partners in 2025.

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2024 brought a host of developments and changes in the security and defense environment facing the United States, Turkey, and their NATO partners. Some of these dynamics were political and geopolitical in nature, some operational, others military and technical. As the Defense Journal assesses and describes the state of the Alliance in 2025 for its readers, a brief retrospective on the year just passed and its impact provides a part of the necessary context.

Geopolitical shaping events

Momentous geopolitical events since our winter issue have included the advent of Donald Trump’s second term as US president, the collapse of the Assad regime in Syria, and the apparent revelation in Europe that conventional military defense is a sovereign responsibility that cannot be outsourced in perpetuity. These events have had significant implications for the security of NATO, Turkey, and the United States.

Trump’s return has had several immediate effects on the United States (and thus the global) security environment. His approach narrows the US global mission from maintaining a liberal world order to pursuing US national interests, while adopting a tone of strategic ambiguity toward both rivals and allies. He has simultaneously directed reform of the US military to reemphasize combat readiness and lethality while minimizing social or ideological programs. As commander in chief, Trump has directed US soldiers to conduct counterterror strikes in places like Somalia and Yemen even as his negotiators seek to defuse conflicts in Ukraine, Gaza, and elsewhere.

The fall of Bashar al-Assad after an eleven-day rebel offensive reshaped the strategic map of the Middle East. Iran lost a valuable strategic position in its multidimensional “resistance” against Israel and Western influence. Russia lost its sunk investment in Assad and a degree of its influence in the Middle East. Turkey has gained greater stability on its southern border, close defense and intelligence ties with the new Syrian authorities, and prospects for expanded regional trade and a leading role in Syrian reconstruction. The challenges of stabilizing Syria, and tensions between Israel and Turkey stemming from their respective threat perceptions, have no immediate or apparent solution, and will require deft diplomacy to manage.

Shifts that might have attracted more attention in other times were easy to miss, but still noteworthy in terms of global security. China and Russia took steps to bolster the military junta in Myanmar that is teetering on the edge of collapse against a rebel coalition. Battles between the Sudanese army (backed by Egypt, Turkey, Qatar, and Saudi Arabia) and the antigovernment Rapid Support Forces (supported by Russia and the United Arab Emirates) have shifted decisively in favor of the army, though not yet presaging an end to the civil war. The war in Ukraine grinds on amid serious attempts by Trump to forge a ceasefire. Early 2025 continues to be an era of persistent conflict and great power competition, but one with dramatic developments that will echo throughout this and future years.

Strategic alliance development

International patterns of alliance and armament over the past half-year have reflected the weight of geopolitical changes noted above. Deep and effective US support to Ukraine’s defense against Russian aggression has led to a tighter convergence of what has been referred to as the axis of upheaval, with China, Iran, and North Korea sending weapons, supplies, and even soldiers to aid the Russian war effort. A dozen or more other countries have provided diplomatic support to Moscow, but these three have become critical suppliers of weapons and cash for the Kremlin. This is a trend that began before 2024, but has only accelerated in recent months.

The global arms market continues to shift in other significant ways. The United States in 2024 cemented its leading position in arms exports, accounting for 43 percent of global exports. Russian exports have sharply decreased as domestic production has been consumed by the ongoing war in Ukraine. Italy and Turkey have more than doubled their national shares of global exports over the past several years (2 percent to 4.8 percent for Italy and 0.8 percent to 1.7 percent for Turkey). Five Turkish defense firms rank among the one hundred largest in the world—and a sixth, Baykar, would almost certainly be high on the list if all of its sales data were publicly released. Only the United States, China, Germany, and the United Kingdom match or exceed this number. Of particular note has been the continued rise in demand for Turkish armaments from Gulf countries, especially Saudi Arabia, the UAE, and Qatar.  

Europe, for its part, has shown signs of finally getting serious about developing its own conventional military deterrent vis-à-vis Russia—or at least talking about doing so. Shocked by Trump’s heavy-handed conditionality on future aid to Ukraine, Brussels and its member states have drawn up plans for massive new defense spending and other deterrent steps—if taxpayers and military-age youth prove willing. Yet the European Union’s initial formulation of deterrence against Russia independent of Washington and without integrating Turkish geography, military capabilities, and strategic resources does not inspire confidence, especially given the long years needed to restore defense industrial capacity even assuming consistent commitment. European firms and national leaders would do well to welcome Turkish contributions to European defense planning and resourcing both in NATO and in EU planning by following through on plans to sell Ankara Eurofighters and encouraging more collaboration like that between Italy’s Leonardo and Turkey’s Baykar.

While the past half year has demonstrated volatility at the geopolitical and political levels, it has brought multipolarity and diffusion of power at the strategic level. This has played out in the evolution of alliances and the flow of arms and trade more broadly. In mid-2024 dualistic constructs (autocracy versus democracy, the US-led Alliance against an axis of evil) retained some utility. The current environment is messier, with issue-specific coalitions and transactional diplomacy creating a kaleidoscope of rivals, partners, and targets that, for now at least, deny predictable patterns and lead some to question the credibility of the international system’s most potent actor.

As geopolitics and alliances continue to evolve, so, too, does war in operational terms. In a world with ongoing “hot wars” in Ukraine, the Middle East, Africa, and elsewhere, several discernible trends can be identified. These include diminishing returns for artillery as seen in Ukraine, failure to achieve military victory through ground maneuver forces for Russia and Israel, and the fragility of lightly armed proxy forces in various theaters.

Russia since 2022 has compensated for shortcomings in its infantry, armor, and air forces through reliance on superior tube and rocket artillery, exacting a heavy toll on Ukrainian defenders in the process. Yet in late 2024, losses among Russian artillery units rose as Ukrainian drone tactics and counterbattery fire became more effective. While Russia still outproduces NATO in artillery ammunition and continues to fire it at prodigious rates, its advantage is decreasing in relative terms.

Russia has continued to advance at high cost to try and consolidate control over the nearly 20 percent of Ukrainian territory it occupies, but has failed to end the war via ground maneuver after three years. The difficulty of ending wars through ground maneuver even against inferior opponents can also be seen in Gaza, where operations which have continued for eighteen months are not yet meeting the stated war goals of military and political leaders. Both the Russian and Israeli campaigns reflect the historical difficulty of reconciling the political nature of conflict termination with the operational conduct of wars, and a resultant tendency for destructive wars to yield stalemate when that task remains incomplete.

The recent period produced impressive operational results in other cases, notably Israel’s campaign against Iran’s regional proxy network and the Sudanese army’s efforts to regain control of the national capital region from the insurgent Rapid Support Forces (RSF) militia. In late 2024 Israel crippled Lebanese Hezbollah and struck Iranian-supported militia targets in Syria and Iraq during an audacious campaign involving air strikes, ground maneuver, and exploding cellphones. Between November 2024 and March 2025 the Sudanese Army routed the RSF from Khartoum and other areas in central Sudan. The RSF had been supported by a number of foreign sponsors, including the United Arab Emirates and several other regional countries, but ultimately failed to achieve local or regional legitimacy—as had the Iranian proxy groups in Lebanon and Syria, and arguably in Iraq and Yemen as well. The past several months have badly undermined the notion popular over the past decade that proxy wars can effectively “enable intervention on the cheap.”

Military technical developments on the horizon

Over the past several months sixth-generation fighter aircraft have moved from concept to reality. China flew two prototypes in December 2024, one produced by Chengdu Aircraft Industry Group and the other by AVIC Shenyang Aircraft. US prototypes for a Next Generation Air Dominance (NGAD) aircraft have been under evaluation since 2020, but in March 2025 the Boeing F-47 was officially selected as the program’s platform. A half-dozen other countries have done some sixth-generation work—integrating advanced stealth, artificial intelligence, manned-unmanned teaming, and other advanced technologies—though even for those with the deepest pockets, fourth- and fifth-generation aircraft will be mainstays for the foreseeable future.

Artificial intelligence is a growing element in military planning and readiness. While the United States and many of its allies have endorsed the Political Declaration on Responsible Military Use of Artificial Intelligence and Autonomy, many potential adversaries and rivals have not. Military applications for AI focus at present on information processing, threat identification, and decision-making, areas in which the United States has relative advantage. The Department of Defense’s Defense Innovation Unit is implementing a project, Thunderforge, to deploy such capabilities to headquarters in Asia and Europe. The military services each have designated units to test concepts and systems related to AI in the field. The drive to develop effective defenses against small unmanned aerial systems (UAS) has gained urgency with the continued broad proliferation of cheap, easy-to-use, lethal UAS around the world. The December 2024 Department of Defense adoption of a classified strategy to accelerate counter-UAS development signals the rising criticality of the need for cost-effective and combat-effective counters to the cheap and plentiful threat. This is an area ripe for technical development and fielding in the near future.

Adaptive Alliance

The shifting dynamics at all these levels—geopolitical, strategic, operational, and technical—shape the contours of defense and security challenges for the United States and its NATO allies. These are certainly challenging times, yet the Alliance has endured for over seven decades through other chaotic and difficult periods because the basic value proposition of mutual defense among the members remains sound. Secretary General Mark Rutte strikes the right tone with his assessment that “there is no alternative to NATO” for either the United States or its partners, and that despite frictions related to burden sharing, domestic politics, and sometimes divergent national interest, NATO’s summit in The Hague in late June will show the Alliance evolving rather than dissolving.


Rich Outzen is a geopolitical consultant and nonresident senior fellow at the Atlantic Council in Turkey with thirty-two years of government service both in uniform and as a civilian. Follow him on X @RichOutzen.

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Q&A with Dov Zakheim https://www.atlanticcouncil.org/content-series/ac-turkey-defense-journal/defense-journal-by-atlantic-council-in-turkey-interview-dov-zakheim/ Mon, 02 Jun 2025 14:00:00 +0000 https://www.atlanticcouncil.org/?p=847030 Defense Journal Honorary Advisory Board Member Dov S. Zakheim discusses the recent tensions between US allies Israel and Turkey, and the potential role of the US as a mediator.

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The Defense Journal of the Atlantic Council in Turkey recently interviewed former US Undersecretary of Defense Dov Zakheim, a longtime observer of US foreign and national security policy, regarding recent tensions between US allies Israel and Turkey. Those tensions have received extensive media coverage, including the remarks of both President Donald Trump and Israeli Prime Minister Benjamin Netanyahu during the latter’s April 7 visit to the White House—which featured Trump expressing optimism that tensions were manageable and that he might play a mediating role.

This interview has been lightly edited for style.


DJ: Thank you for your time in speaking with us. Israel and Turkey have had alternating close and tense relations for decades but maintained discrete contacts throughout the cyclical ups and downs. Are they still talking?

Zakheim: It’s hard to know because if they are talking it’s probably through intelligence channels, which get reported the least. My guess is that they probably are, if only to deconflict over Syria. There was a report commissioned by Prime Minister Netanyahu that said tensions over Syria could create a dangerous situation. Regional press reported a conclusion that the countries “could go to war,” but that’s not what the report said—just that the tensions were potentially quite serious. Turkish hard-right commentators from MHP [Milli Hareket Partisi, the National Movement Party, of Turkish nationalist] and HUDA PAR [Hür Dava Partisi, the Independent Cause Party, of Kurdish Islamist] have pretty much said the same thing; even President Recep Tayyip Erdoğan has said similar things. The tensions are worse than what happened after the Mavi Marmara incident in some ways1. The military and security establishments in both countries tend to be more realists and to seek de-escalation, though; so, they are probably still talking.

DJ: After the very tense period between 20092014, President Barack Obama and later Trump worked to ameliorate Turkey-Israel tensions, leading to a rapprochement of sorts. This contributed to a softening of tensions over time. Without US involvement, the two countries pursued a diplomatic reconciliation in 2023 that was interrupted by the Hamas attacks of October 7 and the Israeli response. Do the two countries need the United States as a mediator or are they better off together proceeding at their own pace and modalities?

Zakheim: Trump has offered to mediate between Israel and Turkey so as to improve their relationship. But Washington might be too distracted by the president’s other priorities. President Trump has focused on de-escalating the situation in Gaza, which could indirectly benefit Israel-Turkish tensions stemming in part from the conflict there. In addition, the Trump administration also has Ukraine, tariffs and trade, and a lot of things competing for the attention of the president and his key advisers. It is not surprising that Netanyahu raised Syria with President Trump, because Israelis take a different view of what’s going on there and are concerned about the Turkish role: They are not comfortable with what they see as growth in Turkish influence there. Discontent in Jerusalem can’t be ignored, though it appears that President Trump’s initial response was balanced and that Netanyahu didn’t get the backing for his position that he might have wanted.

DJ: Syria is a unique challenge between Israel and Turkey now because it essentially makes them neighbors—tense and distrustful neighbors—not just countries in the same region. How do both countries meet their minimum interests in Syria?

Zakheim: It shouldn’t be zero-sum between these two, because there are other players in the equation. The Iranians are still present in Syria to a degree, and the Russians of course hope to keep air and naval bases [there]. Israelis are divided as to whether it is good or bad for Russia to stay or go. It appears Netanyahu thinks it may not be a bad thing to use the Russians to balance Turkish influence. Then there is the question of Damascus, the transitional government, itself. Some think they haven’t really evolved from their roots in al-Qaeda, while others say Damascus—especially transitional President Ahmed al-Sharaa—have been signaling moderation and reaching out to the West because they know that they need Western support. Where there are many players, a modus vivendi is possible, especially if Sharaa wants to move toward the West more than the Assad regime did. There is great fluidity in Syria now. The Kurdish factor still has to play out as well and the success or degree of their reintegration affects Ankara’s positioning. Abdullah Öcalan may want to disarm the movement he founded, the PKK [Partiya Karkaren Kurdistan, or Kurdish Workers’ Party], but it is possible that parts of the movement in Iraq or Syria do not2. With so many possibilities, Jerusalem and Ankara both would do well to show flexibility.

DJ: Is Syria without Assad better for Israel than Syria with Assad?

Zakheim: I think it will very much depend on where the Syrian government goes. We haven’t heard the same sort of vitriol out of Damascus as under Assad, despite Israel taking more territory and conducting air attacks. It may be that the Israel-Syria border becomes a quiet border like it was under Hafez al-Assad as opposed to the more dangerous border that became the norm under Bashar and his backers, Hezbollah and the Islamic Revolutionary Guards Corps. Bashar was a slimy figure to the Turks as well: He lied to Ankara and was problematic for Israel. It may well be that a government that proceeds the way al-Sharaa says he wants to go could be a plus for both Israel and Turkey.

DJ: How much of the current Turkey-Israel tension do you see as structural or systemic, and how much personal (i.e., a product of the combative Netanyahu-Erdoğan relationship)?

Zakheim: There is no doubt that the personalities don’t line up very well. For comparison, though, we can look at the relationship between Netanyahu and former President Joe Biden—they were not fond of one another, but the two countries remained close. It was Erdoğan who patched things up gradually with Netanyahu over a decade. Erdoğan is a realist, and he knows very well that Israel has a number of things to offer and is an important market. Remember that Turkey is developing a very high-tech military and other industries, and there are many areas where they might partner with Israel. There was over $1 billion in bilateral trade that has now been cut off—though some still comes through third countries. The fact remains that Erdoğan is a pragmatist. If Gaza is somehow settled, that is a way for trade relations to be restored, and these two countries are potentially very important partners for trade and security cooperation.

Overall, despite the ups and downs there is a degree of complementarity. Both leaders are survivors and have pragmatist streaks. Gaza is a place where the United States can clearly play a major role in reconciling interests. If there is reconstruction, Turkish companies, especially in infrastructure, can have a role. A Turkish constructive role in stabilizing Gaza could be a new pivot point. It is true that Erdoğan plays to his base, but both he and Netanyahu remain less vitriolic about “the other” country in the equation than the hardliners in their own coalitions.


Dov S. Zakheim is a member of the Atlantic Council Board of Directors. He was US undersecretary of defense (comptroller) and chief financial officer from 2001-04. He is a senior advisor at the Center for Strategic and International Studies and senior fellow at the CNA Corporation.

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1    The Mavi Marmara incident involved Israeli Navy interdiction of civilian ships trying to break a blockade of Gaza, which resulted in the death of nine Turkish activists and ended with a 2013 apology by Netanyahu.
2    On May 12th 2025, following a congress of PKK leadership, the organization announced a decision to disarm and dissolve organizationally. The impacts of this decision on the ground in Iraq and Syria remain to be seen, as noted in the interview.

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Transatlantic relations and a region in flux https://www.atlanticcouncil.org/content-series/ac-turkey-defense-journal/transatlantic-relations-and-a-region-in-flux/ Mon, 02 Jun 2025 14:00:00 +0000 https://www.atlanticcouncil.org/?p=847054 The fifth issue of the Defense Journal by Atlantic Council IN TURKEY assesses key dynamics as we enter a new era.

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Foreword

Dramatic events altered the geopolitical landscape, affecting Turkey, the United States, and NATO in late 2024 and early 2025. The election of Donald Trump as the forty seventh president of America, a ceasefire in Gaza after months of showdown between Israel and Iran’s Axis of Resistance, and the collapse of the Assad regime in Syria have challenged many assumptions and regional political-military considerations. The fifth issue of the Defense Journal assesses key dynamics as we enter a new era. The Defense Journal team examines the rise of the hyperwar concept via military applications of artificial intelligence and the frontier of development for robotic systems. We also look at trends in key US policy concerns in the region to the south of Turkey, including Israel and Syria. If the first months of the second Trump administration are any indication, rapid change and a high tempo in US foreign policy decisions affecting Washington, Ankara, and their shared interests across several regions is the new normal. The Editorial Team hopes you find these contributions interesting and useful.

Rich Outzen and Can Kasapoglu, Defense Journal by Atlantic Council IN TURKEY Co-managing editors

Articles

Honorary advisory board

The Defense Journal by Atlantic Council IN TURKEY‘s honorary advisory board provides vision and direction for the journal. We are honored to have Atlantic Council board directors Gen. Wesley K. Clark, former commander of US European Command; Amb. Paula J. Dobriansky, former Under Secretary of State for Global Affairs; Gen. James L. Jones, former national security advisor to the President of the United States; Franklin D. Kramer, former Assistant Secretary of Defense for International Security Affairs; Lt. Gen. Douglas E. Lute, former US Ambassador to NATO; and Dov S. Zakheim, former Under Secretary of Defense (Comptroller) and Chief Financial Officer for the Department of Defense.

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The fall of Assad has opened a door. But can Syria seize the moment? https://www.atlanticcouncil.org/in-depth-research-reports/report/the-fall-of-assad-has-opened-a-door-but-can-syria-seize-the-moment/ Mon, 02 Jun 2025 13:00:00 +0000 https://www.atlanticcouncil.org/?p=849780 This report presents a realistic and holistic vision for Syria's transition, recovery, and its reintegration into the international system.

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For more than a decade, Syria’s crisis has caused unimaginable suffering inside the country and a constant stream of strategically significant spillover effects across the Middle East and globally. However, this dynamic changed in late 2024, when armed opposition groups in Syria’s northwest launched a sudden and unprecedentedly sophisticated and disciplined offensive, capturing the city of Aleppo and triggering an implosion of Bashar al-Assad’s regime. In the space of ten days, Assad’s rule collapsed like a house of cards, dealing a crippling blow to Iran’s role in Syria and significantly weakening Russia’s influence. 

Now, for the first time in many years, Syria has a chance to recover and reintegrate into the international system. If the United States, Europe, Middle Eastern nations, and other stakeholders embrace the right approach, support the right policies, and encourage Syria’s transition to move in the appropriate direction, the world will benefit—and Syrians will find peace. The work of the Syria Strategy Project (SSP) and the policy recommendations in the report “Reimagining Syria: A roadmap for peace and prosperity beyond Assad” present a realistic and holistic vision for realizing that goal. 

This report is the result of intensive joint efforts by the Atlantic Council, the Middle East Institute (MEI), and the European Institute of Peace (EIP), which have been collaborating since March 2024 on the SSP. At its core, the project has involved a sustained process of engagement with subject-matter experts and policymakers in the United States, Europe, and across the Middle East to develop a realistic and holistic strategic vision for sustainably resolving Syria’s crisis. This process, held almost entirely behind closed doors, incorporated Syrian experts, civil society organizations, and other stakeholders at every step.

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Through our Rafik Hariri Center for the Middle East and Scowcroft Middle East Security Initiative, the Atlantic Council works with allies and partners in Europe and the wider Middle East to protect US interests, build peace and security, and unlock the human potential of the region.

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A tax on remittances could hurt US households—and national security https://www.atlanticcouncil.org/blogs/new-atlanticist/a-tax-on-remittances-could-hurt-us-households-and-national-security/ Mon, 02 Jun 2025 12:10:45 +0000 https://www.atlanticcouncil.org/?p=850645 US policymakers should both protect and promote legal remittance channels to ensure that these funds can flow safely and efficiently.

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Last month, the US House of Representatives narrowly passed a sweeping tax and spending bill that is the top legislative priority for President Donald Trump. Among its lesser-known provisions is a proposed 3.5 percent tax on remittances sent by anyone who is not a US citizen or national. 

Currently, remittances are not taxed separately, as senders already pay income tax on the earnings they transfer to family and friends abroad. “The One, Big, Beautiful Bill” would upend that system—effectively taxing those transfers twice. But that’s not all. A tax on remittances—valued at $905 billion globally—would not only hit US households and low-income countries, where they can account for more than 30 percent of gross domestic product; it could also undermine key US national security and foreign policy priorities.

If the Senate passes the Republican budget bill, remittance senders and recipients—who already contend with high fees—will undoubtedly be hit the hardest. In 2024, the global average cost of sending two hundred dollars across borders was 6.4 percent. That’s more than double the United Nations’ sustainable development goal of 3 percent and exceeds the Group of Twenty (G20) target of 5 percent.

If overall remittance volumes were to fall, US remittance providers—the companies that enable the sending and receiving of these payments—would be adversely affected. The proposed legislation imposes new responsibilities for these remittance service companies—such as verifying the sender’s citizenship and enforcing new fee structures and reporting mechanisms—all of which impose new costs, compliance burdens, and risks for remittance providers. These additional requirements threaten to reduce operational efficiency and drive up consumer prices, especially as US companies currently dominate the remittance services sector, setting standards for transfer speed, cost, and security. A tax-driven shift in the market would hurt these companies’ profitability and competitiveness, undermining broader US economic interests. 

The risk of driving transactions underground

When it comes to national security, the United States already has a robust framework to monitor and regulate money and payment flows, including laws and infrastructure designed to combat financial crime. Remittance service companies are a central component of this framework, enabling state and federal law enforcement to track and pursue suspicious transfers and bad actors. 

Moreover, research shows that taxing remittances leads to increased use of underground or informal channels for sending money. That is, senders seek out alternatives—less regulated, less transparent, and less safe ways of transferring their money abroad. In fact, countries that have enacted punitive measures on cross-border payments and currency exchange have often undermined their own ability to combat financial crime, thereby weakening their economies and diminishing their foreign influence. 

Argentina serves as a revealing case study. Under previous leadership, the Argentine government imposed foreign exchange and capital controls that drove transactions into underground banking networks, making it far harder to trace illicit activity. These restrictions also weakened the already vulnerable economy, contributing to stagnation and inflation. President Javier Milei is now actively reversing these policies in favor of open and transparent capital flows and foreign currency exchange—reforms that significantly benefit both law enforcement and economic stability.

In the United States, the revenue generated by a federal tax on remittances would likely be less than 0.1 percent of the national budget. At the same time, it would reduce remittance volumes or push them underground, contradicting broader US national security goals and making US companies less competitive by increasing their cost of doing business. Accordingly, policymakers should reconsider the trade-offs and recognize that transparent, reliable remittance services serve the national interest of the United States.

A foreign policy tool hiding in plain sight

With respect to foreign policy and the ability to influence global development, remittances play a vital role—especially in an era of shrinking public-sector aid. Private remittance flows often reach communities and individuals more directly and efficiently than government-to-government assistance. US senders are often family members and friends of recipients, as well as faith-based and other humanitarian organizations. These flows ultimately contribute to stabilizing fragile economies, reducing the financial distress that often drives illegal migration. Additionally, remittances often support democratic activity and institutions in recipient countries, while also helping undermine autocratic governments by empowering citizens with resources independent of state control.

Because they account for one-sixth of all cross-border payments, remittances also reinforce the global dominance of the US dollar. A large portion of remittances is sent in—or exchanged into—US dollars, bolstering the currency’s central position in the international financial system and providing visibility into foreign transactions. This visibility, in turn, allows for the effective enforcement of anti–money laundering (AML) and countering the financing of terrorism (CFT) policies, as well as sanctions enforcement in cases of illicit activity.

Given these strategic benefits, the United States should take concrete steps to better leverage remittances as a national security and foreign policy asset. This begins with adopting smart, forward-looking policies that strengthen remittance channels and maximize their impact.

First, US policymakers should not just protect, but also actively promote legal remittance channels to ensure that these funds can flow safely and efficiently. Rather than imposing restrictive measures such as new taxes, the United States should foster deeper collaboration between law enforcement and well-regulated remittance providers. Such cooperation would support the adoption of rapidly evolving compliance technologies that more effectively detect illicit financial flows.

Second, the United States should reduce the costs and friction associated with remittance transactions. This includes granting well-regulated US remittance providers direct access to national payments systems and modernizing AML and Bank Secrecy Act regulations to reflect the realities of digital transactions. Emerging technologies can improve financial crime detection—provided that regulators offer clear guidance and foster their adoption.

Third, the United States should leverage its presidency of the G20 in 2026 to establish a global working group that captures the complexity of remittances as a tool of foreign policy and national security. The G20 has traditionally provided targets for remittance payments. Additionally, a US-led working group could address the need for better global coordination to curb illicit flows, reduce frictions, and explore how remittances can complement official aid flows, especially in constrained fiscal environments. 

By recognizing and elevating the role of remittances, US policymakers can incorporate a powerful, underused asset into their broader foreign policy strategy—one that supports both domestic prosperity and global stability.


Ananya Kumar is the deputy director for future of money at the Atlantic Council’s GeoEconomics Center.

The author thanks Daniel Gorfine for his contributions to this article.

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Experts react: How the world is responding to the courtroom drama around Trump’s tariffs https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/experts-react-how-the-world-is-responding-to-the-courtroom-drama-around-trumps-tariffs/ Fri, 30 May 2025 22:50:44 +0000 https://www.atlanticcouncil.org/?p=850844 Several recent court rulings have complicated the US president's plans to impose sweeping tariffs—and US trading partners are watching.

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From Beijing to Buenos Aires, they’re glued to US court dockets. US President Donald Trump’s sweeping tariff regime was thrown into legal limbo this week, thanks to decisions from the New York–based US Court of International Trade and a Washington, DC–based US district judge. Both rulings found that Trump overstepped with the emergency authorities he used for his April 2 “liberation day” tariffs, but the tariffs remain in place for now thanks to a stay granted by a Washington–based appeals court—with this battle likely heading to the US Supreme Court. The legal whiplash comes as countries around the world scramble to negotiate deals with the Trump administration before the global “reciprocal” tariffs kick in on July 9. But are their calculations now changing? We turned to our network of global experts to explore how the courtroom drama is playing among US trading partners.

Click to jump to an expert analysis:

China: There is no cooling off this trade war

European Union: New US tariffs unaffected by the courts could have the biggest bite

United Kingdom: The UK-US deal continues to provide certainty and some unique advantages

Mexico, Canada, and the Americas: While some countries may be in less of a rush, USMCA negotiations will ramp up

India: Its special position means New Delhi should press ahead on a deal

There is no cooling off this trade war.

With the future of many of Trump’s tariffs in legal limbo following the Wednesday ruling by the Court of International Trade, including the 30 percent levies recently imposed on China, one might think US-China tensions were in for a cooling-off spell. 

They would be wrong. 

That’s because it’s become abundantly clear that Washington and Beijing aren’t just involved in a trade and tariffs spat, but instead are competing in a head-to-head, existential struggle over which country gets to rule the future of advanced technology and global supply chains. 

In the less than one month since both sides issued a joint statement recognizing the importance of a “sustainable, long-term, and mutually beneficial economic and trade relationship,” Washington has warned companies not to use chips from Huawei, China’s national champion, and has restricted Beijing’s access to airplane technology, software used for advanced semiconductors, and chemical products. And in a bombshell move on Wednesday, Secretary of State Marco Rubio announced that Washington would begin to “aggressively revoke” the visas of some of the 277,000 Chinese students in the United States, including those with connections to the Chinese Communist Party or studying in “critical fields.” 

For its part, Beijing has threatened firms and individuals with its Anti-Foreign Sanctions Law, if they “implement or assist” US curbs on Huawei. And most egregiously from Washington’s perspective, Beijing hasn’t lifted restrictions on the export of rare earths, following negotiations between Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer, and China’s Vice Premier He Lifeng in Geneva earlier this month. 

Trouble is, all these hostile trade actions make perfect sense in the context of the larger battle between the two countries over tech and supply chains. And that was obvious from the beginning. China’s dominance over rare earths is an incredibly important source of leverage over the United States and the rest of the world—one that it won’t give up willingly. 

Now fissures in what the US president hailed as a “total reset” in relations are becoming public. On Friday, Beijing accused the United States of “[weaponizing] trade and tech issues” and “malicious attempts to block and suppress China.” And Trump vented in all caps on social media that China “HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.” 

My answer to both sides: You should have seen it coming. 

Dexter Tiff Roberts is a nonresident senior fellow at the Atlantic Council’s Global China Hub and the Indo-Pacific Security Initiative, which is part of the Atlantic Council’s Scowcroft Center for Strategy and Security. He previously served for more than two decades as China bureau chief and Asia News Editor at Bloomberg Businessweek, based in Beijing.

New US tariffs unaffected by the courts could have the biggest bite.

The European Union’s (EU’s) negotiations with the United States continue despite this week’s court rulings for multiple reasons. 

Countries should assume that the US government will use another legal vehicle to impose tariffs regardless of the outcomes of the legal challenges on the International Emergency Economic Powers Act (IEEPA). For example, as referenced in the Court of International Trade’s ruling, it is perfectly legal for the president to invoke Section 122 of the Trade Act of 1974 to address balance of payments issues. This law allows the president to impose tariffs of up to 15 percent for a period of five months. During those five months, the government can launch an investigation under Section 301 of the 1974 Trade Act, investigating unfair trade practices that burden or restrict US commerce.  

An additional pressure point is the ongoing Section 232 cases on sectors that comprise the majority of US-EU trade. The completed cases on steel, iron, and aluminum, as well as on autos and auto parts, levied tariffs of 25 percent. But the outstanding cases, including cases that could be decided in the next month, on pharmaceuticals and semiconductors, could be at different levels. The investigations are also broader in scope, going after “derivative” products, which can include downstream products as well as any supplies needed to make the covered products. The EU’s largest trade deficits in goods with the United States are autos, pharmaceuticals, and chemicals, so these investigations could have a significant impact on the European economy.      

The current situation is hurting transatlantic investment and businesses, and European economic actors are demanding certainty. While EU officials may be reviewing and recalibrating their offer to reflect the current circumstances, they are continuing to negotiate with the United States. With world leaders gathering at the Group of Seven (G7) and NATO summits in June, the time to negotiate an agreement and provide clarity for the transatlantic economy is now.  

Penny Naas is a nonresident senior fellow with the Atlantic Council’s Europe Center.

The UK-US deal continues to provide certainty and some unique advantages.

Trump instinctively likes the United Kingdom and it so happens that, within his paradigm of global trade, the United Kingdom does no harm, as it doesn’t have a large trade surplus with the United States. This meant the United Kingdom was only given the 10 percent “baseline” tariff on the notorious liberation day foam boards, a competitive advantage that has been lost—temporarily at least—since Trump announced a ninety-day pause on “reciprocal” tariffs. Still, the British government plowed ahead with its bilateral negotiations and was the first to secure a deal, albeit one that entrenched the 10 percent baseline.  

London feared other countries might blame the United Kingdom for enabling this, but they haven’t. Instead, the US Court of International Trade ruled that blanket tariffs, including the 10 percent baseline tariffs, are illegal. This suggests that the United Kingdom might again be deprived of the hard-fought edge it has with the Trump administration. Only last week, Trump threatened the EU with a blanket 50 percent tariff because he had been briefed that negotiations were not advancing. Still, London can be satisfied with a few of the deal’s achievements. First, it provides most of its firms with certainty that exporting to the United States will involve either the 10 percent baseline or, ideally, no new tariff if the court ruling survives appeals. Second, the deal offers the United Kingdom exemptions within certain quotas from higher sectoral tariffs on cars and steel. These advantages exempt the United Kingdom from tariffs that were not struck down by the court ruling and make the deal worthwhile no matter what happens in the courts. 

Charles Lichfield is the deputy director and C. Boyden Gray senior fellow of the Atlantic Council’s GeoEconomics Center. 

While some countries may be in less of a rush, USMCA negotiations will ramp up.

The back and forth on broad-based US tariffs has trading partners around the world, including in the Americas, scratching their heads about what to do next. And it’s not just at the technical level. US judicial processes and court jurisdictions on trade have quickly become front-page news across the hemisphere. But without clarity on how additional courts may rule, and how Trump may then respond, Latin American trade ministers are forced to play out scenarios of what may come next and to try to base their commercial outlook on their preferred hypothesis.  

The implications of this uncertainty have direct impacts on Americans. As research from the Adrienne Arsht Latin America Center has recently shown, countries in Latin America and the Caribbean (LAC), particularly Mexico, import more (in value) of US products per capita than other countries of similar income and development levels. And while tariffs are directed at US imports, the recent court decisions will continue to drive trade uncertainty as decision makers adapt their strategies to this new complex scenario.  

Since “liberation day,” many LAC countries have rushed to try to line up meetings with the Office of the United States Trade Representative to see what actions can be taken to get a suspension of the 10 percent tariffs. Clarity on a path forward is particularly important for the region since US trade deficits—the top reason for Trump’s tariffs—do not generally apply to LAC. In fact, the United States had a $47 billion trade surplus with South and Central America in 2024—the only major region with such a surplus. With the seesaw in the judicial determination of the president’s legal authority, countries may now be in less of a rush to see what needs to be done to get out from underneath the tariff cloud. Why make concessions if the legality of the original determination is up in the air?  

For Mexico, the largest US trading partner in the world, it’s important to remember that goods that comply with the US-Mexico-Canada Agreement (USMCA) are exempt from additional tariffs. However, non-USMCA-compliant goods are subject to a 25 percent tariff, which in Mexico’s case was about half of all its exports to the United States (or around 40 percent of its global exports) in 2024. This situation has introduced uncertainty for businesses engaged in US-Mexico trade, particularly those dealing with noncompliant goods. To avoid what will likely be continued uncertainty, negotiators are looking to expedite USMCA review discussions that were originally supposed to ramp up in 2026, with a mid-2026 deadline for that process to conclude. 

Jason Marczak is vice president and senior director of the Atlantic Council’s Adrienne Arsht Latin America Center. 

Its special position means New Delhi should press ahead on a deal.

With the decision by the Court of International Trade that Trump’s tariffs invoked under IEEPA are illegal, many capitals around the world are recalculating their risk if they fail to (or choose not to) negotiate a reciprocal tariff deal by July 9. It appears the balance of leverage has shifted, especially if new tariffs are temporarily paused. My advice, as a former US trade negotiator, is to exercise caution in abandoning these negotiations or even slowing them down. One way or another, the Trump administration is likely to find ways to continue to threaten these tariffs (whether under other statutes or by winning a reversal of the Court of International Trade’s judgement) and will be keeping tabs on those who stop playing ball during this new period of uncertainty and instability. 

In fact, India is in a special position, although it too seeks relief from Trump’s reciprocal tariffs. The current negotiation is recognized by both sides as the first phase of a larger, comprehensive “Bilateral Trade Agreement,” or BTA. While it is not being called a free trade agreement, its substance looks a lot like one, and India has pushed for this going all the way back to the first Trump administration. As such, the negotiations are not so one-sided—the Trump team has made it clear that the outcomes must be win-win and that it understands that Prime Minister Narendra Modi must show his electorate that he achieves concrete gains beyond avoiding new US tariffs. 

I expect India will stay committed to pursuing a first-phase reciprocal tariff deal and build on this to eventually accomplish a fully cooked BTA, which could take several years of negotiations. India will gain new market share in the United States and increased investment in its economy, even as it opens up to more imports of goods and services from the United States. 

Mark Linscott is a nonresident senior fellow with the Atlantic Council’s South Asia Center. He was the assistant US trade representative for South and Central Asian Affairs from 2016 to 2018, and assistant US trade representative for the WTO and Multilateral Affairs from 2012 to 2016. 

Trump Tariff Tracker

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New presidents and new nuclear developments test the United States–Republic of Korea alliance https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/new-presidents-and-new-nuclear-developments-test-the-united-states-republic-of-korea-alliance/ Fri, 30 May 2025 22:26:48 +0000 https://www.atlanticcouncil.org/?p=850416 In the coming years, the US-South Korea (Republic of Korea, or ROK) alliance is likely to be tested in at least three fundamental ways: by a concerning growth in North Korea’s nuclear and ballistic missile weapons program; by changes to ROK defense capabilities and structures, including the establishment of ROK Strategic Command (ROKSTRATCOM); and by potential strategy and policy changes under new US and ROK political administrations.

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Key takeaways

  • South Korea’s new President, who will be elected on June 3, will have to grapple with many South Koreans’ unease with relying on the United States’ nuclear arsenal for deterring North Korea.
  • The first and most important test the US-South Korea alliance under Trump and the incoming new South Korean president faces is the continuing growth of North Korea’s nuclear and ballistic missile capabilities.
  • South Korea’s establishment of a new strategic command outside of the combined US-ROK military structure highlights Seoul’s willingness and capability to take greater responsibility for deterring North Korea, but careful coordination will be required to ensure this strengthens rather than strains the alliance.

In the coming years, the US-South Korea (Republic of Korea, or ROK) alliance is likely to be tested in at least three fundamental ways: by a concerning growth in North Korea’s nuclear and ballistic missile weapons program; by changes to ROK defense capabilities and structures, including the establishment of ROK Strategic Command (ROKSTRATCOM); and by potential strategy and policy changes under new US and ROK political administrations.

Though the alliance may rise to the challenges of these tests to emerge stronger, these factors could potentially prevent the United States and the Republic of Korea from leveraging the mutual benefits that come from being integrated into a unified wartime command system and the long-standing ideal of a US-ROK bilateral agreement that emphasizes mutual defense. The United States will need to continue to adapt its approach, account for its ally’s perspectives, and plan for the inevitable change to the status quo on the Korean Peninsula.

A second North Korean enrichment facility heightens security concerns in Seoul

The first test for the alliance is the continuing growth of North Korea’s nuclear and ballistic missile programs. Current estimates suggest Pyongyang has enough fissile material to build up to 90 nuclear warheads, which generates compelling security concerns that could create tension among two longtime and staunch allies—the United States and the Republic of Korea. North Korean leader Kim Jong Un has placed increasing importance on the regime’s nuclear weapons development in the last decade, portraying nuclear weapons as not only defensive but providing the means to win in conflict. In September 2022, North Korea promulgated a new law that laid out a much broader approach to the use of nuclear weapons, including their employment in various conditions.  

In 2023, Kim updated Article 58 of the state’s constitution to “ensure the country’s right to existence and development, deter war and protect regional and global peace by rapidly developing nuclear weapons to a higher level.” In September 2024, North Korean state media released photos for the first time of a suspected second uranium enrichment facility and Kim called for a higher number of more capable centrifuges to boost his plans to “exponentially” increase nuclear warhead production. Further, 2025 marks the final year for Kim to achieve the military capability development goals laid out in his five-year plan.

Kim Jong Un touring a uranium enrichment facility at an undisclosed location. Photo released by Korean Central News Agency, September 2024.

North Korea has a nuclear dyad with land- and sea-based nuclear weapons, and it is developing new technologies, including hypersonic gliding flight warheads and multiple independently targetable reentry vehicles, consistent with Kim’s drive to rapidly develop nuclear weapons and the five-year plan. North Korea’s Strategic Forces have short-range, medium-range, intermediate-range, and intercontinental ballistic missiles (ICBMs), along with 200 road-mobile launchers. North Korea’s continued development of its rail-based ballistic system shows the regime’s efforts to diversify launch platforms, including various vehicles and ground launch pads and potentially submarines, and increase the survivability of its force. While Kim’s ability to strike the US homeland with North Korean ICBMs only grows with additional testing and the introduction and testing of its solid-fuel ICBM in 2023, the regime is also hard at work improving the efficacy of its precision-guided tactical nuclear weapons, which are designed to significantly damage South Korea and US forces on the peninsula, as well as create response challenges for the alliance.

In addition, North Korea is moving forward on its sea-based deterrent. It has ballistic missiles and what it terms ”strategic” (alluding to long range and nuclear capability) cruise missiles for both developmental, missile-firing submarines and underwater platforms. Its tactical nuclear attack submarine, the Hero Kim Kun Ok, is designed to launch tactical nuclear weapons from underwater. In January 2024, the regime tested its underwater unmanned nuclear weapon system, the Haeil-5-23, as a purported response to the trilateral US-ROK-Japan maritime exercise. In January 2025, the regime tested an underwater-to-surface strategic guided cruise missile while also vowing to respond to the United States with the “toughest counteraction.”

Ultimately, North Korea wants to halt US-ROK joint (and multinational) military exercises and to splinter an alliance of seventy-plus-years between the two nations. Its determined and bellicose approach has the potential to highlight the asymmetry of what’s at stake between the United States and the ROK and, if unchecked, sow fear and doubt into the fabric of the alliance.

Would South Korea go nuclear? A shift in ROK defense architecture

The second test of the alliance follows changes in the ROK’s defense architecture and capabilities, including the advent of the ROK Strategic Command (ROKSTRATCOM), which may increase potential areas for divergence among allies even as the changes show the ROK’s increasing capability and willingness to take greater responsibility for its own defense. ROKSTRATCOM’s establishment may be an opportunity rather than just a challenge and it is perhaps more a response to an increasingly serious threat from North Korea than a shortfall in the US-ROK alliance. It nevertheless highlights that South Koreans may not feel US extended deterrence guarantees are sufficient given the growing North Korean threat.

Plans to establish ROKSTRATCOM were underway for over two years by the time of the command’s official establishment on October 1, 2024, yet many Americans either did not pay attention or believe there was a need for such a command on the Korean Peninsula. After all, the United States, South Korea’s strongest ally, has been with the ROK since the Korean War began in 1950. The two countries also have a long-standing Mutual Defense Treaty, signed shortly after the Korean War Armistice. So, for some observers, South Korea’s need for such a command was questionable. The United States already commits to defending South Korea, most visibly with 28,500 military personnel present on the peninsula and contributing to the Combined Forces Command, US Forces Korea, and the United Nations Command. Regular joint exercises and strategic activities, such as a port visit of the USS Kentucky ballistic missile submarine to Busan, also bolster this presence.

The ROK-US Combined Forces Command (CFC) marks its forty-sixth anniversary with a ceremony at Camp Humphreys, Pyeongtaek, November 7, 2024. Photo provided by United States Forces Korea.

Importantly, though, ROKSTRATCOM does not clearly fall under the combined alliance wartime command construct under a bi-national Combined Forces Command that has been in place since 1978. ROKSTRATCOM is instead an independent ROK-controlled command, currently led by ROK Air Force Lieutenant General Jin Young Seung, and it is still under development exactly how this new command will align and coordinate with CFC and other alliance constructs like the bilateral Military Committee.

Markus Garlauskas, Indo-Pacific Security Initiative director, Scowcroft Center for Strategy and Security, with Lt. Gen. Jin Young Seung, ROKSTRATCOM commander, at the ROKSTRATCOM headquarters in February 2025. Photo provided by the Atlantic Council

Operationally, ROKSTRATCOM resides under the ROK Joint Chiefs of Staff, serving as an integrator of ROK armed forces’ strategic weapons systems from each military branch. In July 2024, a former ROK minister of defense expressed the administration’s vision of the command:

The strategic command will be a unit that leads the development of nuclear and conventional integrated operational concepts and plans and combat development in new areas such as space, cyber, and the electromagnetic spectrum in conjunction with the operation of the ROK-US Nuclear Consultative Group (NCG).

According to a news report citing the South Korean Ministry of National Defense, the command “would also give the orders to subordinate military assets to strike enemy targets or intercept hostile missiles as part of the Kill Chain strategy and the Korea Massive Punishment and Retaliation [KMPR] plan.” (See the ministry’s 2022 white paper for more information about the kill chain strategy and the KMPR plan.)

It is more than just command and control that is changing, however. South Korea’s independent strike capabilities are increasing. South Korea unveiled its most powerful conventional weapon, the Hyunmoo-5, referring to it as an “ultra-high-power ballistic missile.” The high-yield Hyunmoo-5 appears to be intended as a ROKSTRATCOM capability, integral to reinforcing ROK messages of an “overwhelming response” to any North Korea nuclear attack. It remains to be seen, however, how the command will contribute these forces to a conflict on the Korean Peninsula—and this calls into question the previously relied upon unified command system.

The establishment of ROKSTRATCOM is a historic event and time will tell if capabilities breed intentions. It appears South Korea is not willing to take the option of having nuclear weapons off the table despite the US nuclear umbrella and extended deterrence commitments. As the ROK continues to grapple with its current and future defense challenges, the United States should take care to be an integral part of this ROK process, thereby ensuring a better understanding of the intentions of allies, enhancing the alliance, and deterring North Korea from strategic attack.

New presidents in Washington and Seoul portend policy changes

The third test involves expected changes by the new Trump administration to US policies and strategies affecting the alliance, along with potential adjustments by the imminent new South Korean administration to its approach toward the alliance and to defense issues more broadly. Coupled with divisive domestic politics in both the United States and South Korea, these developments could potentially open old wounds and create new points of contention within the alliance. As the new US administration begins to set its tone for foreign policy for the rest of its term, many South Koreans seem hopeful, but uncertain. Meanwhile, South Korean media reports and commentaries are examining the implications of rumored US force reductions in Korea and other potential changes to US policy and strategy affecting the alliance as either challenges or opportunities.  

South Korea will soon have its own new president, after the martial law declaration by Yoon and his removal from office resulted in elections set for June 3. A new ROK president may well inject more uncertainty into the state of South Korean affairs, which could affect the alliance, as the country works to self-heal from Yoon’s surprising martial law announcement and the subsequent fallout.

Meanwhile, there are lingering questions about whether South Korea will eventually develop its own nuclear weapons. While many Americans empathize with South Korea’s undesirable position, its creation of ROKSTRATCOM and varied calls by ROK officials for nuclear weapons are concerning for US assurance efforts and, potentially, its nonproliferation policy. Would South Korea really go nuclear? Given the tense nuclear-armed neighborhood that surrounds the small country, and North Korea’s continued refusal to give up its nuclear weapons, many ask, “Why not?” Others, however, argue South Korea “cannot” or would “never” do so because it is a signatory of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). However, the NPT has a get-out-of-jail free card in Article X. According to a 2005 Arms Control Today article by the late arms control experts George Bunn and John B. Rhinelander:

Article X of the NPT provides a “right” to withdraw from the treaty if the withdrawing party “decides that extraordinary events, related to the subject matter of this [t]reaty, have jeopardized the supreme interests of its country.” It also requires that a withdrawing state-party give three months’ notice.

South Korean public discussion of a nuclear latency capability and indigenous nuclear weapons has been growing, with some officials publicly expressing the desire to keep the option open or to actually build nuclear weapons. Most recently, the People Power Party presidential candidate, Kim Moon Soo, announced that, if elected, he would pursue a nuclear latency capability—meaning that South Korea would be much closer to being able to build nuclear weapons on short notice. This indicates South Korea’s unease with relying on the United States as the only nuclear weapons responder to a growing North Korean nuclear arsenal.

Conclusion

These new hurdles—a more capable and threatening nuclear North Korea; a shift in South Korea’s defense architecture, including a unilateral strategic command; and presidential-level political changes—will inevitably strain the alliance, but may also present opportunities. The US-ROK alliance has remained ironclad, with more than seven decades of experience and adaptation, underpinned by a commitment to each other’s mutual defense. Now it is up to both countries to learn from their past while developing new approaches to the changing status quo. No matter who wins the ROK presidential election, the continued strength of the US-ROK alliance matters in the face of threats confronting both the United States and South Korea. Early and in-depth engagement by Washington with the new South Korean president to begin charting a new course for the alliance will ensure the US-ROK alliance emerges even stronger and more equipped to enhance each country’s interests, as well as underpin stability in the region.

About the authors

Heather Kearney is a nonresident fellow in the Indo-Pacific Security Initiative at the Atlantic Council’s Scowcroft Center for Strategy and Security. She is also a senior Indo-Pacific analyst in the Joint Exercise, Training, and Assessments Directorate at United States Strategic Command. As a senior analyst for risk of strategic deterrence failure, she leads a team dedicated to assessing trends in the environment in order to inform strategic risk assessments.

Amanda Mortwedt Oh is a USSTRATCOM liaison officer in the Office of Strategic Deterrence and Nuclear Policy, Strategic Stability, in the Joint Staff J-5 Directorate. She focuses her research on Northeast Asia and strategic deterrence and was most recently a Fall 2024 Nonproliferation Policy Education Center Policy Fellow. She is the previous director of international outreach and development at the Committee for Human Rights in North Korea (HRNK) and has published several articles and reports on North Korea’s prison camps and human rights issues. She is also a lawyer in the US Army Reserve Judge Advocate General’s Corps.

Disclaimer: The views presented in this article are those of the authors and do not necessarily represent the views of US Strategic Command, the US Air Force, the Department of Defense, or the US government.


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How the United States can support Cameroon as it faces its next democratic test https://www.atlanticcouncil.org/blogs/africasource/how-the-united-states-can-support-cameroon-as-it-faces-its-next-democratic-test/ Fri, 30 May 2025 13:43:49 +0000 https://www.atlanticcouncil.org/?p=849222 The United States can act now to support democratic elections in Cameroon and help the country navigate what unfolds after the vote.

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Cameroon’s upcoming presidential election, slated for October 2025, is set to be a showdown of critical importance for the country. It can either break Cameroon’s pattern of disputed and unfair elections, opening the door to a democratic shift for the country, or entrench that pattern, fueling instability and leaving opportunities untapped.

Ahead of this pivotal moment, the United States can act now to support a democratic electoral process in Cameroon and help the country navigate what unfolds after the vote.

Cameroonian President Paul Biya, now ninety-two years old and having held power since 1982, is one of Africa’s longest-ruling leaders. Over the course of his decades in office, elections have been routinely marred by fraud allegations and repression. In the country’s first multiparty elections, held in 1992, Biya clung to power amid accusations of rigging, and opposition leader John Fru Ndi was placed under house arrest during ensuing protests. More recently, in the 2018 election, Biya was declared the winner and credited with 71 percent of the vote, but there were irregularities: Turnout in the conflict-torn Anglophone regions was barely 10 percent. Protests over the result led to mass arrests of opposition supporters. Despite concerns about his age and health, Biya is expected to run again, presenting himself as the guarantor of stability. However, public clamoring for change has grown loud: Catholic bishops have urged Biya to step aside, and even a pro-government newspaper opined that the long-time leader “deserves a rest” in favor of new leadership.

Biya’s ruling Cameroon People’s Democratic Movement (CPDM) and its allies are closing ranks to preserve power. Throughout 2024, several CPDM elites and patronage partners have pressed Biya to seek another term, touting his experience and warning that the country could suffer instability if he steps down. They are again mobilizing a broad coalition of smaller parties to back Biya, as in past elections. Meanwhile, intense behind-the-scenes jockeying is underway over who might succeed the aging president in a post-Biya scenario. Various power brokers have been floated as successors. Talk about one such name, Biya’s son Franck, has raised fears of an undemocratic dynastic transition. The uncertainty around succession is a significant risk factor, a ticking time bomb that could trigger factional infighting if not managed transparently.

The opposition sees 2025 as a rare chance to finally end decades of one-person rule. Over thirty opposition parties have allied to unify behind a single candidate, Maurice Kamto, aiming to overcome Cameroon’s one-round, first-past-the-post system that has historically favored the incumbent. Kamto—a former minister who insists he won the 2018 election—is campaigning on anti-corruption and reform, tapping into public yearning for change. Yet the regime has moved aggressively to undercut this challenge. Early this year, authorities banned two opposition coalitions, calling them “illegal” and “clandestine” associations, driving Kamto’s alliance underground. Legal obstacles are piling up: Election law requires a candidate’s party to hold parliamentary seats, but the Cameroon Renaissance Movement (MRC), Kamto’s party, has none after it encouraged Cameroonians to boycott a flawed 2020 legislative vote. In a brazen step, the CPDM-dominated government postponed the next legislative elections to 2026, denying the opposition any chance to gain seats before the presidential race.

Meanwhile, harassment of those who dissent continues unabated—activists and journalists are detained on spurious charges, peaceful protests are barred, and media outlets critical of the regime are silenced. These tactics cast doubt on whether the 2025 polls will be free or fair, absent significant pressure for a level playing field. Nevertheless, civil society and youth activists have been mobilizing: In 2024, they led mass voter registration drives to encourage turnout, signaling a grassroots appetite for change despite the odds.

The stakes extend beyond who wins. They encompass Cameroon’s stability, economy, and regional security. A flawed election could inflame simmering conflicts and public frustrations. The Anglophone Crisis in the country’s Northwest and Southwest regions has already killed over six thousand people and displaced nearly 700,000 internally, with around 100,000 more fleeing to Nigeria as refugees. Separatist militants reject the upcoming election and have violently enforced boycotts in those regions before, leaving a significant portion of the population disenfranchised.

Elsewhere, a contested outcome or a result marred by repression could spark unrest among a young population increasingly fed up with corruption and lack of opportunity. Ethno-regional tensions might also flare if a perceived power grab fuels resentment among communities who feel excluded. By contrast, a credible election and peaceful outcome would give the next government a mandate to address these crises, from pursuing a political solution to the Anglophone conflict to focusing the military on the Boko Haram insurgency in the Far North region. Cameroon is richly endowed with oil, timber, and fertile land, but its economic potential has been blunted by graft and mismanagement. Decades of kleptocratic governance have left over half the population impoverished. Another seven years of business-as-usual would likely deepen economic malaise and alienation, whereas a new commitment among leadership to reform could attract investment and better harness Cameroon’s resources for development.

International actors are watching closely, as Cameroon’s trajectory will impact Central African stability. France—Cameroon’s former colonial ruler—has backed Biya in the past, though French officials now avoid openly taking sides. The United States and European Union (EU) regularly urge fair elections and respect for human rights (the United States, for example, cut some military aid due to abuses in Anglophone regions). Still, their security cooperation interests temper Western leverage.

Meanwhile, other external players are exploiting the situation: Russian-linked media in Cameroon spread anti-Western narratives to bolster Biya’s regime. Regional governments, many led by entrenched leaders, generally prefer Biya to stay in power and are unlikely to press for change, prioritizing stability over democracy.

Ultimately, Cameroon’s future will be decided at home. A genuinely free and fair election would bolster Cameroon’s international standing and unlock greater foreign support, whereas a blatantly rigged vote may isolate the regime and sow internal turmoil.

Cameroon’s vote is about more than the country’s democratic future: As one analysis noted, it is part of a broader test of whether Africa’s elections will uphold democratic norms or contribute to a slide backward. Here is how the United States can help support democracy in Cameroon during this pivotal election year:

  • Use diplomacy to promote a free and fair election: The United States should convince Cameroonian leaders, both publicly and privately, to uphold democratic norms in the 2025 vote. Diplomatic engagement should emphasize that opposition candidates must be allowed to compete freely, international observers should be admitted, and security forces must refrain from violence. Coordinating these messages with allies (France, the EU, and the African Union) will increase impact and help deter electoral misconduct.
  • Leverage aid and security ties: Washington should tie aspects of its assistance to Cameroon’s electoral conduct and respect for human rights. The prospect of continued military aid and business engagement can be made conditional on the regime permitting a transparent election and avoiding crackdowns. Conversely, a blatantly fraudulent or violent process should prompt targeted consequences (such as visa bans or aid suspensions). By calibrating incentives and penalties, the United States can encourage accountability without undermining vital counterterrorism cooperation.
  • Support election monitoring and civic engagement: To reduce the risk of fraud or unrest, the United States should back robust election-observation and civil-society initiatives. This includes supporting credible international and domestic observers and assisting local groups in voter education and parallel vote tabulation. Such efforts—coordinated with other partners—will bolster public confidence in the process, deter manipulation, and empower Cameroonians to defend their votes peacefully.
  • Plan for post-election stability and reforms: The United States should prepare to help Cameroon navigate the vote’s aftermath. If the election results are disputed or violence looms, Washington (with African partners and United Nations agencies) can offer to facilitate dialogue or mediation to prevent escalation. In any outcome, the United States should encourage the winning candidate to pursue inclusive reforms—for example, an inclusive national dialogue to address the Anglophone Crisis and to introduce tangible anticorruption measures. Targeted US support (diplomatic partnership, technical aid, and peacebuilding programs) can be leveraged to help achieve these steps, reinforcing that long-term US partnership will deepen if Cameroon advances stability, inclusivity, and good governance.

Jude Mutah is a policy expert and practitioner in democracy support, peacebuilding, and governance, with over a decade of experience across Africa. He holds a Doctorate in Public Administration from the School of Public and International Affairs at the University of Baltimore.

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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UN probe: Russia’s ‘human safari’ in Ukraine is a crime against humanity https://www.atlanticcouncil.org/blogs/ukrainealert/un-probe-russias-human-safari-in-ukraine-is-a-crime-against-humanity/ Thu, 29 May 2025 21:46:50 +0000 https://www.atlanticcouncil.org/?p=850604 UN investigators have concluded that a coordinated Russian campaign of deadly drone strikes targeting civilians in southern Ukraine's Kherson region is a crime against humanity, writes Peter Dickinson.

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Russia is guilty of committing crimes against humanity in southern Ukraine’s Kherson region, according to a new report by the UN’s Independent International Commission of Inquiry on Ukraine. The report comes following an extensive investigation into a campaign of Russian drone strikes on Ukrainian civilians over a ten-month period beginning in July 2024, with the probe focusing on an area of southern Ukraine stretching more than 100 kilometers along the right bank of the Dnipro River around the city of Kherson.

Members of the UN Commission determined that Russia was engaged in the deliberate targeting of civilians and concluded that the drone attacks were “widespread, systematic, and conducted as part of a coordinated state policy.” The report detailed how civilians were targeted “in various circumstances, mainly when they were outdoors, both on foot or while using any type of vehicles,” and noted that on a number of occasions ambulances had been struck by drones in an apparent bid to prevent them from reaching victims and providing vital medical assistance.

During the ten-month period covered by the United Nations probe, Russian drones killed almost 150 Ukrainian civilians in and around Kherson, while leaving hundreds more injured. The constant threat of attack has created a pervasive climate of fear throughout the region, with people afraid to leave their homes. Terrified locals say they feel hunted and refer to the drone attacks as a “human safari.”

In addition to daily drone strikes, Russia has sought to maximize the psychological pressure on residents of the Kherson region via social media channels. UN investigators reported that video footage of drone attacks on Ukrainian civilians is regularly disseminated on Russian Telegram channels, some of which have thousands of subscribers. This video footage shows drone strikes along with the resulting deaths and destruction in the style of video games, often accompanied by background music. Meanwhile, menacing messages posted on Telegram call on Ukrainians to flee the region. “Get out of the city before the leaves fall, you who are destined to die,” read one message quoted in the UN report.

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This is not the first time UN investigators have accused Russia of committing crimes against humanity in Ukraine. A March 2025 UN report reached a similar conclusion regarding the Kremlin’s large-scale program of detentions and deportations targeting Ukrainians living under Russian occupation. “The evidence gathered led the Commission to conclude that the enforced disappearances against civilians were perpetrated pursuant to a coordinated state policy and amount to crimes against humanity,” the report stated.

Meanwhile, the International Criminal Court in The Hague has issued a number of arrest warrants for senior Russian officials in relation to alleged war crimes committed in Ukraine including the targeted bombing of civilians and critical civilian infrastructure. The most high-profile ICC arrest warrant is for Vladimir Putin himself, who is wanted for his alleged involvement in the mass abduction of Ukrainian children.

At least 20,000 Ukrainian children are believed to have been kidnapped since the start of the full-scale invasion and taken to Russia, where they are subjected to indoctrination to rob them of their Ukrainian heritage and impose a Russian national identity. The nature and scale of these mass abductions may qualify as an act of genocide according to the 1948 United Nations Genocide Convention.

Russia’s deadly “human safari” drone campaign against the civilian population in southern Ukraine’s Kherson region is part of the Kremlin’s strategy to make the area unlivable. The city of Kherson was occupied by the advancing Russian army during the first days of the full-scale invasion and was officially annexed by Russia in September 2022. However, Kherson and the surrounding area were liberated by the Ukrainian military soon after. The scenes of joy that accompanied the liberation of Kherson were deeply humiliating for Putin, who had personally proclaimed the city to be “forever” Russian just weeks earlier.

This setback forced Putin’s invading army to retreat across the Dnipro River, creating a major physical obstacle for the Russian invasion and limiting the occupied zone of Ukraine to the eastern half of the country. Nevertheless, Moscow continues to insist that Kherson and the surrounding region are now part of the Russian Federation and must be handed over within the framework of a future peace deal.

Ukraine has completely ruled out any such concessions. This is hardly surprising. While some temporary territorial compromises may prove possible during peace negotiations, Ukraine’s stance on Kherson is unlikely to change. After all, allowing the renewed Russian occupation of Kherson would be suicidal for Kyiv. It would present Russia with a priceless foothold across the Dnipro River that could be used as a gateway to seize Ukraine’s Black Sea ports and complete the conquest of the country.

For now, Russia appears to have little chance of seizing Kherson militarily or of acquiring the city at the negotiating table. Instead, Moscow seems to be intent on terrorizing local residents and forcing them to flee. Putin claims that the population of the Kherson region are Russians, but he has no qualms about his soldiers using drones to hunt and kill them mercilessly. This tells you all you need to know about Putin’s cynical posturing as the protector of the Russian people in Ukraine.

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

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Five questions (and expert answers) on the state of the Netanyahu government https://www.atlanticcouncil.org/blogs/new-atlanticist/five-questions-and-expert-answers-on-the-state-of-the-netanyahu-government/ Thu, 29 May 2025 21:44:16 +0000 https://www.atlanticcouncil.org/?p=850495 The Israeli prime minister is facing increasing pressure from within his country and in his government coalition as well as from abroad.

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Can the ultimate political survivor stay afloat? At home, Israeli Prime Minister Benjamin Netanyahu faces the challenge of keeping a fragile coalition together amid growing societal divisions over the war in Gaza and reemerging political fault lines that had receded following October 7, 2023. Abroad, the Netanyahu government confronts escalating international criticism for its conduct of the war in Gaza and recent public disagreements with Washington over Middle East policy. Meanwhile, Israeli media reported Thursday that Netanyahu is willing to accept the latest US cease-fire offer.  

To illuminate what this all means, we reached out to Shalom Lipner, a former adviser to seven consecutive Israeli prime ministers, including Netanyahu, to get a sense of how the Israeli political landscape has shifted after more than six hundred days of war.

The Israeli public square is a bubbling cauldron, with multiple challenges—foreign and domestic—negatively impacting the prospects of Netanyahu’s majority. His government has demonstrated remarkable resilience over these past twenty months of multifront warfare, rebounding relatively quickly after October 7, 2023, to put Israel’s enemies (including Hamas in Gaza and Hezbollah in Lebanon) on the defensive. However, the pressing need to make strategic decisions is exposing fissures that now threaten the stability of Netanyahu’s governing coalition.

Netanyahu’s next moves on Gaza and Iran—two theaters of operation where he appears increasingly misaligned with the Trump administration—could exacerbate those pressures, compelling him to choose between the support of the United States and that of his key coalition partners. More immediately, a potential revolt within the ranks of his government, whose ultra-Orthodox members have issued an ultimatum that they will bolt unless their demands for a military draft exemption are met next week, could create a cascade that triggers early elections. Adding to this volatility, Netanyahu’s cross-examination by the prosecution in his corruption trials will begin next week.

The horrors of October 7 had a chilling effect on the Israeli population, instantly sidelining the disputes—most prominent among them, issues relating to plans for an overhaul of the judiciary—that had paralyzed the country, with precedence shifting to the critical functions of national defense and rehabilitation. Israelis mobilized to meet those tasks, with civil society often filling vacuums in service left by a crippled bureaucracy.  

With the passage of time, however, as many crises have since been downgraded or become routine, a “new normal” has created space for pre-October 7 divisions to resurge with a vengeance. This has been most evident in the resumption of divisive government initiatives to circumscribe the mandate of the courts and to assert absolute control over senior appointments. After more than eighteen months of combat, many in Israel believe that when Israelis do ultimately return to the polls, a fault line will be apparent. On one side will be those who have contributed tangibly to the war effort, with many spending hundreds of days on Israel Defense Force reserve duty. On the other side will be those who have evaded such responsibilities.

In this state of affairs, an embattled Netanyahu is maneuvering to keep his coalition afloat, requiring him to keep its various components satisfied—notwithstanding assessments that most of them have no viable alternative to his leadership. To that end, the prime minister has rejected all solutions for Gaza that would enable Hamas to remain in the territory and, in the interim, to have a hand in administering the distribution of humanitarian aid. Netanyahu’s support for a lenient conscription bill fits into this category as well.  

The success of his juggling act is far from guaranteed, however. His government has faced growing pushback from the international community—including, but not limited to, arrest warrants by the International Criminal Court; consideration of targeted sanctions by the United Kingdom, France, and Canada; and a review of the European Union’s association agreement with Israel. This has compounded the stakes of his gambit, possibly exacting an untenable cost for Israel that could encourage a shift in course.

Mounting criticism from many of Israel’s traditional friends has only heightened its reliance on Washington. Not only does the United States continue to provide the overwhelming bulk of diplomatic and military assistance afforded to Israel, but Trump administration officials are also playing the lead role in ongoing mediation with Israel’s adversaries. Reportedly, however, Netanyahu has been flustered by a series of events that suggest that Trump’s objectives could actually imperil Israel’s situation.

Emerging details of negotiations that Steve Witkoff, the Trump’s Middle East envoy, has been conducting with Hamas and Iran have been a cause of concern in Jerusalem. Similar consternation was manifest when an end to US hostilities with the Houthis exempted Israel, and when the United States extended its embrace to the new Syrian regime. Netanyahu has repeatedly dispatched messengers to present Israel’s case before administration principals, but the differences between their approaches are unmistakable and could spark a wider breach in the bilateral relationship at an extremely precarious juncture.

The United States holds most of the cards in this scenario, as well as the agency to deploy them. If Witkoff produces a deal with Hamas that meets Trump’s minimum expectations, Netanyahu will have little choice but to overcome his reservations and accept its terms—and hope that he can persuade enough of his coalition to do likewise. The other, more dangerous option would be to risk running afoul of the White House and being subjected to a similar Oval Office reception as the presidents of Ukraine and South Africa, something which would broadcast Israel’s new vulnerability to the world.

Netanyahu is walking on even more fragile eggshells regarding Iran. Trump has stated that it “would be inappropriate” for Israel to attack Iran “right now because we’re very close to a solution.” The possibility of just such a strike—especially if Israel were to determine that Iran’s path to a nuclear weapon was imminent and unimpeded—cannot be ruled out unequivocally. In that event, however, and in its aftermath, a rupture with Trump could have disastrous consequences for Israel.


Shalom Lipner is a nonresident senior fellow for Middle East Programs at the Atlantic Council. From 1990 to 2016, he served seven consecutive premiers at the Prime Minister’s Office in Jerusalem.

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Your primer on the Polish presidential election https://www.atlanticcouncil.org/content-series/eye-on-europes-elections/your-primer-on-the-polish-presidential-election/ Thu, 29 May 2025 20:14:19 +0000 https://www.atlanticcouncil.org/?p=850479 Poland will vote for its next president on June 1. This election could kick off a period of political stability—or further cement a gridlock that could lead to the government collapsing.

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Poles will vote for their next president on June 1. Depending on the outcome, this election could kick off a period of political stability—or further cement a gridlock that could lead to the government collapsing.

In the October 2023 parliamentary elections, current Prime Minister Donald Tusk’s center-right Civic Coalition (KO) ended eight years of rule by the national-conservative Law and Justice (PiS) party and formed a broad government consisting of centrists, liberals, socialists, and greens.

However, Tusk does not command a three-fifths majority in the Sejm (the lower house of parliament), which is needed to override any potential presidential veto. President Andrzej Duda, formally from PiS, has delayed or blocked many of the prime minister’s domestic legislative reforms. But now, Duda’s two terms are up.

Two candidates will face off in a final round: Rafał Trzaskowski, the mayor of Warsaw from KO, and Karol Nawrocki, head of the Institute for National Remembrance, who is tied to PiS.

Ahead of the second round, Aaron Korewa, director of the Atlantic Council’s Warsaw Office, breaks down the race and the potential impacts on Poland’s foreign policy.

How has the race unfolded so far?

The Poles voted in the first round on May 18. Trzaskowski, who was long considered the clear favorite, only managed to get slightly ahead of Nawrocki, securing 31.4 percent against Nawrocki’s 29.5 percent. To complicate things for Trzaskowski, the two next places were taken by Sławomir Mentzen of the far-right Confederation party (14.8 percent) and the very far-right Grzegorz Braun (6.3 percent). Mentzen has expressed skepticism towards both the European Union (EU) and aid for Ukraine, whereas Braun openly takes pro-Kremlin and anti-Semitic positions. As no candidate reached over 50 percent, the race proceeded to a second round. Those who voted for Mentzen and Braun are generally believed to be more likely to vote for Nawrocki than Trzaskowski in the second round.

Voter turnout was high by Polish standards: 67.3 percent. Young voters mainly went for Mentzen or Adrian Zandberg, from the leftist Razem party. Poland, like the rest of the Western world, is seeing backlash against established parties and elites. PiS has for a long time been able to capitalize on such sentiments, but less so now that it held power recently and (technically) still holds the Presidential Palace.

In the initial stages of the campaign, foreign policy was rarely discussed. This is because unlike in most European countries, the two main rivals—KO and PiS—in many ways share the same positions on strong support for NATO and transatlantic ties; they also both oppose Russian President Vladimir Putin’s invasion of Ukraine. Poland became a leading champion of Ukraine’s cause under the PiS government led by former Prime Minister Mateusz Morawiecki. Since Tusk took over in 2023, this has largely continued. On the other hand, within Polish society, the initial outpouring of support for Ukraine and its people seen in 2022 has soured somewhat. That is mainly due to fatigue with the large number of refugees but also resentment that Ukraine has not moved fast enough to address historical issues such as the infamous Volhynia massacre of Polish civilians by Ukrainian nationalist partisan forces during World War II. The Confederation and the parties to its right seem to have been able to capitalize on this, which prompted Nawrocki to use anti-Ukraine rhetoric himself in the final stages of the first round.

US President Donald Trump did not become a central issue in the Polish election. This is likely because nearly all parties recognize the role strong transatlantic ties play for Poland’s national security—approximately ten thousand US troops are currently stationed in Poland. Nawrocki was the only candidate who traveled to Washington to meet Trump, and he claims to have received the US president’s endorsement, but this occurred around early May holidays in Poland when voters tend to tune out news. Thus, the effect on the result of the first round was probably limited.

How do the first-round outcomes set the stage for the second round?

In recent polls, Trzaskowski and Nawrocki are neck and neck. Despite the combined vote for the right being around 52 percent, there’s no guarantee that those who voted for Mentzen and Braun will automatically support Nawrocki. PiS has traditionally received support from elderly, religious, and rural voters. PiS is clearly on the right when it comes to social issues but also proposes government support programs for the poor and disadvantaged. The Confederation, on the other hand, is economically libertarian and has young, well-off men as their base. Braun’s electorate is largely made up of ultra-Catholics, but they may also stay at home if their candidate is not on the ballot.

Polls also show that many voters who supported the parties in Tusk’s coalition in the October 2023 parliamentary election skipped the first round in this presidential election, which is likely due to dissatisfaction with the government. In recent days, Trzaskowski has been successful in reaching out to other members of the Tusk coalition. On Sunday, he held a march in Warsaw that saw about 140,000 participants and several speeches by former presidential candidates from the left and liberal side. Nawrocki held a march in Warsaw the same day, but his was smaller and only featured speakers from PiS. Last Friday, Trzaskowski and Nawrocki faced off in a final debate, where Trzaskowski strived to expose Nawrocki’s lack of experience. Finally, each of the candidates appeared on Mentzen’s YouTube channel, where they were asked to sign an eight-point pledge to satisfy the demands of Mentzen’s voters. Nawrocki agreed to all the points, including one saying that he would not sign the law ratifying Ukraine’s accession to NATO. Trzaskowski disagreed on that and on other points, but did not attack Mentzen or his voters in doing so.

In the final stages of the campaign, Trzaskowski’s card is that he’s likely seen as more “presidential.” But he’s also closely tied to Tusk as the deputy head of KO, and if the final round becomes a referendum on the government, Trzaskowski would be in trouble. Yet a high voter turnout would likely favor him. From his messaging, Trzaskowski also seems to have picked up on the fact that voters list healthcare and secure borders as the most important issues.

Nawrocki has the “man of the people” image down and can ride on the current right-wing “wave,” but he is inexperienced and comes off as somewhat unnatural in front of cameras. He is a historian and a former boxer, but it recently surfaced that he also engaged in soccer hooliganism in the past, once a major problem in Poland. Nawrocki has recently played up that he would have a better relationship with Trump if elected. At the Conservative Political Action Conference in Poland this week, US Department of Homeland Security Secretary Kristi Noem echoed this theme.

How will the outcome impact Poland’s foreign policy?

Whereas KO and PiS generally agree on NATO, transatlantic ties, and Russia, they sharply differ on the EU. KO is strongly pro-EU; before returning as prime minister, Tusk served as president of the European Council. Trzaskowski was a member of the European Parliament and a deputy foreign affairs minister responsible for EU affairs. PiS is not against Polish EU membership but is clearly Euroskeptic and pays lip service to muscular Polish nationalism that sees Brussels and Berlin (often intertwined) as threats to Polish sovereignty. A Trzaskowski win could play a part in Poland rising to a prominent position in the EU. A win for Nawrocki could disrupt it.

As for relations with the United States, Nawrocki has established a channel to Trump and is ideologically more in line with the “MAGA” wing of the Republican Party. But Trzaskowski has lived in the United States and has also established contacts with US politicians from across the aisle. He has made several appearances on US media outlets, most recently FOX Business.

Under Trzaskowski, Polish support for Ukraine will certainly continue. But it’s harder to say what will happen should Nawrocki win. PiS is not pro-Russia by any means, but Nawrocki has already used some anti-Ukraine rhetoric in his bid to attract the voters of Mentzen and Braun. In this scenario, expect no Polish blocking of Western aid to Ukraine but probably no leadership in expanding such aid either.

For foreign policy in general, Trzaskowski may bring domestic stability and an end to the political logjam of the past two years. A win for Nawrocki could mean more gridlock, forcing the Polish government to focus inward. There are even rumors that in this scenario, some of Tusk’s coalition partners may jump ship, prompting a new cycle of elections.

Aaron Korewa is the director of the Atlantic Council’s Warsaw Office, which is part of the Europe Center.

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Judicial reform must be at the heart of Ukraine’s postwar recovery https://www.atlanticcouncil.org/blogs/ukrainealert/judicial-reform-must-be-at-the-heart-of-ukraines-postwar-recovery/ Thu, 29 May 2025 19:22:49 +0000 https://www.atlanticcouncil.org/?p=850524 Amid the horror and the trauma of Russia’s ongoing invasion, Ukrainians now have a once-in-a-generation opportunity to achieve transformational change in the country’s justice system. We must not miss this chance, writes Ukrainian MP Oleksandr Vasiuk.

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Whenever the topic of Ukraine’s reconstruction arises, most people tend to think of physical infrastructure such as roads, bridges, homes, and hospitals. But real national recovery does not start with bricks and concrete. It begins with trust. And there is no better test of trustworthiness than the rule of law.

Ukraine is currently fighting for national survival against Russia’s ongoing invasion. Once this battle is won, the most important challenge facing the country will be judicial reform. If Ukraine is to emerge in the postwar years as a stable and prosperous European democracy, the process of recovery and renewal must be based on the firm foundations of a strong justice system. This is not a mere slogan; it is an absolute necessity.

Judicial reform is the key to the country’s entire future economic development. Investors will not come to Ukraine if contracts cannot be enforced or if property rights can be bought and sold through corruption. That is the message Ukraine’s international partners have been repeating consistently for many years. With the massive task of postwar rebuilding looming on the horizon, this message is now arguably truer than ever.

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Once the war ends, Ukraine can expect to receive unprecedented international support as foreign governments seek to participate in what promises to be Europe’s largest reconstruction initiative since the years following World War II. While donor funding from partner countries is likely to be very significant, this will not be nearly enough to cover the estimated rebuilding price tag of around half a trillion US dollars. Instead, much of this money must come from the private sector. However, unless Ukraine has a transparent, reliable, and efficient justice system, private capital will stay away.

If Ukraine hopes to become a success story, it needs courts that can settle disputes fairly, whatever the issue. If legal cases are tainted by bias or drag on for years, this will serve as a major red flag to all potential investors. For this reason, Ukraine’s courts should be recognized as a key element of the country’s infrastructure that is every bit as vital to national recovery as roads or power lines. After all, the justice system serves as the legal framework that makes it possible to build everything else.

Despite the ongoing war, Ukraine has made real progress in recent years toward meaningful judicial reform. This has included the reform of key institutions like the High Court of Justice, along with the launch of new processes to improve the selection of Constitutional Court judges. It is now crucial to build on this momentum.

Judicial reform must be deep, deliberate, and closely tied to Ukraine’s European future. With this in mind, it is important to maintain the current dialogue with the Venice Commission and use its recommendations to shape genuine change. One of the most effective tools to help achieve this change is the participation of international experts. Their role is not to control the process, but rather to help ensure fairness, transparency, and accountability.

As Ukraine looks to create the conditions for national reconstruction, one judicial reform initiative currently being backed by the Ukrainian parliament is the creation of specialized courts to handle issues like land rights and construction disputes. These courts could help speed up vital cases and take pressure off the existing judicial system.

Work is also continuing toward greater digitalization within the justice system, from electronic courts to online case tracking. Much more can be done in this direction. Other tech savvy countries such as Estonia and Singapore are currently leading the way in digital justice. Ukraine can build something just as bold using tools like blockchain and AI. The expanded use of technology can improve the efficiency of Ukraine’s courts, while also boosting trust levels and leading to greater transparency.

Creating a fully functioning and internationally credible justice system is the necessary starting point for everything else Ukrainians want to achieve, from economic strength and prosperity to the rule of law and a greater sense of national security. It can encourage investors to bet on Ukraine, and can help persuade Ukrainians currently living abroad to return home. Ultimately, judicial reform can serve as a national anchor confirming Ukraine’s place in the heart of Europe.

Amid the horror and the trauma of Russia’s ongoing invasion, Ukrainians now have a once-in-a-generation opportunity to achieve transformational change in the country’s justice system. We must not miss this chance.

Oleksandr Vasiuk is a member of the Ukrainian parliament for the Servant of the People party and head of the Ukraine-USA Strategic Partnership cross-party association.

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Michta in 19FortyFive, RealClearDefense, and RealClearWorld on Putin’s strategic objectives in Ukraine https://www.atlanticcouncil.org/insight-impact/in-the-news/michta-in-19fortyfive-realcleardefense-and-realclearworld-on-putins-strategic-objectives-in-ukraine/ Thu, 29 May 2025 19:12:25 +0000 https://www.atlanticcouncil.org/?p=850511 On May 29, Andrew Michta, senior fellow in the GeoStrategy Initiative, was published in 19FortyFive on Russian President Vladimir Putin’s ambition to restore “Russia’s imperial dominion.” He argues the Trump administration has failed to bring an end to the war in Ukraine because it does not fully grasp Putin’s worldview and warns that diminishing support […]

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On May 29, Andrew Michta, senior fellow in the GeoStrategy Initiative, was published in 19FortyFive on Russian President Vladimir Putin’s ambition to restore “Russia’s imperial dominion.” He argues the Trump administration has failed to bring an end to the war in Ukraine because it does not fully grasp Putin’s worldview and warns that diminishing support for Ukraine and NATO would hand him a strategic victory. Michta’s piece was featured in RealClearDefense and featured in RealClearWorld.    

Russia is simply not interested in any outcome in Ukraine short of achieving the primary policy objectives that drove it to invade […] in the first place.

Andrew Michta

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Why Latin America and the Caribbean matter for OECD countries https://www.atlanticcouncil.org/in-depth-research-reports/report/why-latin-america-and-the-caribbean-matter-for-oecd-countries/ Thu, 29 May 2025 17:20:20 +0000 https://www.atlanticcouncil.org/?p=849468 Latin America and the Caribbean are increasingly vital partners for OECD countries, offering critical minerals, food security, and clean energy assets. With democratic institutions, open markets, and active multilateral engagement, the region supports global resilience. Strengthened OECD–LAC cooperation can advance shared goals in economic security amid shifting global dynamics.

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As global dynamics evolve, Latin America and the Caribbean (LAC) are becoming increasingly important partners for the member countries of the Organisation for Economic Co-operation and Development (OECD). The region offers valuable assets, policy alignment in key areas, and opportunities for enhanced collaboration on shared challenges. 

This report outlines how deeper OECD–LAC engagement can contribute to mutual prosperity, resilience, and global stability.

The region’s assets support global economic security

LAC countries contribute significantly to global food and energy security, climate action, and economic resilience. The region plays an important role in clean energy development, particularly through renewable energy and emerging green hydrogen projects. It is a major global supplier of critical minerals—such as lithium, copper, and nickel—essential for the clean energy transition. LAC’s agricultural output is also vital to meeting increasing global food demand. Furthermore, its rich biodiversity and freshwater resources are essential to addressing long-term environmental and climate-related challenges.

Latin America and the Caribbean are home to a high concentration of electoral democracies and market-oriented economies, which share many of the values and institutional frameworks upheld by OECD countries. These shared principles form the basis for long-term partnership. In multilateral forums, LAC countries have acted as constructive and pragmatic voices, helping to bridge perspectives between developed and developing countries.

However, as the region continues to navigate growing interest from global powers, particularly through increased trade and investment from China, there is a clear call for OECD countries to reaffirm and deepen their engagement.

Key recommendations:

  • Build resilient and responsible critical mineral supply chains by formalizing an OECD–LAC Critical Minerals Partnership that promotes investment, technology transfer, Environmental, Social, and Governance (ESG) standards, and infrastructure development to support sustainable mining and industrial upgrading across the region.
  • Enhance global food security through targeted cooperation in agritech innovation, rural infrastructure, and trade logistics. Strategic investment in transport corridors, cold chains, and climate-smart agriculture can boost productivity and resilience in LAC’s agricultural sector, benefitting global markets.
  • Strengthen global value-chain resilience by leveraging LAC’s trade agreements and geographic proximity to OECD markets. A dedicated OECD–LAC Value Chain Initiative could identify areas of comparative advantage, streamline regulations, and support industrial diversification in key sectors.

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Will Trump’s tariffs survive US courts? https://www.atlanticcouncil.org/content-series/fastthinking/will-trumps-tariffs-survive-us-courts/ Thu, 29 May 2025 15:18:10 +0000 https://www.atlanticcouncil.org/?p=850335 On Wednesday, a federal court blocked the US president from imposing his “liberation day” tariffs on imports under an emergency-powers law.

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GET UP TO SPEED

It depends on your definition of “emergency.” Donald Trump, in his self-declared “liberation day” on April 2, didn’t just impose tariffs on virtually the entire world. He did it by using a novel legal theory and expanding the use of decades-old legislation called the International Emergency Economic Powers Act (IEEPA) in a way no US president had done before. Now, with those tariffs on pause but set to come into effect in early July, a federal court ruled Wednesday that Trump’s use of that law was unconstitutional. Is this the end of the trade wars? Not at all, according to our experts. Below, they issue their verdict on what trade tools Trump could turn to next and what these developments mean for every country in the thick of negotiations with the administration.

TODAY’S EXPERT REACTION BROUGHT TO YOU BY

  • Josh Lipsky (@joshualipsky): Chair of international economics and senior director at the Atlantic Council’s GeoEconomics Center, and former adviser to the International Monetary Fund
  • Barbara C. Matthews: Nonresident senior fellow at the GeoEconomics Center and former US Treasury attaché to the European Union

Case law

  • The administration will appeal the ruling, and Josh expects an appeals court to issue a stay, meaning the tariffs would return. But this case is almost certainly headed to the US Supreme Court in the coming months. 
  • Josh calls the decision “a setback for the administration,” which asked for this court to take the case. The unanimous ruling included judges appointed by Trump and former US President Ronald Reagan.  
  • But Barbara notes that the ruling “is limited in scope and provides many mechanisms” for the Trump administration to “accomplish the same goals.” Specifically, “the court’s rationale supporting White House tariff tools as remedies for balance-of-payments issues potentially renders the April 2 tariffs on relatively firm ground compared with the January 2025 fentanyl tariffs against Mexico, China, and Canada.” That’s because Trump justified the April 2 reciprocal tariffs as rectifying US trade deficits with all countries participating in the global trading system. 
  • The court was more definitive, Barbara tells us, about the fentanyl tariffs, ruling that both the declared emergency and Trump’s remedy were overly broad. The appeal process will need to address “whether (or not) Congress may delegate its tariff authority, whether Congress limited the scope of national emergency determinations by the White House when it enacted IEEPA,” and “whether tariffs imposed to address a national emergency must be narrowly tailored in relation to the nature of the emergency, the time horizon for the tariffs, or both.” 

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Backup plans

  • While appeals play out, the administration will have several tools at its disposal to continue its current tariff policy. First, Wednesday’s decision agrees with a 1975 court ruling that Congress may provide the executive branch with “limited authority” to impose tariffs. The ruling then asserts that the authorities granted to the White House under IEEPA are more narrow than those under its predecessor statute, the Trading with the Enemy Act. The decision then “provided a blueprint for how the Trump administration can continue using tariffs to address both geoeconomic imbalances and a wide range of national emergencies with greater precision,” says Barbara.
  • While it appeals Wednesday’s ruling, the White House could narrow the scope, timing, or legal foundation for the fentanyl tariffs and the reciprocal tariffs under IEEPA, Barbara says. Such a move would require the administration to admit at least tacitly that the executive branch’s emergency and tariff authorities can be limited by judicial decision. Josh adds that the administration could follow the court’s decision and rely on sections 122 and 338 of the Trade Act, involving balance of payments, to support the April 2 reciprocal tariffs.
  • While the ruling was a surprise, Josh notes that a not fully appreciated move in April, in which the administration shifted semiconductors and consumer electronics tariffs to section 232 of the Trade Expansion Act, was a signal that the administration wanted stronger legal footing for some of its toughest levies on China. “In hindsight, that move was more of a tactical retreat. Because that process is well under way, it gives [the administration] a powerful new tariff that could come over the summer.” 
  • Barbara agrees, noting that Trump has already used “traditional” methods of section 232 and section 301 for other tariffs unaffected by the ruling, such as those on automobiles. Such moves, however, would extend the timeline for trade negotiations and potentially intensify policy volatility until late this year or early 2026. 

Trade war and trade peace

  • This news comes as countries are racing to strike deals with the administration ahead of a July deadline for the return of the reciprocal tariffs. Josh expects that “other countries will now try to slow-walk their negotiations,” resulting in fewer deals ahead of that July deadline and an August deadline to conclude tariff negotiations with China. 
  • This decision also impacts congressional budget negotiations ahead of an August deadline to raise the debt ceiling. A Republican budget bill garnered enough votes to pass the House thanks in part to optimistic projections for tariff revenue, Josh points out, which is now in jeopardy. As negotiations turn to the Senate, “keep an eye on the bond market, which already has not reacted well to the bill’s deficit impact,” he adds. 
  • Barbara notes that Congress could choose to use this budget bill to ratify the fentanyl and April 2 tariffs, which could satisfy aspects of the trade court’s ruling, but “any such legislation likely also would face legal challenge.” 
  • “All of this adds up to more uncertainty—not less,” Josh adds. “Businesses will be unable to make any long-term investment decisions, and the idea that tariffs are going only lower from here may be a miscalculation. Markets seem jubilant that the president may not have as much tariff authority as he thought, but the hangover is coming soon. Trump has many trade tools still at his disposal, and he will not want his core international economic agenda overturned by three judges from a lower court.”  

Trump Tariff Tracker

The second Trump administration has embarked on a novel and aggressive tariff policy to address a range of economic and national security concerns. This tracker monitors the evolution of these tariffs and provides expert context on the economic conditions driving their creation—along with their real-world impact.

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How the Taliban is using law for gender apartheid, and how to push back https://www.atlanticcouncil.org/content-series/inside-the-talibans-gender-apartheid/how-the-taliban-is-using-law-for-gender-apartheid-and-how-to-push-back/ Thu, 29 May 2025 13:57:42 +0000 https://www.atlanticcouncil.org/?p=849799 To combat the Taliban’s institutionalization of gender apartheid, international actors must document the system of lawmaking that underpins the regime's human rights abuses.

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Since taking power in August 2021, the Taliban has pursued a sustained assault on the rights and dignity of women by subverting the established legal order and creating a new order characterized by arbitrary and abusive exercise of executive, legislative, and judicial power.

So far, the Taliban has adopted more than two hundred decrees targeting women and girls. The bans and restrictions affect all aspects of life—from banning girls’ education past the seventh grade and limiting women’s employment to curtailing their freedom of movement and social engagement. To implement these decrees, Taliban authorities exercise broad discretionary powers to interpret and enforce the law, relying on a range of extrajudicial methods such as physical coercion, social control, and public intimidation.

In effect, the Taliban regime has employed the instruments of lawmaking and law enforcement to establish a system of control and oppression of women that amounts to gender apartheid. The system was reinforced with the adoption of the Propagation of Virtue and Prevention of Vice Law on August 21, 2024. While women’s rights and freedoms were already curtailed by earlier Taliban decrees, the adoption and implementation of this law has had far-reaching consequences, stripping women of even more basic rights and personal autonomy and exacerbating their economic dependence and social isolation.

To combat the Taliban’s institutionalization of gender apartheid in Afghanistan, international actors and civil society groups should document both the regime’s human rights abuses and the system of lawmaking and law enforcement that produces them. Documentation strategies should be geared toward supporting ongoing cases at international courts and catalyzing further accountability processes. An international investigative mechanism, modeled on the United Nations’ (UN) International, Impartial, and Independent Mechanism for Syria (IIIM), can help to hold the Taliban accountable for implementing gender apartheid and the specific rules and tools they use to maintain that system.

From constitutional order to rule by executive fiat

Prior to the Taliban takeover, the legitimacy and legality of the Afghan state were vested in the 2004 Constitution of the Islamic Republic of Afghanistan, which served as the supreme law of the country for seventeen years.

The Constitution was preceded by a Constitutional Loya Jirga or “grand council,” held in 2003, and was approved by consensus in January 2004. It provided an overarching legal framework for the relationship between the Afghan government and Afghan citizens and stipulated a set of constitutional principles and rights, such as separation of powers, due process of law, freedom from persecution, and freedom of expression.

In the new order created by the Taliban, by contrast, there is no constitution or equivalent supreme law. Laws and regulations are issued by the Taliban’s leader, Hibatullah Akhundzada, by his leadership council, and by a host of public officials and religious authorities in an ad hoc manner. Sometimes they take the form of written decrees, such as the “Virtue and Vice” law, but often they are only issued verbally. For example, officials from the Ministry for the Propagation of Virtue and Prevention of Vice set the law in declarations and conference speeches, while clerics do so in sermons—bypassing any formal process of lawmaking and ignoring basic requirements that laws must be general, prospective, clear, and stable.

Lawmaking and law enforcement as instruments of control and oppression

In the absence of a constitutional framework that anchors the legal order, regulates the exercise of state power, and protects the rights of citizens, Taliban law draws on a range of other sources. They include extremist religious ideology rooted in a rigid—and contested—interpretation of Sharia law, which has been influenced by the Deobandi school of thought, as well as patriarchal tribal norms and practices.

These sources inform and justify the system of control and oppression of women that has emerged and expanded under Taliban rule, which includes bans and restrictions on women’s education, employment, and a range of fundamental rights and freedoms. While the system is built on a multiplicity of verbal and written decrees and directives, the Taliban is aware that its effectiveness depends on more systematic codification and consolidation. This may explain the broad remit of the Propagation of Virtue and Prevention of Vice Law, which, inter alia:

  • Bans women from travelling without a male guardian and denies them access to parks, gyms, and other public spaces.
  • Requires women to cover their faces and bodies in public; for example, Article 13(8) stipulates: “If an adult woman leaves her home for an essential need, she must cover her voice, face, and body.”
  • Declares that women’s voices are awrah (private), which means that women should not be heard in public.

The law’s sweeping, vague language gives the Taliban broad discretionary powers to interpret its provisions, creating ample space for abuses. Article 17, for example, requires media outlets to adhere to religious guidelines, prohibiting any content that may be deemed contrary to Sharia law, without clarifying what that means in practice. Taliban forces are tasked with ensuring compliance with the law—especially by women—and violations are punished with warnings, fines, flogging, and imprisonment. Article 17 gives them broad surveillance and enforcement powers: “Taliban forces are present in markets, streets, universities, offices, and public transportation to ensure that people, particularly women, comply with the imposed laws.”

Such provisions of the “Virtue and Vice” law have further strengthened the core characteristics of law enforcement under the Taliban. An array of authorities—Taliban officials and forces, imams, and other religious figures—are exercising broad discretionary powers to enforce a growing number of vaguely defined rules in arbitrary ways, free from due process constraints and safeguards such as judicial review. Any attempt to resist or circumvent the regime’s bans and restrictions is met with a brutal response, often involving punishment on the spot. Human rights groups have publicized several cases of female activists being detained, disappeared, or killed for protesting Taliban laws. They have documented cases of women getting arrested for secretly teaching young girls and have reported on women being flogged for minor infringements and entire families being ostracized or punished for resisting Taliban edicts. The “Virtue and Vice” law reinforced this brutal system of arbitrary law enforcement with new written edicts that Taliban authorities could use to justify human rights abuses.

Pushing back on gender apartheid: Documentation and accountability strategies

Afghan women are already living in a system of pervasive control and oppression that is best described as gender apartheid. Left unchecked, the Taliban will further institutionalize and entrench that system, making it even more difficult to challenge and reverse in the future. International actors—including international organizations, concerned states, human rights groups, and Afghans in the diaspora—must take appropriate steps to prevent that outcome.

Documentation and accountability strategies offer a path forward. Documenting human rights abuses is critical but given their widespread and systematic character, it must be complimented with documentation of Taliban lawmaking and law enforcement—the rules and practices that produce these abuses. And it must involve structural investigations to show how egregious abuses of power and human rights violations are not byproducts of the system of gender apartheid in Afghanistan but are rather its very means and ends, central to maintaining the system.

Building robust documentation can support ongoing accountability processes and initiatives, such as the case against the Taliban at the International Criminal Court for gender persecution as a crime against humanity. It can also strengthen an anticipated case at the International Court of Justice (ICJ). In January, Germany, the Netherlands, Australia, and Canada announced that they intend to sue the Taliban at the ICJ for gross violations of women’s rights, invoking the interjurisdictional clause of the UN Convention on the Elimination of All Forms of Discrimination Against Women.

The experiences of other countries affected by widespread and systematic repression and human rights abuses suggest that documentation efforts can open other, potentially unforeseen pathways to accountability—when such efforts are scaled up and institutionalized. Afghanistan needs an international investigative mechanism modeled on the IIIM for Syria. The Syrian IIIM was established by the UN General Assembly—bypassing the Security Council—and has contributed to a spike in universal jurisdiction prosecutions of Syrian offenders for war crimes and crimes against humanity.

An IIIM for Afghanistan can serve both as a catalyst and repository for gender apartheid documentation. It can also help build structural investigations and prepare criminal cases for prosecution when jurisdictions are able and willing to take up such cases in the future. This would create a vital resource and build momentum for the growing movement to criminalize gender apartheid in international law and ensure that its architects are held to account.


Wesna Saidy is a poet and researcher with a degree in law and political science, focusing on human rights and gender justice in Afghanistan. She is a fellow at the Civic Engagement Project focusing on documentation.

Iavor Rangelov, PhD, is a research fellow at the London School of Economics and has extensive experience with documentation, justice, and accountability strategies in the Balkans, Central Asia, East Africa, the Middle East and Latin America.

This article is part of the Inside the Taliban’s Gender Apartheid series, a joint project of the Civic Engagement Project and the Atlantic Council’s Strategic Litigation Project.

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Metzl featured on Fox News on antisemitism, student visa policy, and US competitiveness https://www.atlanticcouncil.org/insight-impact/in-the-news/metzl-featured-on-fox-news-on-antisemitism-student-visa-policy-and-us-competitiveness/ Thu, 29 May 2025 12:17:55 +0000 https://www.atlanticcouncil.org/?p=853531 On May 29, Jamie Metzl, nonresident senior fellow in the GeoStrategy Initiative, appeared on Fox News’ Brian Kilmeade Show to discuss antisemitism on college campuses and the Trump administration’s student visa policies. He argued that policymakers must address the rise of malign influence on US campuses while ensuring that universities remain engines of economic growth […]

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On May 29, Jamie Metzl, nonresident senior fellow in the GeoStrategy Initiative, appeared on Fox News’ Brian Kilmeade Show to discuss antisemitism on college campuses and the Trump administration’s student visa policies. He argued that policymakers must address the rise of malign influence on US campuses while ensuring that universities remain engines of economic growth by supporting cutting-edge scientific and technological research. Metzl’s segment begins at 12:25.

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Metzl discusses US student visa policy on CNN’s NewsNight https://www.atlanticcouncil.org/insight-impact/in-the-news/metzl-discusses-us-student-visa-policy-on-cnns-newsnight/ Thu, 29 May 2025 11:56:00 +0000 https://www.atlanticcouncil.org/?p=853528 On May 29, Jamie Metzl, nonresident senior fellow in the GeoStrategy Initiative, appeared on CNN’s NewsNight with Abby Phillip to discuss US visa policy. He emphasized the importance of thoroughly vetting individuals entering the country while also highlighting the need to retain top global talent. Metzl noted that doing so is critical to maintaining US […]

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On May 29, Jamie Metzl, nonresident senior fellow in the GeoStrategy Initiative, appeared on CNN’s NewsNight with Abby Phillip to discuss US visa policy. He emphasized the importance of thoroughly vetting individuals entering the country while also highlighting the need to retain top global talent. Metzl noted that doing so is critical to maintaining US competitiveness, particularly in the context of growing strategic competition with China, which he described as a new “cold war.”

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Dispatch from Dayton: What Trump can learn about ending war https://www.atlanticcouncil.org/content-series/inflection-points/dispatch-from-dayton-what-trump-can-learn-about-ending-war/ Wed, 28 May 2025 22:30:00 +0000 https://www.atlanticcouncil.org/?p=850220 A recent visit of the NATO Parliamentary Assembly to Ohio—thirty years after the Dayton Accords ended the Bosnian War—raised important questions about what lessons can be applied to ending Russia’s war on Ukraine.

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DAYTON, Ohio—US President Donald Trump could learn a lot about how to best end Russia’s murderous war on Ukraine, now into its fourth year, from the US experience here thirty years ago in negotiating what became known as the Dayton Peace Accords.

If Trump wants to stop Russian President Vladimir Putin’s war, and he has made that an administration priority, then he should reflect on what it took to finally stop Serbian President Slobodan Milošević in 1995—after nearly four years of killing and more than 100,000 dead, including the massacre at Srebrenica, Europe’s worst genocide since the Holocaust.

A deal required relentless US diplomatic engagement backed by a demonstrated military threat and carried out alongside unified European allies. It also took twenty-one days of intensive negotiations in Dayton—not involving then US President Bill Clinton until the end—while all parties were cloistered from media and outside influences at Wright-Patterson Air Force Base.

Marking the Dayton anniversary, Ohio Congressman Mike Turner brought the NATO Parliamentary Assembly here last week, gathering delegates from the thirty-two allies as well as from partner countries. They joined leaders from the Western Balkans, assorted experts, and even the Sarajevo Philharmonic, which performed for participants in a giant hangar stocked with presidential aircraft in the National Museum of the US Air Force.

Though I came to commemorate history, I left having interrogated its architects. My aim was to gain clues that might help the Trump administration in its still-fruitless quest for an end to Russia’s war on Ukraine. 

It would be easy to discount the lessons for Ukraine and Russia now, where the stakes are so much higher, from Bosnia-Herzegovina and Serbia then. Nuclear-armed Russia has two hundred times the land mass of Serbia and more than twenty times its population. And Ukraine, with its pre-war population of forty million and France-sized territory, is more than ten times larger in geographic size and population than Bosnia-Herzegovina. In my view, that makes the lessons only more compelling.           

The first lesson? “Peace agreements are extremely rare,” former Swedish Prime Minister Carl Bildt, the European Union’s special representative at the talks thirty years ago, said in a session of former officials that I moderated. “In modern European history, there are only two really: Dayton and the Good Friday Agreement,” which in 1998 ended a thirty-year conflict in Northern Ireland known as “the Troubles.”

Both were forged in the aftermath of horrific violence, which is also the case in Ukraine. Yet both also required something that is still lacking today: determined, focused, and creative US leadership in lockstep with European partners. Both also succeeded through disciplined diplomacy, military leverage, and the unglamorous work of compromise.

Beyond that, winning peace in Dayton demanded US credibility but not neutrality. At Dayton, the United States was not an impartial mediator but rather a focused powerbroker, using whatever muscle was necessary to shape the outcome. No lasting deal can reward Putin’s aggression, just as Dayton didn’t knuckle under to reward Milošević.

Another lesson is that building peace is as crucial as ending war. Dayton and Belfast were both followed by years of international engagement, economic aid, and security commitments. Peace might have collapsed had those efforts not continued.

Most importantly, the United States led but did not go it alone. Peace that endures requires multilateral support. Dayton hasn’t worked perfectly, but without the European Union and NATO it wouldn’t have worked at all. “Only when the international actors can get together with a uniform message and policy can results be achieved,” said Bildt, who is also an Atlantic Council International Advisory Board member. “There was success in Dayton, yes. But it should also be said that there was massive failure prior to Dayton due to disagreements across the Atlantic, disagreements in Europe, and disagreements in the United States.”

US General Wesley Clark, who at the time was the military right hand to Richard Holbrooke, the chief US negotiator, took away a different lesson: “Don’t be timid,” Clark, a member of the Atlantic Council Board of Directors, said to the NATO parliamentarians. “We are going to have to be unified. And we are going to have to be forceful enough to convince Putin he will not win. Right now, he thinks he’s winning.”

In a slap across the face of Trump’s efforts to broker peace, Putin from last Friday to Sunday launched what Ukrainian officials called the largest combined aerial assault of the conflict, including some nine hundred drones and dozens of missiles of various types. That prompted a frustrated Trump to write on Truth Social about Putin that “something has happened to him. He has gone absolutely CRAZY!” The US president added that “missiles and drones are being shot into Cities in Ukraine, for no reason whatsoever.” 

The problem is that there’s nothing crazy about Putin’s calculations, and his reasons are obvious. He’s trying to wear down Ukraine and its partners, and he’s betting that he has more staying power. He sees US military and diplomatic support in retreat, European efforts as insufficient, and Ukraine as weary. Trump has belatedly acknowledged that Putin has been “tapping” him along. 

With all that in mind, Washington will have to try far harder now than it did then to change a murderous despot’s mind—or resign itself to accepting Putin’s ongoing war and its ambition to redraw the European map. 

Until Washington stood up to Milošević in 1995, Clark said, the Serb leader thought he could pull the wool over Europe’s eyes with his small army overrunning Bosnia. When he bid farewell to Milošević at the end of the talks, Clark remembers the Balkan leader saying, “We Serbs never had a chance against your NATO, your airplanes, your missiles.”

Speaking with me at the same NATO session, Christopher R. Hill, who was part of the Holbrooke delegation in Dayton, added another important lesson—that the parties must be ready to end the war. “I am not sure Russia is ready for peace,” he said. “They should be, but they don’t seem to be. I think until they are, we have got to help Ukraine because a hundred years from now . . . our grandchildren, our great-grandchildren, will be thinking about what we did to deal with this crisis.”

The Dayton Accords were not perfect, but they were proof of what US leadership can achieve when properly applied. Speaking in Bosnia-Herzegovina shortly after the agreement was finalized, the then US president explained why the United States had chosen to lead, rather than cut and run from the European conflict. 

“Around the world, people look to America not just because of our size and strength but because of what we stand for and what we’re willing to stand against,” Clinton said. “And though it imposes extra burdens on us, people trust us to help them share in the blessings of peace. We can’t be everywhere . . . But where we can make a difference, where our values and our interests are at stake, we must act.”


Frederick Kempe is president and chief executive officer of the Atlantic Council. You can follow him on X: @FredKempe.

This edition is part of Frederick Kempe’s Inflection Points newsletter, a column of dispatches from a world in transition. To receive this newsletter throughout the week, sign up here.

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Does the Nippon Steel deal reflect a new normal for foreign investment in the US? https://www.atlanticcouncil.org/blogs/new-atlanticist/nippon-steel-deal-reflect-a-new-normal-for-foreign-investment/ Wed, 28 May 2025 19:52:41 +0000 https://www.atlanticcouncil.org/?p=850169 The big question now is if the Committee on Foreign Investment in the United States process has changed in ways that will affect future deals.

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Last week, US President Donald Trump announced that a deal had been reached approving a “planned partnership” between Nippon Steel and US Steel. This news seemed to settle an almost eighteen-month saga during which Nippon Steel’s proposed acquisition of US Steel was unexpectedly and controversially embroiled in a national-security review by the Committee on Foreign Investment in the United States (CFIUS). In one of his last acts as president, US President Joe Biden had prohibited the transaction before punting the decision to the next administration.

I have written about the Nippon deal numerous times, always emphasizing the commercial benefits of the deal, the ways in which Japanese investment in the US steel industry is a net positive for US national-security concerns, and the dangers of blocking the transaction. The big question now, beyond the specific details of the Nippon deal, is if the CFIUS process itself has changed in ways that will affect future deals.

Rather than indicate that CFIUS has returned to its narrow national-security mandate, the Nippon deal suggests that the Trump administration is willing to use CFIUS authorities to intervene in private transactions for political and industrial policy objectives.

CFIUS was not envisioned as a tool to manage US industries’ strategic competitiveness broadly.

First, the terms of the deal, while still scant, suggest that most of the terms mirror what was already on the table, just with a different public relations spin. In an attempt to head off criticism of the transaction, Nippon clarified that US Steel would retain its name and Pittsburgh headquarters and a majority US-citizen board. As public pressure against the deal mounted, Nippon also committed to invest substantially in upgrading US capacity and promised to not offshore US production. 

Second, what may be different from Nippon’s previous offer is what US Senator David McCormick (R-PA) is describing as a “golden share.” This arrangement would likely give the US government direct control over a certain number of board seats, though no specific details of the arrangement have been disclosed. Despite the use of the term “share,” there doesn’t seem to be any indication that the US government would take an ownership stake in the company. While CFIUS mitigation agreements have in the past provided the US government with some authority to maintain minimum standards for key personnel post-merger, it would be a substantial increase in the use of CFIUS authorities to create an open-ended requirement for the US government to approve board members in an active and ongoing manner. 

Depending on the final wording of the arrangement and the manner in which CFIUS implements it, government control over board members could be used for broad industrial policy practices. CFIUS is supposed to analyze proposed cross-border acquisitions for discrete national-security risks and to only intervene if it finds a risk to national security that arises from the transaction under review. Its mechanisms for intervention are a mitigation agreement or a recommendation that the president prohibit the investment. CFIUS was not envisioned as a tool to manage US industries’ strategic competitiveness broadly, but the United States’ expanded interest in critical supply chains has substantially blurred the line between strategic industrial policy considerations and narrow national-security concerns. 

If the US government began imposing strict production requirements on Nippon, that would mark a substantial drift toward statist production management measures. Moreover, the embrace of a more forward-leaning mitigation stance would mirror the French approach to foreign investment review since 2014. As a reflection of how that has played out, Paris imposed mitigation measures on 53 percent of authorized transactions in 2022. More to the point, it would run counter to the White House’s America First Investment Policy, which explicitly calls for the end of “overly bureaucratic, complex, and open-ended ‘mitigation’ agreements” in favor of ones that “consist of concrete actions that companies can complete within a specific time, rather than perpetual and expensive compliance obligations.” 

Finally, Trump, who announced a celebratory rally in Pittsburgh along with the agreement, and Biden, who touted his decision on the campaign trail, set a concerning precedent by openly politicizing the Nippon Steel deal. In 1975, US President Gerald Ford established CFIUS through Executive Order 11858. Originally little more than a data-seeking exercise, CFIUS was explicitly formed to depoliticize foreign direct investment (FDI) at a time when some members of Congress were increasingly alarmed about the security implications of investments from oil-rich nations. Over the years, the four major overhauls of CFIUS authorities in 1988, 1992, 2007, and 2018 have all, to varying degrees, featured a tug-of-war between a Congress that sought more oversight over FDI for a mixture of security and political reasons and an executive branch that generally tried to keep FDI from becoming a political football. 

If CFIUS reviews become simply political talking points—rather than being based on factual merits—and if firms think that they must mollify the US president in order to be allowed to invest in the United States, then the Nippon Steel deal will be remembered as the transaction that confirmed the fifty-year attempt to depoliticize FDI into the United States has failed.


Sarah Bauerle Danzman is a nonresident senior fellow with the GeoEconomics Center’s Economic Statecraft Initiative.

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Mickey goes to the Gulf: The UAE’s wish upon a soft power star https://www.atlanticcouncil.org/blogs/menasource/mickey-goes-to-the-gulf-the-uaes-wish-upon-a-soft-power-star/ Wed, 28 May 2025 13:12:13 +0000 https://www.atlanticcouncil.org/?p=849860 In a region often defined by hard power rivalries, Abu Dhabi has chosen to compete through visibility, credibility and imagination.

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In a historic move that blends fantasy with foreign policy, the Walt Disney Company has announced its first theme park in the Middle East: Disneyland Abu Dhabi.

The park is set to be developed with Abu Dhabi-based Miral on Yas Island. It will be Disney’s seventh global resort, its first new resort in over fifteen years, and its most technologically advanced. Positioned within a four-hour flight of one-third of the world’s population, including markets in South Asia, Africa, and the Middle East, the park represents more than a commercial expansion—this is no simple tale of castles, rides, and performances.

As Disney CEO Robert A. Iger noted, the park will be “authentically Disney and distinctly Emirati”.

Disneyland Abu Dhabi is best understood as a strategic milestone in the United Arab Emirates’ soft power playbook: a carefully choreographed effort to rebrand the country’s global image and elevate its influence through culture, education, and international partnerships, rather than through coercive means. The UAE seeks to downplay its reputation as “Little Sparta,” known for throwing its weight around in the region in places like Yemen, where the UAE’s military role is blamed for heightening divisions in that country and prolonging the civil war. It also signals deepening ties with the United States, projecting trust amid shifting regional alliances.

Soft power by design

The concept of “soft power”, coined by political scientist Joseph Nye, refers to a nation’s ability to influence others through attraction rather than coercion. It’s about shaping preferences by “winning hearts and minds”. In the twenty-first century, culture, branding, and narrative have become as critical to international influence as military assets or economic might.

The UAE was one of the first Gulf countries to recognize this shift and institutionalize it. In 2017, it launched a national Soft Power Strategy aimed at enhancing the country’s reputation and extending its influence overseas. The strategy outlined a comprehensive approach, leveraging economic success, cultural heritage, humanitarian aid, and a commitment to tolerance to construct an appealing and recognizable national brand.

Our goal is to engrain the UAE’s position in the world, and in people’s hearts”, explained H.H. Sheikh Mansour bin Zayed at the strategy’s unveiling.

Few initiatives embody this strategy as vividly as Disneyland Abu Dhabi.

The UAE’s leadership sees cultural infrastructure not merely as a tourism booster but as a pillar of national soft power. Hosting a Disney park sends a clear message: The UAE is safe, modern, and family-friendly, trusted enough to house one of the world’s most iconic entertainment institutions.

This blending of Disney magic with local Emirati culture speaks to the UAE’s strategic intent to localize Western symbols of culture while showcasing its own heritage. The location is no accident either: Yas Island is already home to big-name theme parks: Warner Bros. World, Ferrari World, and SeaWorld Abu Dhabi.

Beyond oil: A new national brand

Behind the soft power lies a very concrete strategic imperative: economic diversification. Like Saudi Arabia and Qatar, the UAE faces a future in which oil revenues alone can no longer sustain national growth. However, it has moved earlier and more decisively in its effort to transition from a hydrocarbon economy to one based on knowledge and services.

Expanding the leisure and tourism sectors is central to that vision. These sectors attract foreign income, create jobs, and strengthen non-oil sectors. The UAE has identified tourism and the creative economy as key pillars for a sustainable future, and Disneyland ticks all those boxes.

An undated artist’s rendering shows a Disney theme park resort which the Walt Disney Company and Miral plan to construct in Abu Dhabi, United Arab Emirates.

These projects also have a domestic dimension as instruments of legitimacy. For the Emirati leadership, ventures like Disneyland help reinforce a social contract at home: the ruling family delivers ever-greater prosperity, pride, and global recognition, and in return, the public acquiesces to their unelected governance.

In that sense, Disneyland is not just an economic asset, but a tool of statecraft.

Building a cultural hub: From Louvre to Disneyland

Over the past decade, the UAE has transformed a once-empty stretch of sand into a “branded entertainment Mecca”. Disneyland Abu Dhabi is the latest addition to a growing portfolio of landmarks that position the country as a global hub for arts, dialogue, and innovation.

The 2017 opening of the Louvre Abu Dhabi, the first Louvre outside France, marked a milestone in cultural diplomacy, made possible by Emirati funding and a landmark agreement with Paris. Nearby, the Guggenheim Abu Dhabi, set to be the largest of its kind, is under construction, further anchoring Saadiyat Island’s status as a beacon of global art tourism.

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The UAE has also positioned itself as a crossroads of religious and cultural dialogue. In 2019, during the country’s “Year of Tolerance”, Abu Dhabi hosted Pope Francis for a historic mass. In 2023, it inaugurated the Abrahamic Family House, a single complex housing a mosque, church, and synagogue. Dubai’s Expo 2020, which drew over twenty-four million visits and brought together 192 countries under the theme “Connecting Minds, Creating the Future”, further reinforced the UAE’s brand as a meeting point of civilizations and ideas.

These projects also carry implicit diplomatic weight. Hosting globally recognized institutions strengthens bilateral relationships and signals strategic alignment. The French government’s support for the Louvre Abu Dhabi and the US presence through NYU Abu Dhabi endorses the Emirati vision and its capacity to serve as a trusted cultural and knowledge partner.

US-Emirati relations: trust and verify

The arrival of Disneyland in Abu Dhabi carries symbolic weight for US-UAE relations. For decades, the UAE has been one of Washington’s closest regional partners, hosting US troops and welcoming major US investments.

Yet the relationship has faced moments of strain. In 2021, former US President Joe Biden’s administration paused a $23 billion arms deal, including F-35 fighter jets, citing concerns about the UAE’s role in Yemen and its growing ties with China, particularly through Huawei’s 5G technology. In response, Emirati officials questioned US reliability and reportedly explored Chinese defense alternatives.

Still, both countries have taken steps to reaffirm trust. In September 2024, Biden designated the UAE a “Major Defense Partner”, a title previously granted only to India. The move signaled renewed strategic alignment and paved the way for closer cooperation on advanced technology and security.

In this context, Disney’s expansion into the Emirates carries significance beyond business. A flagship American brand is staking its future on the UAE as a stable and profitable partner. This is a soft power gesture that strengthens cultural ties and introduces a new generation of visitors to an American-inflected vision of the Gulf. Ultimately, it underscores that enduring alliances are built not only on shared interests but also on shared experiences.

A contest of charisma

Abu Dhabi’s Disney deal doesn’t occur in a vacuum; it’s part of a wider regional race for soft power among the Gulf’s wealthiest monarchies: the UAE, Saudi Arabia, and Qatar.

Just as Saudi Arabia’s NEOM project positions the Kingdom as a futuristic Disneyland, Abu Dhabi anchors the UAE’s claim to cultural openness and tourism supremacy.

Qatar has long leveraged its global media platforms, most notably Al Jazeera, alongside its major investments in sports diplomacy, including the landmark 2022 FIFA World Cup, to project a narrative of innovation to global audiences. Saudi Arabia, under the banner of “Vision 2030”, is undergoing a rapid soft power transformation of its own, emphasizing heritage tourism, mega-projects like NEOM and Qiddiya, and the hosting of international cultural and sporting events to reshape its image and diversify its economy.

What sets the UAE apart is the early institutionalization and coherence of its soft power strategy. Qatar’s media strategy often amplifies contentious political narratives and maintains affiliations with radical movements, including the Muslim Brotherhood and Hamas, and Saudi Arabia’s reforms are very much ventures in progress. The UAE, on the other hand, has adopted a non-confrontational, globally inclusive narrative. Its soft power posturing is framed around these non-confrontational values: tolerance, intercultural dialogue, and sustainability, making its image more relatable and exportable to international audiences. Crucially, the UAE aims not only to attract attention but to project long-term reliability, a prized trait in an increasingly volatile region.

The results are telling: according to the 2025 Brand Finance index, the UAE ranks 10th globally in soft power, well ahead of Saudi Arabia and Qatar and even surpassing several global powers such as Russia and South Korea. More than mere rivalry, this signals a broader Gulf rebranding trend—one in which soft power is no longer a luxury but a strategic necessity for geopolitical resilience in the post-oil era.

Risks and realities

Of course, not everything is enchanted.

Theme parks in the Gulf have historically underperformed financially, and Disneyland’s presence won’t erase expected concerns over labor conditions in the UAE, particularly with regard to migrant workers, who make up 88 percent of the country’s population. Critics may accuse Disney of whitewashing this reality, echoing similar debates about its operations in China.

But soft power doesn’t require perfection; it requires attraction, and few countries have embraced this insight as effectively as the UAE.

Whether this strategy will yield enduring geopolitical “happily ever afters” remains to be seen. But one thing is clear: in a region often defined by hard power rivalries, Abu Dhabi has chosen to compete through visibility, credibility, and imagination.

And who better than Mickey Mouse to help carry that message?

Amit Yarom is an incoming graduate student at the Elliott School of International Affairs at George Washington University. He is a foreign policy expert and researcher, specializing in the Arabian Gulf.

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Russia is extinguishing all traces of Ukrainian identity in occupied Ukraine https://www.atlanticcouncil.org/blogs/ukrainealert/russia-is-extinguishing-all-traces-of-ukrainian-identity-in-occupied-ukraine/ Tue, 27 May 2025 20:39:21 +0000 https://www.atlanticcouncil.org/?p=849895 Throughout occupied Ukraine, the Russian authorities are seeking to consolidate their control by eradicating all traces of Ukrainian statehood and national identity while imposing a reign of terror on the civilian population, writes Kateryna Odarchenko.

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In recent months, US-led efforts to initiate a Russia-Ukraine peace process have focused primarily on the issue of potential Ukrainian territorial concessions. But as negotiating teams discuss technical details and draw lines on maps, almost no attention is being paid to the desperate plight of the millions of Ukrainians currently living under Russian occupation.

Throughout occupied Ukraine, the Russian authorities are seeking to consolidate their control by eradicating all traces of Ukrainian statehood and national identity while imposing a reign of terror on the civilian population. If these Russian occupation policies are allowed to pass unchallenged in the international arena, it will set a disastrous precedent for the use of force against civilians and the weaponization of national identity in other contested regions globally.

From the very first days of the full-scale invasion in February 2022, it was clear that Russia intended to entrench itself firmly in occupied regions of Ukraine. Russian troops often arrived armed with lists of local community leaders including elected officials, journalists, activists, religious figures, and military veterans. Those who refused to cooperate were likely to be detained before disappearing into a vast network of Russian prisons and camps.

Ukrainian detainees are being systematically subjected to torture and other human rights abuses, according to an international investigation led by the French group Forbidden Stories together with thirteen media outlets including Britain’s Guardian newspaper, the Washington Post, and Le Monde. While it is not possible to calculate exactly how many Ukrainian civilians have been abducted in the occupied regions, UN officials have concluded that the large scale and systematic nature of the disappearances qualifies as a crime against humanity.

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Those who remain in areas of Ukraine under Kremlin control face a regime of forced russification encompassing everything from language and the media to education and religion. Place names have been changed to reflect the new Russian realities, with the curriculum in local schools transformed in line with the Kremlin’s anti-Ukrainian imperial dogmas. Parents who attempt to shield their children from classroom indoctrination are being threatened with loss of custody.

Ukrainian residents in the occupied regions of the country have also come under increasing pressure from the Kremlin to accept Russian citizenship. Anyone who refuses to take a Russian passport risks losing access to a range of essential services including healthcare. They also face restrictions on property rights along with the ability to run a business and use banking services.

This passport campaign has intensified significantly in recent months, with Russian President Vladimir Putin issuing a decree announcing that Ukrainians living under Russian occupation have until September 2025 to accept Russian citizenship or face possible deportation from their own homes. Understandably, Moscow’s ruthless tactics are proving difficult to resist. Kremlin officials claim that by March 2025, Russian passports had been issued to approximately 3.5 million people in occupied Ukraine.

Moscow is accused of engaging in religious persecution throughout the occupied regions, with all Christian denominations other that the Kremlin-linked Russian Orthodox Church facing various degrees of restrictive measures and oppression. Ukrainian Foreign Ministry officials stated in spring 2025 that the Russian occupation authorities have killed dozens of clergy members over the past three years while damaging or destroying hundreds of churches.

Russia has been careful to prevent information about conditions in occupied Ukraine from reaching the outside world. All independent media sources have been shut down throughout the occupied regions, and have been replaced by new Kremlin-controlled outlets. Individual journalists have frequently been among those targeted for oppressive measures including physical abuse and imprisonment.

One of the few reporters to shed light on the horrors unfolding in Russian-occupied Ukraine was Ukrainian journalist Viktoriia Roshchyna, who visited areas under occupation on multiple occasions before being captured by the Russian authorities in summer 2023. Roshchyna died after a year in Russian captivity. When her body was returned to Ukraine in early 2025, it showed signs of torture.

From a military standpoint, it may not currently be feasible to liberate all of the Ukrainian regions held by Moscow. Nevertheless, the crimes being committed by the Kremlin in occupied Ukraine are unprecedented in modern European history and cannot be ignored.

It is vital that the human rights of Ukrainians living under Russian occupation feature prominently in any peace process. This includes the rights of those currently being held in Russian jails. Ukraine’s Western partners must maintain or increase sanctions pressure, while also expanding support for Ukrainian civil society and raising awareness about Russia’s actions among international audiences.

Looking ahead, longer term investments are also needed to help document war crimes and support Ukrainian victims of the Russian occupation. Ultimately, the most meaningful response to Russia’s campaign against Ukrainian identity is to make sure Ukraine is in a position to not only survive but thrive as an independent European nation.

Kateryna Odarchenko is a partner at SIC Group Ukraine.

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

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British ambassador to the US: The UK must ‘become less dependent on America, while remaining inseparably linked’ https://www.atlanticcouncil.org/blogs/new-atlanticist/british-ambassador-to-the-us-the-uk-must-become-less-dependent-on-america-while-remaining-inseparably-linked/ Tue, 27 May 2025 19:40:18 +0000 https://www.atlanticcouncil.org/?p=849668 In speaking at the Atlantic Council's 2025 Christopher J. Makins Lecture, Peter Mandelson outlined how the United Kingdom and the rest of Europe can foster peace through military, economic, and technological strength.

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On May 27, Peter Mandelson, the British ambassador to the United States, spoke at this year’s edition of the Atlantic Council’s Christopher J. Makins Lecture, a series exploring the state of the Atlantic partnership and its future direction. The below is adapted from his opening speech, entitled “Renewing the Transatlantic Alliance: Peace Through Strength in a New Age of Great Power Rivalry.”

Watch the full event

Eighty years ago this month, the streets of Britain, America, and allied nations erupted in celebration at the fall of fascism in Europe.

For me personally, it’s a source of enormous pride that my grandfather, Herbert Morrison, served as home secretary in Winston Churchill’s wartime coalition.

He also served as deputy prime minister in Clement Attlee’s transformative postwar government in Britain. That government didn’t just support the formation of NATO to counter Soviet expansionism—they were the co-architects of it.

Amidst Cold War tensions and economic upheaval, Britain and America advanced from allies to integrated strategic partners at the dawn of the nuclear age, our scientists having joined forces in the Manhattan Project to create the advantage we had at the beginning of this age. 

It was Western unity which ultimately ended the Cold War peacefully and demonstrated resilience to new threats, including the 9/11 attacks, where NATO invoked Article 5 for the first time.

Over eight decades, the foundations of collective defense have remained steadfast whilst the transatlantic relationship has continuously evolved and adapted to counter new challenges.

Today, I want to talk about the profound challenge we face in a new age of great power rivalry, a period characterized by political volatility, by economic mercantilism, and geopolitical competition.

We are witnessing the end of an era of hyper-globalization where we assumed that economic integration had made wars almost obsolete.

The logic seemed compelling: Mutual interests, integrated global supply chains, and shared economic stakes created too much to lose from warfare. History seemed to point only in one direction.

And those comfortable assumptions have been shattered.

We now see the rise of modern mercantilism, where nations prefer to prioritize national economic strength and autonomy in many respects.

States are intervening and playing a more protectionist role in managing trade and directing industrial policy to become ever more self-sufficient and localized.

I’m not declaring globalization dead, but it is being radically reconfigured around us.

China’s export-driven growth strategy flooded the global market with state-subsidized products, undercut Western manufacturing, and hollowed out industry.

The social disruption of rapid technological change, where, if you take media as an example, we have moved suddenly from decades of information flowing to people through established news organizations to a future where you only see “news” online that is curated to what you want to know, or what the algorithm—and those behind it—decides you want to know. And then there’s the backlash against globalization’s uneven distribution of benefits.

You can produce many different numbers to show the widening wealth disparities in the West over the past thirty years, but I would choose a simple one: GDP per capita in the United States has grown about 60 percent to 70 percent in real terms, but real median household income growth has been about 20 percent to 25 percent. The typical American household has not done as well as the booming US economy would suggest. A similar story holds true across all our countries in the West.

This has posed profound challenges to culture, place, and society—which too many of us over the past decades, frankly, have ignored. From the American Midwest to the coastal towns of England, a hands-off approach left many places adrift from the success stories of global cities such as London and New York.

And in a world which has often felt dominated by the exponential rise of social media, a sense of grievance—and of difference between us and them—has been amplified.

So yes, I credit President Trump’s acute political instincts in identifying the anxieties gripping not only millions of Americans, but also far more pervasive global trends: Economic stagnation, a sense of irreversible decline, the lost promise of meaningful work for so many people. These are the giants now that we must confront head-on.

So, where do we go next?

It is in no one’s interest—certainly not those of close allies—that each country pursues a wholly individualized path, which leads to accelerated economic fragmentation.

But if we are serious about rebuilding confidence in the international system, if we wish to maintain a set of common rules and standards—a shared economic and security commons in between us—we need to devote an enormous amount of energy and goodwill to preserve, sustain, and deepen the alliances which exist between like-minded countries.

For the UK and the rest of Europe, we must reboot the transatlantic alliance—indeed, a boot up the proverbial backside is needed now—to deliver peace through strength across three interconnected domains: military, economic, and technological.

For my generation, the twentieth-century gains in peace and prosperity were thought of as a European peace dividend. 

I now recognize it as an urgent bill, that peace dividend: An urgent bill for decades of defense underinvestment—a payment that is long overdue.

We have lived in a fantasy created by the US security guarantee, complacent that a friendly heavyweight across the water would be always there when the going gets tough.

We meet in the shadow of Russia’s barbaric invasion of Ukraine, now in its fourth year.

The UK strongly supports President Trump’s initiative to bring this terrible war to an end. And we are working together with partners to secure a just and lasting peace. 

The Ukraine conflict has served as a brutal wake-up call. State-on-state war has returned to Europe. Adversaries are using nuclear rhetoric to influence decision-making, and we are seeing regular attacks on European infrastructure beneath the threshold of warfare.

It is crystal clear that European defense must step up and rebalance for our collective security. Actually, I think President Trump is doing Europe a favor by confronting us with this reality.

The United States is the UK’s closest defense and security ally. We must become less dependent on America, while remaining inseparably linked to America—a distinction that I underline of critical importance. Yes, less dependent, but still inseparably linked.

Ukraine is just one flashpoint of many amid growing global instability. Even the US does not have limitless resources.

This is precisely why Britain must step up in providing for European security and why we have committed to the biggest sustained increase in defense spending since the Cold War.

We will become NATO’s fastest-innovating nation, ensuring our military forces have the technological and military capabilities to secure long-term strategic advantage, not just spending more, but spending better.

Of course, this all needs to be grounded in intelligent and effective strategic choices, not merely increased expenditure. Efficiency and innovation to renew our defense manufacturing bases must drive every pound, every dollar, and every euro that we invest.

And we will double down on our alliances. In defense, we will always be NATO first but not NATO only—and this is particularly true of the UK’s focus on the Indo-Pacific, as well as our new security partnership with Europe.  

One good example is AUKUS, the trilateral security partnership with Australia and America, which will deliver advanced nuclear-powered submarines and catalyze technology sharing on other advanced capabilities.

Turning to the theme of economic strength, Britain now enjoys something that has eluded us for far too long: a government with both unity of purpose and longevity.

This government’s mandate and President Trump’s will both last for the next four years—providing huge opportunities for collaboration between us.

We are both pro-business and pro-trade in Britain, and committed to innovation, not as empty slogans but as practical imperatives.

This UK government is committed to creating the best investment environment with a regulatory reset that makes us the most competitive in Europe—that’s our aim.

One of the reasons we were able to close the first trade deal of the Trump administration is that our strong economic relationship between our countries is fair, balanced, and reciprocal. But also because, frankly, we are a businesslike nation with pragmatic instincts.

One of the great backhanded insults in British history was when Napoleon Bonaparte dismissed us as a mere “nation of shopkeepers.” He was right: Commerce is the lifeblood which flows through our veins, and that is one reason why we British and American cousins remain so close.

And that is also one reason why I see the current deal as the beginning of a new chapter as well as an end, in a sense, in itself. There is scope for an even more transformative stage in our long partnership. And I believe that centers on technology.

So let me address technological strength as the third. We face a clear, shared threat. There is nothing in this world I fear more than China winning the race for technological dominance in the coming decades.

China represents a far more dynamic and formidable strategic rival than the Soviet Union ever was: economically sophisticated, highly innovative, and strategically patient.

The United Kingdom and United States are the only two Western nations with trillion-dollar technology ecosystems combined with unparalleled talent and research capabilities in our universities and corporations. 

We must combine forces, in my view, to drive the scientific breakthroughs that will define this century, and AI should be the spearpoint of that collaboration.

Artificial intelligence stands as the next great foundational technology. Through its power, we can rapidly make progress across so many frontiers of science: quantum, synthetic biology, medicine, nuclear fusion.

Rather than stifling these transformative technologies through excessive regulation, our two governments must unleash their immense potential for human benefit and Western advantage.

Let me say this in conclusion. In his immortal Iron Curtain speech, delivered in Missouri, Churchill spoke eloquently about the primacy of American power and its awesome responsibility to future generations.

Today, we face our own historical inflection point.

No one should doubt that we face accelerating global competition in which it is strongly in our interests to expand the perimeter of our alliances while deepening the transatlantic partnership at its core.

So our diplomacy must be more urgent, more agile, and more creative. We must deepen the political and military alliances which defined our past successes but also create new partnerships—borne in and of technology—which will redefine our future. The stakes could not be higher. The opportunities, actually, could not be greater. And I am confident that our two countries will indeed rise together to meet those challenges.


Peter Mandelson is the British ambassador to the United States.

Watch the full event

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Michta featured in RealClearDefense on concrete actions to strengthen NATO’s resolve amid shifting geopolitics   https://www.atlanticcouncil.org/insight-impact/in-the-news/michta-featured-in-realcleardefense-on-concrete-actions-to-strengthen-natos-resolve-amid-shifting-geopolitics/ Tue, 27 May 2025 18:24:18 +0000 https://www.atlanticcouncil.org/?p=849822 On May 21, 2025, Andew Michta, senior fellow in the GeoStrategy Initiative, was highlighted in RealClearDefense on a report on how NATO can deter Russian aggression without an overreliance on US military power, which he co-authored with Scott Lee, Peter Jones, and Lisa Bembenick of MITRE. The authors argue that, as the United States pivots […]

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On May 21, 2025, Andew Michta, senior fellow in the GeoStrategy Initiative, was highlighted in RealClearDefense on a report on how NATO can deter Russian aggression without an overreliance on US military power, which he co-authored with Scott Lee, Peter Jones, and Lisa Bembenick of MITRE. The authors argue that, as the United States pivots toward the Indo-Pacific and urges greater defense spending from its allies, European leadership will be essential to the Alliance’s strength and cohesion. 

NATO must develop a force structure and a mix of capabilities that allow for the execution of regional defense plans with an emphasis on burden sharing. This modernization strategy must be objective, threat-based, and resource-informed.

Andrew Michta

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Do Trump’s criticisms of Putin mark a turning point in his Russia policy? https://www.atlanticcouncil.org/blogs/new-atlanticist/do-trumps-criticisms-of-putin-mark-a-turning-point-in-his-russia-policy/ Tue, 27 May 2025 18:04:35 +0000 https://www.atlanticcouncil.org/?p=849738 On Sunday, the US president called his Russian counterpart “crazy” on social media, revealing an increasing impatience with Russia over its unwillingness to engage in US-led cease-fire talks.

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This is part of a series of regular assessments of the efforts, spearheaded by the Trump administration, to achieve a negotiated end to Russia’s war on Ukraine. Read previous entries here and here.

What’s new?

On May 25, US President Donald Trump issued a blistering criticism of Russia’s massive and dayslong bombardment of Kyiv, Odesa, and other Ukrainian cities. Trump’s language was blunt and directed squarely at Russian President Vladimir Putin. In an impromptu discussion with reporters, Trump said of Putin: “I’ve known him a long time, always gotten along with him, but he’s sending rockets into cities and killing people, and I don’t like it at all. We’re in the middle of talking and he’s sending rockets into Kyiv and other cities. I don’t like it at all.” He also spoke about imposing additional sanctions on Russia.

Trump followed up this statement with a strongly worded Truth Social post, in which he said that Putin “has gone absolutely CRAZY! . . . I’ve always said that he wants ALL of Ukraine, not just a piece of it, and maybe that’s proving to be right, but if he does, it will lead to the downfall of Russia!” 

What does it mean?

These developments have led some observers to ask whether, after weeks of expressing frustration but ultimately accommodating Kremlin obstructionism, the Trump administration is about to take a tough stand. This was the strongest of several statements Trump has made against Putin over the past two months as it has become obvious, even to members of the administration who have sought to end support for Ukraine, that Putin has no interest in accepting Trump’s approach to achieving a negotiated end to the war. Trump made similar remarks in late April and early May, both suggesting that he would impose additional sanctions on Russia.

But there’s the rub. Trump’s criticism of Russian strikes on Ukrainian cities and Kremlin nay-saying in the peace talks has not led to new sanctions. And just last week, after his long phone call with Putin, who once more refused US terms for a cease-fire, Trump heralded the Kremlin call for continuing direct Russia-Ukraine talks. It is therefore no surprise that Putin doubled down with massive air strikes in Ukraine.

Putin no doubt takes solace that in the Truth Social post that labeled him “CRAZY,” Trump also slammed Ukrainian President Volodymyr Zelenskyy for “talking the way he does. Everything out of his mouth causes problems, I don’t like it, and it better stop.” At this point, Putin reads Trump, like other Western leaders since Russia’s 2008 war in Georgia, as unwilling to take strong action against aggression.

Is Putin right? Yes, Trump has vacillated over the past three months, treating Zelenskyy’s understandable public reservations about White House wavering more harshly than Putin’s active obstruction of US objectives. Trump has also taken substantial criticism from friendly editorial pages, such as the New York Post and the Wall Street Journal, as well as from at least some Republicans in Congress. On Monday, Republican Representative Don Bacon and Republican Senator Chuck Grassley both publicly called on Trump to take further action against Russia. 

What to watch next

What’s more, momentum is building to move the Sanctioning Russia Act of 2025—introduced by Senator Lindsey Graham (R-SC) and Senator Richard Blumenthal (D-CT) and now cosponsored by eighty-one senators. According to well-connected Republicans, the White House saw value in the presentation of the bill in April as a way of subtly putting pressure on the Kremlin, but it did not want any movement toward passage at that time. In the wake of recent developments, I am hearing that the Trump administration is mulling giving Republican senators the option of voting their conscience. With more than eighty cosponsors, that means the bill would pass easily.

This step cannot be taken for granted, and it is a sign that Putin’s aggressive posture—which prompted even US Vice President JD Vance to remark earlier this month that Russia was asking for too much—may finally prompt Trump to take more vigorous action. Indeed, Putin continued his vicious air campaign on Monday night, prompting another Truth Social post on Tuesday where Trump focused only on Putin, saying that the Russian leader is “playing with fire.”  

While it remains to be seen whether actions will follow from Trump’s tougher rhetoric, Zelenskyy could help himself and Ukraine by taking a page from Putin’s playbook and controlling his urge to criticize White House policy. Responding to Trump’s strong criticism of Russia’s belligerence, Putin called Trump overly emotional but still thanked him for his peace efforts. Even justified criticism of US policy by the Ukrainian president diverts Trump’s attention from the real problem.


John E. Herbst is the senior director of the Atlantic Council’s Eurasia Center and a former US ambassador to Ukraine.

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What’s the Trump administration’s dollar strategy? It depends on who you ask. https://www.atlanticcouncil.org/blogs/new-atlanticist/whats-the-trump-administrations-dollar-strategy-it-depends-on-who-you-ask/ Tue, 27 May 2025 14:20:15 +0000 https://www.atlanticcouncil.org/?p=849285 Within the White House, there appear to be competing and fractured views of the dollar’s role. This dissonance could result in harm to the currency’s long-term dominance.

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The US dollar has been the backbone of the international financial system for nearly a century. According to the Atlantic Council’s Dollar Dominance Monitor, the dollar’s preeminent position remains secure in the near and medium term. However, five months into US President Donald Trump’s return to the White House, there are concerning signs. The dollar’s value has plummeted to near its lowest level in three years as investors reassess their confidence in the greenback amid a rapidly shifting monetary and geopolitical landscape.

Within the Trump administration, there appear to be competing and sometimes contradictory perspectives over what dollar dominance means for US policy interests. The perspectives mirror broader debates beyond the White House about the role of the US dollar. Three divergent playbooks—around the dollar as a reserve, payment tool, and store of value—are worth exploring, not least because they are increasingly at odds.

The “America first” dollar

For Trump, the dollar’s international role appears to be of a piece with his broader “America first” philosophy. Trump’s statements suggest that he sees the use of the dollar in global payments as a symbol of US nationalism. During his campaign, for example, Trump threatened to impose 100 percent tariffs on nations from the BRICS group of emerging economies and others seeking to build alternative currency blocs aimed at undermining “the mighty US dollar.” In his words: “You leave the dollar, you are not doing business with the United States.”

Trump’s renewed tariff policy risks undermining dollar dominance by disrupting the economic relationships that have sustained the global dollar system. The many countries that run trade surpluses with the United States value holding and using dollars in international trade. This is because the dollar boasts strong network effects and highly liquid markets. It offers ease of trade and the convenience of invoicing and settling in a single dominant currency. This creates a cycle: Dollars flow out when the United States imports more than it exports, and then those dollars come back as foreign investment in US assets. If the United States reduces imports significantly—via tariffs or trade restrictions, for example—fewer dollars flow abroad. There are already signs that this is happening: Foreign investors have sold $63 billion in US equities between March and April 2025, and the US dollar index is down 8 percent this year. This marks a major retrenchment given that foreign investors entered 2025 with a record 18 percent ownership share of US equities.

Although tariffs are paid by US importers, they also hurt foreign exporters by reducing demand for their goods. Importantly, these tariffs signal that the United States is willing to use its dominant position in global trade and finance as a tool of coercion. In response, affected countries may seek to reduce their dependencies on the United States by developing alternative payment systems, trading in local currencies, and diversifying their reserves. These likely consequences may be an incentive for the administration to pursue a more moderate tariff policy than originally announced, as is already happening, at least temporarily.

Trump also sees domestic innovation in private sector financial technology as central to sustaining the dollar’s global role. On January 23, Trump signed an executive order encouraging the development of dollar-backed stablecoins issued by private firms to enshrine dollar dominance. As much as 80 percent of the flow of dollar-backed stablecoins is happening outside of the United States, and countries such as Argentina, Brazil, and Nigeria have seen significant adoption of stablecoins for remittances or as a hedge against local currency instability. 

US Treasury Secretary Scott Bessent and Federal Reserve Governor Christopher Waller have emphasized that stablecoins could reinforce the dollar’s primacy by creating new demand for US Treasuries, since almost 99 percent of stablecoins are dollar-denominated. While the widespread adoption of dollar-backed stablecoins could reinforce dollar dominance, it also introduces new vulnerabilities. For example, stablecoins could potentially accelerate de-dollarization, especially if nations become concerned about excessive dollarization of their economies and threats to monetary sovereignty. 

According to the Atlantic Council’s central bank digital currency (CBDC) tracker, there has been a global increase in retail CBDC development since the Trump administration took office—potentially signaling that countries are creating domestic digital alternatives specifically designed to limit the proliferation of dollar-backed stablecoins in their economies. Moreover, if inadequately regulated, stablecoins could pose systemic risks—such as triggering bank runs or forcing the liquidation of reserve assets during periods of financial stress, destabilizing Treasury markets. Furthermore, widespread stablecoin adoption without appropriate regulations could lead to shadow payment systems evading traditional oversight, undermining sanctions and monetary policy.

Internal tensions within the Trump administration on digital assets are already emerging. Trump’s inner circle of business leaders appear to favor the broader adoption of digital assets to bolster US competitiveness, while national security officials seem to worry that stablecoins could facilitate money laundering and terrorism financing, as well as undermine Washington’s ability to effectively wield sanctions. The ultimate role of stablecoins in the dollar’s international standing will depend on whether these two groups can reconcile the multiple priorities at stake.

The dollar as an economic burden

But there are other views on the dollar in the White House, as well. Stephen Miran, the chairman of the White House Council of Economic Advisers, has argued that the dollar’s reserve currency status comes at a steep cost to American workers and industry. In November 2024, Miran framed the dollar’s reserve currency status as a structural liability—one that forces the United States to run persistent trade deficits and maintain an overvalued dollar to meet global demand for safe dollar-denominated assets. At the time, Miran proposed unconventional remedies, including purposely devaluing the dollar to create a multipolar currency system to share the reserve status burden. 

Miran seems unconcerned about the dollar’s share of global central bank reserves but acknowledges the risks of a weaker dollar—primarily that investors might abandon dollar assets, increasing US borrowing costs. His proposed solution is to “term out” US debt by convincing countries to exchange short-term holdings for one-hundred-year bonds. While this would lock in foreign investment and reduce rollover risk, the extremely distant maturity could undermine trust rather than build it. Reserve holders prioritize liquidity and flexibility, so dramatically extending maturities might backfire, accelerating diversification away from dollar assets as the currency depreciates.

A fractured coexistence

At the heart of these competing views lies a critical tension that policymakers must address: The dollar serves multiple functions globally, and each function demands distinct strategic approaches.

Miran’s critique focuses on the dollar’s role as a reserve currency. Trump’s BRICS tariff threats, by contrast, focus on the dollar’s payments role. And the Federal Reserve and Treasury’s emphasis on stablecoins is best understood as an attempt to bolster the dollar’s store-of-value function. These are different hats that the dollar wears, and they often require divergent policy responses. Managing one of the hats without due attention to the others risks internal contradictions that could erode the very dominance policymakers seek to preserve.

It is unclear which side within the administration will ultimately have more influence, leading to uncertainty about US policy in the interim.

So what’s the dollar strategy, then?

To maintain long-term dollar dominance, the Trump administration should focus on creating a cohesive policy that reconciles the dollar’s multiple roles and avoids conflicting policy actions. Central to this effort should be a commitment to financial stability (avoiding large-scale tariffs, significant currency manipulation, and cryptocurrency spillover). The world is more likely to view the dollar as trustworthy when it sees the United States as a stable and reliable custodian of foreign assets.

Here are three specific ways the White House can pursue a strong, cohesive dollar policy:

Promote responsible innovation and oversight of dollar-backed stablecoins: The administration—particularly national security agencies, the Treasury, and the Federal Reserve—should actively monitor risks posed by the global proliferation of dollar-backed stablecoins. Policymakers should not ignore the accelerated dollarization of emerging markets and potential restrictive responses. Regulation alone is insufficient; clear enforcement mechanisms are needed to ensure compliance and mitigate systemic risk.

Seek stability through strategic trade measures: The administration should prioritize a stable trade policy and eliminate broad, across-the-board tariffs. Instead, it should apply targeted measures to address specific instances of nonmarket practices and currency manipulation. This would help preserve the dollar’s role by maintaining global investor confidence and ensuring continued dollar circulation in trade without disrupting broader relationships or supply chains.

Reinforce institutional credibility and policy coordination: Reaffirming the Federal Reserve’s independence is important for maintaining global confidence in US monetary policy, capital markets, and the dollar’s long-term strength. At the same time, the administration should enhance the coordination of analytic efforts and ensure consistency across agencies in messaging and policy implementation on dollar-related issues. This could be achieved by more effectively leveraging existing interagency structures, such as the National Security Council and the National Economic Council. Or, if necessary, it could be done by creating a new, dedicated coordination mechanism. The key objective is to deliver greater clarity, predictability, and coherence in the government’s approach.

Above all, policymakers should recognize that the greatest threat to the dollar is not external—it is the erosion of trust in the United States’ political and legal institutions. The dollar is not just backed by the size of the US economy; it is backed by faith in the rule of law, the sanctity of contracts, an independent central bank, and the stability of democratic governance. Structural advantages—network effects, deep capital markets, and the dollar’s centrality to global payments—make its dominance resilient. But these foundations are only as stable as the legal, political, and institutional frameworks behind them. If that foundation weakens, then no number of tariffs or volume of stablecoins can preserve the dollar’s central role in the global system.

For now, there is no viable alternative to the dollar. But the Trump administration’s competing and fractured view on the dollar’s various roles may cause enduring harm to its long-term dominance.


Alisha Chhangani is an assistant director at the Atlantic Council’s GeoEconomics Center.

Israel Rosales contributed to the data visualization in this article.

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Jordan-Israel security cooperation continues quietly but unabated  https://www.atlanticcouncil.org/blogs/menasource/jordan-israel-security-cooperation-continues-quietly-but-unabated/ Tue, 27 May 2025 13:59:17 +0000 https://www.atlanticcouncil.org/?p=849560 Despite diplomatic setbacks from the Israel-Gaza war, military and intelligence cooperation continues to thrive between the two neighbors.

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In the almost two years since the October 7, 2023 Hamas attack and launch of Israel’s war in Gaza, Jordan has made several diplomatic moves that could indicate their relationship with Israel is in trouble: Pulling out of a joint water-for-energy deal with the United Arab Emirates (UAE) and Israel in November 2023, recalling Amman’s ambassador from Israel, voting to expel the Israeli ambassador to Jordan in May 2024, and calling for a weapons embargo on Israel, to name a few.  

And since the collapse of the January 2025 ceasefire between Israel and Hamas, Jordanian officials like King Abdullah II and Foreign Minister Ayman Safadi have issued several inflammatory comments about Israel and rejected suggestions to relocate Palestinians from Gaza to neighboring countries.  

Yet, on a military and intelligence level, cooperation continues to thrive. In April 2024, Jordan, in coordination with the United States, assisted in the downing of many of the more than three hundred missiles and drones that Iran and its proxies launched at targets in Israel. French Rafale fighter jets also intercepted some of those weapons at Amman’s request. This support came amid reports from an Iranian Revolutionary Guard Corps (IRGC)-linked news agency that Iran had threatened Jordan that it would become a target if it cooperated with Israel again. 

Two months later, Jordan—along with officials from Bahrain, the United Arab Emirates, Saudi Arabia, and Egypt—met in Manama with Israeli Defense Forces (IDF) Chief of Staff General Hertzi Halevi and United States Central Command (CENTCOM) Commander General Michael Erik Kurilla to discuss regional security cooperation. Israeli and Jordanian officials have continued to meet secretly to discuss shared security concerns, including the fallout of the ousting of Bashar al-Assad in Syria and Israel’s ensuing military campaign there.  

Continued imperative for cooperation 

Amman has calculated that diplomatic moves such as withdrawing from the water-for-energy deal will help to appease its population—more than 50 percent of which identifies as Palestinian—without fundamentally altering Jordan’s longstanding security arrangement with Israel.  

Israel-Jordan relations long predate the signing of the Jordan-Israel Peace Treaty in 1994, but the dynamic has especially evolved in the years since that normalization. That includes intelligence sharing, security assistance, and even some weapon deliveries—like Israel’s 2015 transfer to Jordan of sixteen decommissioned AH-1 Cobra helicopter gunships, aimed at bolstering the Kingdom’s capacity to fight the Islamic State (ISIS) and other insurgents from neighboring Iraq and Syria. The relationship also has benefits outside of the military and security realm, with Israel giving Jordan access to more than one hundred million cubic meters of water per year and a substantial amount of natural gas. Additionally, Jordan’s cooperation is viewed as a critical motivator for the United States to provide the small Arab country with $1.45 billion annually in aid.  

At the same time, Jordan’s relationship with Israel is crucial in its efforts to curb rising Iranian influence in the country, which has been escalating over the past year and a half. Iran-backed militias in Iraq and Yemen have repeatedly violated Jordanian airspace to launch drone attacks on Israel, and there have been several instances of US and Jordanian authorities thwarting Iranian attempts to smuggle arms into the country. Those weapons shipments have included Claymore mines, C4 and Semtex explosives, Kalashnikov rifles, and 107mm Katyusha rockets, with at least some of them destined for the West Bank, according to reports from Jordanian sources.

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The frequent gun and drug smuggling has become such a concern for the Israeli government that in May, it approved a five-year $1.4 billion plan to secure the border with Jordan that would include increased IDF presence in the area, and a 425-kilometer high-tech border fence that would run from Hamat Gader in Israel’s north to the Samar Sands, north of Eilat. In Israel’s official statement about the plan, they cited that it comes in response to the heightened number of infiltrations and weapons smuggling from the border.  

The issue of Iranian presence in Jordan could soon balloon. Tehran could see the Jordanian government’s recent decision to declare the Muslim Brotherhood—and even the promotion of its ideology—illegal as a prime opportunity to expand its foothold in the country and possibly offset some of its losses from the decimation of Hamas’ military capabilities and leadership, the elimination of top Hezbollah military and political leaders, including longtime Hezbollah Secretary General Hassan Nasrallah, and the overthrow of the Assad regime in Syria. Even prior to the decision, reports indicated that Iran was trying to recruit young, radicalized members of Jordan’s Muslim Brotherhood. This was evidenced in May 2024 by Jordanian authorities foiling a plot to smuggle weapons from Iran-backed militias in Syria to a Jordanian Muslim Brotherhood for use in undisclosed acts of sabotage and a statement in April 2024 made by the Iran-backed Kataib Hezbollah that the group intends to supply twelve thousand Jordanians with rockets and explosives to fight against Israel. 

Even with all these threats, Jordanian leadership recognizes that widespread domestic unrest over Amman being seen as too supportive of Israel could ignite existing discontent over the struggling Jordanian economy and several unpopular socio-economic policies, potentially leading to an uprising. Fears of such an outcome are particularly raw, given accusations in 2021 that King Abdullah II’s younger brother, popular former Crown Prince Hamzah bin Hussein, was involved in a potential effort to overthrow the government.

People gather after Friday prayers during a protest in solidarity with Palestinians in Gaza, in Amman, Jordan, March 21, 2025. REUTERS/Jehad Shelbak

The King knows that he must balance the important security and economic support he receives from Jerusalem with mounting domestic pressure to sever relations. However, maintaining this partnership will only get more difficult if the war in Gaza drags on and potentially escalates, which seems likely after Israel’s security cabinet approved a new comprehensive plan on May 5th to intensify its offensive against Hamas and occupy Gaza.  

Policy recommendations 

To preserve and even deepen the Israeli-Jordanian partnership in this volatile context, both sides should pursue cooperation that is largely out of the public eye but still provides strategic value.  

For example, while Jordan waits for its long-requested Patriot missile batteries from the United States, Israel could quietly augment Jordanian air defenses by deploying an Iron Dome or even an Arrow 3 system near the Israel-Jordan border. The move would provide critical coverage from Iranian-backed drone and missile threats over joint Israel-Jordan airspace while also avoiding triggering the domestic backlash that would come with these systems being deployed within Jordanian territory.

Second, both countries should formalize intelligence coordination in areas of counter-smuggling, cyber defense, and early-warning capabilities. Such cooperation could mean establishing joint intelligence cells or data-sharing platforms where Israeli, Jordanian, and American officials can share information and insights in real time, allowing them to better anticipate and respond to security threats.

Third, both countries should build on Jordan’s role in the existing Israel-Gulf land bridge, a land route between the Gulf and Israel’s seaports meant to allow for exporting goods from Asia to Europe via Israel, by expanding infrastructure and regulatory coordination. To reduce the blowback from such projects, which are inherently more visible and politically sensitive, they should be integrated into broader multilateral initiatives like the India-Middle East-Europe Economic Corridor (IMEC) or a regional railway network. These projects could significantly strengthen Jordan’s struggling economy, which would in turn help the government manage mounting domestic pressure and increase the durability of its partnerships in the region.  

Finally, Israel and Jordan could work to revive the Israel-Jordan-UAE water-for-energy deal by involving other parties like the European Union, United Nations, or World Bank. Involving multilateral actors could help dilute the public perception of direct Israeli involvement, thereby easing domestic political sensitivities in Amman and increasing the deal’s viability. These steps would not only enhance regional stability and strengthen the existing Israel-Jordan relationship but also help King Abdullah II navigate mounting domestic unrest, economic strain, and regional security threats in an increasingly volatile Middle East. 

Emily Milliken is the associate director of media and communications for the N7 Initiative at the Atlantic Council’s Middle East Programs.

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Beyond ceasefires: Reimagining stability and engagement in Libya https://www.atlanticcouncil.org/blogs/menasource/beyond-ceasefires-reimagining-stability-and-engagement-in-libya/ Tue, 27 May 2025 13:16:56 +0000 https://www.atlanticcouncil.org/?p=849541 With all major political institutions mired in crisis, a renewed approach to peace enforcement is pivotal to building stability.

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The past fortnight has shattered perceptions of stability in Libya, unveiling deep fractures within its political, security and economic state and non-state apparatuses.

The May 12 assassination of Abdul Ghani al-Kikli, prominent leader of the Stability Support Apparatus (SSA), triggered large-scale urban confrontations between rival armed factions, but this came as no surprise. The escalation occurred against the backdrop of powerful semi-state armed factions, duplicated executive and legislative institutions alive long past their mandate, an absent judiciary, a nationwide economic crisis, and pervasive corruption. Coalitions formed on the basis of affiliations to the Government of National Unity (GNU) on one side, and Special Deterrence Force (SDF) on the other, drew in militants from Tripoli and beyond, bringing to light grievances and mistrust accumulated over years of fluid, ever-changing, short-term security arrangements and international neglect.

Indeed, the notion that the dual status quo could endure since the 2020 Ceasefire Agreement between the military factions of the then-Tripoli-based Government of National Accord (GNA) and the Benghazi-based Libyan Arab Armed Forces of Khalifa Haftar, with its multiplied leaders unchecked, can no longer hold in public discourse.

Countrywide divisions are also resurfacing as Tripoli grapples with its own, with chaos in Libya’s capital creating an ideal battleground for those seeking to achieve nationwide domination through military means.

Beyond the ballot box

Currently envisaged solutions to Libya’s crisis feel like a band-aid on a gunshot wound. Crisis appears to be brewing as tensions deepen and fears mount of further violent escalation in urban areas. The United Nations and the Presidency Council launched a truce committee to negotiate a local ceasefire and interim security arrangements in Tripoli, whose influence over peace enforcement in practice is, however, limited at best. At the same time, the House of Representatives, whose members were last elected in 2014 and have long overstayed their mandate, seized the opportunity of undermining the also-entrenched GNU and launched its own process for forming yet another executive.

The international push for elections in 2021 was seen as the most promising avenue towards stability. However, as the ballot box was never opened, the profound depth of Libya’s legitimacy crisis across all existing executive and legislative institutions perdures today. Indeed, no single individual or institution in Libya would be able to meaningfully bring the country to elections without due process and international backing. What’s more, any attempt at the implementation of new political arrangements amid the current escalation risks resulting in more violence, including towards civilians. Peace enforcement, therefore, rises to the front as the utmost imperative for the international community in the short term, while paving the way for a complete political overhaul in the medium term.

While it’s clear that an international agreement is needed to support Libyans in reversing current negative trends and overall escalation, no single external actor can be a viable mediator without multilateral backing. While in other contexts, the United Nations could consider deploying an international peacekeeping mission, permanent members’ interests at the Security Council amid changing Mediterranean geopolitics would likely lead to a deadlock and the use of veto power(s) for such an initiative. A way out of the current institutional blockage—Libyan and multilateral—must therefore rely on other pathways to multilateral cooperation.

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With the United Nations gridlocked and unilateral interventions only deepening Libya’s divides, the question of who, if anyone, could credibly enforce peace looms large. Egypt, despite its strategic clout and dual membership in the African Union and League of Arab States, is too closely aligned with eastern factions to lead. Turkey is disqualified on similar grounds, its deep entrenchment in Tripoli rendering it a partisan actor, despite recent meetings suggesting a possible rapprochement with Eastern factions. While symbolically inclusive, the Union for the Mediterranean lacks both Libya’s full participation and any enforcement teeth. The European Union, though equipped with resources, remains hamstrung by internal divisions and a migration-centric agenda. Meanwhile, the Security Working Group—gathering key Western and regional actors—has political weight but no mandate. As Libya’s instability never stays within its borders, its African and European neighbors remain most exposed to renewed spillovers, while none of the major external backers, from Russia to Turkey, ultimately benefit from continued escalation.

Breaking the stalemate

This begs the question: What might peace enforcement look like in Libya’s current politico-security landscape? The question is complex, given the internationalized nature of interest-based politics hampering Libya’s stability.

Given these limitations, few paths can be deemed viable for the weeks ahead. For the proponents of traditional multilateral approaches to peacebuilding, the most viable path forward may lie in a time-bound African Union-led initiative, co-endorsed by the League of Arab States, and supported by a coordinated diplomatic and operational role for the European Union and Egypt. The Security Working Group could serve as the core forum where such a framework is negotiated and designed, leveraging its existing membership and political clout. A hybrid mechanism of this kind, though likely to require extensive negotiations in its inception, could prove successful in beginning to reverse escalation and lay the groundwork for a more durable political—and peace—process.

For the proponents of rapid bilateral solutions, another path could be relying on a smaller coalition of involved States to intervene with the goal of keeping peace. A riskier but faster-to-deploy setup could for instance involve the likes of Turkey, Egypt, Algeria and a southern European State—one that is agreeable to the United States—in an interim entente of influence over Libyan stakeholders (and spoilers), each deterring them from further escalation until a new political process takes form.

While constraints faced may hamper its effectiveness, the United Nations and its support mission must remain central in any process, as the holders of Libya’s peace negotiations and guarantors of international legitimacy. Indeed, while both paths proposed may help break the current stalemate (albeit with different risk levels), they must be designed as a bridge, not an alternative, to a reinvigorated UN-led political track. Given the financial strain the UN system has faced in recent months, the proposed interim models could offer a much-needed breathing space to reassess, alongside key partners, the trajectory and structure of the process ahead.

Ultimately, Libyans must define the terms of their political future, which will require more than elections alone. With all major political institutions mired in crisis, a renewed approach could involve sequencing parliamentary elections first, under a model in which executive authority is shaped by parliamentary legitimacy. A technocratic, legitimacy-grounded constitution-writing process could then follow. Crucially, a new oversight phase must be introduced—one that is multilateral, time-bound, and rooted in local ownership—to shield the process from spoilers, prevent backroom power grabs, and guarantee that implementation matches intent. Only then can a political transition begin to gain the resilience Libya so urgently needs.

Karim Mezran is a Resident Senior Fellow and director of the North Africa Initiative at the Atlantic Council.

Roberta Maggi is an Associate Fellow at the Center for Applied Research in Partnership with the Orient (CARPO).

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What Trump’s new executive orders mean for the US nuclear energy industry https://www.atlanticcouncil.org/blogs/new-atlanticist/what-trumps-new-executive-orders-mean-for-the-us-nuclear-energy-industry/ Sun, 25 May 2025 15:10:02 +0000 https://www.atlanticcouncil.org/?p=849504 The US president signed four executive orders on May 23 intended to usher in an “American nuclear renaissance.”

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On Friday, US President Donald Trump signed four executive orders related to the rapid deployment of next-generation nuclear technologies in the United States. Overall, the orders represent a policy outlook on nuclear energy that has remained relatively consistent for nearly a decade. However, there are a few key breaks from precedent, especially in that the orders encourage commercial nuclear fuel recycling and decrease the independence of the Nuclear Regulatory Commission (NRC).

New reactors and national security

Deploying Nuclear Reactor Technologies for National Security” is the most comprehensive of the four. It aims to speed the deployment of advanced reactors at Department of Defense facilities, in order to provide power for military installations and for operational energy. The executive order notes that the regulatory pathway will be through the United States Army and ambitiously calls for one reactor to be operational at a “domestic military base or installation no later than September 30, 2028.” It also calls for the deployment of advanced reactors at Department of Energy facilities, and it directs the US secretary of energy to designate artificial intelligence (AI) data centers that “are located at or operated in coordination with Department of Energy facilities . . . as critical defense facilities, where appropriate.” 

In a departure from what has been the US government’s de facto stance toward commercial nuclear fuel recycling in the United States (assuming that it refers to commercial reactors), this order calls for the US secretary of energy to “identify all useful uranium and plutonium material within the Department of Energy’s inventories that may be recycled or processed into nuclear fuel for reactors in the United States.” There are currently no domestic commercial fuel recycling facilities in the United States, and the partnership outlined in this order between the Department of Energy and industry will likely be a boon to US reactor companies looking to use recycled fuel, especially as competitor countries stand up their own recycling capabilities. The order then goes on to direct the Department of Energy to provide high assay low-enriched uranium (HALEU) for commercial reactors that are authorized to deploy at the department’s sites. This will add to the demand signal for HALEU fuel and strengthen the domestic nuclear fuel supply chain.

Importantly, the order excludes the Department of Defense and the Department of Energy from the National Environmental Policy Act (NEPA) for construction of advanced reactors on some federal sites. It also notes that there may be additional categories that will be excluded from adhering to NEPA. The Department of the Interior already has a number of categorical exclusions for NEPA (for example, for geothermal exploration) but does not yet have any listed for nuclear reactors. The rest of this order touches on interagency coordination, civil nuclear exports, and employee clearances.

Changes to the NRC

At first glance, the next executive order, “Ordering the Reform of the Nuclear Regulatory Commission,” appears more measured than news reports had predicted over the past few weeks. It mentions a reduction in force for the commission, but it notes that “certain functions may increase in size consistent with the policies in this order, including those devoted to new reactor licensing.” At the same time, the order directs the NRC to finalize a revision of its regulations and guidance documents, and this revision must be concluded within eighteen months. It also directs an eighteen-month deadline for final decisions on construction and operation applications for any type of nuclear reactor. It is difficult to see how an understaffed agency will be able to complete more work in less time.

Although the new executive order does not explicitly mention White House oversight of the NRC, it does note the involvement of the Office of Management and Budget (OMB) and especially the Department of Government Efficiency (DOGE) in reorganizing the NRC. These measures, combined with the February 18 executive order “Ensuring Accountability for All Agencies”—which already decreased the independence of the NRC—could likely reduce the NRC’s workforce and lessen its standing among global nuclear regulatory authorities. This could happen even as the White House directs it to hasten its regulatory processes to expedite the licensing and deployment of next-generation nuclear technologies.

The question of new testing

A third order, “Reforming Nuclear Reactor Testing at the Department of Energy,” directs the national laboratory system to reform its process for ensuring that reactor developers are able to test their reactors quickly and effectively. However, the document does not explicitly direct the national laboratory system to construct new test reactor facilities. The first Trump administration signed into law the Nuclear Energy Innovation and Capabilities Act in 2017, which addressed the need for a fast-neutron test reactor and resulted in the start of the Versatile Test Reactor (VTR) project at Idaho National Laboratory.* But Congress later defunded this project. Although the new order does not explicitly call for the construction of a new testing facility, its direction to increase capacity for testing new reactors may lead Congress to look again at the VTR project.

The broader nuclear base

Finally, “Reinvigorating the Nuclear Industrial Base” addresses well-trodden issues, such as workforce development and the restarting, completion, uprating, or construction of nuclear power plants. It also calls for a new report to address the fuel cycle, especially regarding high-level waste management, fuel recycling (including commercial recycling), isotopes, and enrichment and conversion. This new report would follow the Nuclear Fuel Working Group’s 2020 report “Strategy to Restore American Nuclear Energy Leadership,” which focused on the front-end of the fuel cycle as well as civil nuclear exports. The order also notes that the US secretary of energy shall update the department’s “excess uranium management policy to align with the policy objectives of this order and the Nuclear Fuel Security Act” of 2023, which was signed into law by US President Joe Biden. 

Based on these new executive orders and earlier announcements, the second Trump administration’s policies toward nuclear energy seem largely aligned with the policies of the Biden administration and the first Trump administration. The major shift that is reflected in this set of executive orders is the desire to conduct a reduction in force across government agencies and to weaken the independence of regulatory authorities, including the NRC. In the new orders, the Trump administration has articulated ambitious goals for rapid deployment of next-generation nuclear technologies; however, reducing personnel and funding for the NRC and the Department of Energy, along with weakening the NRC’s independence and global credibility, will make it challenging to realize the full potential of the US nuclear energy industry. 


Jennifer T. Gordon is the director of the Nuclear Energy Policy Initiative and the Daniel B. Poneman chair for nuclear energy policy at the Atlantic Council’s Global Energy Center.

Note: The Idaho National Laboratory is a donor to the Atlantic Council’s Nuclear Energy Policy Initiative.

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Bangladesh may have ended its India-China tightrope game, but it must continue to tread carefully https://www.atlanticcouncil.org/blogs/new-atlanticist/bangladesh-may-have-ended-its-india-china-tightrope-game-but-it-must-continue-to-tread-carefully/ Fri, 23 May 2025 19:25:05 +0000 https://www.atlanticcouncil.org/?p=849217 With Bangladesh outgrowing its small-power past, the stakes of the country's geopolitical choices have never been higher.

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When Muhammad Yunus, chief adviser of the Bangladeshi interim government, stepped off his plane and onto a red carpet in Beijing in March, he did not just break tradition: He lit a fuse in South Asia.

Typically, new Bangladeshi leaders head to India for their first bilateral visit abroad, but Yunus instead traveled to China. Peking University bestowed him with an honorary doctorate. China’s ambassador in Dhaka hailed the trip as the “most important visit” by any Bangladeshi leader in the last half a century. Yunus himself declared that the Bangladesh-China relationship has entered “a new stage.” The symbolism was unmistakable: Dhaka is abandoning its decades-long balancing act between India and China for a more assertive embrace of Beijing.

Bangladesh, with which India shares its longest international border, is critical to India’s security. For China, Bangladesh is a vital partner in its Belt and Road Initiative and String of Pearls ambitions, offering a strategic foothold in India’s backyard. Welcoming Chinese influence may put wind in Bangladesh’s economic sails, but it comes with the risk of transforming the nation into a battleground for the Sino-Indian rivalry. Bangladesh, in its hasty geopolitical gambit, may have just traded a delicate tightrope for treacherous quicksand.

China’s gains and India’s losses

China didn’t hold back during Yunus’s visit. Bangladesh secured $2.1 billion in investments, loans, and grants. The real wins for Beijing, however, were strategic: a $400 million modernization deal for Mongla Port—Bangladesh’s second-largest seaport—and increased engagement with the Teesta River Comprehensive Management and Restoration Project.

The Teesta project, in particular, strikes at the heart of regional tensions. For over a decade, negotiations between India and Bangladesh over sharing the river’s water have stalled, with Bangladesh wanting a larger share to address water scarcity in the north. The Teesta Barrage, built to direct the flow of the Teesta River, sits perilously close to India’s “Chicken’s Neck”—the narrow corridor linking India’s mainland to its turbulent northeastern states, known as the Seven Sisters. This narrow corridor lies just a few hundred miles south of an area where China’s military presence is growing, positioning the strip as a strategic chokepoint. India perceives Chinese military presence in the region as an existential threat, as Chinese boots on the ground could quickly divide India in two.

For years, China has expressed its interest in the Teesta River management project due to the river’s strategic significance. Just last year, then Bangladeshi Prime Minister Sheikh Hasina indicated that she would cede the project to India, given both nations’ shared stake in the river’s water, or perhaps a calculated measure aimed at soothing New Delhi’s security concerns regarding Chinese influence in the region. Yunus’s decision to greenlight China’s involvement constitutes a major shift, representing a diplomatic coup for China and a direct challenge to India.

Compounding this tension, some media outlets reported a possible Chinese proposal to construct an airfield in Bangladesh’s Lalmonirhat district, which is also near India’s “Chicken’s Neck” region. Soon afterward, media outlets also reported that India has bolstered its military presence in the area.

Bangladeshi diplomatic moves toward China didn’t stop there. For the first time, Dhaka explicitly opposed Taiwan’s independence. And the two countries brokered a deal to invite Chinese investment to modernize and expand facilities at the Mongla Port, which hands China another strategic foothold in the Bay of Bengal.

Yunus appears to see China as a springboard to elevate Bangladesh’s global stature. He even mused that Bangladesh could serve as “an extension of the Chinese economy” and the sole oceanic gateway for India’s Seven Sisters states, calling the states “landlocked”—a remark that surely rattled New Delhi.

This pivot toward China marks a stark departure from Hasina’s cautious ambiguity in balancing China and India during her fifteen-year tenure. Over the last decade of Hasina’s administration, China has become Bangladesh’s largest trading partner, top supplier of military hardware (including two submarines and support for a naval dock), and leading development partner under the Belt and Road Initiative. Yet, Hasina ensured that economic cooperation with China never undermined Dhaka’s relationship with New Delhi—especially given that her political party, the Awami League, has long been India’s ally.

Since Hasina’s dramatic exit amid the July 2024 uprising, India-Bangladesh relations have plummeted to their lowest ebb. Tensions along the border have flared. Just before taking power, Yunus issued a warning that any Indian attempt to destabilize Bangladesh could spill over to India’s volatile Seven Sisters states—a statement many Indian analysts interpreted as a veiled threat. Last year, Dhaka accused India of opening water gates to flood Bangladesh. India, in turn, raised alarms over attacks on minorities in Bangladesh—claims Dhaka dismissed as grossly exaggerated. In addition, the spread of disinformation among Indian media has added to these tensions.

On top of that, Hasina, now exiled in India, remains a festering sore in bilateral ties. Bangladesh has demanded her extradition to face charges related to mass killings and forced disappearances during student-led uprisings in July and August 2024, but India has so far refused. The Indian Army chief has publicly stated that normalized relations between the two nations hinge on Bangladesh installing an elected government—a pointed jab at Yunus’s unelected interim regime.

Eight months into his tenure, Yunus finally secured face time with Indian Prime Minister Narendra Modi in April after New Delhi rebuffed Dhaka’s earlier overtures before the pivotal Chinese visit in March. Yunus brought up long-standing issues such as border killings and Hasina’s extradition, while Modi reiterated concerns about minority oppression in Bangladesh and cautioned against provocative rhetoric—likely referencing Yunus’s recent comments about India’s Seven Sisters region. Although a necessary first step toward repairing relations, the talks more closely resembled a recitation of grievances than an attempt at reconciliation. The ice finally cracked—but hardly melted.

Why Bangladesh must move with caution

Bangladesh has outgrown its days as a small power. As one of South Asia’s largest economies—and with a strategic position at the Bay of Bengal and a population of 170 million—Bangladesh now wields considerable political clout. With that clout, Bangladesh can more easily chart an independent foreign policy.

As the global order continues to evolve, great powers are realigning, and nations across Asia (including Bangladesh) are recalibrating their relationships to match new realities and national interests. Yet, this moment of opportunity demands caution. A headlong rush toward China risks Bangladesh’s future for four critical reasons.

First, China’s allure comes with caveats. Though Bangladesh has benefited from Chinese investment, there are still risks. Since 2014, China has pledged forty billion dollars to Bangladesh through its Belt and Road Initiative, yet only $7.07 billion has materialized. Although now operational, ventures such as the Padma Bridge and Payra Power Plant faced delays and cost overruns during construction. Furthermore, Chinese loans come with a 3 percent interest rate, higher than the rates offered by other lenders, though Beijing is now considering lowering the rate. Yunus’s government must continue to pursue careful loans and avoid the common risks associated with an overreliance on Chinese investments to secure Bangladesh’s economic future.

Second, India, a geopolitical heavyweight next door, cannot be ignored. Bangladesh sits nearly encircled by India, leaving both countries mutually dependent. Any friction with India over strategic projects like Teesta would trigger cascading security and economic consequences. Bangladesh’s ties with China must be fostered with careful geopolitical calculation, not as an impulsive reaction to the friction with India that has appeared since Hasina’s ouster. Strategic clarity, not emotion, should guide Dhaka’s choices.

Third, the United States looms as Bangladesh’s “third neighbor,” meaning that Dhaka’s shift toward China may have consequences beyond South Asia. As Bangladesh’s largest export market, the United States wields outsized influence over Dhaka’s policy. In Hasina’s final years, Washington ramped up pressure over Bangladesh’s closeness to China and democratic backsliding. Hasina was able to juggle US demands and maintain bilateral ties with the United States by leveraging her connections with India. Indian officials were concerned about the opposition in Bangladesh gaining power and lobbied their US counterparts to temper their criticism of Hasina’s administration. Yunus’s interim government lacks that buffer. The interim government is courting the United States—seeking energy deals, rolling out Starlink, and implementing changes to secure lower tariffs on US goods—hoping that the Trump administration will prioritize trade over geopolitical considerations and will see Bangladesh on its own terms, not as India’s junior partner. Yet the United States announced a 37 percent tariff on all imports from Bangladesh—though that has been temporarily reduced to 10 percent, alongside most of the world—which would be a significant economic hit. Amid the US-China trade war, Dhaka should at least aim to understand Washington’s evolving red lines before doubling down on closer ties to Beijing.

Lastly, a major foreign policy shift by the interim government, currently operating with a dissolved parliament, may trigger domestic unrest, policy inconsistency, and diplomatic friction. The interim government’s stated priority is to guide Bangladesh toward reform and elections. But the interim team may not have the democratic legitimacy that is needed to make a sweeping foreign policy change. Yunus’s pivot to China could commit Bangladesh to a course that the public may not support and the next elected government might not honor. Decisions of this magnitude—potentially redrawing Dhaka’s regional and global stance—would ideally require parliamentary backing, a democratic mandate, and political weight to handle the consequences. An interim regime, by its very nature, may be better suited to prioritize stability over implementing revolutionary shifts.

Bangladesh can continue to chase opportunistic gains with China, risking Indian ire and isolation (without a clear signal from its people that it has a mandate to do so), or it can recalibrate with restraint, preserving the equilibrium that has long underpinned its rise. Regardless of what choice it makes, Bangladesh must tread with caution. The paths it chooses will ripple across South Asia, determining whether Bangladesh emerges as a bridge between giants or a battleground where they clash. For a nation outgrowing its small-power past, the stakes have never been higher.


Wahiduzzaman Noor is a Bangladeshi national security professional and former diplomat at the Embassy of Bangladesh in Washington, DC, with expertise in South Asian affairs, Indo-Pacific Security, and counterterrorism.

Samantha Wong is a program assistant with the Atlantic Council’s Global China Hub. Her work centers on the technology and security portfolio, where she researches and develops collaborative solutions to global challenges arising from China’s rise.

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Charai in National Interest: The Washington Embassy Murders and the Rising Threat of Antisemitism https://www.atlanticcouncil.org/insight-impact/in-the-news/charai-in-national-interest-the-washington-embassy-murders-and-the-rising-threat-of-antisemitism/ Fri, 23 May 2025 17:37:53 +0000 https://www.atlanticcouncil.org/?p=849377 The post Charai in National Interest: The Washington Embassy Murders and the Rising Threat of Antisemitism appeared first on Atlantic Council.

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Beyond critical minerals: Capitalizing on the DRC’s vast opportunities https://www.atlanticcouncil.org/in-depth-research-reports/report/beyond-critical-minerals-capitalizing-on-the-drcs-vast-opportunities/ Fri, 23 May 2025 15:27:29 +0000 https://www.atlanticcouncil.org/?p=841297 As major powers contend for access to Kinshasa’s mineral wealth and Washington seeks to broker a peace deal with Rwanda, the DRC and its partners have a chance to aim high, and channel the country’s resource wealth into good governance, infrastructure, and more.

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As the race for access to critical minerals accelerates—with US President Donald Trump declaring the minerals that power new technologies essential to US national security, and China flexing its control of mineral supply chains with export bans—the mineral-rich Democratic Republic of the Congo (DRC) is in the spotlight. But that light reveals a complicated picture: As major powers and neighboring states contend for access to the country’s tin, cobalt, and copper, the Rwandan-backed M23 paramilitary has seized control of large swaths of eastern Congo, and the specter of full-scale war looms. The DRC signed a minerals-for-infrastructure deal with China in 2007, and now a minerals-for-security or minerals-for-peace deal with the United States is in the offing. 

The DRC has a chance to break the so-called “resource curse” and use its mineral wealth to build the roads, power grids, health infrastructure, and more that will sustain a democratic, economically growing country in the years ahead. Other countries and investors have a chance to live up to their commitments to responsible sourcing of natural resources, and in so doing support good governance and regional peace. The alternative is a continuation of the bad patterns of the past, with the real risk of a new outbreak of violence along the same fault lines that produced the deadliest conflict since World War II.

We asked six experts how the DRC—and its global partners—can take this transformative path. Read on for analyses of the country’s business environment, the industrial potential of its critical minerals and other promising sectors, and peace and security throughout the country.


The business case for peace and democracy in the DRC is strong

Dave Peterson is the former senior director of the Africa Program of the National Endowment for Democracy.

The Rwandan-backed rebel militia M23 has seized control of most of eastern Democratic Republic of the Congo (DRC) while the national army (known by its French acronym, FARDC) and international peacekeepers retreat. At least seven thousand civilians have been killed and thousands more raped. Two million displaced persons and refugees are fleeing for safety, joining some five million already displaced. The US embassy in Kinshasa has been attacked by angry mobs—and both strategic interests and American values are at stake.

The DRC is rich. With 111 million inhabitants in a geographical area the size of Europe, the country is blessed (or cursed) by $24 trillion in mineral resources such as copper, cobalt, lithium, gold, and diamonds, much of it crucial to the world’s transition to electric power, half of it exported to China, and much of it now controlled by Chinese investors. Congo has the world’s largest tropical forests after the Amazon and a vast river network that could power half the African continent; it also has enormous agricultural potential, gas, and oil.

And the DRC is where the greatest slaughter of human beings since World War II occurred just thirty years ago, even as atrocities continue to be reported daily in the country’s east. In addition to M23, more than a hundred militia groups terrorize the population. Rampant corruption sucks billions of dollars from the economy every year, and poverty, unemployment, illiteracy, and disease statistics place the DRC near the bottom of global rankings.

The Congolese people have begged for change. Democratic elections held on December 20, 2023, were won by the incumbent, Felix Tshisekedi. Although flawed in many respects, credible domestic observation groups, supported by the National Endowment for Democracy (NED) and others, concluded they reflected the will of the people. The elections were reasonably competitive and peaceful, a notable achievement compared to Congo’s nine neighbors, many among the most autocratic countries in the world. The elections raised the level of political discourse and further cultivated Congo’s democratic practice. Congo’s press is relatively free, so citizens can debate, organize, and criticize their government. The nation’s civil society is extensive, active, and skilled—advocating, educating, and mobilizing citizens on a host of issues.

Yet after another year in power, the second Tshisekedi administration has failed to resolve the conflict in the east, address rampant corruption, or improve governance. The human rights record is not reassuring, as NED’s Congolese partners and others have documented. More than one hundred kuluna, purportedly youth gang members ensnared by DRC’s notoriously corrupt justice system, were recently executed after the government reinstated the death penalty. Freedom of expression is also under pressure as activists, journalists, and whistleblowers are attacked and fear for their personal safety. Meanwhile, the president seems intent on tampering with the constitution to allow him to extend his term in office.

The mining companies, banks, and tech industry—aware of but loath to abandon the bloody supply chain they rely on—profit handsomely from Congo’s precious minerals. Although the conflict in the country’s east is about more than the trade in minerals, and international funders have spent hundreds of millions of dollars on the problem, the DRC’s best hope may be for foreign investors to mobilize pressure on the belligerents to make peace. The Belgian government has investigated Apple for tolerating human rights abuses in its supply chain originating in the DRC, and Apple has acknowledged the difficulty of identifying the sources of its suppliers. Because this is an issue for the entire industry, companies should find it advantageous, both in terms of public relations as well as in creating a conducive business environment, to be more accountable for the stability and prosperity of the communities from which they derive their wealth.

The Trump administration is paying attention. Tenuous negotiations between representatives of the Congolese and Rwandan governments led by the administration’s special envoy Massad Boulos may be making progress. To buttress this, Congolese civil society should be included in the process, including appropriate NGOs, community groups, the church, labor, and business, as proved successful in the Inter-Congolese Dialogue two decades ago. The DRC’s democratic aspirations should be the United States’ comparative advantage. The United States made mistakes in Congo, then called Zaire, during the Cold War, to the detriment of its own reputation, and it would be a shame to return to that era of zero-sum geopolitical competition. Security, strength, and prosperity are interests every nation pursues, but the United States can do better. Many Congolese, including civil society and political leaders, still see the United States as a force for good and a beacon of hope for ideals such as freedom, peace, democracy, justice, and human rights. It is what makes America strong: It is what makes the United States friends and allies, accords America respect and admiration—to be seen as a world leader rather than just another player, a model rather than a pariah.

The US private sector should take the lead. A golden age cannot be built on the blood of innocents, a course that can only lead to more hatred and suffering and will ultimately fail. The international business community must unite in committing to resource extraction practices that abide by international standards of human rights and transparency, incentivize the rival governments and factions in the subregion to lay down their arms, and make it easier and more profitable for companies to do their work. The private sector can rally international public opinion and pave the way for stability and prosperity. The long-suffering Congolese people deserve it.


Congo’s war and the critical minerals scramble are inextricably intertwined

Mvemba Phezo Dizolele is a senior fellow and director of the Africa Program at the Center for Strategic and International Studies (CSIS) in Washington, DC.

For the past thirty years, the world has viewed the Democratic Republic of Congo (Congo) through a binary lens of conflict and the exploitation of natural and mineral resources. The conflict optics magnify the insecurity that has characterized life in the eastern provinces of North Kivu, South Kivu, and Ituri. The protracted conflict between Congo and Rwanda spawned the proliferation of militias, including the two iterations of the Rwanda-backed M23, which captured the Congolese cities of Goma and Bukavu on January 25, 2025, and February 16, 2025, respectively. The death toll is estimated at more than seven thousand since January 2025, with unofficial reports from the region suggesting a much higher number of victims.

With 7.8 million internally displaced people, Congo ranks alongside Syria and Sudan among countries with the largest displaced populations, according to the United Nations. Of the more than two million people who have been displaced since the 2022 resurgence of M23, one million were displaced in 2024. Sexual violence, disappearances, and other human rights abuses have increased in M23-occupied areas. These abuses will continue as the rebels expand their territorial control.

Coverage of the conflict has also emphasized the role of natural and mineral resources as drivers of the war. Congo’s resource endowment is valued at a staggering $24 trillion. Analyses of the war have focused on the looting and smuggling of minerals, and have pointed to Rwanda and Uganda as primary beneficiaries. The two countries have emerged as major exporters of minerals, such as gold and coltan, of which they have limited reserves.

Recently, heightened interest in Congo’s mineral resources has been driven, among other reasons, by the West’s determination to circumvent China and secure critical resources like cobalt, copper, and lithium. For instance, on February 18, 2024, the European Union (EU) signed a Memorandum of Understanding on Sustainable Raw Materials Value Chains with Rwanda. Even though the EU signed similar memoranda with Congo, Zambia, and Namibia, Rwanda’s case raised questions given the country’s troubled history with Congo concerning mineral resources. This history includes invading Congo, arming violent rebel groups, and smuggling minerals out of rebel-controlled territory.

The second element driving high-profile interest in the country’s mineral wealth is the Trump administration’s classification of critical minerals as vital to US national security. The pursuit of a US-Congo minerals-for-security deal underscores Washington’s increased interest in Congo’s mineral endowment. As the world waits to learn about the contours and substance of the contract and what the United States will offer Kinshasa, it’s worth taking stock of the current foreign investment landscape in the country.

China tops the list of major investors with important financial and technical commitments to Congo’s mining sector. Besides China, the other major players who have established significant footprints in the country include the EU and the United States.

China leads in the mining and infrastructure sectors

China’s investments in DRC focus on the mining sector, with major stakes in the cobalt and copper industries. The engagement stems from the 2008 Sicomines joint venture between Chinese companies (Sinohydro and China Railway Engineering Corporation) and the Congolese government. The venture is the foundation of the Congo-China cooperation. Originally valued at $9 billion, the deal is a minerals-for-infrastructure barter. After pushback from the World Bank, the International Monetary Fund, and Congolese civil society organizations, the deal was renegotiated to $6 billion in 2009. In exchange for mining rights, China has financed infrastructure projects, including roads and hospitals. In 2024, Chinese infrastructure investment commitments were valued at $7 billion. Today, China is the largest investor in the country.

United States seeks minerals for national security

Until the advent of the second Trump administration, the United States showed little interest in DRC minerals and focused on the humanitarian challenges of the country. Western companies that secured mining deals often sold their holdings to the Chinese. With every Western business divestment, the Chinese increased their stake in Congo’s mining sector. The new policy change has generated interest for greater US-Congo cooperation. This minerals-focused change is supported by a robust diplomatic engagement that seeks to broker peace between Congo and Rwanda. The administration’s stated objective is to stabilize Congo and create the right conditions for investments in mining and infrastructure.

The new US approach is yielding early results. On May 6, 2025, California-based KoBold Metals and Australia-based AVZ Minerals reached an agreement for the former to acquire AVZ Minerals’ interests in the Manono lithium deposit in Congo. Billionaires Bill Gates and Jeff Bezos back KoBold. The agreement will enable the company to invest over one billion dollars to develop the lithium project.

It is difficult to evaluate the level of current US investments in Congo. US pledges of multi-billion-dollar investments depend on the promises of peace accords between Rwanda and Congo and related bilateral mineral agreements.

European Union focuses on ethical approach to critical minerals

European countries’ approach in Congo focuses on ethical sourcing and sustainability, which also include traceability of minerals due to armed conflict. European development banks have funded projects that improve governance and reduce poverty. Some of these initiatives, however, have faced criticism. For instance, in light of the resurgence of M23, the February 18, 2024, memorandum the EU signed with Rwanda—“establishing close cooperation with Rwanda” on the sourcing of critical minerals—has raised questions about the EU’s commitment to ethical sourcing, given that Rwanda backs the violent M23 paramilitary group. Analysts of the Great Lakes region, diplomats, and members of the European Parliament have all questioned and challenged the intent and effect of the memorandum. Some see it as a driver of the re-emergence of the M23 and the current war between Congo and Rwanda.

Top European investors in Congo include France, the Netherlands, and Italy, who contributed a combined foreign direct investment stock of approximately $32.6 billion in 2022.

Comparative overview of investments

Country/RegionKey sectorsNotable investments
ChinaMining, infrastructureSicomines Joint Venture, $7 billion in infrastructure
United StatesMining, diplomacyKoBold Metals’ $1 billion in Manono project
European UnionMining, development€424 million grants to the partnership with the DRC (2021-24)

As the scramble for critical minerals enters a new phase with increased US interest in Congo, the country needs effective governance and transparent policies to ensure that foreign investments contribute to sustainable development and economic growth.


Critical minerals won’t transform lives in the DRC—a radical shift in security and economic governance will

Rabah Arezki is a distinguished fellow at the Atlantic Council’s Freedom and Prosperity Center. He previously served as chief economist and vice president for economic governance and knowledge management at the African Development Bank, as well as chief economist for the Middle East and North Africa region at the World Bank, and as chief of the commodities unit in the research department at the International Monetary Fund (IMF).

The Democratic Republic of Congo’s abundance of critical minerals has given rise to comparisons with Saudi Arabia’s oil wealth. But that abundance has not improved citizens’ lives in one of the poorest countries in the world. Yet there is a course that could make that possible: finding the right balance between openness to investments from multinational corporations and economic sovereignty—broadly defined as the ability of a country to control its own economic system.

The DRC is the repository of the world’s largest reserves of critical minerals such as cobalt, copper, and lithium. Indeed, the DRC holds around 70 percent and 60 percent of the world’s cobalt and lithium reserves, respectively, as well significant deposits of nickel and uranium, which are metal components for energy generation and batteries for electric vehicles. Yet the DRC encapsulates the seemingly insurmountable and intertwined challenges posed by critical minerals. These challenges are tied to geopolitics, conflicts, and the environment as well as economic and social dimensions.

First and foremost, the challenge facing the DRC is the new geopolitics around critical minerals. The demand for critical minerals is exploding. According to the International Energy Agency, demand for minerals is projected to increase by more than four times by 2040 amid the transition from fossil fuels to renewable energy. Major powers—namely China, the United States, and the European Union—are engaged in a technological race spurring competition for access to these critical minerals. At the center of that global scramble is the DRC, which is being courted by these powers like never before. China is heavily invested in the mining sector of the DRC and controls the supply chains of critical minerals, including their processing.

Amid the technological race, China has recently imposed restrictions on exports of critical minerals to the United States. Washington and Brussels have tried to challenge Beijing’s monopoly of the supply chains of these minerals by attempting to secure mining contracts, including in the DRC. That competition should in principle help the DRC to not only get a fair share from the mining contracts but also the opportunity to move up the value chain. In practice, multinational corporations and foreign governments have much stronger capacity in negotiating mining contracts relative to the government of the DRC. Quid pro quos are also common involving the receipt of aid packages originating from self-interested donor countries in exchange for the awarding of mining contracts to multinational corporations—linked to donors.

Another major challenge for the DRC is conflict. The DRC is faced with external and internal conflicts. The DRC has a complex history: Once known as the Belgian Congo, it experienced a cruel form of colonization as the de facto personal property of Leopold II, Belgium’s king. The DRC’s post-independence era was plagued by direct interventions by foreign powers and autocratic rulers. That history helps explain the DRC’s deficient institutions, a persistent low level of trust among citizens, and distrust between the citizenry and the government.

The DRC has long faced massive violence and crimes in mineral-rich provinces such as Katanga and North Kivu—fueled by neighbors such as Rwanda and Uganda. The advances of Rwanda-backed M23 rebels in eastern Congo is alarming for the DRC and could fuel a “major continental conflict.” The Trump administration is actively pushing for a peace deal between the DRC and Rwanda to end the violence. This peace deal appears to be contingent upon the two countries each signing a bilateral economic agreement with the United States involving mineral extraction and processing. The peace negotiations are at an early stage, but these efforts are welcome especially if they lead to an outcome perceived as just.

Minerals are routinely smuggled out of the DRC. Add to that illicit artisanal mining—mining done, generally on a small scale and with low-tech tools, by individuals not employed by a mining company—as a tug of war between the authorities and citizens directly grabbing minerals. As a vast territory, it is imperative for the DRC to expand and strengthen the governance of its security sector to secure its borders and confront armed groups operating on its territory. The DRC is nominally a centralized republic, and it needs to find the right balance for revenue sharing between the different provinces and the central government to reduce internal tensions.

Further, the extraction of critical minerals is leading to significant environmental and health hazards. Indeed, extraction is often associated with deforestation, loss of biodiversity, and the use of toxic chemicals (including mercury), which are polluting ground water sources. Add to that child labor in the extraction of critical minerals, with children and women facing health degradation and abuse. The weak enforcement of environmental and social standards in the DRC is very concerning. A global debate is raging over the boycott of critical minerals emanating from zones of conflicts and forced labor. These boycotts alone are unlikely to sway the DRC’s government to do right by its citizens, but multinational corporations and foreign governments may be more susceptible to pressure.

These multifaceted challenges may seem insurmountable, but that should not deter the government of the DRC. To confront these challenges, the DRC must find a balance between outward- and inward-facing institutions. On the outward-facing front, the government needs to get its fair share of revenues from the extraction of minerals and attract investment in processing domestically. To do so, the government needs to deploy utmost transparency in its dealing with multinational corporations and foster the right human capital to match the capacity on the other side.

On the inward-facing front, the DRC needs to also ensure it is redistributing the proceeds of the revenues from the extraction of critical minerals to its citizens to ensure economic justice. To do so, the government of DRC needs to improve the allocative and technical efficiency of its spending. The government of DRC should pursue further its local content policy (designed to ensure that extractive industrial activity benefits the region where the resources are found) by localizing the processing of critical minerals. A useful example is the case of Botswana, which acquired a 15 percent stake in the world’s biggest diamond miner, DeBeers, which helped lock in local diamond-cutting activities.

This would represent a radical system shift in the DRC’s economic governance apparatus—and such a shift is imperative, in security as well as economic governance. Without that radical shift, the benefits of critical minerals won’t reach the people of the DRC. The Trump administration peace proposal could provide a pathway to a just peace and security between DRC and its neighbors, most notably Rwanda.


Partner perspective: The DRC’s vast potential extends beyond mining

Thomas De Dreux-Brézé is director of strategy development at Rawbank, the DRC’s largest bank. He manages relations with international partners (fundraising, co-financing, syndication, etc.) and intrapreneurial projects. Rawbank supports the work of the Atlantic Council’s Africa Center on the Democratic Republic of Congo.

The DRC is a land of untapped scale and promise. At the heart of Africa, where mining remains the backbone of the economy, the DRC is endowed with abundant natural wealth, a youthful and dynamic population, and a pivotal geographical position—holding many of the critical ingredients for large-scale economic transformation. While it faces undeniable structural challenges, political instability, infrastructure deficits, and regulatory complexity, these should not obscure the deeper truth: The DRC is a country in motion, with massive potential across multiple sectors.

As the global economic landscape shifts, marked by the rise of emerging markets, regional trade integration, and the acceleration of sustainable investments, the DRC stands out with compelling opportunities, particularly in energy, agriculture, climate finance, financial services, and intra-African trade. Realizing these prospects will require strategic vision, strong partnerships, and patient capital. But the potential returns—economic, social, and geopolitical—could be transformative, not only for the Congo but for the continent as a whole.

The energy sector as a pillar of transformation

No sustainable development is possible without access to affordable and reliable energy. And in this field, the DRC stands out as one of the world’s most promising frontiers.

The Congo River, the second largest in the world by discharge, holds a staggering 100 gigawatts (GW) of hydropower potential. Yet only a fraction of that is currently harnessed. Similarly, solar and wind energy remain vastly underexploited, even though recent studies suggest the country could generate up to 85 GW from renewable sources at competitive prices.

This untapped capacity offers a double dividend: powering domestic industries and households, while positioning the DRC as a regional supplier of green energy. Existing projects signal the way forward, including the rehabilitation of the Inga I and II dams, off-grid solar initiatives in eastern provinces, and hybrid minigrid pilots supported by international development banks.

But unlocking this sector will require not only investment in generation, but a massive expansion of transmission infrastructure, regional interconnections, and regulatory reform. If done right, the DRC could emerge not just as an energy consumer, but as a green energy champion for Africa.

Monetizing the Congo Basin’s ecological wealth

In the global climate equation, the Congo Basin is a critical wilderness area. As the second-largest rainforest on the planet, it captures an estimated 1.5 billion tons of CO₂ annually, roughly equivalent to the emissions of the entire European Union.

Because 70 percent of this vast rainforest is located within the DRC, the country has a unique role to play in planetary stabilization. But that role must be backed by economic value. A well-regulated carbon market—anchored in strong institutions, reliable measurement systems, and transparent benefit sharing—could become a vital source of revenue for the state and local communities.

The groundwork exists. The Blue Fund for the Congo Basin, the Presidential Climate Finance Task Force, and recent bilateral discussions with major carbon-credit buyers (Shell, Vitol, Engie, Microsoft, Amazon, the World Bank, Delta Air Lines, Netflix, Eni, etc.) demonstrate momentum. What’s needed now is acceleration: a national registry of credits, clear legal frameworks, and partnerships with credible certifiers.

Done properly, the DRC’s ecological stewardship can become a global public good, monetized fairly and reinvested in national development.

Agriculture as a national priority

Few countries possess agricultural potential on the scale of the DRC. With over eighty million hectares of arable land, most of it untouched, and a rapidly growing population projected to double by 2050, the DRC could become a major agricultural exporter and a driver of food security across the continent.

And yet, paradoxically, it remains a net food importer. The reasons are well known: fragmented value chains, poor logistics, lack of mechanization, and security concerns in the east.

But the opportunity is immense. Investments in agricultural technology, cold storage, rural roads, and access to inputs could lift yields dramatically. Initiatives like the revitalization of coffee cooperatives in South Kivu or the expansion of community irrigation systems in Kwilu show what is possible when technology, capital, and local know-how align.

In parallel, creating agricultural growth corridors and establishing specialized export zones would allow Congolese products (such as coffee, cocoa, rice, and cassava) to reach regional and global markets. Agriculture is not only about feeding people—it is about creating jobs, increasing exports, and building rural resilience.

Unlocking financial inclusion in a young, digital nation

The DRC’s demographic reality is its most powerful asset: a young, urbanizing population with rising aspirations and digital adoption. Yet financial inclusion remains stubbornly low. Less than 10 percent of the population has access to traditional banking and overall inclusion stands at around 38.5 percent.

This gap is a massive opportunity. The fintech revolution is already reshaping access to financial services. And in the DRC, local innovators are leading the charge.

The next frontier is to bridge fintech and formal banking: enabling savings, credit, insurance, and investment products through digital rails. Partnerships between fintech companies, microfinance institutions, and mobile operators will be key to scaling impact.

To catalyze the sector, regulators must continue building trust—ensuring data privacy, protecting consumers, and clarifying tax regimes. Financial services are not just about transactions, they are about empowering people, fueling enterprise, and driving shared prosperity.

The DRC as continental logistics hub

With nine borders and a landmass larger than Western Europe, the DRC is uniquely positioned to become a continental logistics hub. Its central location offers a direct line to West, East, and southern Africa—and with the African Continental Free Trade Area (AfCFTA) gaining traction, this position becomes even more valuable.

Realizing this potential requires hard and soft infrastructure alike. The development of the Lobito Corridor,* connecting the DRC and Zambia to Angola’s Atlantic coast, offers a cost-effective route to global markets. Investments in rail, roads, dry ports, and customs harmonization are already underway, supported by major global and regional institutions.

Beyond Lobito, projects such as the modernization of the Matadi-Kinshasa corridor and the establishment of special economic zones along border areas can spur regional supply chains, particularly in agriculture, textiles, and energy services.

Trade is not only about exporting but also about integrating into African value chains, reducing transaction costs, and creating cross-border prosperity. The DRC’s geography is its destiny—if paired with the right vision.

The case for confidence

To invest in the DRC today is not an act of charity or risk appetite. It is an act of strategic foresight.

Few countries offer such a rare blend of demographic dynamism, natural abundance, and regional leverage. The fundamentals are compelling, the reform trajectory is positive, and the appetite for change is growing in both the public and private sectors.

The international community (investors, development partners, entrepreneurs, etc.) has a role to play, not in prescribing solutions, but in cocreating a new development model with the Congolese people. One rooted in inclusivity, sustainability, and shared prosperity.

The DRC is not waiting to be discovered. It is asserting its place in the twenty-first century. Those who choose to walk alongside it today will not only unlock significant returns but also help write one of the most important economic success stories of our time.


US investors must lead on responsible sourcing in the DRC

Nicole Namwezi Batumike is a gender and responsible sourcing specialist at the Congolese nonprofit Panzi Foundation.

The ongoing conversations between the United States and the DRC over access to critical minerals present a rare and urgent opportunity to reset the terms of engagement with Congolese stakeholders and the broader mineral ecosystem. US officials have indicated that American and other Western companies are prepared to make multi-billion-dollar investments in the region once the bilateral mineral deals are finalized. The DRC holds vast reserves of cobalt, copper, and other strategic minerals essential to global technological and energy systems, yet for decades, the Congolese people have borne the costs of extraction without sharing in its benefits, treated as collateral in deals driven by geopolitical rivalries and elite bargains. On top of fueling instability and deepening marginalization, these transactional arrangements have also exposed investors to growing legal, financial, and reputational risks.

Experience shows that when mining fails to deliver value to local communities, companies lose their social license to operate, along with the legitimacy of the regimes they once depended on. In turn, those regimes have proven willing to shift allegiances in pursuit of regime security. The DRC, for example, has filed lawsuits against downstream tech giants and pushed for sanctions targeting neighboring countries laundering conflict minerals. It is increasingly clear that the Congolese regime is not bound to any single partner.

US engagement in Africa must reflect geopolitical realities. Recent peace deal discussions show the United States is willing to engage Rwanda’s refining sector—despite Kigali’s documented role in violating Congolese sovereignty and committing war crimes. If responsible sourcing is to truly guide stable engagements, policymakers must reckon with the risks of endorsing impunity and failing to deliver justice for the Congolese people.

The negotiation of a US-DRC mineral deal offers a crucial opportunity to break this cycle, provided Kinshasa resists the historical pattern of leveraging minerals solely for regime survival, and provided the United States supports a model of genuine security: one not rooted in a logic of extractivism but in mutual accountability and the rule of law. By aligning US investment strategy with Congolese legal frameworks and responsible sourcing standards, both countries can lower risks by forging a sustainable model.

Meeting international due diligence standards to ensure that a given business activity does not involve human-rights violations has shifted from being a reputational safeguard to a legal and strategic requirement. Standards include the Organisation for Economic Cooperation and Development Guidelines and the United Nations Guiding Principles on Business and Human Rights. Human rights due diligence is now codified through laws such as the European Union’s Corporate Sustainability Due Diligence Directive, France’s Duty of Vigilance Law, and Germany’s Supply Chain Due Diligence Act, making risk mitigation binding across global operations, especially in high-risk contexts like the DRC.

Yet despite these frameworks, the DRC remains at war, and the global minerals trade continues to serve short-term political and economic agendas. In 2024, the US Government Accountability Office reported that Section 1502 of the Dodd-Frank Act (America’s flagship due diligence law) had not reduced violence in eastern Congo and may have exacerbated conflict around artisanal gold-mining sites. The US government’s insistence on better outcomes demonstrates that due diligence is a means, not an end, and it cannot resolve the structural drivers of the conflict.

The DRC’s mining codes provide a responsible framework for US investors

It is in this context that the DRC’s 2018 mining code emerges not as an obstacle but as a strategic foundation. On top of aligning closely with international expectations for human rights due diligence, the code offers investors and companies a clear, locally grounded framework to manage risk and build sustainable partnerships. Born out of years marked by revenue leakage, extractive impunity, and donor-driven liberalization, the code reasserts the government’s dual roles as a regulator and shareholder while mandating local beneficiation (a part of mineral processing). It raises royalty rates on strategic minerals like cobalt, introduces a “super-profits” tax, and makes community development contributions legally binding. It also restricts the use of “stabilization clauses,” which limit countries’ ability to apply new regulations to investors with agreements signed before the regulations went into effect, and strengthens environmental and social accountability.

Pilot models offer early lessons in responsible sourcing. For example, at Mutoshi in the Lualaba province, the collaboration of multinational commodities group Trafigura with Chemaf, a Congolese company, and Pact, an international nonprofit organization, showed that formalizing artisanal mining not only met sourcing commitments but also helped contribute to de-risking efforts. Meanwhile, the Panzi Foundation’s Green Mining Community Model, an initiative led by Nobel Peace Prize laureate Denis Mukwege, links inclusive training in responsible sourcing and value addition with investments in essential infrastructure like health and education. By seeking to address the root causes of conflict and the violent tactics it enables—such as the use of rape as a weapon of war—the Green Mining Community model promotes integration and community empowerment, positioning responsible sourcing as a pathway to long-term stability and shared value.

Opportunities and challenges in the US policy landscape

The United States is on the path to establishing promising policies and frameworks for responsible investment, as demonstrated by the bipartisan BRIDGE to DRC Act, which emphasizes governance and transparency. Initiatives such as the US-backed expansion of the Lobito Corridor* linking the DRC to Angola’s Lobito port, alongside previous efforts like USAID’s Just Gold project, could provide a strong foundation. However, their long-term impact will depend on aligning with fair labor and environmental standards, sustainable development, and, importantly, the continuity of these efforts under the new administration.

At the same time, setbacks like the 180-day suspension of Foreign Corrupt Practices Act enforcement must be urgently addressed. Restoring accountability is essential for ethical investment.

As US Rep. Sara Jacobs highlighted in a March 2025 Africa Subcommittee hearing, investments will only succeed in the long term if they do not ignore the root causes of exploitation.

The Democratic Republic of the Congo stands at a pivotal juncture: either the cycle of extractive exploitation continues, or the government leverages its mineral wealth to foster long-term development. For US stakeholders, the way forward lies in transparent, law-abiding, and community-centered partnerships. This requires a commitment to the DRC’s 2018 Mining Code and collaboration with Congolese civil society. While short-term gains may be tempting, only those who embrace responsible sourcing and inclusive models will build sustainable, competitive advantages.


Better roads and stable power grids can unlock the DRC’s potential

Calixte Ahokpossi is mission chief, Democratic Republic of the Congo, for the International Monetary Fund (IMF).

The Democratic Republic of the Congo has vast economic potential, but infrastructure gaps remain a major constraint. The country is rich in natural resources and has a large and young population that could drive its development. However, chronic underinvestment in critical infrastructure—roads, rail networks, and power generation—continues to stifle economic progress. Additionally, governance challenges, corruption, macroeconomic instability, and recurring shocks—including armed conflicts in its eastern region—exacerbate fragility.

Addressing these challenges requires tackling their sociopolitical and economic roots, while leveraging the country’s vast natural resource wealth to rapidly bridge the infrastructure gap and foster diversified and sustained economic growth and poverty reduction. The DRC needs an ambitious infrastructure agenda, prioritizing the development of transport corridors and stable power grids.

Weak, unevenly distributed infrastructure

The DRC’s road network is severely underdeveloped, limiting mobility and trade. With only 152,400 kilometers (km) of roads, connectivity remains a challenge. The roads serve the nation’s vast 2.45 million km² territory, a road-to-territory ratio that is just 40 percent of the sub-Saharan African average of 0.14 km/ km², which is already low compared to other regions. Fewer than 10 percent of these roads are passable year-round, and more than half of Congolese (54.5 percent) must travel over an hour to reach a paved or asphalted road. Urban-rural disparities are stark. In the southeast (Haut-Katanga and Lualaba), large-scale copper and cobalt mining has spurred some investment in roads and rail lines, but the transportation infrastructure remains vastly insufficient for a region that supplies most of the world’s cobalt and a significant share of global copper. Indeed, the DRC accounts for over 70 percent of global cobalt output and approximately half the world’s proven reserves. In contrast, the eastern provinces (North and South Kivu, Ituri)—rich in gold and the “3T” minerals (tin, tantalum, tungsten)—receive minimal investment, as small-scale artisanal mining dominates, offering limited economic spillovers.

The DRC remains one of the least electrified nations despite vast hydropower potential. Only 19.1 percent of the population has access to electricity, with rural coverage plummeting to a mere 2 percent. The country is heavily dependent on two aging hydropower plants: Inga 1 (with an installed capacity of 351 megawatts) and Inga 2 (installed capacity of 1,424 MW), both under rehabilitation and operating at roughly 80 percent capacity. These plants primarily serve the mining industry. Ambitious projects like Inga 3 (3,000 to 11,000 MW) and the even larger Grand Inga (which could surpass China’s Three Gorges Dam) underscore the Congo River’s vast potential. Yet delays, shifting international partnerships, and environmental concerns have repeatedly stalled construction.

A barrier to inclusive growth

Weak infrastructure inflates costs, constrains businesses, and fosters economic disparities. Poor infrastructure raises transportation and production costs, stifling economic activity in time-sensitive sectors (like perishable goods). This is evident in agriculture, which employs the majority of Congolese (over 60 percent of the labor force). Despite the DRC’s fertile land, poor transport links prevent farmers from bringing their surplus produce to markets. Goods perish on farms, and the country remains dependent on food imports, making it vulnerable to global food price shocks and exchange rate fluctuations. These disruptions fuel inflation, disproportionately affecting the poorest. The weak transportation network also restricts economic diversification and limits access to remote mineral deposits, leaving critical resources untapped—or controlled by armed groups.

Unreliable energy supply disrupts businesses and limits opportunities for local transformation and adding value. From irrigation systems to medical clinics, power shortages affect essential activities and reinforce a cycle of poverty and missed opportunities. They also hamper industrialization, making local mineral processing, manufacturing, and daily business operations difficult or virtually impossible. Mining companies report that frequent power shortages force them to rely on diesel generators, raising production costs substantially. This inefficiency hits small businesses even harder, eroding profit margins and reducing corporate income tax revenues. Under these conditions, the DRC’s ambition to increase local mineral processing and move up the value chain remains a major challenge.

Five steps to good roads, reliable power, and economic growth

  1. Invest in transport and energy infrastructure to generate sustainable growth. The DRC’s vast mineral wealth and energy potential make it an attractive destination for large-scale private investment, but various bottlenecks such as infrastructure, business environment, and governance must be addressed. We focus here on infrastructure ones. Unlocking the hydropower potential (100,000 MW, which is 13 percent of the world’s total) could meet domestic needs and generate export revenue. Modernizing existing hydroelectric facilities and expanding transmission grids would provide clean, affordable electricity to both industry and households. For the mining sector, improved energy access could lower production costs while enhancing compliance with global environmental, social, and governance standards. Meanwhile, broader electrification would fuel local enterprise, boost economic diversification, and improve living standards.
  2. Diversify financing for the substantial investments needed to bridge the infrastructure gap. The International Monetary Fund estimates that achieving universal electricity access would require annual spending of 5.9 percent of gross domestic product (GDP), while ensuring that 75 percent of the population lives within two kilometers of an all-season road would necessitate 14.9 percent of GDP annually over ten years. Given these costs, leveraging diversified public, private, and international financing is key to accelerating infrastructure development.
  3. Strengthen public investment management to maximize returns. Weak governance and public investment management have led to waste, corruption risks, and substandard project execution. Strengthening investment governance would maximize value for money, boosting private-sector confidence and investment. Equally key is creating fiscal space for critical infrastructure and social and human capital investments. This requires improving domestic tax and nontax revenue collection and prioritizing growth-enhancing spending. Yet low revenue collection, especially relative to peer countries and the DRC’s economic potential, remains a major constraint.
  4. Pursue prudent, strategic government borrowing to secure favorable terms. Domestically, containing inflation would lower borrowing costs and encourage higher domestic savings, strengthening the local financial market. Externally, the focus should remain on concessional financing, prioritizing low-cost, long-term loans. Over time, as policy credibility strengthens and the country’s creditworthiness improves, access to international financial markets could be considered, particularly when global conditions are favorable.
  5. Scale up infrastructure investments through regional partnerships. The DRC would benefit from harnessing regional frameworks such as the East African Community and the Southern African Development Community to mobilize resources for transport and energy infrastructure. Cross-border energy grids and trade corridors can reduce operational costs, attract larger financing and enhance the country’s global competitiveness. Regional collaboration offers a pragmatic solution to tackling infrastructure deficits while strengthening economic resilience. Also, the development of the Lobito Corridor,* linking the DRC to Angola’s Lobito port, can deepen regional integration and offer more cost-effective transportation routes for DRC’s exports—though it will be important to avoid undermining parallel port development projects in the western part of the DRC.

In sum, the future of the DRC will be promising if its development challenges can be addressed in an ambitious and realistic manner. Developing a reliable road network and extending electricity provision will be critical to reap the DRC’s vast potential—and will need to be supported by sound macroeconomic policies and reforms to strengthen the country’s resilience to overcome its fragility.


Launched in 2022, the Africa Center’s programming on the DRC seeks to advise on securing the country’s governance and to raise awareness of the economic opportunities in the DRC. In partnership with Rawbank, the Africa Center analyzes the DRC’s business environment, the industrial potential of its critical minerals, and peace and security throughout the country.

*Rawbank, which supports the Atlantic Council Africa Center’s work on the Democratic Republic of Congo, has an equity stake in the Africa Finance Corporation, which leads the development of the Lobito Corridor.

Explore the program

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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The Gulf is emerging as Washington’s new strategic anchor https://www.atlanticcouncil.org/blogs/menasource/the-gulf-is-emerging-as-washingtons-new-strategic-anchor/ Fri, 23 May 2025 15:16:50 +0000 https://www.atlanticcouncil.org/?p=848894 The so-called US “Golden Age for the Gulf” is one rooted in strategic utility, equal footing, high-stake deals, and fewer strings.

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On his landmark visit to the Gulf last week,  US President Donald Trump declared in Saudi Arabia that he has “launched the Golden Age of America.”

He added, “the Golden Age of the Middle East can proceed right alongside of us.”

With vast sovereign wealth funds and fast centralized leadership for quick decision-making, the Gulf—primarily Saudi Arabia, Qatar, and the United Arab Emirates (UAE)—has become the most attractive foreign partners for the US president.

Trump’s 2025 visit follows a familiar pattern compared to his first term, where he also began his first major diplomatic visit in Riyadh. But this time, the trip’s reach and scope expanded to much broader horizons. Unlike his first Gulf trip in 2017, where the majority of the deals focused on defense, this visit signaled a realignment centered on tech-forward partnerships and putting the Gulf at the core of a new kind of relationship driven by economic return and shared strategic concerns (preventing Iran from developing a nuclear weapon and countering its regional influence, preserving regional stability, and securing energy markets and maritime routes, among others).

The trip also reflects a more intentional US pivot to the Gulf, especially given the key role the region can play in the technological world, the next battlefront between the United States and China. In the president’s global hierarchy, the Gulf is the new business frontier.

This pivot by the US president, in lieu of anchoring US strategy in traditional alliances such as the United Kingdom or Israel, suggests a new alignment with resource-rich, stable partners who can offer transactional stability in governance and significant return on investments.

This US “Golden Age” for the Gulf is one rooted in strategic utility, equal footing, high-stakes deals, and fewer strings. This Trump doctrine focuses more on regional return-on-investment and less on democratization. This resonates more with Gulf leaders’ preferences and acknowledges their agency as architects for the region’s future, not just clients.

Paired with the optics and symbolism of skipping Israel, Trump’s approach could signal a more pragmatic regional posturing that no longer places Israel at the center of Washington’s regional relations when it doesn’t serve US interests. Gulf capitals no longer serve as bases to project US power, but as strategic anchors in Washington’s foreign policy goals.

Tech-forward trade at the frontline of US-China competition

The visit’s focus on technology deals, contrasted against the defense focus of Trump’s 2017 trip, demonstrates this evolving US-Gulf dynamic and Washington’s increased effort to combat Beijing’s economic and trade encroachment in the region.

The US is rapidly adjusting to the post-unipolar world where China gains more influence, and competition for markets and strategic alliances is at full speed. Over the past few years, China has evolved from a technology importer into a global digital power, with state-backed tech giants such as Huawei, ZTE, and Alibaba Cloud rapidly expanding their digital footprint across the Gulf—including in critical infrastructure such as 5G networks and artificial intelligence (AI)-enabled surveillance systems. Via its “Digital Silk Road” initiative, Beijing has offered Gulf countries technological solutions at the scale, speed, and turnkey financing they need.

China’s rapid advance in the Gulf reflects its broader ambitions to shape regional tech norms and digital governance frameworks. The embedding of Chinese platforms and systems into Gulf digital infrastructure poses long-term security challenges to further cooperation with the United States.

If Washington wants to compete with Beijing on emerging technologies, it is right to realign its Gulf strategy. The region is prioritizing its own artificial intelligence ambitions with its post-oil development agenda, and would be among the first to experience Washington’s burgeoning tech diplomacy and competition with Beijing.

Gulf leaders, for their part, will need to decide how to move forward with this upgraded partnership with Washington vis-à-vis China. They are likely to continue hedging to get the best deals from both countries.

Qatar’s positioning from major non-NATO ally to strategic partner?

Trump’s stop in Qatar—the first state visit by a US president to Doha—was an important recognition of the tiny Gulf country’s strategic positioning as a bridge across regional ideological divides, for example, when dealing with the Taliban. While Saudi Arabia and the UAE are also strategic partners in the region, and US presidents have visited them on multiple occasions, the visit to Doha marked a turning point in how the United States sees and engages Qatar.

The visit also highlighted the tiny country’s efforts to elevate its profile by gifting a Boeing 747 intended for the Air Force One fleet—a made-for-headlines move that underscored Qatar’s desire to make waves.”

May 15, 2025, Doha, Qatar: President Donald Trump walks towards Air Force One with Amir of Qatar Sheikh Tamin bin Hamad Al Thani at Al Udeid Air Force Base, Thursday, May 15, 2025. (Credit Image: Daniel Torok/White House/ZUMA Press Wire)

Trump’s Doha stop indeed facilitated the signing of significant deals, such as Qatar Airways’ purchase of 210 wide-body jets from Boeing aircraft, valued at approximately $96 billion—the largest in the company’s history, and defense agreements totaling nearly three billion dollars. The purchase lifted Boeing out of a significant crisis—not only helping one of the most iconic US manufacturers, but also reinforcing the administration’s narrative that its foreign deals can directly support US jobs and industries while keeping American-made aircraft competitive in the global stage.  

Qatar’s decision to invest an additional ten billion dollars in Al Udeid, the largest US military hub in the Middle East, announced during Trump’s visit underscores the base’s strategic value to Qatar’s security and highlights it as a US ally that shares the burden of regional security with Washington—unlike other US partners, like in Europe, that Trump has accused of being defense free-riders.

The view from the Gulf

Regional analysts and the media have largely framed Trump’s visit as a reset to US foreign policy in the Middle East and a redefinition of regional leadership—one increasingly directed from Riyadh, Doha, and Abu Dhabi.

Badr al-Saif, an assistant professor of history at Kuwait University, argues that the region welcomes the current shift away from legacy alignments with the Gulf.

 “To those in the Gulf who thought that the only way to America was through Israel, now we see an opening where we can go directly to the States,” he told The Wall Street Journal.

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Mohammed Baharoon, Director General of the Dubai-based think tank B’huth, adds, “Trump sees in the GCC (Gulf Cooperation Council) what China, India, and others are seeing there, which is its role as a mega connector.”

Hasan Alhasan of the International Institute for Strategic Studies notes that the Gulf states “have managed to use their role as mediators to position themselves as indispensable partners for Trump’s political agenda.”

The message coming out of the region seems to be consistent: the Gulf is no longer a side player—it is now helping set and lead the agenda in the Middle East. This is also a reflection that most Gulf states want to shape regional and global dynamics (via sovereign wealth fund diplomacy, for example), seeing themselves as independent middle powers capable of carrying out complex diplomatic initiatives with full ownership, after decades of having external powers shape their geopolitical dynamics and mostly being hubs of power projection and support.

Is “America’s Golden Age” Gulf-aligned?

Given their strategic geography, significant financial resources, relatively permissive regulatory environments, and massive energy surpluses, Gulf states are likely to continue leading the way in becoming hubs for AI and emerging technologies. Saudi Arabia, Qatar, and the UAE, for example, are just a six to eight-hour flight from 80 percent of the world population, with over 170 million passengers each year transiting through their capitals.

The Gulf’s ability to deploy capital is poised to be a key in powering US AI infrastructure as energy demand is set to surge, and the Trump administration’s prioritization of the US-Gulf partnership should be commended.

The Trump administration is clearly signaling that it is not bound to traditional alliances. In this new world, Gulf states are emerging as key economic and political players in the region and internationally, vital to technology development as well as the US-China rivalry. Against this emerging backdrop, Washington has positioned itself accordingly.

Joze Pelayo is an associate director at the Atlantic Council’s Scowcroft Middle East Security Initiative, where he manages the China-Middle East and the US-Gulf security cooperation portfolios. 

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Gold’s geopolitical comeback: How physical and digital gold can be used to evade US sanctions https://www.atlanticcouncil.org/blogs/new-atlanticist/golds-geopolitical-comeback-how-physical-and-digital-gold-can-be-used-to-evade-us-sanctions/ Thu, 22 May 2025 19:41:35 +0000 https://www.atlanticcouncil.org/?p=849043 The rise of gold-backed currencies that circumvent the US banking system could create a massive blind spot for US sanctions enforcement efforts.

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On April 22, gold prices reached $3,500 a troy ounce, a record that is roughly double what it was three years ago. Gold has been appreciating in value at a record pace as many other financial assets struggle. This was the case during the 2008 global financial crisis and the COVID-19 pandemic, as well. What is different this time, however, is that the price increase has been driven not just by investors but also by central banks. Since Russia’s full-scale invasion of Ukraine and the Group of Seven’s (G7’s) subsequent imposition of unprecedented sanctions on Russia, central banks that are worried about getting sanctioned, want to protect themselves from a potential global financial crisis, or both have been stacking up gold at record levels. 

Governments and private actors alike are giving gold’s role in the global financial system a boost, but with a twenty-first-century twist. Individual countries and groups of countries are experimenting with creating gold-backed digital assets and trading systems that bypass the dollar-denominated financial system. In many cases, these initiatives are for purely economic benefits. However, gold is also being used by US adversaries to evade sanctions or finance activities that counter US national security interests.

The rise of gold-backed currencies that circumvent the US banking system, coupled with sanctioned regimes’ growing interest in the adoption of alternative currencies and payment systems, could create a massive blind spot for US financial intelligence and sanctions enforcement efforts. To reduce the proliferation of these alternatives to the dollar-based financial system, the United States should temper its use of coercive economic measures that can cause gold prices to rise and promote dollarization through trade and investment ties, especially with third countries impacted by sanctions on US adversaries.

Why Russia is interested in gold

Russia’s central bank is among the top holders of gold in the world, having built gold reserves from 2014 to 2020 to hedge against Western sanctions. While the central bank’s gold reserves have not increased substantially since 2020, Russia’s Ministry of Finance is thought to be buying gold from domestic producers without reporting it. In 2021, the Ministry of Finance doubled the share of gold in Russia’s National Wealth Fund to 40 percent

After the West froze $300 billion of the Russian central bank’s assets in response to Moscow’s full-scale invasion of Ukraine in 2022, this gold-hoarding strategy paid off. As gold prices skyrocketed this year, the value of Russia’s gold reserves increased by $96 billion, offsetting one-third of the frozen assets.

Gold has also played a major role in Russia’s illicit trade. For example, the United Arab Emirates (UAE), a BRICS+ member and a global hub for gold trade, as well as Turkey, have engaged in cash-for-gold trade with Russian banks. The Russia-based Lanta Bank and Vitabank received twenty-one shipments of currencies such as US dollars, euros, UAE dirhams, and Chinese renminbi worth $82 million from the UAE and Turkey in exchange for Russian gold. Late last year, the United States and United Kingdom sanctioned the network of entities and individuals involved in Russia’s illicit gold trade due to their role in generating revenue for Russia’s war chest. Additionally, Britain’s National Crime Agency published a red alert in late 2023 on gold-based illicit trade and sanctions circumvention. 

Apart from using gold for reserves and sanctions evasion, Russia is also trying to leverage the BRICS+ grouping as a platform to advocate for the creation of a gold-backed BRICS+ currency. It remains to be seen if the group makes any tangible progress ahead of the next BRICS+ Summit in Brazil in early July. In the meantime, tracking the rise of gold-backed currencies and alternative payment systems across the world offers valuable insights into how they could be used for sanctions evasion. 

The rise of gold-backed stablecoins

Gold-backed stablecoins—cryptocurrencies whose prices are pegged to gold—offer the most valuable property of gold, which is stability during financial uncertainty. They are also logistically more convenient to store and sell than physical gold. Companies such as Paxos* and Tether capitalized on these qualities, creating gold-backed stablecoins in 2019 and 2020, respectively. 

Usually, each token of gold-backed stablecoin corresponds to a specific amount of gold. For example, by purchasing one unit of Tether Gold (XAUT), investors receive the ownership rights of one troy ounce of physical gold on a specific gold bar with a serial number. Each gold bar weighs four hundred ounces on average, so if investors would like to redeem a gold bar, they have to own units worth one full gold bar. Issuers of these stablecoins hold gold reserves in safe vaults, typically in the United Kingdom or Switzerland. Third parties regularly audit gold reserves to confirm that the supply of tokens does not exceed the amount of gold held by issuers.

Although commodity-backed stablecoins represent less than one percent of the market capitalization of fiat-backed stablecoins, governments are now following the lead of crypto companies in experimenting with them. Earlier this month, for example, the Kyrgyz Ministry of Finance announced that it will launch a gold-backed stablecoin called USDKG in the third quarter of 2025. The Kyrgyz Ministry of Finance holds gold reserves worth $500 million and plans to expand that number up to $2 billion. (This is separate from the gold reserves held by the National Bank of the Kyrgyz Republic, which was among the top buyers of gold in the last quarter of 2024.) USDKG will not track the price of gold, unlike well-established stablecoins such as Paxos Gold or Tether Gold. Instead, it will be pegged to the dollar but solely backed by gold reserves. USDKG holders will be able to redeem gold, other crypto assets, or fiat currency. 

The reported objective of the gold-backed stablecoin is to facilitate cross-border inflows of remittances, which make up one-third of Kyrgyzstan’s gross domestic product. Russia accounts for more than 90 percent of remittances that flow into Kyrgyzstan, sent by migrant workers back to their families. Kyrgyzstan has not yet launched the stablecoin, but if it’s going to be used to facilitate cross-border flows with Russia, then there is a chance that certain actors could use USDKG to export sanctioned goods to Russia outside of US authorities’ oversight. Financial institutions in Kyrgyzstan have already been sanctioned for their involvement in Russia sanctions evasion schemes by the United States. 

For example, earlier this year, the Treasury Department sanctioned Kyrgyzstan-based Keremet Bank for facilitating transactions on behalf of US-sanctioned Russian bank Promsvyazbank. The Kyrgyz Ministry of Finance sold the controlling shares of Keremet Bank to a firm connected to a Kremlin-linked Russian oligarch in 2024. According to the Treasury press release, the transaction was intended to turn Keremet Bank into a sanctions evasion hub that would enable Russia to receive payments for exports and pay for imports. Given sanctioned Russians’ strong interest in taking advantage of Kyrgyzstan’s financial system to import restricted technologies, they will likely be drawn to USDKG because of its ability to process transactions with Kyrgyz entities while completely bypassing the US banking system. 

How the US can stem the digital gold rush

It is no coincidence that stablecoins account for 63 percent of all illicit crypto transactions and have become a preferred tool for sanctions evasion. They attract sanctioned entities because of their ability to transfer value pseudonymously with high speed and at low cost. While the US Senate recently advanced the GENIUS Act to regulate stablecoins, one of the major deficiencies of the bill is that it does not adequately regulate offshore stablecoin issuers. Even if put into law, the GENIUS Act would fail, for example, to regulate Tether, the largest offshore issuer of dollar-pegged stablecoins, which has been the subject of federal investigations because of its alleged widespread use by terrorist groups and Russian arms dealers

Unlike US-issued or dollar-backed stablecoins, foreign-issued gold-backed stablecoins such as USDKG will likely escape US regulation because they don’t have a touchpoint with the US banking system. Their proliferation, along with gold-backed trading schemes, is driven to a large extent by the United States’ weaponization of the dollar, as well as uncertainty over US trade policy. 

The United States has the power to indirectly reduce gold prices and encourage the adoption of dollar-backed assets by returning to being the provider of stability in the global economy. That can be achieved by dialing down the use of tariffs and other economic measures that could cause governments and private actors to turn to gold.

At the same time, the US government should promote the dollarization of economies such as Kyrgyzstan’s by continuing to provide financial assistance and deepening trade and investment ties with other third countries impacted by sanctions against Russia. Doing so will help close gaps in US financial intelligence, strengthen US sanctions enforcement, and lower the demand for currencies outside the dollar-based financial system.


Kimberly Donovan is the director of the Economic Statecraft Initiative within the Atlantic Council’s GeoEconomics Center. She is a former senior Treasury official and National Security Council director. Follow her at @KDonovan_AC.

Maia Nikoladze is an associate director at the Atlantic Council’s Economic Statecraft Initiative within the GeoEconomics Center. 

Note: Paxos is a partner of the Atlantic Council’s GeoEconomics Center.

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The case for a Three Seas Defense Innovation Hub https://www.atlanticcouncil.org/blogs/new-atlanticist/the-case-for-a-three-seas-defense-innovation-hub/ Thu, 22 May 2025 17:43:15 +0000 https://www.atlanticcouncil.org/?p=848915 Because of increasing threats to critical energy, transport, and digital infrastructure, the Three Seas Initiative should add defense innovation as another pillar of its mission.

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Since its launch ten years ago, the Three Seas Initiative (3SI) has established itself as a novel, network-driven platform that enhances north–south connectivity among thirteen European Union (EU) member states located between the Baltic, Adriatic, and Black seas. A large part of its success has been due to its narrow scope, namely connectivity across the energy, transport, and digital sectors. However, with mounting geopolitical pressure along Europe’s eastern flank, these same sectors in 3SI countries are increasingly targeted by hostile hybrid activities. To effectively address the evolving security challenges—particularly those aimed at critical energy, transport, and digital infrastructure—the 3SI should add defense innovation as another pillar of its mission.

By leveraging its existing strengths, the 3SI can accelerate the development and cross-border deployment of advanced security and defense technologies to help protect critical infrastructure. This would significantly bolster regional resilience and help deter threats operating in the “gray zone” between civilian and military domains. With shared threat perceptions and strategic alignment, 3SI member states—supported by key partners such as the United States, Germany, the European Commission, Japan, and Ukraine—are uniquely positioned to confront these challenges.

The best way for the 3SI to proceed is by creating a 3SI Defense Innovation Hub that cuts across the three existing pillars of energy, transport, and digital. Devoted to developing cutting-edge technologies for critical infrastructure protection, the 3SI Defense Innovation Hub would contribute to the much-needed paradigm shift in the overall approach to connectivity projects. It would do this by incorporating tools and processes for protection from the very outset of infrastructure planning. 

Moreover, the 3SI Defense Innovation Hub could evolve into a key specialized critical infrastructure protection node within a broader allied defense innovation ecosystem, spanning from North America to Europe to the Indo-Pacific. In doing so, it could help serve as a strategic counterweight to the deepening defense-industrial cooperation and hybrid warfare efforts of Russia, China, North Korea, and Iran.

A region under attack

Across the 3SI region, Russia-backed saboteurs have increasingly targeted energy infrastructure as part of hybrid campaigns aimed at undermining societal resilience and inflicting economic harm. Undersea pipelines and power cables in the Baltic Sea have suffered clandestine cuts and physical damage, prompting NATO and littoral states to launch dedicated missions to safeguard these vital links.

On land, arson attacks and hoax bomb threats, including waves of coordinated false alarms at Lithuanian schools, airports, and governmental institutions, have become widespread phenomena. While delivering no physical destruction, these false alarms incidents have strained security services and revealed gaps in crisis-response protocols.

In the transport domain, rail lines across the 3SI region and in Germany have been subject to sabotage attempts aimed at fracturing strategic north–south corridors. In addition, GPS jamming—likely from Russian electronic-warfare units in Kaliningrad—has repeatedly degraded navigation for commercial shipping and civilian flights in the Baltic Sea region. This jamming has forced in-flight diversions and resulted in aborted landings. Potentially more destructive planned attacks have thankfully been detected before being carried out. Earlier this month, for example, three men were arrested in an alleged Russia-linked plot to place parcels with explosives on cargo planes traveling from Europe to the United States and Canada.

The digital battlefield in 3SI countries has become equally contested. For example, cyberattacks have targeted governmental institutions in the Czech Republic, Germany, and Latvia, as well as energy-sector operators in Romania, exploiting unpatched systems to plant malware or launch distributed denial-of-service attacks. Chinese cargo and Russian “shadow fleet” vessels maneuvering in the Baltic Sea are suspected of cutting undersea data cables, as well, posing a threat to digital connectivity in the region.

Collectively, these hybrid threats expose the vulnerability of siloed infrastructure sectors and underscore the urgent need for the 3SI to integrate defense-grade innovations into its energy, transport, and digital development agenda.

Incorporating defense from the start

Critical civilian infrastructure in the energy, transport, and digital domains no longer exists in isolation from the military domain—the domains have merged into a single battlefield of resilience and readiness. Power grids and pipelines, once engineered solely for economic efficiency, must now be designed with embedded defensive features. This includes hardened control systems, automated isolation protocols, and redundant interconnects that can withstand kinetic strikes, physical impact, or cyber-enabled sabotage. 

Likewise, north–south transport corridors can no longer be planned as purely commercial arteries: They must accommodate the rapid deployment of heavy armor, pre-positioned logistics modules, and secure communications nodes, all while deterring adversarial probes or hybrid ambushes.

This is the area in which the 3SI has already recognized its role, as evident in its 2024 Joint Declaration, which reaffirms the need to strengthen “the resilience of dual-use infrastructure in the region for enhanced civilian and military mobility along the North-South axis.” However, if established, the proposed 3SI Defense Innovation Hub should go further and offer solutions not only for upgrading new transport infrastructure for a dual civil-military use, but also for effectively protecting it from physical and cyber sabotage.

True resilience requires that innovation for the protection of critical infrastructure be integral to the earliest design and development phases of the 3SI’s infrastructure. An alternative, retrofitting “defense layers” onto critical infrastructure systems after their construction has been finalized, often creates significant security gaps and increases costs. It’s better to incorporate these aspects from the start.

The bigger picture

The 3SI’s broad partnership network—anchored by the United States, Germany, the European Commission, Japan, and enriched by Ukraine—provides an unparalleled foundation for extending its remit into defense innovation and contributing to the broader goal of transatlantic defense-industrial alignment.

With Russia’s war against Ukraine transforming the way war is fought and placing constant pressure on Ukraine’s critical energy infrastructure, Europe must adapt its technologies and defense strategies to prepare to confront similar challenges. Learning from Ukraine, which, under constant attack, has become a real-time innovation lab for unmanned systems, energy resilience solutions, and rapid infrastructure repairs, is essential.

With Chinese coercion and sabotage around Taiwan posing similar threats to regional stability, it is clear that a broader adversarial strategy is at play. As the European and Indo-Pacific theaters become increasingly interconnected due to similar security challenges, it will be necessary for European countries, the United States, and democratic nations in the Indo-Pacific to align their responses. 

In the meantime, the United States and the EU are searching for common ground in aligning their defense industries. However, tensions have persisted, particularly around new EU funding mechanisms, which are often perceived in Washington as favoring domestic European firms at the expense of transatlantic cooperation.

This is where the 3SI can play a pivotal role. By launching a Defense Innovation Hub focused on critical infrastructure protection, the 3SI could serve as a catalyst for deeper transatlantic defense-industrial alignment. Such a hub would help bridge regulatory, political, and operational gaps, offering a constructive step forward in building a truly interoperable, forward-leaning allied defense ecosystem in a common effort to outpace and out-innovate authoritarian challengers.

The way forward

The upcoming Croatian presidency of the 3SI in 2026—marking the tenth anniversary of the initiative’s inaugural summit in Dubrovnik—offers a timely opportunity to expand the initiative’s mission to include defense innovation. 

Building on its success in infrastructure development, the 3SI should replicate its network-based model in the defense sector—pooling risk and capital among governments, private industry, and financial institutions. This would unlock dual-use innovation pipelines that are often too complex or costly for individual actors to pursue alone. The recently launched 3SI Innovation Fund offers a promising starting point for exploring sustainable financing mechanisms to support the activities of a potential 3SI Defense Innovation Hub.

As the geopolitical landscape grows more contested, the 3SI should evolve from a connectivity-focused platform into a strategic driver of allied resilience. A dedicated Defense Innovation Hub would make the 3SI a force multiplier for NATO and EU efforts—accelerating deterrence, deepening regional interoperability, and embedding security into the DNA of the eastern flank’s critical infrastructure while at the same time providing a much-needed push for a transatlantic defense-industrial alignment.


Justina Budginaite-Froehly is a nonresident senior fellow with the Atlantic Council’s Europe Center and Transatlantic Security Initiative within the Scowcroft Center for Strategy and Security.

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Europe is striking back at Russia’s shadow fleet. Here’s what to know about the latest EU and UK sanctions. https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/russias-shadow-fleet-latest-eu-and-uk-sanctions/ Wed, 21 May 2025 22:00:06 +0000 https://www.atlanticcouncil.org/?p=848825 This week, Brussels and London unveiled new sanctions against Russia and the fleet of oil tankers and other vessels covertly trading in Russian oil. Atlantic Council experts assess the moves.

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Brussels and London are ratcheting up pressure on Moscow—without Washington. On Tuesday, the European Union (EU) and the United Kingdom approved scores of new sanctions against Russia, including the EU more than doubling the number of oil tankers and other vessels listed as part of the “shadow fleet” covertly trading Russian oil and gas. The EU package—the seventeenth since Russia’s war against Ukraine began—also adds new sanctions on individuals and companies, including the Russian oil giant Surgutneftegas. “This round of sanctions on Russia is the most wide-sweeping since the start of the war,” EU foreign policy chief Kaja Kallas said. Below, Atlantic Council experts shine a light on the sanctions and what they reveal about Europe’s faceoff with Russia.

Click to jump to an expert analysis:

Kimberly Donovan: Sanctions are a powerful, yet slow-burning tool 

Rachel Rizzo: Europe is no longer waiting for the United States to act

Elisabeth Braw: Spotlight who is replenishing Russia’s shadow fleet, too

Aleksander Cwalina: There is still more the EU can do to tighten the screws to Russia

Olga Khakova: If Trump also goes after the shadow fleet, it could bring Putin to the table


Sanctions are a powerful, yet slow-burning tool 

The EU’s seventeenth package is a welcome addition to the extensive sanctions the Group of Seven-plus (G7+) coalition maintain on Russia in response to Russia’s ongoing war in Ukraine. The latest package further brings EU sanctions in line with US and UK designations on Russian oil producers including Surgutneftegas, as well as the ongoing strategy to target Russia’s illicit oil trade using shadow fleet vessels.  

The extent and timing of this latest sanctions package demonstrate Europe’s resolve to maintain economic pressure on Russia, and they are a clear signal that Europe maintains strong economic leverage in potential negotiations with Russia to end the war.  

It’s hard not to notice that the sanctions were announced the day after US President Donald Trump spoke with Russian President Vladimir Putin and posted on social media that “Russia wants to do largescale TRADE with the United States when this catastrophic ‘bloodbath’ is over, and I agree.” There is growing concern about a potential divergence in US and EU foreign policy, and the latest EU package is a strong reminder that EU sanctions could remain in place even if Washington decides to ease its sanctions or open avenues for trade and finance with Moscow. 

That said, EU sanctions require renewal every six months and need consensus by all twenty-seven members. If the United States does not maintain economic pressure on Russia, then there is concern that Hungary may break with the bloc and veto EU sanctions on Russia’s economy when they are up for renewal in July. 

Sanctions are a powerful, yet slow-burning tool. The multilateral sanctions that G7+ coalition partners levied against Russia are finally having the intended effect. Russia’s economy is struggling, interest rates and inflation remain high, Russia is drawing down on its National Welfare Fund, and the country is in a wartime economy. This is why Moscow’s primary demand from the Black Sea cease-fire talks was lifting sanctions.  

To get a better and bigger deal with Russia over the war in Ukraine, it would be in Washington’s best interest to not only engage its European allies in negotiations, but also to join them in issuing additional sanctions to deny Moscow the opportunity to gain leverage at the negotiation table. 

Kimberly Donovan is the director of the Economic Statecraft Initiative at the Atlantic Council’s GeoEconomics Center. She previously served in the federal government for fifteen years, most recently as the acting associate director of the Treasury Department Financial Crimes Enforcement Network’s Intelligence Division.


Europe is no longer waiting for the United States to act

The latest round of EU sanctions against Russia highlights the EU’s willingness to do something it hasn’t yet done since February 2022: take ownership over the outcome of Russia’s war in Ukraine. The United States has always been in the driver’s seat, with the Biden administration both shaping and leading the West’s response to the war. The re-election of Trump brought an almost 180-degree shift in the US approach, with a much more conciliatory tone toward Russia emanating from the White House, along with a hope that Trump’s dealmaking skills could get both sides to the table for a cease-fire. That approach has yet to bear fruit.  

This is where the EU’s pressure becomes important. It highlights the bloc’s willingness to act independently of the United States and use its own tools to get Russia to the table without waiting for the United States to provide political cover. With European Commission President Ursula von der Leyen leading the charge, the hope is that the EU stays united on the sanctions front for the foreseeable future, squeezing Russia’s war machine (and its broader economy) to the point where Putin has no other choice than to stop the war. 

Rachel Rizzo is a nonresident senior fellow at the Atlantic Council’s Europe Center. Her research focuses on European security, NATO, and the transatlantic relationship.


Spotlight who is replenishing Russia’s shadow fleet, too

Every sanction helps reduce the shadow fleet’s activities, and the EU’s diligent efforts to identify shadow vessels are to be saluted. The EU should be especially proud of its latest package, which includes sanctions against an extraordinary 189 shadow vessels and some of the ships’ owners. The latter is especially important, since the owners do their best to operate in the shadows and are extremely hard to trace. 

However, the shadow fleet’s main characteristic remains in place: the fact that it can be constantly replenished. It can be replenished because there are ship owners willing to sell their retirement-age ships into the shadow fleet. In fact, doing so is commercially advantageous for them: Retiring old vessels involves paying for them to be scrapped, while selling them into the shadow fleet brings in money—a lot of it.  

Unfortunately, a few shipowners, including in Western countries, undermine sanctions against Russia by selling their ships into the shadow fleet. Perhaps even worse, by doing so, they willingly create risks on the high seas, because shadow vessels pose hazards to other vessels, to the maritime environment, and to coastal states. Publishing their names would send a strong message. 

Elisabeth Braw is a senior fellow with the Atlantic Council’s Transatlantic Security Initiative in the Scowcroft Center for Strategy and Security.


There is still more the EU can do to tighten the screws to Russia

On the sidelines of the G7 finance ministers’ meetings in Banff, Canada, this week, the United States opposed language in a joint statement that included “further support” for Ukraine. The United States also expressed reluctance to describe the Russian full-scale invasion of the country as “illegal,” further distancing Washington from its G7 counterparts. This follows a concerning trend as Trump has talked about Washington stepping back in peace talks and eventually restarting US trade with Russia. 

In contrast, the European Commission pushed forward and adopted its seventeenth sanctions package against Russia, underlining European Union unity and clarity. The package closed some remaining loopholes that allow Russia to fund its war machine and access key Western technology for military use. In doing so, it reiterated EU solidarity with Ukraine. 

The package was received well in Kyiv, with Ukrainian President Volodymyr Zelenskyy calling the newest round of sanctions “strong” and saying that they will limit Moscow’s ability to continue its invasion.  

However, more can be done to tighten the screws on Russia.  

Kyiv and its European allies are already discussing how to raise the stakes in a harsher eighteenth EU sanctions package if Moscow does not make serious efforts toward a cease-fire. This would most likely target the Russian banking and energy sectors and aim to further limit the Russian shadow fleet that Moscow uses to evade maritime trade restrictions. The EU and its partners should continue to target these industries. The bloc should also seriously consider seizing assets from sanctioned individuals in the EU for Ukraine and implementing secondary sanctions that limit third-party purchasing of Russian oil—both steps recommended by Kyiv. 

As European leaders are becoming increasingly frustrated with Washington’s stalling and Putin’s faux negotiations and maximalist demands, the EU should lead by example and take bold steps to continue aiding Ukraine and putting pressure on Russia. 

Aleksander Cwalina is an assistant director at the Atlantic Council’s Eurasia Center.


If Trump also goes after the shadow fleet, it could bring Putin to the table

Putin’s strategy of buying time with deceitful “peace” promises is shown to be failing in the face of the new EU and UK sanctions, as funding for Moscow’s war starts to run out. 

The shadow fleet carries more than 60 percent of Russian oil exports, according to a recent estimate, and the new sanctions will help strengthen enforcement of the price-caps mechanism on Russian oil. Currently, there are some discussions at the G7 level on lowering the price cap for the next sanctions package. But lowering the price cap will only impact Russia if it is enforced. Otherwise, Russia will continue to send large quantities of its oil through the shadow fleet, ensuring it continues to rake in profits.  

In addition to curtailing Russia’s oil profits, the shadow fleet sanctions protect European coastlines from the potential environmental damage and sabotage that the Russian shadow fleet could cause. Europe is achieving this by refusing the provision of services, insurance, and port access to these metal-scrap grade ships. 

The United States has already sanctioned 183 vessels. Now, Trump has an opportunity to forge his legacy as a peacemaker by joining the EU and UK sanctions on 342 vessels to bring Putin to the negotiating table. Moscow will only take US pressure seriously if it is implemented with decisiveness and strength—something the Trump administration has demonstrated effectively in tough negotiations with other nations.   

Olga Khakova is the deputy director for European energy security at the Atlantic Council’s Global Energy Center.

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Putin aims to destroy Ukraine and has zero interest in a compromise peace https://www.atlanticcouncil.org/blogs/ukrainealert/putin-aims-to-destroy-ukraine-and-has-zero-interest-in-a-compromise-peace/ Wed, 21 May 2025 20:51:25 +0000 https://www.atlanticcouncil.org/?p=848769 Russia’s ongoing campaign to destroy Ukraine as a state and as a nation is taking place in front of the watching world and makes a complete mockery of US-led efforts to broker some kind of compromise peace, writes Peter Dickinson.

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US President Donald Trump came away from Monday’s phone call with Vladimir Putin expressing confidence that the Russian leader wants peace, but few others appear to share this optimism. Many senior Western figures were reportedly unimpressed by Putin’s vague references to a “memorandum on a possible peace agreement” and believe he is still engaging in stalling tactics. “Putin is clearly playing for time. Unfortunately we have to say Putin is not really interested in peace,” commented German Defense Minister Boris Pistorius.

Trump’s latest call to Putin also prompted fresh questions over the US leader’s handling of the faltering peace process. Britain’s The Economist pondered Trump’s “strange reluctance to get tough with Putin,” while Washington Post columnist Max Boot led a chorus of voices accusing the Kremlin strongman of manipulating his American counterpart. “While Trump’s lack of success in peacemaking might not doom Ukraine, it certainly dispels the president’s pretensions to being a world-class deal maker,” argued Boot. “Putin is playing him for a fool, and Trump doesn’t even seem to realize it.”

The mood was very different in Moscow, with the Kremlin-controlled media trumpeting the call as a significant success for Russian diplomacy. In his daily press review, BBC correspondent Steve Rosenberg reported that many of Russia’s leading news outlets were “crowing” over the contents of the Trump-Putin conversation. “It looks like Russia has won the latest round of global poker,” commented one newspaper. “Donald Trump’s stance couldn’t be more advantageous to Moscow,” observed another.

It is no surprise to see mounting unease in Western capitals over the US push to end the Russia-Ukraine War. Since Trump first initiated peace talks in February, Ukraine has agreed to an unconditional ceasefire and signaled its readiness to make major territorial concessions. In contrast, Russia has consistently rejected calls for a ceasefire while proposing new conditions of its own and creating various obstacles to any meaningful progress. At one point, Putin even claimed that Ukrainian President Volodymyr Zelenskyy lacked the legitimacy to sign off on a peace deal and suggested placing Ukraine under United Nations administration.

Recent diplomatic developments have further underlined Russia’s reluctance to end the war. When the leaders of Britain, France, Germany, and Poland delivered a ceasefire ultimatum to Putin in early May, the Russian ruler responded by calling for the first bilateral talks with Ukraine since spring 2022. However, Putin then chose not to attend the bilateral meeting in Istanbul that he himself had proposed, preferring instead to send a low-level delegation. This was widely interpreted as a “slap in the face” for Ukraine and the collective West.

Putin’s representatives during last week’s negotiations in Istanbul sought to emphasize Moscow’s unwillingness to compromise, calling on Kyiv to officially cede four entire provinces to Russia including a number of major Ukrainian cities that the Kremlin has so far been unable to seize militarily. If Ukraine refuses to do so, they warned, Russia will increase its demands to include six Ukrainian provinces. “We fought Sweden for twenty-one years. How long are you ready to fight?” the head of the Russian delegation reportedly commented, in reference to the eighteenth century Great Northern War. “Maybe some of those sitting here at this table will lose more of their loved ones. Russia is prepared to fight forever.”

While Putin rarely makes such thinly veiled threats, he continues to insist that any settlement must focus on eliminating what he refers to as the “root causes” of the war. This is generally understood to mean Ukraine’s international neutrality and disarmament, along with the reestablishment of Russia’s former imperial dominance in every sphere of Ukrainian public life, from language and education to national memory and religion. Any Ukrainian leader who agreed to such terms would be signing their country’s death sentence.

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Trump’s efforts to talk up the prospects of a negotiated peace and his attempts to entice Putin with commercial incentives suggest a fundamentally flawed understanding of Russia’s war aims in Ukraine. The US leader seems to sincerely believe that Putin can be persuaded to end his invasion by the promise of limited territorial gains and future economic prosperity. In reality, nothing could be further from the truth.

Putin is not fighting for Ukrainian land; he is fighting for Ukraine itself. He views the current war in the broadest of possible historical terms and sees the destruction of the Ukrainian state as a sacred mission that will define his entire reign and shape Russia’s future for decades to come. It is ludicrous to suggest that he could be swayed from this messianic vision by mundane talk of trade deals and sanctions relief.

Putin’s thirst for historical revenge can be traced back to his traumatic experience during the collapse of the Soviet Union. While Putin did not personally face the grinding poverty that millions of his compatriots endured in the 1990s, Russia’s national fall from grace nevertheless made a profound impression on him. Ever since, he has been haunted by fears of a further imperial collapse and driven by a determination to reverse the verdict of 1991. This has fueled his revanchist brand of Russian nationalism, and helps to explain his otherwise inexplicable obsession with Ukraine.

Throughout his reign, Putin has made no secret of his bitter resentment over the breakup of the USSR, which he has called “the greatest geopolitical disaster of the 20th century” and “the disintegration of historical Russia.” Crucially, he views Ukraine as a central and indivisible part of this fabled “historical Russia.” Indeed, the Ukrainian capital Kyiv occupies pride of place in his imperial mythology as “the mother of all Russian cities.”

To Putin, the emergence of an independent Ukraine is a symbol of Russia’s post-Soviet humiliation and a potential catalyst for the next stage in his country’s retreat from empire. According to this twisted imperial logic, if a province as quintessentially Russian as Ukraine is allowed to break away and establish itself as a modern European democracy, the entire Russian Federation will be in danger of disintegrating. Likewise, Putin is convinced that if Ukraine can be returned to its rightful place within Greater Russia, the injustice of 1991 will be undone and Russia will resume its position among the world’s Great Powers.

Putin has been attempting to force Ukraine back into the Kremlin orbit ever since the 2004 Orange Revolution, which he personally helped spark by clumsily intervening in Ukraine’s presidential election. The violence of these efforts has escalated in direct proportion to the strengthening of modern Ukraine’s own national identity. At first, Putin pursued his imperial goals in Ukraine through control of the country’s political, business, cultural, and religious elites. When this failed, he ordered the 2014 invasion of Crimea and eastern Ukraine. Once it became apparent that even this partial occupation of the country would not derail Ukraine’s national consolidation, Putin made the fateful decision to launch the full-scale invasion of February 2022.

The rising tide of Russian aggression against Ukraine has been accompanied by ever more extreme anti-Ukrainian rhetoric. For years, Putin has publicly insisted that Ukrainians are Russians (“one people”). On the eve of the current invasion, he published an entire essay denying Ukraine’s right to exist. Putin and other senior Kremlin officials have repeatedly labeled Ukraine as an artificial country built on stolen Russian land, a Nazi invention, and an intolerable “anti-Russia” created for the purpose of undermining Russia itself. Ukrainians who insist on their own national identity are typically portrayed as traitors undeserving of sympathy or mercy.

This dehumanizing propaganda has laid the ideological foundations for the crimes that are currently being committed by the occupying Russian army in Ukraine. Wherever the Kremlin is able to establish control, Ukrainian patriots and community leaders are routinely detained and incarcerated in a vast network of prisons and camps. While the number of victims remains unknown, UN officials have concluded that the large scale and systematic nature of the disappearances qualifies as a crime against humanity. Those who remain are subjected to a reign of terror and forced to accept Russian citizenship while submitting their children to indoctrination. Meanwhile, all traces of Ukrainian national identity, culture, and statehood are being ruthlessly erased. Many experts believe these actions qualify as genocide.

Russia’s ongoing campaign to destroy Ukraine as a state and as a nation is taking place in front of the watching world and makes a complete mockery of US-led efforts to broker some kind of compromise peace. After all, what kind of compromise can there be between Russian genocide and Ukrainian survival?

Putin is understandably happy to exploit the Trump administration’s enthusiasm for peace talks. This allows him to buy time, divide the West, and reduce the flow of weapons to Ukraine. But it is already abundantly clear that he has no real interest in ending his invasion. Indeed, he dare not stop. Any peace deal that secures Ukraine’s survival as an independent state would be viewed in Moscow as a major defeat. Rather than taking his place alongside Stalin, Peter the Great, and Ivan the Terrible as one of Russia’s greatest rulers, Putin would be remembered in Russian history as the man who lost Ukraine. He would rather fight on indefinitely than accept such a fate.

Trump deserves considerable credit for seizing the initiative and attempting to end the war between Russia and Ukraine. At the same time, his current approach is obviously not working. The time has now come to stop seeking compromises with the Kremlin and start speaking to Putin in the language of strength. This means tightening sanctions on Russia and targeting the many countries that continue to fuel Putin’s war machine. Above all, it means significantly increasing military aid to Kyiv and boosting Ukraine’s ability to defeat Russia on the battlefield. Putin has staked his entire reign on the destruction of Ukraine. He will not back down unless forced to do so. Peace will only come when Ukraine is too strong to be subjugated.

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

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The European Union Growth Plan for the Western Balkans: A reality test for EU enlargement https://www.atlanticcouncil.org/in-depth-research-reports/report/the-european-union-growth-plan-for-the-western-balkans-a-reality-test-for-eu-enlargement/ Tue, 20 May 2025 21:19:05 +0000 https://www.atlanticcouncil.org/?p=847415 EU enlargement faces a test case in the Western Balkans. The current plan offers real benefits before accession, creating incentives for reform, but questions of enforceability and the relatively low amount of financial support threaten the success of the EU's political influence in the region.

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The European Union (EU) Growth Plan for the Western Balkans aims to integrate the region into the EU single market, enhance regional cooperation, implement significant governance and rule of law reforms, and boost EU financial support. In doing so, the EU seeks to foster economic development, political stability, and security in the region amid rising geopolitical tensions, while accelerating the Western Balkans’ EU accession process.

The Growth Plan holds substantial potential to reinvigorate the enlargement process and counter the stagnation felt by both the EU and the region. Strong points include:

  • Tangible benefits before full accession: Providing stronger incentives for reform.
  • Active involvement of regional governments: Increasing buy-in from local leaders, who must submit their own reform agendas.
  • Enhanced economic integration, greater access to the EU market, increased EU funding, and reforms to governance and the rule of law: Stimulating investment, promoting economic growth, and raising living standards.

These improvements would bring the Western Balkans closer to the economic success seen in the Central and Eastern European countries in the EU over the past two decades. Moreover, fostering deeper regional cooperation will not only deliver an economic boost but also contribute to political normalization. If successful, the plan will bolster the EU’s political influence in the region, countering the impact of external actors and encouraging much-needed nearshoring investment from EU firms.

However, the plan faces several challenges:

  • Enforceability: Although conditionality is rigorous, with disbursement of funds tied to strict conditions to prevent misuse, there are concerns regarding its enforceability. The European Court of Auditors has already raised reservations.
  • Quantity: Additionally, the financial support offered is significantly lower than what EU member states in Southeast Europe receive. The reforms required for fund access and single market integration are substantial and will demand significant political will and institutional capacity—both of which have been lacking in the region at times over the past two decades.

The success of the growth plan will largely depend on its implementation. The EU must ensure rigorous enforcement of conditionality, reward positive reform steps, and increase funding for countries making progress. Civil society in the Western Balkans should be engaged as much as possible to foster broader support and transparency. The EU should also leverage the plan to align with its broader geopolitical and geoeconomic interests, particularly in strengthening its strategic autonomy. Additionally, the Growth Plan should be fully integrated with the EU’s competitiveness, green, and digital transition agendas. For their part, Western Balkans leaders should seize the increased agency provided by the plan. They must take ownership of the reforms they propose, participate actively in EU meetings, and design their reform agendas to deliver better living standards and deeper EU integration for their populations.

About the authors

Dimitar Bechev
Nonresident Senior Fellow, Europe Center, Atlantic Council
Senior Fellow, Carnegie Europe


Isabelle Ioannides
Nonresident Senior Research Fellow
Hellenic Foundation for Foreign and European Policy (ELIAMEP)

Richard Grieveson
Deputy Director
Vienna Institute for International Economic Studies

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US-Ukraine minerals deal creates potential for economic and security benefits https://www.atlanticcouncil.org/uncategorized/us-ukraine-minerals-deal-creates-potential-for-economic-and-security-benefits/ Tue, 20 May 2025 20:50:09 +0000 https://www.atlanticcouncil.org/?p=848091 The recently signed US-Ukrainian minerals deal places bilateral ties on a new footing and creates opportunities for long-term strategic partnership, writes Svitlana Kovalchuk.

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The Ukrainian parliament ratified a landmark economic partnership agreement with the United States in early May, setting the stage for a new chapter in bilateral relations between Kyiv and Washington. The minerals deal envisages long-term cooperation in the development of Ukrainian natural resources. It marks an historic shift in Ukraine’s status from aid recipient to economic partner, while potentially paving the way for the attraction of strategic investments that could help fuel the country’s recovery.

The agreement was widely welcomed in Kyiv. Ukraine’s Minister of Economy and First Deputy Prime Minister Yulia Svyrydenko called the deal “the foundation of a new model of interaction with a key strategic partner,” and noted that the Reconstruction Investment Fund within the framework of the agreement would be operational within a matter of weeks. “Its success will depend on the level of US engagement,” she emphasized.

This deal isn’t just about mining and investment. It is a new kind of partnership that combines economic cooperation with security interests. US Treasury Secretary Scott Bessent, who played a key role in negotiating the terms of the agreement, said the minerals deal was a signal to Americans that the United States could “be partners in the success of the Ukrainian people.” Others have stressed that the partnership will allow the US to recoup the billions spent supporting Ukraine in the war against Russia. However, the deal isn’t primarily about reimbursement. It is a declaration of a strategic alliance rooted in mutual economic interest.

The new agreement between Kyiv and Washington differs greatly from classic concession deals as Ukraine retains full ownership of national natural resources while the Reconstruction Investment Fund will be under joint management. Unlike more traditional trade deals or resource acquisitions, this is a strategic agreement that combines commercial objectives with geopolitical interests, making it a textbook example of economic statecraft. By establishing military aid as a form of capital investment, the United States is securing a long-term stake in Ukraine’s security and the management of the country’s resources.

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The minerals deal with Ukraine offers a number of obvious potential advantages for the United States. Crucially, it ensures preferential access to rare and highly valued natural resources like lithium and titanium, thereby reducing dependency on China. This is a strategic win for Washington with the possibility of significant long-term geopolitical implications. The deal also creates a framework for further US military aid to be treated as an investment via the Reconstruction Investment Fund, providing opportunities for the United States to benefit economically from continued support for Ukraine.

By signing a long-term resource-sharing agreement, the United States is also sending an important signal to Moscow about its commitment to Ukraine. Any US investments in line with the minerals deal will involve a significant American financial and physical presence in Ukraine, including in areas that are close to the current front lines of the war. Advocates of the deal believe this could help deter further Russian aggression. Kremlin officials are also doubtless aware that around forty percent of Ukraine’s critical mineral reserves are located in regions currently under Russian occupation.

There are fears that the mineral deal makes Ukraine too dependent on the United States and leaves the country unable to manage its own resources independently. Some critics have even argued that it is a form of dependency theory in action, with Ukraine’s mineral wealth set to primarily fuel the needs of US industry rather than building up the country’s domestic economy. However, advocates argue that Ukraine was able to negotiate favorable terms that create a credible partnership, while also potentially securing valuable geopolitical benefits.

The agreement provides the US with a form of priority access but not exclusivity. Specifically, the US is granted the right to be informed about investment opportunities in critical minerals and to negotiate purchase rights under market conditions. However, the framework of the agreement explicitly respects Ukraine’s commitments to the EU, ensuring that European companies can still compete for resource access.

In terms of implementation, it is important to keep practical challenges in mind. The identification, mining, and processing of mineral resources is not a short-term business with immediate payoffs. On the contrary, it could take between one and two decades to fully develop many of Ukraine’s most potentially profitable mines. Without a sustainable peace, it will be very difficult to secure the investment necessary to access Ukraine’s resources. Without investment, the Reconstruction Investment Fund risks becoming an empty gesture rather than an economic powerhouse.

The minerals deal has the potential to shift the dynamics of the war while shaping the US-Ukrainian relationship for years to come. The United States is not only investing in resources, it is also investing in influence. Viewed from Washington, the agreement is less about producing quick payoffs and more about allowing President Trump to make a statement to US citizens and to the Russians. For Ukraine, the minerals deal provides a boost to bilateral relations and creates opportunities for a new economic partnership. America’s strategic rivals will be watching closely to see how this partnership now develops.

Svitlana Kovalchuk is Executive Director at Yalta European Strategy (YES).

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

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Putin continues to thwart Trump’s goal of achieving a cease-fire https://www.atlanticcouncil.org/blogs/new-atlanticist/putin-continues-to-thwart-trumps-goal-of-achieving-a-cease-fire/ Tue, 20 May 2025 17:10:35 +0000 https://www.atlanticcouncil.org/?p=847953 The US and Russian presidents held a two-hour call on May 19. But was any real movement made toward ending Russia's war in Ukraine?

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This is part of a series of regular assessments of the efforts, spearheaded by the Trump administration, to achieve a negotiated end to Russia’s war on Ukraine. Read the previous entry in the series here.

Both the Kremlin and the White House statements on the two-hour May 19 phone call between presidents Donald Trump and Vladimir Putin suggest that the results were meager—and Trump may be backing off some of his tough rhetoric on Putin. On Truth Social, Trump said: “Russia and Ukraine will immediately start negotiations toward a Ceasefire and, more importantly, an END to the War. The conditions for that will be negotiated between the two parties, as it can only be, because they know details of a negotiation that nobody else would be aware of.” 

For his part, Putin labeled the conversation “informative and helpful,” but he also said that the “root cause of the issue” must be addressed. That means Ukraine must agree to the draconian terms that Russian negotiator Vladimir Medinsky recently set down in Istanbul, such as the demilitarization of Ukraine and Ukrainian troop withdrawals from Ukrainian territory Russia has “annexed” but does not occupy. In short, this represents zero movement toward ending the fighting since the Ukraine-Russia talks last week in Istanbul.

“I believe it went very well,” Trump said of the call with Putin on Monday. Trump’s positive characterization of the exchange is odd because last week, when Putin chose not to show up at the talks in Istanbul that he had proposed—talks that Trump encouraged Ukrainian President Volodymyr Zelenskyy to attend—Trump justified Putin’s capriciousness by saying that, of course Putin did not show up because he, Trump, was not there. The US president asserted that “Nothing’s going to happen until Putin and I get together, okay?” In preparation for the call with Putin this week, Trump wrote on Truth Social: “THE SUBJECTS OF THE CALL WILL BE, STOPPING THE ‘BLOODBATH’ THAT IS KILLING, ON AVERAGE, MORE THAN 5000 RUSSIAN AND UKRAINIAN SOLDIERS A WEEK, AND TRADE.”

Yet at the end of that call, Trump was upbeat about the resumption of Russian-Ukrainian talks, and he was silent on the need for him to meet with Putin. This outcome is no surprise because Putin continues to thwart Trump’s stated goal of achieving an immediate end to the shooting. Putin underscored this Sunday night with the launch of the largest drone attack on Ukraine—over two hundred drones—since the start of the invasion. 

In the days ahead of the call, US Vice President JD Vance and US Secretary of State Marco Rubio noted that if progress toward peace does not actually appear, the United States could “walk away” from the talks. This is a way of putting pressure on the parties. Without explanation, White House Press Secretary Karoline Leavitt said that the administration is frustrated with both sides, even though, as Vance said earlier this month, it is Russia that is asking for too much.  

Meanwhile, Zelenskyy and his European partners in the United Kingdom, France, Germany, and elsewhere are proceeding with their efforts to place additional sanctions on Moscow, an effort that would be more effective at moving the Kremlin toward an actual cease-fire if Trump worked with this group. At the moment, White House policy does not reflect the view of 61 percent of the American public that the administration’s policy is weak on Putin.

Despite the tentativeness of recent White House policy, it cannot be ruled out that Trump will make good on his promise to achieve a durable peace by putting ample pressure on the party obstructing that outcome. But for now, it is hard to escape the conclusion that Trump blinked.


John E. Herbst is the senior director of the Atlantic Council’s Eurasia Center and a former US ambassador to Ukraine.

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Portugal’s shift to the right is accelerating. What does that mean for its future? https://www.atlanticcouncil.org/blogs/new-atlanticist/portugals-shift-to-the-right-is-accelerating-what-does-that-mean-for-its-future/ Tue, 20 May 2025 16:47:38 +0000 https://www.atlanticcouncil.org/?p=847775 The center-right Democratic Alliance won the May 18 election, while the far-right Chega party continued its rise. With the main center-left party losing seats, there is now an absolute majority on the right.

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Portugal is going through a historic rightward shift. Initial results from Sunday’s election have the center-right Democratic Alliance (AD) winning, but without an absolute majority, the center-left Socialist Party (PS) falling hard, and the far-right Chega party continuing its meteoric rise. 

This means that for the first time in Portuguese democratic history, there is not a “center majority” between the center-right and center-left. With new power balances in play, Portugal’s politics may get even messier—with political paralysis the new norm, preventing necessary reforms in key sectors such as housing, healthcare, and defense.

This was the third election in three years for Portuguese voters. Among European Union (EU) nations, only Bulgaria has had more elections than Portugal over the past seven years—and election fatigue was evident in this campaign. What Portuguese voters really want is stability, but these results might make that dream harder to come by in the months and years ahead.

Winners and losers

AD, a center-right coalition between the Social Democratic Party and the CDS-People’s Party, won the March 2024 legislative elections by the slimmest of margins, taking the reins of government from PS for the first time since 2015. That election also marked the surge of the far-right Chega party—“Enough” in Portuguese—with a strong third-place showing. Although this fractured political landscape made governing difficult for AD, led by Prime Minister Luís Montenegro, it was still able to pass a budget and begin implementing its program as a minority government. 

The 2025 election campaign was nearly identical to the 2024 cycle, with the same eight principal parties/coalitions on the ballot—all led by their same respective leaders. The Portuguese housing crisis and migration topped the list of voter concerns, followed by healthcare, pensions, and salaries. The war in Ukraine, transatlantic relations, and defense investment were not actively discussed during the campaign and the debates. 

Three parties secured the majority of the 230 parliamentary seats, and they will drive the Portuguese political system for the near future.

AD won the election, but it fell short of an absolute majority. With eighty-nine seats (up from eighty in 2024), the election reinforces Montenegro’s belief that the country is asking for stability and the opportunity to govern with the normal full four-year mandate. But even if AD partners with smaller parties, it still will not have a majority to govern outright. Thus, AD is hoping the president will once again ask the center-right to form a minority government. 

The Socialist Party was the big loser on Sunday, securing only fifty-eight seats (down from seventy-eight) and losing more than 360,000 votes from 2024. This is an epic fall for a party that has been a staple of Portuguese politics since the transition to democracy in the 1970s. In the next government, PS—even if aligned with small left-wing parties—will not be able to outright block government initiatives, leaving the role of kingmaker to Chega. 

The far-right party was the biggest winner, as Chega secured fifty-eight seats (up from fifty), gaining more than 230,000 votes from the 2024 contest. Depending on the distribution of the last four seats, which are reserved for the votes of Portuguese citizens living outside the country, Chega could find itself in second place. (The distribution of these seats will be known by May 28.) In 2024, Chega won two of the four “emigrant” seats, with the other two split between PS and AD. A similar outcome this year would put Chega in the runner-up position. The election results show that the issues most central to Chega’s program—illegal migration and corruption—continue to resonate with the Portuguese electorate.

Political pitfalls ahead

Although AD won the most votes, there is no guarantee that President Marcelo Rebelo de Sousa will immediately invite Montenegro and AD to form a government. That’s because the president is keen on stability, and he made it clear during the election that he wants any government he nominates to have its program accepted by Parliament. 

In Portugal, the nominated prime minister has ten days to present its governance plan to Parliament. If no party or faction within the new Parliament votes to reject (or approve) the program, then the program passes automatically, and the nominated government inherits full executive authority. Should any party or faction reject the program, then it would go to a vote to the whole of Parliament. 

In this case, an absolute majority would be needed to bring down the nominated government—forcing the president to nominate a different government configuration (as happened in 2015) or subject the country to another legislative election. But the Portuguese Constitution prohibits the legislature from being dissolved within the first six months of its mandate or during the final six months of a presidential term. Rebelo de Sousa will finish his second term in March 2026, with the next presidential election scheduled for January 2026. This means late spring 2026 could be the earliest opportunity for new elections. So if a nominated government is brought down, it would leave a long-term caretaker government—a situation the president wants to avoid. It is unlikely that Chega and the Socialists would join forces to block the installation of an AD minority government. Nonetheless, the president will do his due diligence behind the scenes before nominating Montenegro to be prime minister again.

Regardless of the composition of the new government, there is now an absolute majority on the right. Should AD and Chega find common ground on a particular issue—such as immigration—they will be able to enact policy without the left blocking proposals. With Chega possibly becoming the number two party in Parliament, it will be under more pressure to show it is more than just an anti-incumbent party and has the ability and gravitas to govern. 

From Lisbon to Washington

It is still too early to see how any new Portuguese government will approach the current US administration, but it is unlikely that Portugal will change its approach of having the transatlantic relationship be one of the pillars of its foreign policy. Montenegro’s government was reserved and cautious on transatlantic relations during the early days of the new US administration. The prime minister refused to critique the United States for its stance on Gaza, while asking for “realism” and dialogue concerning tariffs. Yet, Montenegro allowed his defense minister to openly question US predictability as an ally when making public comments about the potential purchase of the US-built F-35 fighter jet. 

Chega’s outsized role in the next Parliament, even if it does not become part of the government, may change this dynamic and push the executive toward reinforced ties with the United States. US President Donald Trump invited André Ventura, Chega’s leader, to attend the presidential inauguration in January, while Chega vowed to “privilege the transatlantic link” and prioritize its alliance with the United States as part of its 2025 election campaign foreign policy program. Montenegro has often critiqued Chega as unreliable, but he may have to adapt to the new reality of the Portuguese political landscape.

The NATO Summit looms on the horizon, and it is possible a new government begins its mandate only a week or two before the June 24-25 event in The Hague. Whoever represents Portugal as head of government will have the unenviable position of articulating a plan to increase defense investment, which is still well below the 2 percent of gross domestic product threshold set in the Alliance’s 2014 Wales pledge. 

Defense spending is one area that the AD and Chega may find common ground. Chega proposed for Portugal to meet its 2 percent goal in 2026, three years earlier than AD’s 2029 goal, while PS did not quantify a target date in its electoral plan. It will take political will by Montenegro and AD to use this opportunity to move Portugal out of the shrinking list of NATO members still unable to fulfill the Wales pledge. This willpower has been historically absent in Portugal among all parties, a country benefiting from its geography and its distance from the Alliance’s eastern flank to under-prioritize defense spending while focusing on social programs. 

With the composition and functioning of the new government in flux, Portugal could remain in an era of political paralysis for some time. How the future center-right government leads with a far-right primary opposition will determine if the country can break through its fractured political landscape and address the country’s challenges. Lisbon’s foreign policy could remain unsettled for some time given this reality. The big question remains whether the government will come together effectively enough to avoid yet another election in a year’s time.


Andrew Bernard is a nonresident senior fellow with the Atlantic Council’s Europe Center.

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Why the US cannot afford to lose dollar dominance https://www.atlanticcouncil.org/content-series/atlantic-council-strategy-paper-series/why-the-us-cannot-afford-to-lose-dollar-dominance/ Tue, 20 May 2025 14:00:00 +0000 https://www.atlanticcouncil.org/?p=841047 Since World War II, US geopolitical influence has been compounded by the role of the dollar as the world’s dominant currency. As global economic power becomes more diffuse and strategic competitors “dedollarize,” policymakers must determine how to maintain the dollar’s role at the center of global trade and financial networks.

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This Atlantic Council Strategy Paper explores the relationship between the status of the United States as a geopolitical superpower and the role of the US dollar as the world’s dominant currency. It examines how these two facets of US power have reinforced each other and how a decline in either of them could trigger a downward cycle in US influence around the world. The report discusses options for how the United States could counteract such trends, relying on its traditional strengths and strategic alliances.

How to keep the dollar at the center of global trade

Over the past eight decades, the status of the United States as an economic and geopolitical superpower and the role of the US dollar as the world’s dominant currency have reinforced each other. As a synonym for the dollar’s preeminent role in international currency transactions and foreign reserve holdings, dollar dominance has long been associated with the United States’ exorbitant privilege to finance large fiscal and current account deficits at low interest rates. This has helped the United States run a large defense budget and conduct extensive military operations abroad. In turn, the United States has used its military capabilities to support the free flow of goods and capital across the globe, boosting global growth while providing investors with confidence that investments in US financial instruments are secure. This virtuous cycle contributed to the long-lasting stability of the post-World War II international order, leading to a sustained rise in economic welfare in the United States and around the world.

As the size of the US economy relative to the rest of the world continues to shrink, this dynamic may begin to be turned on its head.1 Maintaining a global military presence would be harder to finance in the future if the US dollar were to lose its dominant reserve position, reversing the virtuous cycle and precipitating a US loss in global influence. This is one of the reasons why strategic competitors, such as China and Russia, currently work toward a “dedollarization” of their economic relations and global financial flows more broadly. Although last year’s BRICS summit failed to make progress on an alternative financial order, China and Russia are set on undermining the leading role of the dollar, limiting the United States’ ability to impose sanctions, and making it more costly to service its debt and finance a large defense budget.2

There is currently no other currency (or arrangement of currencies) that could challenge the US dollar’s preeminence, however. Even a smaller role of the dollar in global trade transactions would not immediately challenge its reserve currency status, given the lack of investment alternatives in other currencies at a scale comparable to US markets. The dollar has also benefited from strong global network effects that would be difficult to replace (that is, the costs for any country to divest into other currencies remain prohibitively high unless other countries do the same). Nevertheless, the tariff measures recently announced by the Trump administration could lead to a decline in the global use of the dollar, especially if they were accompanied by a decline of trust in the United States as a safe and liquid destination for global financial assets. Similarly, a proposal by the current chair of the Council of Economic Advisers to use tariffs as leverage for negotiating favorable exchange rate parities with US trade partners and to restructure their US Treasury holdings into one-hundred-year bonds—a so-called Mar-a-Lago Accord—would deliberately weaken the dollar to support domestic manufacturing. This could further erode the currency’s global dominance. Both scenarios would involve high costs to the world economy, including for the United States. More fragmented markets and higher financial volatility would be associated with income losses and higher inflation. Facing higher borrowing costs, the United States would be forced to make difficult spending decisions between its military budget, social welfare programs, and other priorities. Its global leadership role would decline, allowing strategic antagonists to benefit from any vacuum that a smaller US role would leave behind.

It is therefore vital to US national security that the dollar retain its role at the center of global trade and financial networks. This paper proposes ways for the United States to maintain the attractiveness of dollar-denominated assets for foreign investors, arguing for a speedy resolution of tariff disputes that have a strong potential to weaken its global standing. It underscores the need to compensate for a relative decline in US economic and military capabilities with strong alliances, which would deny China and other autocratic states a strategic opportunity to weaken the United States’ influence on the world stage and the exorbitant privilege that the dollar’s role as the global reserve currency still confers.

A cargo ship docked at an industrial port in Hong Kong alongside shipping containers. Source: Unsplash/Timelab.

Strategic context

For the past eighty years, the United States’ economic and geopolitical preeminence and the role of the US dollar as the world’s dominant currency have contributed to a vast increase in global trade and capital flows. The “exorbitant privilege” to finance large fiscal and current account deficits at low interest rates helped the United States maintain its large geopolitical footprint, which contributed to the stability of the environment fostering global commerce and investment. However, as the center of the world’s population and economic activity has been shifting toward Asia and Africa, the virtuous cycle supporting the US-led global architecture threatens to come to an end, giving way to greater economic and geopolitical volatility.

The exorbitant privilege

The US dollar’s rise as a global reserve currency dates back to about a century ago, when the British empire was in decline after World War I. The United States had become the world’s agricultural and manufacturing powerhouse, its largest trading nation, and a major source of foreign capital around the globe. It was natural for the dollar to also become one of the major currencies used for international transactions, and it eventually started to replace the pound as central banks began to hold larger shares of their reserves in dollars in the late 1920s. The transfer was backed by the economic dynamism of the world’s richest democracy and, after 1945, its might as a victorious military power.

In the early years after World War II, the dollar was the anchor for the Bretton Woods system of fixed exchange rates, established on a US promise to exchange dollars for gold at a fixed parity. It became increasingly clear, however, that the gold-based system was not adequate for a fast-growing global economy that underwent a gradual liberalization of capital flows. In the meantime, French government officials accused the United States of exploiting the status of the dollar to run up large fiscal deficits (driven by the costs of the Vietnam war), a phenomenon they dubbed the “exorbitant privilege.”3 However, when the United States under President Richard Nixon decided to take the dollar off its gold parity in 1971, this did not provoke a major flight away from the US dollar—on the contrary, the dollar itself had by then become the anchor for the global financial system.

Today, more than fifty years after the “Nixon shock,” the United States still benefits from the dollar’s leading role in the global economy, even as the relative size of the US economy has shrunk. Until recently, dollar payments accounted for 96 percent of trade in the Americas, 74 percent in the Asia-Pacific region, and 79 percent in the rest of the world outside Europe. About 60 percent of global official foreign reserves were held in dollars, and about 60 percent of international currency claims (primarily loans) and liabilities (deposits) were denominated in dollars. The United States was the world’s largest investment destination, with foreign direct investment (FDI) totaling $12.8 trillion. Inward FDI flows have increased five-fold in the last three decades with $311 billion in new investment in 2023 (see Figures 1 and 2).

Figure 1. Inflows of foreign direct investment (FDI) to the United States were the same in 2000 and in 2023 (in millions of dollars)

Figure 2. Stock of FDI in the United States has increased five-fold since 2000 (on a historical cost basis, in trillions of dollars)

Source: Statista data, 2025, https://www.statista.com/statistics/188870/foreign-direct-investment-in-the-united-states-since-1990/. Note: Under the historical cost basis of accounting, assets and liabilities are recorded at their values when first acquired.

In an era of floating exchange rates and liberalized capital markets, one should nevertheless be realistic about the benefits the dollar’s status as a reserve currency. It is true that the United States can borrow exclusively in its own currency; it also enjoys somewhat lower interest costs because other countries’ official reserves are being invested in US Treasury securities; and it generates seigniorage income from dollars being held abroad. But real interest rates among the advanced economies have moved broadly in tandem in recent years, and estimates for the interest savings on US treasury bonds due to the US dollar’s reserve currency status amounted to some 10 to 30 basis points at best. The exorbitant privilege therefore seems to lie mostly in the volume of debt the US government can borrow without incurring higher interest rates. One recent estimate, for example, suggests that the reserve currency status of the US dollar increases the sustainable level of US government debt by 22 percent.4

US deficit financing

The large size of the US economy and demand for US government securities have made US financial markets the deepest and most liquid markets in the world, with about $27.4 trillion in outstanding US government debt as of July 2024. This has been supported by strong institutions and a transparent regulatory environment, the absence of capital flow restrictions, and the wide range of services offered by the US financial industry, which all have attracted foreign capital into the United States. The importance of US debt markets was also evident during times of crisis when global shocks tended to trigger a “flight to safety” into US assets.

The market depth and safety of US dollar assets are features that traditionally distinguished the United States from other major economies that also have large financial markets and issue bonds primarily in their own currency, such as the euro area, Japan, or the United Kingdom. Moreover, these countries do not have their own means to guarantee their geopolitical security; they depend on alliances with the United States as the ultimate sovereign guarantor. This is in large part a function of US military strength and the US nuclear arsenal, backing up NATO’s credibility as a collective defense organization. Although these factors used to be rarely invoked as an explicit factor in investment decisions, investors’ trust in the ability of the United States to preserve its dynamic economy and honor its financial obligations even during times of conflict lies at the heart of the US dollar’s global dominance.

The strong preference of investors for US dollar assets allowed the United States to run permanent current account deficits in recent decades, driven both by government spending and the low saving preferences of its households. As a side effect, the United States has often functioned as a “locomotive” for the global economy, providing growth impulses for export-oriented economies such as China, Japan, or Germany, whose high saving rates and current account surpluses are the counterpart to US deficits. Moreover, for many years, differences in the composition of US financial assets (largely FDI and other equity) and liabilities (lower-yielding bonds) provided the United States with a positive foreign income balance despite the growing amount of net foreign liabilities.

Will the good times last?

Even before the current administration sought to reorient global trade patterns by imposing tariffs on allies and other trading partners alike, the question was whether and how long the United States would be able to hold on to the dollar’s dominant role. There were several developments that pointed to a more difficult future ahead, including demographics, geopolitics, and technological trends. Already at that time, however, it was clear that domestic policy choices would ultimately determine whether the United States would hit a limit in the willingness of foreign investors to finance its rising liabilities vis-à-vis the rest of the world.

First, while the US dollar is still the world’s leading reserve currency, its share in central banks’ reserve holdings has gradually fallen in recent years. The dollar’s share declined from around 70 percent in the 2000s to 60 percent in 2022, when it was followed by the euro (20 percent) and several currencies in the single digits, including the yen, pound, and Chinese renminbi. The renminbi has gained some market share as a reserve currency in recent years; yet China, with its closed capital account and politically uncertain investment climate, has not been able to significantly increase international use of its currency. Instead, most gains have been made by a range of smaller currencies, including the Australian and Canadian dollars, reflecting digital technologies that have facilitated bilateral transactions without involving the US dollar as a bridge currency. Smaller currencies may indeed continue to gain market share, but there could also be other shifts in the global reserve composition, depending on the further evolution and impact of US trade and sanctions policies. The rise in gold prices, for example, has been attributed to central banks increasing their holdings within their reserve portfolios.

Second, US net foreign liabilities have increased sharply since the global financial crisis, increasing to about 70 percent of gross domestic product (GDP) by 2023. To put this in perspective, only Greece, Ireland, and Portugal are larger net debtors among industrial and emerging economies, and US net liabilities are equal to 90 percent of the net assets of all creditor countries combined. Since current account deficits have generally been modest over the past decade, the decline owes to valuation changes stemming from the strong performance of US equity markets relative to international markets, increasing the wealth of foreign investors holding US stocks. To serve these net liabilities, foreigners implicitly expect US companies to remain highly profitable and the United States therefore to run larger trade surpluses going forward. With the dollar gradually appreciating in recent years, it remains to be seen whether these expectations can be met or whether foreign investors will reduce their net holdings of US assets. The increasing negative interest balance (and the fact that much of the positive net returns on FDI were due to profit shifting into Ireland and other low-tax foreign domiciles) has caused some to argue that the extraordinary privilege is no longer in existence.

Third, prospects of continued large budget deficits could make it more costly to finance US government debt in the future. The Congressional Budget Office (CBO) has projected US budget deficits to remain above 6 percent of gross domestic product (GDP) over the coming years. This projection is made on the basis of current law, that is, assuming the expiration of both the 2017 Tax Cuts and Jobs Act (TCJA) passed during the first Trump administration and the healthcare subsidies passed during the Obama administration. Even under this optimistic assumption, government debt is projected to rise from 98 percent of GDP in 2024 to 118 percent of GDP in 2035. While the current administration has vowed to impose significant expenditure reductions to accompany the presumed extension of the 2017 tax cuts, failure to reduce the US deficit could drive long-term interest rates higher in coming years.

Even so, until recently, it seemed too early to worry about the safe asset status of US government securities per se. This was in large part because there are currently no instruments that could match the role of US government securities at comparable volumes. However, the stability of US debt dynamics rests in no small measure on the continued performance of the US economy, which in turn depends on strong institutions and sound economic policies. History shows that political polarization has the potential to undermine both of these pillars, a warning that would be important for the US government to heed while it is reducing government functions and cutting back its public workforce. As Steven B. Kamin and Mark Sobel write, “partisan divisions, political dysfunction, and the resultant inability to cope with the nation’s challenges” should be considered the main risks to long-term US economic prospects and dollar dominance. The administration’s willingness to risk a deep recession to launch an elusive manufacturing renaissance in the United States plays precisely into those concerns.

Even before April 2025, trade restrictions had significantly increased in recent years after declining for most of the twentieth century. The geoeconomic fragmentation driven by the COVID-19 pandemic, Russia’s war of aggression in Ukraine and, most recently, economic tensions between the United States and China, could now drive a major reorganization of global economic and financial relationships into separate blocs with diminishing overlap. A study by the International Monetary Fund (IMF) estimates that greater international trade restrictions could reduce global economic output up to 7 percent. In case of a wider trade conflict, smaller countries could be increasingly forced to choose sides, with those moving closer to China likely aligning their currency use for international transactions and reserves away from the US dollar and the euro.

Fifth, the United States has used sanctions as a tool of foreign policy, particularly against Russia in the wake of its 2022 invasion of Ukraine. This led to the suspension of trading in US dollars on the Moscow Exchange (MOEX), disrupting financial operations not only within Russia, but also affecting other international market players as a result of the extraterritorial nature of the US sanctions. Since 2014, following the sanctions related to the annexation of Crimea, Russia has increased its use of the Chinese yuan, which became MOEX’s most-traded currency (54 percent in May 2024). Concerns about their bilateral trade relations with Russia and China have other countries looking for alternatives to mitigate possible risks associated with US dollar transactions, for example, in the BRICS grouping, which is set to further expand its membership of emerging market economies in coming years. If accompanied by bilateral tariff increases, as currently envisaged by the Trump administration, this could have further implications for the dollar’s role in global trade transactions.

Finally, in the context of a geopolitical fallout, potential tariffs between the United States and the EU could significantly impact the transatlantic economy, which remains the most important bilateral trade and investment relationship for both partners. For example, a 10 percent universal tariff on all US imports is projected to reduce EU exports to the US market by one-third, and subsequent retaliation could similarly hurt US exporters. Higher interest rates in response to tariff-induced inflation would have additional growth implications. All this could heavily weigh on financial markets on both sides of the Atlantic, further reducing the attractiveness of US dollar-denominated assets.

Limits to military superiority

Any developments that weaken the US economy and the role of the dollar could also affect the United States’ ability to preserve its military superiority. China is in the middle of an extraordinary defense buildup that is challenging US strategic positions in the Indo-Pacific theater. Moreover, the Ukraine war has led to stepped-up cooperation between Russia, Iran, and North Korea (which has been contributing troops to compensate for Russia’s losses), and China increasingly supports Russia’s armament efforts by supplying it with drones and dual-use technology.

The United States and Europe have also been pushed on the defensive in Africa as China, especially, has made strategic inroads there, as have Russia, India, and countries in the Persian Gulf. Many countries are looking to China for help in developing their energy and transport infrastructure, imports of low-cost consumer and investment goods, and market access for their own exports, allowing the use of strategic ports and other locations in exchange.

At the same time, China has a hold on supply chains involving critical raw materials, controlling 85 percent of the world’s refined rare earth materials, which are crucial for high-tech military technologies. If made unavailable to the United States, this could significantly complicate the production of advanced weaponry. The global processing capacity for critical raw materials is also highly concentrated in China, providing it with means to influence market prices and access, and creating supply chain vulnerabilities and dependencies.

Advances in military technology toward low-cost weapons, lower procurement costs in competitor countries, and a relative decline in US manufacturing capabilities (e.g., in shipbuilding) pose significant challenges to US military strength. While the United States retains a large nominal advantage in military spending over other competitors, the discrepancy is smaller when considering cost differences; in other words, the United States has a smaller advantage in real terms than suggested by simple budget comparisons (see Figure 3).

Figure 3. Combined military spending by China, Russia, and India outstrips the US when calculated by purchasing power parity (2019, in billions of dollars)

Source: Peter Robertson, “Debating defense budgets: Why military purchasing power parity matters,” Column, VoxEU portal, Centre for Economic and Policy Research, October 9, 2021, https://cepr.org/voxeu/columns/debating-defence-budgets-why-military-purchasing-power-parity-matters.

In fact, a recent congressional review of US defense strategy has raised concerns that the United States is not ready for a multifront war spanning theaters in Europe and Asia. US forces have also been slow to adopt new battlefield technologies, including a trend toward autonomous weapons systems, which will take considerable time to redress. In addition, the end of the New START treaty in 2026 could trigger a nuclear arms race that would force the United States to expand its nuclear forces after decades of deep cuts.

While the United States is still the only country able to project military power at any point in the world, it is unlikely to be able to respond to these challenges on its own. The room to dedicate additional fiscal means to the US defense budget is increasingly circumscribed by growing interest and entitlement spending (see Figure 4), and even under optimistic assumptions, there is a risk of strategic overreach for the United States, given the magnitude of challenges across different regional theaters.

Figure 4. Projected federal outlays show entitlement spending and growing interest may curb defense spending (2025, as a percentage of federal revenues)

Source: Congressional Budget Office, The Long-Term Budget Outlook: 2025 to 2055, CBO, March 2025, https://www.cbo.gov/publication/61270, and calculations by the author.

While US presidents have long called for European nations to play a bigger part in their own defense, the second Trump administration has ramped up the pressure on NATO allies to take on a larger military role and financing burden in the European theater. However, raising the combat readiness of European armed forces will require several years under the best of circumstances. Unless the United States is willing to cede military dominance in Europe to Russia, it will need to continue supporting its European allies—including in arms production, securing supply chains, and military burden sharing—for the foreseeable future.

If the United States were to forgo a deepening of its alliances in Europe and become outmatched by China in Asia, it could in principle still benefit from the relative safety of its continental geography. However, it would face a loss of military stature and reduced global reach. No longer being a global hegemon, the United States would not be able to protect global trade and financial flows in the way it has done in the past, hurting itself and other economies that similarly benefited from open trade. The United States would leave a vacuum of power that would most likely be filled by China and other autocratic countries, with detrimental effects for its own security and economic stability.

Goals

This paper proposes a strategy to preserve the US dollar’s lead role in international markets, allowing it to continue attracting foreign capital at favorable interest rates. As laid out above, the dominant role of the US dollar has been a key element in a decades-long virtuous cycle that allowed the United States to finance its large military apparatus while expanding its social safety net and keeping a low tax burden.

With the rise in public debt and the sharp increase in net international liabilities, this cycle cannot continue indefinitely. The time has come for the United States to begin reining in deficit spending and rebuilding its fiscal position. Notwithstanding the Trump administration’s commitment to this objective, this process will take time, given continued pressure on defense and entitlement spending. Continued dollar dominance would therefore be critical for keeping a lid on interest rates while nurturing a political consensus that could lead to a lasting decline in government deficits over several administrations.

Continued dollar dominance would also be beneficial from a geopolitical perspective, providing the United States with leverage in shaping the future of global finance, leadership in multilateral organizations, and the continued possibility of sanctioning opponents to raise the cost of acting against US interests. Having said that, the United States’ ability to dominate global developments on its own will likely continue to diminish. To maintain and reap the full benefits of the dollar as a reserve currency, it will need to rely more on networks with countries that have trade, financial, and security interests that align with those of its own. These networks evolve around shared interests, and they will only thrive in an environment of mutual respect and give-and-take.

Breaking up such networks by way of a US isolationist withdrawal—the possibility of which is as high as it has been at any time in the past century—would trigger a fragmentation of the global economic and security landscape with large losses in general welfare (i.e., prosperity and well-being) both in the United States and abroad. It would accelerate the decline in the dollar’s reserve status as it could force countries to fundamentally rethink their security arrangements, possibly leading to a reorientation of trading and financial relationships toward China and other illiberal states.

In fostering US interests, the objective for US policymakers should therefore be to maximize the mutual advantages accruing from working with countries that benefit from the United States’ global economic and security footprint, as well as the stability provided by the dollar as a leading currency. If the United States manages to pursue its domestic interests while remaining at the center of a network of powerful alliances, the dollar’s reserve currency status and its exorbitant privilege could serve US interests for years to come.

Major elements of the strategy

In principle, the new US administration has a strong opportunity to address the geopolitical challenges facing the United States, given its decisive electoral victory and control over both houses of Congress. While there is clearly a risk that ideological priorities might preempt serious work on other issues, the presence of growing external threats should eventually refocus attention on several objectives that would be in the strategic national interest.

Foster strong and robust long-term growth

The first objective coincides with one of the administration’s key priorities, namely, to create the conditions for strong US economic growth and employment over the long term. This is a necessary condition for the United States to retain its economic and military superpower status: Without a strong economy, the burden of maintaining a global footprint would eventually become suffocating and capital would become increasingly unavailable to support a growing debt burden. In the worst case, the United States would follow the example of the United Kingdom, whose leading global status was gradually eclipsed by other powers during the last century (see Figure 5).

Figure 5. China’s GDP growth rates have outpaced those of the United States and the European Union for more than two decades (2000–2024, measured at constant prices)

Source: “World Economic Outlook Database,” International Monetary Fund, accessed March 1, 2025, https://www.imf.org/en/Publications/WEO/weo-database/2023/October/select-country-group.

The question is how the dynamism of the US economy can be maintained against the background of weakening demographics, rapid technological change, and fragmenting global trade. These trends challenge the business model of established US companies, especially those competing against Chinese or other firms that benefit from the tools of state capitalism being deployed by their home countries. Moreover, supply chains for critical raw materials and intermediate products seem more tenuous in the future, given the dominant position of China in key industries.

From a trade perspective, there are two considerations that the administration should have balanced. On the one hand, firms should be allowed to continue to operate in an open and competitive market environment that rewards innovation and efficiency, in turn allowing the United States to reap the productivity gains necessary to generate future gains in income and welfare. On the other hand, it would be naive to expect US companies (or industries) to thrive in sectors where state-backed competitors enjoy large-scale cost advantages due to extensive subsidies or other forms of state support. This suggests that the new administration should have avoided a protectionist trade stance, shielding a large part of the US economy from foreign competition. However, it should also have been prepared to stave off an economic decline of sectors that could be critical for long-term economic or military purposes.

In early April, however, the administration took an opposite approach by raising tariffs on almost all other countries in proportion to bilateral trade imbalances. (Many of the highest tariff rates were temporarily paused a week later, leaving a 10 percent rate on most of the world for now.) Apart from their economic and financial fallout, these measures are unlikely to significantly reduce the overall US trade deficit, given (a) the substantial difference in domestic saving rates between the United States and large trading partners; (b) retaliatory measures taken by many countries; and (c) trade diversions and exchange-rate adjustments that will counter some of the effects of the tariffs.

It remains to be seen whether investment in the United States will pick up to a significant extent, given the uncertainty about the extent and duration of the trade restrictions currently in place. Moreover, labor-intensive manufacturing industries will have a hard time regaining a footing in the United States, given the falling costs of automation and persistent labor cost differentials with emerging markets and developing countries. A major plank of a strategy to boost employment and long-term growth should therefore lie in a speedy resolution of trade negotiations and a reduction in bilateral tariff rates between the United States and its largest trading partners, particularly Europe, Japan, and China.

The United States should also focus its industrial policy on boosting innovation, protecting or regaining technological advantages, especially in artificial intelligence (AI) and quantum computing, preserving access to supply chains and export markets, and maintaining strategic production capacities, preferably in conjunction with its European and Asian allies.

Beyond trade policies, there is a much larger agenda to strengthen the growth fundamentals of the US economy. This includes building a growing and better educated workforce that can translate AI and other innovative technologies into commercial products that can be sold in a global marketplace. Given the significant returns to scale in digital technologies, the United States should ensure that its institutions are strong enough to ensure a fair and transparent marketplace and combat monopolistic practices.

All of this would help the United States preserve its productivity advantage vis-à-vis the rest of the world, a key condition for durable real wage growth and rising living standards. To ensure that gains are distributed broadly throughout society, the expiration of key provisions of the 2017 TCJA provides an opportunity to boost incentives for new investment and labor-market participation while generating additional revenues from higher incomes and economic rents.

Moreover, while the new administration has a critical view toward illegal immigration, cutting off the legal flow of well-educated foreign students and productive workers into the United States, a key ingredient for its past economic success, would be an unforgivable own goal.

Street view of the US Department of the Treasury building in Washington, D.C. Source: Unsplash/Connor Gan.

Regain fiscal room to maneuver

Despite the projected increases of US government debt in coming years, the United States has been able to easily finance large deficits and is expected to do so in the future. However, the increasing amount of outstanding debt, as well as the rise in the average interest rate paid by the federal government, are constraining the budgetary room for new initiatives by the incoming administration. The share of discretionary spending—that is, spending not mandated by debt obligations or entitlement programs such as Social Security and Medicare—has already fallen from around 50 percent in the 1990s to below 30 percent today. As this share is projected to shrink further over the coming years, the trade-off between defense spending (which currently accounts for about half of all discretionary expenditure) and other priorities (such as infrastructure spending) is becoming stronger.

Everything else equal, reining in the fiscal deficit would therefore have a positive impact on long-term interest rates and crowd in private investment, a key ingredient for long-term growth. Although the creditworthiness of the United States is not yet in doubt, the increase in US government bond yields after the 2021 inflation scare, as well as the rise in bond yields after the April tariff announcements, has been a wake-up call, indicating a departure from the low-interest environment of the 2010s. It also increased the cost of private-sector investment, including higher mortgage rates that have contributed to a significant drop in new housing construction.

The first-best option to realize budgetary savings would be on the back of sustained robust growth, as discussed in the previous section, whereas deficit-financed tax cuts or spending increases would deepen the United States’ long-term fiscal quandary. Fiscal policy should instead focus on enhancing the efficiency of the tax system and reducing public expenditure—especially in the health sector, where the United States outspends other advanced economies by a large margin while achieving inferior outcomes.

However, imposing across-the-board spending cuts and labor-force reductions are not a proven tool to generate significant fiscal savings. They have a relatively small budgetary effect but a possibly significant impact on the government’s ability to function, which will eventually have to be rectified through new hirings. Given the demographic trajectory, there also is a need at some point for better targeting or changing the economic parameters of US entitlement programs (the “third rail” of US politics), but with continued dollar dominance, the United States would still have the space for a gradual phase-in of policy reforms.

Maintain deep and liquid financial markets

US financial markets are attractive to foreign investors because of their openness and underpinning by transparent and market-friendly rules established by US law. As a result, foreign portfolio holdings in US equities amounted to $13.7 trillion in 2023, and foreign investors owned $7.6 trillion in Treasury securities, equivalent to about a third of publicly held federal debt. Moreover, foreign deposits in the US banking system have steadily risen to about $8 trillion in 2024, highlighting the important role of foreign capital for the functioning of the US economy. Besides maintaining a welcoming framework for foreign investors, the United States will also need to ensure that financial market regulations remain effective and stay up to date with technological developments.

The more volatile geopolitical and economic environment has already tested the resilience of US financial markets, and both regulators and private entities should be prepared to deal with future shocks. As in other advanced economies, for example, US banking regulations have considerably tightened since the 2007–2009 global financial crisis; but the failures of Silicon Valley Bank and several other midsize institutions have revealed continued supervisory problems. US and European regulators were close to concluding an extension of the Basel Accord (Basel 3.1), but momentum has been lost given strong resistance by the financial industry on both sides of the Atlantic. Even if the new administration were unwilling to pursue negotiations within the Basel Committee, or planning to consolidate regulatory agencies, it must not lose focus on ensuring that banks remain well-run and adequately capitalized.

In a similar vein, there have been episodes in recent years when liquidity in US government bond markets collapsed, threatening to severely disrupt the workings of the global economy (with daily trading volumes in the Treasury bond market averaging $600 billion in 2023). Both the September 2019 repo crisis and the March 2020 meltdown required emergency intervention from the Federal Reserve system to keep the markets operational. Changes to the functioning of markets, including channeling a larger number of transactions through clearing agencies and improving transparency, should help reduce uncertainty during times of crisis, provided they are left in place by the new administration.

This, of course, assumes that there are no policy accidents, such as the US Congress not authorizing a debt ceiling increase, which could lead the United States to default on its government bonds and seriously undermine the US dollar’s standing abroad. Similarly, a forced change in the terms of US government bonds as has been proposed by some analysts, especially if directed at foreign investors, carries the risk of a large repricing of US financial instruments that could be traumatic for financial markets worldwide.

In the realm of financial regulation, the United States had until recently taken a conservative approach to innovative technologies such as stablecoins and cryptocurrencies. A 2022 report by the Financial Stability Oversight Council found that activities involving crypto assets “could pose risks to the stability of the US financial system if their interconnections with the traditional financial system or their overall scale were to grow without adherence to or being paired with appropriate regulation, including enforcement of the existing regulatory structure.”

The new administration has adopted a more welcoming approach, with several crypto proponents taking on key roles in US regulatory agencies. This pro-cryptocurrency stance may well lead to stronger innovation, but it could also contribute to heightened market fluctuations and uncertainties. Even under a lighter touch, new rules and regulations are likely to emerge from this transition phase. While this will pose some compliance challenges for companies, it will still be important to balance innovation with financial stability concerns. Introducing appropriate safeguards and maintaining a strong commitment to ethical practices will prove essential for helping businesses navigate the evolving landscape, build trust with consumers and regulators, and ensure the long-term success of digital payments.

By contrast, the Trump administration’s negative stance on the creation of a US central bank digital currency (CBDC) creates a potential risk to the dollar’s global standing. While there is indeed no clear use case for a CBDC at present, and adoption of retail CBDCs in most countries so far has been small, technological developments in this area are hard to predict. The United States might prefer to foster US dollar-based stablecoins rather than a CBDC to cement the dominant role of the dollar, but there is a risk that it could fall behind if a large number of other countries were to shift to CBDC-based settlement technologies. Moreover, given the challenging nature of digital currencies, the United States would not be able to shape international regulations that promote the efficient use of CBDCs and address critical concerns related to money laundering, fraud, and consumer protection.

Strengthen relations with emerging markets and developing countries

As the United States and Europe vie to preserve their geopolitical primacy against the onslaught from Russia and China, it is important to keep in mind that the world’s demographic center of gravity has already begun to shift toward Africa, India, and Southeast Asia. The geopolitical weight of these regions is still relatively modest, but their economic role is expected to steadily increase due to powerful demographics. Compared to China, the United States has been slow to recognize the importance of intensified trade relations with countries that may relatively soon become key export markets for US companies and engines for global growth.

Not long ago, the United States and other industrial countries were the major source for development finance, including through bilateral aid and in their role as majority shareholders in the Bretton Woods Institutions. The results of this decades-long engagement were decidedly mixed, however. Numerous large emerging-market countries thrived after the crises of the 1990s, but loans to many developing countries turned sour as countries failed to sustainably generate increases in per capita incomes. Member countries of the Organisation for Economic Co-operation and Development (OECD) consistently missed their targets for grants and other development aid, and developing countries have accused the industrialized world of not providing adequate compensation for the damage caused by past CO2 emissions.

China has used this opportunity to project itself as a friend and partner for many developing countries. Deploying its ample foreign exchange reserves (which it has been keen to direct away from US Treasury bonds), China’s Belt and Road Initiative has financed investment projects in resource-rich and strategically located developing countries—surpassing one trillion dollars—deepening trade and political relationships in a way that the West has been unwilling to match, and making China the world’s largest debt collector. China has leveraged these relationships to secure access to critical minerals and set itself up as the market leader in their processing and refining, gaining geopolitical leverage against the United States in the event of a future trade war. China has also received considerable diplomatic support from developing countries for its policy of unification with Taiwan.

The United States and its Western partners should urgently contest China’s position as an informal leader of the developing world. There is space to do so, as many countries have been disillusioned by China’s self-interested motives, which have often left them with badly executed infrastructure projects and high debt that proved difficult to restructure. To be successful, however, the United States and its allies must increase the speed and volume of their engagement with developing countries, offering projects and loans that exceed those of Chinese lenders in quality while being competitive in cost and timeliness. The Trump administration should therefore advance the planned restructuring of the former US Agency for International Development (USAID) under the State Department or the Development Finance Corporation (DFC), resuming support for partner countries in need of economic assistance.

Moreover, given tight national budget constraints, the Bretton Woods institutions should be more tightly integrated in a strategy to support friendly countries in the developing world. To do so successfully, they will need to remain firmly under Western control. However, to preserve their legitimacy as international institutions, they will need to stay focused on their essential mandates, which still enjoy widespread support.

However, the past few decades have shown that a strategy based merely on loans and development aid is not enough. Developing countries also require better market access to boost exports and raise their growth trajectories. While this will be hard to legislate both in the United States and Europe, there could be significant long-term benefits from a gradual market opening. First, it would preempt Chinese companies from cornering markets in countries with strong population growth, and second, pressures for migration could diminish as income in source countries would rise over time. Taking the long view, healthy trade and investment relations with the dynamic economies of tomorrow would benefit the standing of the US dollar.

Finally, the use of sanctions as a tool to achieve geopolitical objectives is a double-edged sword, and they should be used in a more targeted and sustained manner. The primacy of the dollar enables the United States to effectively exclude targeted individuals and economies from the global financial system. However, the effectiveness of sanctions declines over time as actors find ways to circumvent them; at worst, the broad application of sanctions against other countries can lead to a reorientation of global trade and financial relations that could undermine the dollar’s preeminence. For example, the desire of BRICS countries to develop alternatives to the use of the dollar may be inconsequential at present, but it could eventually become one of many factors that relegate the dollar to a less dominant position in global payments and reserve arrangements.

Preserve military superiority

The US National Security Strategy (NSS) recognizes China as a major national security challenge, emphasizing its ambition and capacity to alter the rules-based international order. As a result, the 2022 National Defense Strategy (NDS) focuses on bolstering US deterrence against China, with a strong emphasis on collaboration with allies and partners. Russia also poses a direct threat to US and transatlantic security, particularly in light of its invasion of Ukraine and the resurgence of traditional warfare in Europe. Additional challenges include threats from North Korea, Iran, and terrorist organizations as well as the rise of authoritarian powers, disruptive technological advancements, global economic inequality, pandemics, and climate change.

To preserve its power, strengthen deterrence, and build an enduring advantage, the United States should better integrate its military efforts with the other instruments of national power, such as economics and diplomacy. In an era defined by strategic competition and the rapid diffusion of disruptive technologies, preserving technological superiority is essential. This requires robust investment in research and development, particularly in innovative technologies like advanced weapons systems, satellites, AI, autonomous systems, and human-machine teaming to enhance the efficiency and effectiveness of US military forces.

The US defense budget, which was $816 billion in 2023 (see Figure 6), constitutes about 40 percent of global military spending and is projected to increase by 10 percent by 2038 (after adjusting for inflation), reaching $922 billion (in 2024 dollars), according to the CBO; 70 percent of that increase would go to compensate military personnel and pay for operations and maintenance. However, defense spending comprises 3.5 percent of US GDP, down from 5.9 percent in 1989, and 13.3 percent of the federal budget compared to 26.4 percent in 1989 (see Figure 7).

Figure 6. US military spending has increased sixfold from 1980 to 2023 (in billions of dollars)

Source: SIPRI military expenditure database, https://www.sipri.org/databases/milex.

Figure 7. US military spending has remained steady as a percentage of GDP but fallen as a share of federal spending (1980–2023)

Source: Peter G. Peterson Foundation, https://www.pgpf.org/article/chart-pack-defense-spending/.

During the first Trump administration, the US defense budget saw significant increases focusing on military modernization and development of new technologies, as well as the creation of the Space Force as a new branch of the military aimed at addressing emerging threats in space. The second Trump administration will likely focus on increasing defense budgets as the “peace through strength” doctrine advocates for a robust military presence to strengthen deterrence.

Aligning defense spending with the goals of the NDS requires prioritization of investment in nuclear modernization, missile defense and defeat programs, and resource allocations across air, sea, and land forces in line with strategic objectives, ensuring the efficient use of budgetary appropriations with a focus on the quality of military capabilities over quantity.

This effort would help sustain the global dominance of the US dollar by deterring geopolitical challenges and ensuring stability in international financial and trade systems, minimizing economic coercion, and reassuring global investors of the security and profitability of the US market. The US Navy plays a crucial role in securing global trade routes by keeping sea lanes open, facilitating the free flow of goods and capital. Additionally, strategic alliances and security arrangements with key oil-producing nations, particularly the Gulf states and Saudi Arabia, reinforce the petrodollar system, sustaining global demand for the US dollar in energy markets. Furthermore, US military and geopolitical strength underpin the credibility of economic sanctions, a critical tool of financial influence and dollar dominance.

Leverage military alliances

The 2022 US NSS emphasized alliances and partnerships as fundamental aspects of the US foreign policy to maintain a competitive edge in an era of strategic competition, including military collaboration, economic partnerships, and diplomatic interactions throughout the transatlantic and Indo-Pacific regions. In this aspect, strengthening relationships with key partners such as India and Japan is regarded as pivotal in addressing China’s increased influence. This includes joint military exercises, as well as sharing intelligence, and combining resources for defense initiatives.

The United States should collaborate with allies to create a secure environment by prioritizing comprehensive resilience in a community that can effectively respond to any security or defense crisis posed by adversaries, authoritarian regimes, malign state and nonstate actors, disruptive technologies, or threatening global events such as pandemics and climate change.

To bolster national security, strengthen military capabilities, foster economic resilience, and maintain global competitiveness, the US administration must prioritize a robust division of labor and responsibilities across key strategic areas, such as manufacturing, military operations, supply chain management, and weapons production. The division of labor with allies and partners enhances further efficiency and productivity, allowing partners to focus on their strengths, streamlining processes in specialized manufacturing companies while reducing costs, and providing access to advanced technologies critical for national defense. Pooling resources and know-how enables allies to share advanced technologies, coordinate and streamline production processes, and build strategic stockpiles.

Collaboration with allies plays a vital role in fostering resilient and redundant supply chains that are critical for diversifying sources of critical materials and reducing vulnerabilities in the face of global disruptions; it also fortifies national defense while promoting mutual security and economic stability. Securing critical supply chains is crucial to safeguard national security and the US administration should develop a National Defense Industrial Strategy to coordinate efforts across government agencies to prioritize resilience and protect the integrity of supply chains critical to defense manufacturing and operations.

Some elements of the above are already in place but need further enhancement and stronger commitment, particularly by leveraging economic opportunities. The United States must align economic and security interests within its alliances. Strengthening NATO’s economic coordination can ensure allies remain integrated into the dollar-based system through trade and defense procurement; it also can promote dollar-based investments in European defense, especially as European NATO partners are committing more resources to the defense sector.

Similarly, an expansion of international alliances and cooperation with a larger number of countries would reinforce dollar-based trade conditions in security agreements and promote standardization with US financial institutions among Indo-Pacific partners. Recommended actions include:

  • Expanding the AUKUS security pact (with Australia and the United Kingdom) and the role of the “Quad” alliance (including Australia, India, and Japan) in economic security.
  • Enhancing naval cooperation in key maritime regions and with nations that control strategic trade chokepoints.
  • Increasing coordination through a strategic allied council, as warranted.

In addition, effective communication would be essential to articulate the nature of the threat with clarity and promote credible narratives to safeguard the information space against propaganda campaigns, cyber influence operations, and the weaponization of social media. Proactive information strategies devoted to strengthening partnerships with like-minded democratic nations can protect public trust and reinforce resilience.

The bull sculpture in front of the Shenzhen Stock Exchange in Shenzhen, China. Source: Shutterstock.

Assumptions and alternatives

This strategy paper is based on several assumptions that are central to its proposals and the period over which they should be implemented.

  • First, there is no fundamental change in the principal characteristics of the Chinese economy, namely a heavy degree of state intervention and a closed capital account. India is also assumed to maintain capital account restrictions, and Europe will not implement a single capital market for some time. A change in these conditions could prompt some reserve flows into the respective currencies, but it would still be deemed unlikely that capital markets in these countries would evolve to a point where they could compete with the United States in depth and liquidity.
  • Second, US deterrence in key military theaters (Europe, South China Sea, Korean Peninsula) will remain effective for the time being, and the United States does not get drawn into an active military conflict, for example, over Taiwan. Otherwise, the United States would have to shift toward a more decisive and short-term war strategy.
  • Third, the United States remains dominant, or at least competitive, in developing critical technologies such as AI, microchip production, cryptology, and communications. It will be able to defend strategic assets, such as major military bases, carrier groups, space technology, or command, control, and communications (C3) infrastructure, against physical or virtual attacks. Failure to do so would make the United States more dependent on the technological capacities of its allies, requiring more effective coordination and systems integration that would be hard to achieve over a short time horizon.
  • Fourth, another important assumption is that the new administration will also realize that the United States is indeed lacking the resources to remain the sole military hegemon for much longer. Adopting a more realistic approach will not come without challenges to its own credibility, as the wider US public has yet to realize that technological progress has narrowed the military advantage held by the United States over its competitors, that the room for discretionary government spending could narrow dramatically over the coming years, and that US manufacturing would not be capable of supporting a major military conflict for long. In the event of a future conflict, public support for the Trump administration, or for any US government down the road, could evaporate quickly if these expectations were not corrected through public communication in good time.

The new administration may fear that collaborating more closely with political allies, including the necessary compromises it would require, could lead to a perception that foreign interests are driving US policies. At the same time, the increasing cooperation between China, Russia, and North Korea highlights that the Trump administration would not be able to focus on China alone, as it has stated in the past, while leaving its European partners to deal with Russia entirely by themselves. On the contrary, the lack of an effective European nuclear deterrence might force Europe to increasingly fulfil Russia’s geopolitical demands to avoid armed conflict, potentially allowing Russia to undermine political and economic relations between the United States and Europe. Since Europe remains the United States’ largest trading and financial partner by a significant margin, it should be clear that such a strategy would be entirely self-defeating.

As for some of the tariff and exchange-rate pronouncements by the Trump administration, it is important to keep in mind that an economy with free capital movements and an independent monetary policy cannot pick a specific value for its foreign exchange rate (the “impossible trinity” of economics). In the case of the United States, this means that an imposition of tariffs to weaken the dollar, as has been floated by President Donald Trump during the election campaign, will not change the fact that the US dollar exchange rate remains market determined as long as the United States allows unrestricted capital inflows and outflows and has an independent Federal Reserve. In particular, the exchange rate of the dollar would continue to reflect differentials in saving rates among major trading partners, over which the United States has limited influence.

If the new administration were serious about attempting to depreciate the value of the dollar, it could only do so by undermining its appeal as a safe asset to foreign investors. One way to do this would be to renege on the US commitment to free and open trade and capital flows, which have formed the basis for robust growth over many decades. Tampering with the independence of the Federal Reserve, let alone with the US legal system more broadly, could trigger significant financial volatility, including increases in the market interest rate on US government debt, major stock market losses, and a shock to the US economy that could dwarf any gains from what might be considered as a more favorable exchange rate. The self-defeating nature of such moves would quickly become evident; but if confidence is lost, it would be difficult to restore.

Indeed, there are few credible alternatives for any US administration other than leveraging the strength of the US economy and its currency against the growing autocratic threat while operating in close alliance with other democracies.

  • Withdrawing into self-isolation, as in the 1930s, could provide a false sense of security in today’s interconnected world. It would undermine the global dominance of the dollar by weakening its economic and strategic influence as allies and partners may hedge against US unpredictability, seeking alternative financial systems to diversify. Moreover, such a policy would allow other countries to occupy geostrategic positions to the detriment of the US economy and national security.
  • Similarly, accommodating strategic opponents like Russia or China would undermine trust in US leadership and lead to strategic losses in all theaters. Without the United States providing strong global leadership, other countries would not be able to thrive without catering to the interests of the other powers, and the United States could enter a phase of economic decline.

Finally, the most likely alternative to the strategy outlined above would be that the United States remains mired in a polarized political environment that leads to short-sighted policy decisions that fall short of the strategic challenges ahead. Most importantly, the United States would not be able to improve its fiscal situation and eventually would lack the resources needed to maintain its strategic financial and economic dominance and the superiority of the dollar. The continued erosion of US power might not be catastrophic for the United States itself, but it could trigger bouts of political instability and economic volatility around the globe, with negative consequences for the role of the US dollar and the welfare of US citizens.

Conclusion

This paper outlines a strategy for the United States to maintain dollar dominance. It argues that the United States will likely remain the world’s largest economic and military power, though it will face increasing difficulties in pursuing its strategic objectives on its own. There is a risk of military overreach as US defense spending is competing with other public expenditure priorities. Additionally, high fiscal deficits could further weaken the exorbitant privilege that has enabled the United States to sustain large fiscal and currency account deficits in the past.

The stakes are now higher compared to eight years ago, when Trump first took office, both because of the run-up in public debt during that period and because Russia and China are now more closely aligned in trying to weaken the democratic West. While reining in the fiscal deficit and boosting the US economy’s growth potential, the administration should proceed cautiously, preserving economic and diplomatic relations with existing allies. The United States should also strengthen partnerships with emerging markets and the developing world, where countering China’s efforts to co-opt countries into its economic and political orbit should become a strategic priority.

Atlantic Council Strategy Papers Editorial Board

Executive editors

Frederick Kempe
Alexander V. Mirtchev

Editor-in-chief

Matthew Kroenig

Editorial board members

James L. Jones
Odeh Aburdene
Paula Dobriansky
Stephen J. Hadley
Jane Holl Lute
Ginny Mulberger
Stephanie Murphy
Dan Poneman
Arnold Punaro

The Scowcroft Center is grateful to Frederick Kempe and Alexander V. Mirtchev for their ongoing support of the Atlantic Council Strategy Paper Series in their capacity as executive editors.

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1    Gross domestic product at purchasing power parity (PPP) reflects differences in international price levels and offers the best concept to compare economic output and living standards across countries. According to this measure, the global share of US GDP has declined from 20 percent in 2000 to 15 percent in 2024. See, e.g., IMF Datamapper, https://www.imf.org/external/datamapper/PPPSH@WEO/OEMDC/ADVEC/WEOWORLD/USA.
2    The BRICS grouping has expanded beyond its core nations of Brazil, Russia, India, China, and South Africa. The ten non-Western nations in the coalition “now comprise more than a quarter of the global economy and almost half of the world’s population”; see Mariel Ferragamo, “What Is the BRICS Group and Why Is It Expanding?,” Council of Foreign Relations, December 12, 2024, https://www.cfr.org/backgrounder/what-brics-group-and-why-it-expanding.
3    Barry Eichengreen, Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System (Oxford: Oxford University Press, 2011).
4    This means that, for example, if the United States could sustain a maximum public debt level of, say, 200 percent of GDP, the loss of dollar dominance would reduce this level to 164 percent of GDP. See Jason Choi, et al., “Exorbitant Privilege and the Sustainability of US Public Debt,” NBER Working Paper 32129, National Bureau of Economic Research, February 2024, https://doi.org/10.3386/w32129.

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Could Trump be ‘mediator-in-chief’ for Turkey and Israel in Syria? https://www.atlanticcouncil.org/blogs/menasource/could-trump-be-mediator-in-chief-for-turkey-and-israel-in-syria/ Mon, 19 May 2025 18:52:09 +0000 https://www.atlanticcouncil.org/?p=847607 If Trump wants to achieve the Middle East's “deal of a century," its important that Netanyahu and Erdogan resolve their differences in Syria.

The post Could Trump be ‘mediator-in-chief’ for Turkey and Israel in Syria? appeared first on Atlantic Council.

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If US President Donald Trump still aspires to achieve a historic “deal of a century” in the Middle East, ensuring that Israeli Prime Minister Benjamin Netanyahu and Turkish President Recep Tayyip Erdogan resolve their differences in Syria will prove to be an important part of the equation.

Israel has many concerns about what happens in Syria following the fall of Bashar al-Assad’s regime, not least of which are about Turkey’s growing influence and efforts to establish a military presence there. Netanyahu and Erdogan have a long list of grievances against one another, and relations between Turkey and Israel are at perhaps their lowest point in history.

But Netanyahu has a chance to turn tactical challenges into strategic opportunities, rather than continuing the fool’s errand of trying to shape Turkey’s role in Syrian affairs through military force. The Israeli prime minister should take Trump up on his offer to help Israel and Turkey figure out how to “get along.”

In recent weeks, Azerbaijan has facilitated at least two meetings between Turkey and Israel to discuss their respective interests in Syria, which should be applauded. As a country that has diplomatic relations with both countries, Azerbaijan is uniquely able to mediate between Israel and Turkey. However, Azerbaijan is particularly close to Turkey and has its own interests in Syria, particularly with respect to energy resources and economic partnerships.

Trump advertised his willingness to mediate between Israel and Turkey while sitting alongside Netanyahu in the Oval Office during his April visit to Washington. As Israel and Turkey compete for influence in Syria, in dramatically different ways and for different reasons, a Turkey-Israel detente is a deal Trump would be wise to support, particularly for the sake of stability in Syria.

Israel and Turkey’s rollercoaster relationship

Turkey and Israel have a complicated history. Turkey was the first Muslim-majority country to recognize Israel in 1949, and it recognized the Palestinian state in 1988. Israel and Turkey, however, kept their bilateral relationship fairly quiet until the 1990s. The decade saw both positive and negative regional shifts that allowed the two to deepen diplomatic, security, and economic relations, including:  former Iraqi leader Saddam Hussein’s attack on Kuwait, the rise of Kurdish separatist and Islamic fundamentalist movements, Turkish tensions with Greece over the Aegean islets, and the 1993 Oslo Accords. But tensions began to rise in the early 2000s with the collapse of the Israeli-Palestinian peace process and the onset of the second intifada, and Erdogan’s rise to power. They severed, however, after the 2009-2010 Israel-Gaza war, and the Israeli interception of the Turkish Mavi Marmara flotilla bound for Gaza in 2010. Bilateral relations have never returned to pre-2010 levels.

Today, there is no love lost between Erdogan and Netanyahu, but Syria presents a good excuse to try to mend ties. With Turkey seeking to establish a military presence in Syria, and Ankara’s ongoing support for interim President Ahmed al-Sharaa’s government, Turkey and Israel are now also effectively neighbors. Both Erdogan and Netanyahu also fancy themselves friends of Trump and want to stay on the right side of his ledger.

Incentives to get along in Syria

According to Turkish and Israeli officials, the two countries have created a deconfliction mechanism for their Syria operations—a communication channel aimed at avoiding unintentional military clashes between Turkish and Israeli forces there. This is a smart and operationally essential move. But given the current tenor of relations between Turkey and Israel, more than just deconfliction will be needed to prevent escalation between the two countries, particularly if Israel continues to conduct airstrikes deep in Syria and Turkey establishes a consistent presence there. 

When Russia intervened militarily in Syria in 2015, Israel understood that it needed to both avoid an accidental military escalation with Moscow by deconflicting its military operations against Iranian-backed militias there, as well as strengthen its diplomatic relationship with Russia to maintain an open communication channel with its then-new “neighbor.” During the following year, Netanyahu met Russian President Vladimir Putin at least four times—more frequently than he met any other head of state. 

With the fall of the Assad regime, Israel faces a whole new set of challenges in Syria.

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Assad was no friend of Israel, but during his tenure, Israel had gotten comfortable with a relatively predictable, if risky, status quo. When al-Sharaa assumed power, everything became uncertain. For the first time in decades, the leader of Syria did not consider Israel an enemy state. Al-Sharaa even clearly stated he had no interest in picking a fight with Syria’s “neighbors,” including Israel. 

On the other hand, as Israelis are quick to remind anybody who mentions al-Sharaa’s name, he was previously known under the nom de guerre Mohammed Abu al-Jolani and has Islamist roots as a former member of al-Qaeda and leader of the al-Qaeda offshoot Hayat Tahrir al-Sham (HTS). Israel fears he may one day want to reclaim his namesake, the Golan Heights. So far, al-Sharaa has mostly said all the right things as he tries to stabilize and rebuild a governance structure in Syria, despite numerous impediments. But Israel is understandably skeptical and fearful of Syria’s new leadership and environment.  

Still reeling from the October 7, 2023 Hamas attacks in the south and Hezbollah strikes in the north, Israel has taken a forward-leaning military approach in Syria that seems to be focused on pushing threats away from its borders, flexing its military muscle to make its presence and capabilities known, and trying to keep Turkey out. Rather than keeping to its own side of the Syrian border and protecting Israeli sovereign land in all the ways Israel has long known how to do, Israel maintains outposts along the Syrian side of the border and has repeatedly conducted airstrikes within Syria. As Israel’s military engagement in Syria has expanded, Israel has gotten the Syrians’ attention and again made itself an enemy. 

How can the US help 

It was apparent from the statement Netanyahu released upon his return home from Washington that he and Trump have a different view of Turkey in Syria.

Israel would prefer minimal Turkish influence, while Trump has repeatedly publicly expressed high praise for Erdogan and applauded him for Turkey’s role in overturning the Assad regime. It seems clear that the United States will not be helping Israel push Turkey out of Syria. Still enmeshed in Ukraine, it seems unlikely Russia would do much, either, to advocate for its own expanded engagement in Syria. 

US President Donald Trump and Turkish President Tayyip Erdogan gesture as they talk at the start of the NATO summit in Brussels, Belgium, July 11, 2018. REUTERS/Kevin Lamarque

Trump prefers not to start or get involved in wars, and his administration has cut off the majority of foreign assistance to traditional US partners, particularly to support civil society, governance building, educational programs, and other elements of US soft power. 

For better or worse, it is unlikely that Trump would seek to get involved in Syria’s internal affairs or al-Sharaa’s efforts to rebuild the Syrian state. 

But Trump likes making deals, and he seeks to expand the Abraham Accords and achieve Saudi-Israel normalization. 

For the sake of both of those goals, Washington should be concerned that Syria is given a chance to become a stable, secure, and prosperous country, without external actors like Turkey and Israel using Syrian territory to fight their own battles. President Trump’s meeting with al-Sharaa in Riyadh and announcement that Washington will remove sanctions on Syria reflect that he understands Syria’s stability and prosperity are in his interest, too. Trump may even have his sights on achieving Syria-Israel normalization, but that is still at least a ways off. Working toward Turkey-Israel detente in Syria would be a good place to start. 

Washington’s mediation between Turkey and Israel in Syria also has uniquely bipartisan Congressional support, notably from Republican Senate Foreign Relations Committee Chairman Jim Risch and Democratic Ranking Member Jeanne Shaheen. 

In April, the committee leaders sent a letter to US Secretary of State Marco Rubio and  Treasury Secretary Scott Bessent urging the Trump administration to remove barriers to US engagement with Syria. The bipartisan senators noted that the “growing competition between Israel and Türkiye over Syria’s trajectory […] may threaten American interests,” and urged the administration “to move quickly to mediate between our allies.”

Trump’s unpredictable and often unconstrained approach to decision-making confers him a certain amount of leverage. His bellicose nature and broader regional interests, combined with Israeli and Turkish interest in avoiding a direct military confrontation, might be just enough to force the right Israeli and Turkish officials into a room together to figure out how to get along.

The US president could also encourage both parties to take a constructive role in helping Syria to stabilize and rebuild. Al-Sharaa knows Syria needs external support, but he has also made clear that he will not pledge allegiance to any one benefactor or tolerate external manipulation. Trump should be telling Turkey to let al-Sharaa lead in the Turkey-Syria relationship, and he should be pressuring Netanyahu to hold fire and give diplomacy a chance, with Turkey in the near term, and then maybe eventually also with Syria. 

None of this is easy, and Trump has already set out to negotiate a number of foreign policy deals, very few of which have come to fruition. But this one is worth the shot—and would be a meaningful win if achieved. 

Rachel Brandenburg is the Washington Managing Director and Senior Fellow at the Israel Policy Forum, and an Adjunct Senior Fellow at the Center for New American Security.

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Experts react: What message did Romanians send by electing Nicusor Dan? https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/what-message-did-romanians-send-by-electing-nicusor-dan/ Mon, 19 May 2025 14:48:39 +0000 https://www.atlanticcouncil.org/?p=847523 The mathematician and mayor of Bucharest came out ahead of his right-wing rival on May 18. Atlantic Council experts sum up the election results and the implications.

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The math adds up. On Sunday, Nicusor Dan, the mayor of Bucharest and a former mathematics professor, was elected as the next Romanian president. With more than 53 percent of the vote, the pro–European Union (EU) Dan beat out right-wing candidate George Simion. Dan’s victory comes after the Romanian Constitutional Court’s controversial decision to annul the country’s November 2024 presidential election following allegations of Russian interference. Below, our experts count up the ways that the election’s outcome matters for Romania, for EU and NATO support for Ukraine, and for the future of Eastern Europe.

Click to jump to an expert analysis:

Daniel Fried: Dan ran a pro-Europe, pro-NATO, and pro-Ukraine campaign

Victoria Olari: The implications of Dan’s win will ripple across Eastern Europe

Anca Agachi: Romanians don’t want more of the same, so how will Dan be different?

Mark Scott: It was an election fought as much online as offline

Andrei Covatariu: After the election, can Romania’s energy diplomacy bridge Brussels and Washington?

Olga Khakova: Energy policy can help build the coalition and strengthen the country


Dan ran a pro-Europe, pro-NATO, and pro-Ukraine campaign

There are two lessons to take from Romania’s presidential elections. First, Romanians seemed turned off by the establishment parties that have traded off running the government for decades. The candidate of the ruling coalition didn’t make it past the first round; and Dan and Simion were both seen, Romanians tell me, as alternatives to the ruling coalition. Second, despite predictions (or fears), the preference for an outsider didn’t translate into a preference for a nationalist or anti-EU firebrand, which is how Simion ran his campaign. Dan, a mathematician by training, ran a campaign that was pro-Europe, pro-NATO, and pro-Ukraine. 

Simion appeared to enjoy support from Russia, and plenty of stories are circulating of Russian information ops in his favor. He had maintained distance from Russian President Vladimir Putin (wise in Russo-skeptic Romania) and instead courted the Make America Great Again (MAGA) movement in the United States, even visiting the United States during the campaign. But this did not translate into enough support at home.   

Dan’s win is decisive, but it alone will not overcome the divisions in Romanian society. Romanians have voted for Europe and democracy, not nationalism, but they also seem to want change in the form of better governance. Dan will have a mandate but a big job ahead. 

Daniel Fried is the Weiser Family distinguished fellow at the Atlantic Council and a former US ambassador to Poland.


The implications of Dan’s win will ripple across Eastern Europe

Romania’s presidential runoff turned into an intense race with significant stakes for the nation and the wider region. Dan won, an outcome expected mainly given the high voter turnout, offering him a strong democratic mandate. 

From the early hours of election day, Simion’s ultra-nationalist camp signaled that they would not accept a loss. They took to social media with accusations of fraud and amplified fake news stories that mimicked legitimate outlets and falsely declared Simion the winner. Simion told his supporters not to trust the exit polls, claiming that political elites had manipulated the results behind the scenes. His team also accused foreign actors of interference, notably targeting Moldova’s president, Maia Sandu, for allegedly mobilizing Romanian voters in Moldova. This followed an unprecedented voter turnout there in the second round, partly spurred by Simion’s hostile rhetoric toward Moldova. The nationalist camp further alleged meddling by France, specifically accusing President Emmanuel Macron of election interference. 

Despite these efforts, the election results left little room for dispute. Dan secured a mandate from Romanians. Simion conceded early Monday morning, marking the end of a tense and polarized campaign. 

This election isn’t just about Romania. It’s a big deal for the region, too. A win for Dan will likely lock in Romania’s commitment to the EU and NATO, a vital move as Russia’s war in Ukraine continues to unsettle the region. This is critical, as Romania’s strategic position strengthens regional security and support for Kyiv. Additionally, it will likely bolster Moldova’s EU integration efforts under Sandu, fostering closer Romania-Moldova ties and countering Russian influence. On the other hand, a Simion victory would have likely emboldened far-right movements across Europe, disrupted regional unity, and undermined support for Ukraine, which Simion openly opposed. 

Even with all the divisions, Romanian voters sent a loud message: they reject the old political elite. Both Dan and Simion positioned themselves as anti-system challengers, capitalizing on widespread frustration with corruption and governance failures. This call for change is real, and it’s going to continue to shape Romania’s future.  

Victoria Olari is a research associate for Moldova at the Atlantic Council’s Digital Forensic Research Lab (DFRLab).


Romanians don’t want more of the same, so how will Dan be different? 

“Hope and patience.” This is what Dan, the now president-elect of Romania, asked for in his speech when the first exit polls were released. 

Patience because his mandate will be an incredibly difficult one. Immediately, he will have to choose a prime minister and help establish a pro-European political coalition in the Romanian Parliament, one third of which is made up of far-right parties. He will need to help build trust in an economy that has the EU’s highest budget deficit compared to gross domestic product. And he will need to lead the country’s foreign policy at a time when the regional context for Romania has never been more dangerous given Russia’s continued war in Ukraine. In the long term, Dan will have to face down the unaddressed root causes of discontent that gave oxygen to far-right parties in the first place and brought Romania to the brink of disaster. The country is plagued by poverty, inequality, a failing public health system, corruption, and inefficient, unresponsive, and distrusted state institutions, as well as a forgotten diaspora. He will have to “rebuild a one Romania” together with a divided population. 

But Dan was also right to ask for hope. In the election result Sunday, Romania decided it cannot go back, and Romanians have firmly made the choice to remain anchored in the Western, transatlantic community. Despite external pressures, disinformation campaigns, suspicions of Russian interference, and fears of a contested election result, Romanians made it clear that they are European. But the same voters who turned out in massive numbers for two anti-system candidates also made it clear that more of the same in Romanian politics is simply not acceptable. This is the hope and the opportunity Romania is facing—starting now. 

Anca Agachi is a nonresident fellow with Transatlantic Security Initiative in the Atlantic Council’s Scowcroft Center for Strategy and Security. She currently serves as a defense policy analyst at the RAND Corporation, where she focuses on international security and defense issues.


It was an election fought as much online as offline 

Faced with a barrage of false online information, potential foreign interference, and opaque practices by social media companies, Romania’s second-round presidential election held up to scrutiny—but only just. In the hours before Dan was elected, Simion took to X to proclaim himself as Romania’s new president, only to backtrack on that claim when the official tally gave Dan the final victory.

Pavel Durov, the chief executive of Telegram, the popular messaging service, also took to his platform and other social networks to accuse “a Western European government” of urging Telegram to “silence conservative voices in Romania.” The Russian tech boss subsequently named that country as France, though Paris denied any potential interference in the Eastern European country’s election.

More than any other recent European election, Romania’s vote has been riddled with potential digital attacks on local democratic institutions, including scores of cyberattacks that the country’s security forces suggested may have come from Russia. In response, Romanian officials and those from the European Commission have criticized social media companies for not doing enough to combat malign actors, both in and outside of the country.

Yet even hours after Dan was officially named as Romania’s next president, little, if any, evidence about the role these global platforms played in promoting election-related falsehoods has been made public. Local voters remain mostly in the dark about how social media—and potential bad actors—may have targeted them in this weekend’s election. That has left more questions than answers as policymakers, tech giants, and the public try to unpack how Dan successfully saw off Simion in an election that was fought as much online as offline. 

Mark Scott is senior resident fellow at the DFRLab’s Democracy + Tech Initiative within the Atlantic Council Technology Programs.


After the election, can Romania’s energy diplomacy bridge Brussels and Washington? 

Romania avoided a political shock this weekend as pro-European candidate Dan defeated right-wing populist Simion. The result reassures Romania’s continued commitment to EU and transatlantic partnerships. Yet, after months of political turbulence and voter polarization, restoring macroeconomic stability now depends on forming a new government—no easy feat despite a pro-European majority in Romania’s Parliament. 

The election outcome has implications for Romania’s strategic energy direction, too, even though energy and climate policy were not prominently featured in the campaign debates. Dan has pledged to keep Romania on its path of regional energy relevance, proven over the past few years, and to enhance the existing cooperation with the United States and the EU. His platform includes proposals to create a national energy champion, reduce Romania’s energy dependencies on authoritarian regimes, support strategic investment (including in data centers), and deepen ties with Moldova and Ukraine. His strong backing for EU enlargement further strengthens Romania’s geopolitical and energy role in Central and Eastern Europe (CEE). 

At the same time, Romania—like other CEE states—faces a growing tension between the EU’s accelerated decarbonization push and the United States’ emphasis on “energy freedom,” as recently articulated by US Energy Secretary Chris Wright at the Three Seas Business Forum in Warsaw. This divergence presents both challenges and opportunities. The Romanian president can play a key role in expanding the win-set between Brussels and Washington through enhanced energy diplomacy—advancing nuclear partnerships (notably small modular nuclear reactors with US support), Black Sea gas development, cross-border infrastructure with Ukraine and Moldova, and clean generation scale-up. Romania also has the potential to become a clean technology manufacturing destination, supporting both EU goals and transatlantic alignment in a shifting geopolitical landscape.  

By advancing projects that resonate in both Brussels and Washington, Romania can amplify its geopolitical weight in the energy space. 

Andrei Covatariu is a nonresident senior fellow with the Atlantic Council’s Global Energy Center.


Energy policy can help build the coalition and strengthen the country 

This anti-establishment, anti-corruption vote presents a historic opportunity for the new Romanian leadership to use this mandate to build on previous positive energy reforms. The next Romanian government has a chance to engage with the population to forge a secure, resilient, and diversified energy strategy that can attract new deals and investments in the energy sector. 

However, the close election results showcase that national concerns such as energy prices, reliability, and industrial competitiveness helped drive a significant percentage of voters to support the candidate with a nationalistic platform. The good news is that Romania can prioritize domestic issues through stronger partnerships and deeper regional integration: developing Black Sea resources, integrating electricity and gas interconnections with neighboring countries, and making progress on nuclear agreements with countries like the United States. 

Romania has led on diversification from Russian energy sources and support for Ukraine and Moldova’s energy security. The new coalition can lead by example in fortifying the region from backsliding into Russian natural gas dependence, as seen in the growing Russian liquefied natural gas shipments to the EU. 

Moreover, a strong energy agenda could also be a unifying platform for building the ruling coalition. 

Olga Khakova is the deputy director for European energy security at the Atlantic Council’s Global Energy Center.

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Why Romania chose centrism in the end https://www.atlanticcouncil.org/content-series/fastthinking/fast-thinking-why-romania-chose-centrism-in-the-end/ Mon, 19 May 2025 01:26:49 +0000 https://www.atlanticcouncil.org/?p=847493 Following Bucharest Mayor Nicusor Dan's election win, our experts give their takes on what to expect next for Romania and for the country's relations with the world.

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JUST IN

Dan’s the man. Bucharest Mayor Nicusor Dan won Sunday’s Romanian presidential election, a triumph for centrist, pro-European forces in a country that has been roiled by six months of electoral upheaval. “We need to build Romania together irrespective of who you voted for,” Dan told cheering supporters. His populist, far-right challenger, George Simion, claimed fraud and initially claimed victory, but conceded hours later. This election followed a canceled presidential race in December, when Romanian authorities determined that another populist, far-right candidate, Calin Georgescu, had violated campaign-finance rules and was the beneficiary of a dodgy social media campaign; he was later barred from running again. How did Dan triumph? What can we expect next for Romania and for the country’s relations with the world? We turned to our experts to parse the polls.

TODAY’S EXPERT REACTION BROUGHT TO YOU BY

Why Dan won

  • Dan may be a centrist, but he was not the chosen candidate of Romania’s ruling coalition. “Romanian voters sent a loud message: They reject the old political elite,” Victoria says. “Both Dan and Simion positioned themselves as anti-system challengers, capitalizing on widespread frustration with corruption and governance failures.” 
  • But at the same time, “the preference for an outsider didn’t translate into preference for a nationalist or anti-EU firebrand, which is how Simion ran his campaign,” Daniel tells us. Instead, voters picked a mathematician who “ran a campaign that was pro-Europe, pro-NATO, and pro-Ukraine.” 

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The foreign factor

  • While Russia appeared to back Simion, Daniel points out that Simion “maintained distance from Russian President Vladimir Putin (wise in Russo-skeptic Romania).”  
  • Instead, the populist candidate courted US President Donald Trump’s Make America Great Again movement, traveling to the Conservative Political Action Conference and appearing on Steve Bannon’s podcast. “But this did not translate into support at home,” Daniel notes.   
  • Victoria points out that on Sunday, Simion’s supporters “flooded social media with accusations of fraud and amplified fake news stories that mimicked legitimate outlets and falsely declared Simion the winner.” Simion and his backers also accused the presidents of both Moldova and France of meddling in the election. “These actions risk deepening Romania’s societal polarization,” Victoria says.  
  • But Simion did concede in the end, turning the focus to what Dan’s win will mean for the region. Victoria notes that Dan’s pro-Ukraine stance “strengthens regional security and support for Kyiv.” Dan’s victory will also boost neighboring Moldova’s integration efforts with the European Union, she adds, “fostering closer Romania-Moldova ties and countering Russian influence.” 

Romania’s road ahead

  • While Romanians “made it clear” with their vote that “they are European,” Dan’s mandate will still be “an incredibly difficult one,” Anca cautions, as the newly elected president will need to choose a prime minister to form a pro-European political coalition in the parliament, where far-right parties hold one-third of the seats. 
  • His immediate task will involve building trust in an economy with the highest budget deficit in the European Union (as a percentage of gross domestic product), while guiding foreign policy “at a time when the regional context for Romania has never been more dangerous, given Russia’s continued war in Ukraine,” Anca says. 
  • To succeed in the long run, “Dan will have to face down the unaddressed root causes of discontent,” Anca says—such as poverty, corruption, and distrust of state institutions—“that gave oxygen to far-right parties in the first place and brought Romania to the brink of disaster.” 

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A remarkable week for a rising Turkey https://www.atlanticcouncil.org/content-series/inflection-points/a-remarkable-week-for-a-rising-turkey/ Sat, 17 May 2025 12:00:00 +0000 https://www.atlanticcouncil.org/?p=847477 Turkey has gained relevance as an indispensable player from the Black Sea to the Levant, and from Central Asia to Europe.

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Geography is destiny.

The quote is sometimes attributed to Napoleon Bonaparte, but it might as well also be the working motto of Turkish President Recep Tayyip Erdoğan.

This past week, Erdoğan strung together a trio of geopolitical wins that underscored his success in leveraging his country’s size, military capability, and—perhaps most of all—geographic position to achieve outsize influence.

Erdoğan did this despite facing some of the biggest political protests he has weathered in years following the imprisonment of his political rival, Istanbul Mayor Ekrem İmamoğlu. It’s no wonder Erdoğan is harnessing international gains to shore up his domestic position.

The first victory was US President Donald Trump’s decision to lift sanctions on Syria’s new government. Turkey played a catalytic role in the December ouster of Bashar al-Assad, Erdoğan’s nemesis who had ruled Syria since 2000, when he succeeded his father. It was fitting that Trump included Erdoğan by phone in his meeting this week in Riyadh with Saudi Crown Prince Mohammed bin Salman and Syrian President Ahmed al-Sharaa.

Second, the Kurdish militant group known as the PKK announced this week that it will disband and end its armed struggle after months of Turkish backchannel diplomacy. There’s still a risk that the PKK could fragment into smaller groups that attack Turkey, but for now, the development is a win for the country’s security.

Third, Istanbul played host to the first direct peace talks between Ukrainian and Russian officials since March 2022, with US Secretary of State Marco Rubio also flying in from a meeting of NATO foreign ministers in the Turkish town of Antalya. Russian President Vladimir Putin was a no-show, which kept Trump from traveling to Turkey as well, and the two-hour meeting appears to have been fruitless. Yet it underscored Erdoğan’s ability to navigate both Moscow and Kyiv even while providing Ukraine with armed drones.

For years, some Western officials and analysts have dismissed Erdoğan as a populist authoritarian whose inflation-ridden economy was troubled and whose geopolitical ambitions were fantasy. But it now rings truer when Erdoğan says, as he did in December, “Turkey is bigger than Turkey. As a nation, we cannot limit our horizon to 782,000 square kilometers.”

None of this week’s wins are permanent. The jury is out on whether Syria’s new leadership can hold the country together. The PKK peace is fragile. Ukraine-Russia talks still don’t seem to be going anywhere. And other pressing questions remain unresolved, such as whether Erdoğan will be able to successfully manage relations with Israel given Israeli security concerns about the expanded Turkish military presence in Syria. However all that turns out, Erdoğan’s focus remains on protecting both his legacy and longevity after more than twenty years as prime minister and then president.

We might be a long way from a Pax Turcica. For now, however, Erdoğan and Turkey have gained relevance as an indispensable player from the Black Sea to the Levant, and from Central Asia to Europe, where the Turkish military will play a crucial role if Europe is to have the wherewithal to provide for Ukraine’s security—and its own.

What I’m reading

  • With doubts growing within NATO about the US nuclear umbrella, French President Emmanuel Macron specified three conditions for extending the protection of France’s nuclear weapons to European allies. We’ll keep monitoring the Trump transatlantic fallout.
  • “How do you know the day that you become old?” legendary investor Warren Buffett this week asked the Wall Street Journal as he announced he was stepping back at age ninety-four (for him, it was at age ninety).
  • We interrupt this report for an inflection point in US baseball, my non-geopolitical passion. Call me old-fashioned, but I hope the Hall of Fame won’t ever induct baseball’s all-time hits leader Pete Rose, who passed away last September, given his gambling on baseball. That said, I wish he’d lived to see Major League Baseball lift its banishment of “Charlie Hustle” from the game. 

Frederick Kempe is president and chief executive officer of the Atlantic Council. You can follow him on X: @FredKempe.

This edition is part of Frederick Kempe’s Inflection Points newsletter, a column of dispatches from a world in transition. To receive this newsletter throughout the week, sign up here.

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Charai in The Jerusalem Strategic Tribune: The Middle East at a Crossroads https://www.atlanticcouncil.org/insight-impact/in-the-news/charai-in-the-jerusalem-strategic-tribune-the-middle-east-at-a-crossroads/ Fri, 16 May 2025 12:08:26 +0000 https://www.atlanticcouncil.org/?p=847344 The post Charai in The Jerusalem Strategic Tribune: The Middle East at a Crossroads appeared first on Atlantic Council.

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Russia’s aerial attacks on Ukrainian civilians must not go unpunished https://www.atlanticcouncil.org/blogs/ukrainealert/russias-aerial-attacks-on-ukrainian-civilians-must-not-go-unpunished/ Thu, 15 May 2025 21:41:38 +0000 https://www.atlanticcouncil.org/?p=847307 Holding Russia legally accountable for the ongoing air offensive against Ukraine’s civilian population is particularly important as this form of total war looks set to make a return, write Anastasiya Donets and Susan H. Farbstein. 

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Editor’s note: This article was updated on May 16, 2025, to include additional context about different types of crimes against humanity.

While international attention focuses on the US-led effort to initiate peace talks between Russia and Ukraine, Moscow is dramatically escalating its aerial attacks on Ukrainian civilians. During the first twenty-four days of April, for example, UN officials verified 848 civilian casualties due to Russian bombardments, representing a forty-six percent increase over the same period in 2024.

Russia’s aerial offensive is a daily feature of the war that aims to terrorize the civilian population and render large parts of Ukraine unlivable. By bombing cities and energy infrastructure, the Kremlin hopes to force millions of Ukrainians to flee the country and break the will of the remaining residents to resist. Any future peace deal that sidelines this reality and fails to hold Russia to account would erode international law and set a disastrous precedent for future armed conflicts.

For the past one and a half years, the International Human Rights Clinic at Harvard Law School and the International Partnership for Human Rights have documented and analyzed Russia’s aerial attacks in Ukraine. This research is based on extensive fieldwork, witness interviews, open-source intelligence, and forensic analysis.

After reviewing hundreds of Russian drone and missile strikes, researchers narrowed the focus down to twenty-two key attacks and identified two patterns that illuminate their impact: Attacks on energy infrastructure and on densely populated areas. The legal memorandum resulting from this work concludes that Russia’s bombing campaign amounts to the crimes against humanity of extermination and persecution.

Stay updated

As the world watches the Russian invasion of Ukraine unfold, UkraineAlert delivers the best Atlantic Council expert insight and analysis on Ukraine twice a week directly to your inbox.

For three consecutive winters, Russia has bombed Ukraine’s energy infrastructure in a bid to deprive the civilian population of access to heating and electricity at a time when the days are short and temperatures are typically well below freezing. These attacks have had a devastating impact on the Ukrainian power grid, with around half of Ukraine’s entire prewar energy-generating capacity destroyed by summer 2024.

As well as targeted attacks on civilian infrastructure, Russia has also launched waves of drones and missiles at Ukrainian towns and cities throughout the invasion, causing widespread destruction and loss of life. There have been a number of particularly deadly attacks in recent weeks, including a ballistic missile strike on a playground in Ukrainian President Volodymyr Zelenskyy’s hometown, Kryvyi Rih, that killed eighteen people including nine children. On Palm Sunday one week before Easter, Russia launched a targeted strike on Sumy city center as civilians made their way to church, leaving thirty-five dead.

In addition to killing and injuring civilians, Russian aerial attacks also create untenable living conditions for the wider civilian population. They leave people traumatized and fuel intense feelings of insecurity, while disrupting access to heating, power, water, healthcare, and other essential resources.

While estimating the true toll of these attacks is challenging, the number of displaced Ukrainians indicates the sheer scale of the humanitarian crisis. According to UN data from February 2025, Russian’s invasion has forced 10.6 million people to relocate, with 6.9 million recorded as refugees living outside Ukraine. Meanwhile, around 12.7 million Ukrainians are in need of humanitarian assistance, including nearly two million children.

Russia systematically and deliberately deprives civilians of objects essential to their survival and inflicts conditions of life calculated to bring about their destruction, which constitutes the crime against humanity of extermination. Statements by Russian officials, such as calls for Ukrainians to be left to “freeze and rot,” corroborate this conclusion.

Russia’s aerial terror campaign, as well as the Kremlin’s actions in the occupied regions of Ukraine, have intentionally deprived Ukrainians of their fundamental rights to life, health, education, and culture, thus constituting the crime against humanity of persecution. The crime of persecution requires special discriminatory intent to target Ukrainians as a distinct group. This intent can be seen in Moscow’s branding of Ukrainians as “Nazis” who must be “destroyed.” such language underscores that Russia is attacking the very existence of Ukrainians. Targeted Russian attacks on educational and cultural facilities across Ukraine are further evidence of this intent.

Additionally, throughout the regions of Ukraine currently under Kremlin control, the Russian occupation authorities are reportedly enforcing russification policies that aim to extinguish any trace of Ukrainian national identity or statehood. Thousands of Ukrainian children have been deported to Russia and subjected to anti-Ukrainian indoctrination. The International Criminal Court in The Hague has issued an arrest warrant for Russian President Vladimir Putin in relation to the large-scale deportation of Ukrainian children.

Holding Russia accountable for the ongoing air offensive against Ukraine is particularly important as this form of prohibited total war, where everything and anything including vital infrastructure and civilian populations are targeted to achieve victory, looks set to return. Technological advances are transforming the modern battlefield to essentially include entire countries and their civilian populations. Against this backdrop, Russia’s use of long-range drones and missiles to terrorize Ukrainian civilians is likely a taste of things to come.

To date, no international tribunal has held individual perpetrators responsible for international crimes resulting from unlawful aerial attacks. The International Criminal Court has taken an important initial step by issuing arrest warrants against four senior Russian officials for their roles in attacking Ukrainian civilians and energy infrastructure, but further measures are needed.

Failure to hold Russia accountable today will fuel tomorrow’s wars and embolden Putin’s fellow autocrats to embrace similar tactics against civilian populations. It is vital to make sure long-term security is not sacrificed in order to reach some kind of compromise with the Kremlin to end the bloodshed in Ukraine. By focusing on accountability for Russia’s aerial attacks, the international community can set a meaningful precedent that could help protect civilians around the world for years to come.

Anastasiya Donets leads the Ukraine Legal Team at the International Partnership for Human Rights, an independent non-governmental organization. She was previously an assistant professor in the International Law Department at Yaroslav Mudryi National Law University in Kharkiv. Susan H. Farbstein is a clinical professor of law at Harvard Law School, where she directs the International Human Rights Clinic.

Further reading

The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

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Ukraine’s vibrant civil society wants to be heard during peace talks https://www.atlanticcouncil.org/blogs/ukrainealert/ukraines-vibrant-civil-society-wants-to-be-heard-during-peace-talks/ Thu, 15 May 2025 20:31:22 +0000 https://www.atlanticcouncil.org/?p=847273 While officials in Moscow, Washington, Brussels, and Kyiv discuss technicalities and potential concessions, members of Ukraine’s vibrant civil society are attempting to define the contours of a lasting and meaningful peace, writes Ana Lejava.

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As US-led efforts to broker a peace deal between Russia and Ukraine struggle to gain momentum, debate continues over what a viable future settlement could look like. While officials in Moscow, Washington, Brussels, and Kyiv discuss technicalities and potential concessions, members of Ukraine’s vibrant civil society are also attempting to define the contours of a lasting and meaningful peace.

Many Ukrainian civil society representatives stress that peace must be more than a mere pause in fighting. Temporary ceasefires may lead to periods of relative calm, but unless the root causes of the war are addressed and justice is delivered, the conflict will merely be frozen and not resolved. Similarly frozen conflicts in Moldova and Georgia offer cautionary tales of how such outcomes can serve Russian interests. These unresolved disputes have allowed Moscow to destabilize its neighbors for decades while maintaining strategic leverage and control.

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In order to avoid the geopolitical uncertainties and internal instability of a frozen conflict, Ukrainian sovereignty must remain non-negotiable. This means rejecting any potential peace deal built on territorial concessions, restrictions on the size of Ukraine’s military, or limitations on the country’s ability to form international alliances.

Instead, Ukraine needs concrete and comprehensive security guarantees from the country’s partners. With this in mind, many civil society representatives warn against repeating the mistakes of the 1994 Budapest Memorandum, which saw Ukraine surrender its nuclear arsenal in exchange for toothless security assurances that failed to prevent Russia’s invasion.

Ukraine’s future security also depends on a strong military. Many women within the country’s civil society have sought to communicate this to their colleagues in the international feminist movement, which has often traditionally championed disarmament and non-violent conflict resolution. They stress that a durable peace cannot come at the expense of security or Ukraine’s fundamental right to exist.

Speaking during a recent visit to the United States, Ukrainian human rights lawyer and Nobel Peace Prize recipient Oleksandra Matviichuk emphasized that safeguarding Ukrainian sovereignty is about much more than protecting the country’s physical borders and also involves millions of human lives. Ukrainians living under Russian occupation are currently enduring the kidnapping of children, forced deportations, prison camps, sexual violence, widespread human rights abuses, and the methodical erosion of civil liberties. These are not isolated crimes. Instead, Russia is accused of seeking to systematically erase Ukrainian national identity in a campaign that many believe amounts to genocide.

Ukrainian civil society leaders have stressed the need for broad inclusion in peace negotiations and post-war recovery processes. Their calls are backed by the experience of peace initiatives elsewhere. Research indicates that peace efforts are up to 64 percent less likely to fail in instances when civil society representatives are invited to participate in talks. This has been the case in places like Northern Ireland and South Africa, where a combination of official diplomacy and civil society dialogue helped forge lasting peace.

Excluding Ukrainian civil society from peace efforts could undermine the human dimension of the process and remove accountability from the equation. While defining what justice should look like at the local, national, and international levels will be an ongoing discussion requiring the involvement of diverse stakeholders, Ukrainian civil society activists emphasize that justice must remain at the heart of any peace agreement.

Demands for accountability are widespread throughout Ukrainian society. More than 70,000 war crimes have been documented since the start of Russia’s full-scale invasion, including a large number of cases involving conflict-related sexual violence. Civil society activists have been at the forefront of efforts to secure justice for war crimes while also working for the protection of displaced people and the return of abducted Ukrainian children. Their demands include ensuring that the perpetrators of war crimes do not enjoy immunity, and that frozen Russian assets be directed toward rebuilding Ukraine and supporting victims.

Many Ukrainian civil society leaders believe the pursuit of justice in response to the crimes committed during Russia’s invasion is not only a national priority. Instead, they say Russia’s actions elsewhere from Syria to Africa reflect a wider pattern of impunity and argue that addressing this problem is a global imperative. As Oleksandra Matviichuk bluntly puts it, “Unpunished evil grows.”

Russia’s full-scale invasion of Ukraine is a watershed moment in modern history that has directly undermined the foundations of the existing international order. Ukrainian activists recognize the scale of the challenge this represents, but argue that international law must be revitalized rather than being abandoned entirely. They see this moment as a critical test for the global community. How the world responds to Russia’s alleged war crimes will set precedents that extend far beyond Ukraine’s borders. Failure to act decisively now will not only undermine Ukraine’s sovereignty, but also embolden authoritarian regimes everywhere.

Ana Lejava is a Policy Officer at the Georgetown Institute for Women, Peace, and Security at Georgetown University.

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The views expressed in UkraineAlert are solely those of the authors and do not necessarily reflect the views of the Atlantic Council, its staff, or its supporters.

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Four questions (and expert answers) about the China-Latin America summit https://www.atlanticcouncil.org/blogs/new-atlanticist/four-questions-and-expert-answers-about-the-china-latin-america-summit/ Thu, 15 May 2025 20:28:34 +0000 https://www.atlanticcouncil.org/?p=847133 At the summit, China offered billions of dollars’ worth of credit and Colombia entered into the Belt and Road Initiative.

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What’s the price of influence? On Tuesday, Chinese President Xi Jinping announced $9.2 billion worth of credit to Latin American and Caribbean (LAC) countries. Xi made this announcement at the China-CELAC Forum in Beijing, an annual gathering of Chinese officials and representatives of the thirty-three Community of Latin American and Caribbean States member countries. The summit also saw Xi and Colombian President Gustavo Petro formally agree to Bogotá’s entry into the Belt and Road Initiative (BRI). These developments come amid growing tensions between the United States and LAC countries over trade and tariffs, and growing concern among US policymakers about Beijing’s influence in the Western Hemisphere. Our experts answer the burning questions about this growing partnership below.

Colombia’s decision to join the BRI appears less the result of a strategic foreign policy shift and more a reflection of domestic political needs and improvised diplomacy. In the lead-up to Petro’s visit to Beijing, tensions between him and Foreign Minister Laura Sarabia—particularly over the BRI—exposed the administration’s lack of internal consensus on China policy. Colombia did not have a clear framework for engaging China, and the memorandum of understanding (MOU) signed during the visit reflects that ambiguity.

The MOU itself is broad and general. It outlines cooperation across diverse sectors—connectivity, health, technology, green development, and trade—without tailoring to the specific contours of the Colombia-China relationship. There are no flagship projects or unique priorities; instead, it reads like a catch-all document with aspirational language. This generic approach suggests that Colombia is not yet in the driver’s seat when it comes to shaping its partnership with China. As things stand, China is likely to define future cooperation with Colombia under the BRI framework.

Aligning with the BRI offers Petro a symbolically strong, though substantively vague, diplomatic win amid mounting challenges at home. It also aligns with Petro’s broader ambition to project himself as a regional statesman. His remarks at the China-CELAC Forum were less about concrete proposals and more about positioning himself as a Latin American voice in global affairs.

Yet, this decision carries geopolitical risks. Petro spoke positively of the United States during his speech in Beijing and even called for a CELAC-US summit in an apparent attempt to reassure Washington. This cautious messaging suggests Colombia joined the BRI without preemptively managing the fallout with its principal strategic ally. The lack of a coherent China policy parallels an equally absent US engagement strategy, which is concerning given the potential sensitivities around growing China-Latin America ties, especially under the Trump administration.

Colombia’s entry into the BRI reveals more about its domestic political landscape and reactive foreign policy than any strategic realignment. It remains to be seen whether the country can translate this membership into tangible, sovereign-led development outcomes.

Parsifal D’Sola is a nonresident senior fellow at the Atlantic Council’s Global China Hub and the CEO of the Andrés Bello Foundation–China Latin America Research Center in Bogotá.


China is already an important economic partner for Colombia. Economic ties between the two countries have been deepening for the past fifteen years and Petro inherited an economy that was already increasingly interconnected with China’s. While the United States remains the country’s main trading partner, January data showed Chinese products leading over US imports for the month. Ultimately, Colombia does not need to sign on to the BRI to continue deepening its commercial and investment relationship with China. In fact, doing so is a surefire way of losing friends in Washington at a time when the Trump administration is laser-focused on combating Chinese influence in the Western Hemisphere. So this is ultimately about domestic politics. An April survey by the leading pollster Invamer found that 62 percent of Colombians now have a favorable opinion of China, up 12 percent since February. This compares to just 40 percent that have a favorable opinion of the United States.

The MOU is wide-ranging. The focus goes beyond mere infrastructure to include topics such as technological exchange, decarbonization, and reindustrialization—but none of that comes with a clear commitment. Instead, the pillars mirror the main elements of Petro’s National Development Plan, suggesting this is merely a statement of intent from China to continue to play a role in Colombia’s economic development rather than a play to pry Colombia away from Washington’s sphere of influence.

This showcases the challenge that the United States faces in convincing Colombia of the value of US partnership. There was alarm in Washington over the fact that a Chinese firm inked a deal to construct and operate Bogotá’s first metro system. But no US firms placed bids on the metro system project or on any of Colombia’s large infrastructure projects in recent years. If Washington hopes to compete with China in the Western Hemisphere, it will have to credibly demonstrate a willingness to dramatically increase investment in infrastructure and other sectors that are attractive to Colombia and other governments across the region.

Geoff Ramsey is a senior fellow at the Atlantic Council’s Adrienne Arsht Latin America Center.


Colombia’s announcement to join the BRI came in 2024 after Petro signaled that his administration would further open its markets to China and diversify its international partners to seek greater commercial and investment opportunities. Moreover, Colombia became one of China’s strategic partners during Petro’s 2023 visit to Beijing. In this sense, the official signing of Colombia’s participation during the China-CELAC Summit only reiterated previous plans to expand ties with China. Even before this announcement, Colombia had already welcomed several Chinese investments into the country, including Bogotá’s metro line, by China Harbour Engineering. While this move may raise some concerns over Colombia’s relationship with the United States, it is also a test of how Petro’s administration will balance relations with both Washington and Beijing as US-China tensions escalate.

Victoria Chonn-Ching is a nonresident fellow with the Atlantic Council’s Adrienne Arsht Latin America Center, where she supports the Center’s China-Latin America work.


While some countries in the region remain cautious in their approach to China to maintain cordial relations with Washington, Colombia is embracing the opportunity to deepen ties with Beijing. Once hailed as a model of US bipartisan support in the hemisphere for its commitment to counterterrorism and anti-narcotics efforts, Colombia is now erratically pivoting under Petro. He has justified this shift by citing the strain placed on the US-Colombia Free Trade Agreement by the Trump administration’s imposition of “reciprocal tariffs.” These tariffs have effectively altered the commercial agreement’s 0 percent tariff baseline, imposing a 10 percent duty on non-mining and energy products. This affects the competitiveness of key Colombian exports to the US including coffee, cut flowers, avocados, mangoes, blueberries, peppers, light manufacturing goods, and apparel. Petro claims that China might now buy all these goods without conditions, but Beijing will not grant this for free.

Petro suggested that the free trade agreement with the United States needs to be renegotiated because it left Colombia with a trade deficit. But Colombia’s trade deficit with China is over thirteen billion US dollars per year, so it is not clear if the accession to the BRI will be an appropriate answer to this populist complaint.

Enrique Millán-Mejía is a senior fellow for economic development at the Adrienne Arsht Latin America Center. He previously served as a senior trade and investment diplomat of the government of Colombia to the United States between 2014 and 2021.

The latest China-CELAC Forum followed a familiar pattern: strong symbolism, minimal substance. While participation was notable—seventeen foreign ministers and three heads of state attended—the event was more a showcase of diplomatic optics than a venue for concrete policy advancement. Lofty rhetoric dominated public pronouncements, but there was little in the way of actionable deliverables or follow-through mechanisms.

The headline announcement—a $9.2 billion credit line for the region—made waves, but details remain scarce. No specifics were offered regarding how the funds will be distributed, which countries will benefit, or what the timeline looks like. Given China’s track record of making high-profile pledges that don’t always translate into implementation, it’s prudent to temper expectations.

The clearest signals came not from the multilateral setting but from bilateral tracks—especially Brazil and Chile. Both countries sent their presidents accompanied by large, high-level delegations. The presence of Brazilian President Luiz Inácio Lula da Silva, alongside nine of his ministers, underscored Brazil’s intent to deepen ties with China through structured, bilateral channels. The contrast with his visits to the United States is stark: all of Lula’s trips to Washington have involved significantly smaller delegations, often limited to a handful of advisers. That disparity speaks volumes about where Brazil sees its strategic priorities.

Chile followed a similar playbook, arriving in Beijing prepared to engage substantively. These engagements signal that China is increasingly prioritizing bilateral diplomacy over regional multilateralism when it comes to tangible cooperation. Countries with a clear agenda and internal coordination—like Brazil and Chile—are well-positioned to benefit.

The forum revealed more about China’s dual-track approach—multilateral symbolism paired with bilateral pragmatism—than about any coordinated regional response to China’s rise.

Parsifal D’Sola

This week’s China-CELAC summit in Beijing underscores China’s expanding ambitions to exert greater influence in Latin America and the Caribbean. What were once isolated engagements with select countries have evolved into a substantive effort to shape economic development, forging geopolitical alliances in some cases and ideological ones in others. This shift is evident in China’s pledge of substantial financial support—$20 billion for infrastructure, $10 billion in concessional loans, and a $5 billion cooperation fund—solidifying China’s increasing role as a development partner in the region.

Initiatives such as the “1+3+6” cooperation framework and Colombia’s decision to join the BRI reflect a broader trend among Latin American countries seeking to diversify their economic partnerships beyond traditional Western allies. Beyond economic cooperation, China is also strengthening collaboration in technology and legal frameworks. Projects like the China-LAC Technology Transfer Center and the China-Brazil Earth Resources Satellite program demonstrate Beijing’s intent to integrate the region into its innovation ecosystem. The inaugural China-CELAC Legal Forum further institutionalizes these ties, fostering cooperation in areas such as digital law, finance, and governance.

Diplomatically, China’s growing presence poses a direct challenge to US dominance in the region. China is also leveraging the summit to diplomatically isolate Taiwan by engaging with countries such as Haiti and Saint Lucia—two of Taiwan’s remaining allies—further undermining Taipei’s international recognition.

China is also expanding its soft power through scholarships, training programs, and youth exchanges designed to cultivate relationships with future regional leaders. The summit reflects China’s aim to foster a multipolar global order, employing economic incentives, diplomatic engagement, and cultural diplomacy to establish itself as an indispensable partner to Latin America and the Caribbean.

Enrique Millán-Mejía


The summit provided new indications that LAC countries must continue to collaborate on economic issues, particularly in the context of a lack of investment in regional infrastructure and ongoing pressure from the United States, which is engaged in a global trade war.

At the opening of the event, Xi emphasized his role as a reliable partner for LAC countries in the face of “geopolitical confrontation” and “protectionism,” a clear criticism of the United States. Xi also proposed initiatives to “build a Sino-Latin American community with a shared future” and pledged $9.2 billion in development credits for the LAC region. The delegations of the thirty-three CELAC countries responded positively, but there are still few details about how and when it will be spent.

But the announcement represents a further development in China’s interest in LAC. The region is a key target for Beijing, which is already the primary trading partner of Brazil, Peru, and Chile. Indeed, trade between China and the LAC countries surpassed $500 billion for the first time last year, a figure forty times higher than at the beginning of the century.

In contrast, despite the commitment of CELAC to regional integration, its members have taken different approaches to Beijing. While Colombia signed an agreement to join the BRI, Brazil has long avoided making such an association despite strengthening Brazil-China ties.

The United States’ more aggressive approach to Latin America has prompted several Latin American and Caribbean countries to seek closer ties with China, a phenomenon that emerged during US President Donald Trump’s first term. However, the practical implications of this enhanced relationship with Beijing over the next few years, and the potential costs for the region, remain uncertain.

Thayz Guimarães is a visiting fellow for the China in Latin America Program at the Atlantic Council’s Global China Hub and a foreign desk reporter at the Brazilian newspaper O Globo.

The summit demonstrated China’s aims to strengthen ties and be seen an attractive partner for the region by highlighting its support for multilateralism and opposition to protectionism. For many countries in the region, China has become a key partner, albeit one that is treated with caution and reluctance. Nevertheless, as US-China competition continues, LAC countries may have to face the challenge of balancing the pursuit of their own interests as Washington seeks reengagement with the region and China increases its efforts to present itself as a more reliable partner.

Victoria Chonn-Ching


As China deepens its ties with LAC countries through trade, it challenges the United States’ historical dominance in the Western Hemisphere. On the diplomatic front, the summit proves China’s ability to present itself as an alternative partner that offers less conditional support compared to the United States, which sometimes links aid to governance reforms or democratic norms. This approach resonates with some leaders, especially in LAC countries that are disenchanted with US foreign policy. For the United States, failure to recalibrate its approach to regional diplomacy risks further alienation and erosion of soft power in its traditional sphere of influence.

The United States faces a strategic imperative to strengthen its alliances in the region. Washington should pursue this through renewed diplomatic efforts, competitive investment initiatives, and cooperative programs that address shared challenges such as renewable energy, illegal migration, and economic inequality.

—Enrique Millán-Mejía


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How South Asia’s ‘swing states’ navigate India-Pakistan tensions https://www.atlanticcouncil.org/blogs/new-atlanticist/how-south-asias-swing-states-navigate-india-pakistan-tensions/ Thu, 15 May 2025 19:34:59 +0000 https://www.atlanticcouncil.org/?p=847154 Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives are quiet strategists in South Asia—but ignoring their roles risks destabilizing the region's fragile geopolitical balance.

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The recent headline-grabbing flare-up between India and Pakistan over Kashmir was punctuated by missile strikes, one of the fiercest aerial dogfights since World War II, retaliatory rhetoric, and a shaky cease-fire. But there’s a quieter, yet equally consequential, shift worth watching closely: one taking place among India and Pakistan’s neighbors.

These neighbors are Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives, none of which has nuclear weapons. They are not simply bystanders to the crisis. They are strategic actors who may now look to recalibrate their foreign policies in response to the conflict’s regional aftershocks. These are the “swing states,” and they deserve far more attention before the next escalatory episode in the India-Pakistan conflict.

India-Pakistan crises have long been treated as isolated bilateral dramas, bracketed by historical grievance and nuclear deterrence. However, each episode, whether Balakot in 2019 or the present-day Kashmir escalation, creates cascading effects that test the diplomatic, economic, and strategic footing of the region’s smaller, nonnuclear states. This time, the stakes are especially high, as these “swing states” must increasingly calibrate their strategic hedging efforts with China, which is now a central part of the geopolitical equation.

Bangladesh: From alignment to ambiguity

Bangladesh finds itself in the most precarious position. Following the fall of Sheikh Hasina’s pro-India Awami League government in August 2024, along with the rise of a transitional administration, the country is navigating both internal fragility and external recalibration.

Civil-society actors, nationalist voices, and Islamist groups are converging around a shared skepticism of what they see as New Delhi’s interference in Bangladesh’s internal politics—especially given India’s role in sheltering Hasina and maintaining support for the Awami League. Hasina’s party was recently banned by Bangladesh under the country’s anti-terror laws, following a United Nations report that accused the former government of engaging in human rights violations, from extrajudicial killings to arbitrary arrests; the report also said that as many as 1,400 protesters were killed at the hands of military firearms.

As anti-India sentiment intensifies, Dhaka may feel compelled to reassert a more independent or even oppositional posture. India has heightened security measures around the Siliguri Corridor (called the “Chicken’s Neck”), a critical link to its northeastern states, amid Bangladesh’s deepening ties with China and its reported agreement to a recent United Nations proposal for a humanitarian-aid corridor into Burma’s Rakhine State. Although framed as a humanitarian initiative, Indian analysts interpret this move as part of a broader trend of external encroachment in India’s strategic backyard.

This is particularly volatile timing for India. It faces a Bangladesh that may lean harder into diversifying its infrastructure via China, renewing engagement with Pakistan, and framing neutrality as sovereignty. Bangladesh has accused India of pushing at least 260 people—including undocumented migrants and Rohingyas—into Bangladesh since last week. Observing India’s unilateral approach to Pakistan, the interim government in Dhaka may seek to quickly acquire Chinese weapons and defense systems.

In the long run, a Bangladesh reasserting its strategic autonomy, via diversified partnerships and “soft balancing,” could fundamentally shift the Bay of Bengal’s strategic geometry, especially given Bangladesh’s location next to Burma.

Sri Lanka: Fragile coalitions and minority resonance

In Sri Lanka, the Kashmir crisis reverberates through the dual pressures of domestic fragility and regional recalibration. Still recovering from economic collapse and navigating reforms required by its deal with the International Monetary Fund, Colombo has limited bandwidth for overt foreign alignment. Yet India’s assertiveness during moments of crisis, such as its tightening of security partnerships and its invocation of counterterrorism narratives, puts pressure on Sri Lanka to demonstrate loyalty to its northern neighbor.

At the same time, China remains deeply embedded in Sri Lanka’s economic fabric, from the Hambantota Port to Port City Colombo. Indian policymakers may expect regional solidarity, but for Sri Lanka, overcommitting to India could jeopardize its strategic balancing act. Maintaining maneuverability between India and China is not just a diplomatic preference but also a form of strategic hedging critical for economic recovery and political stability.

Layered onto this is the domestic sensitivity of Sri Lanka’s Muslim population, which remains attuned to regional narratives of anti-Muslim sentiment. India’s ruling Bharatiya Janata Party (BJP) leads a Hindu-nationalist agenda. The BJP also has ties to a Hindu-nationalist organization called the Rashtriya Swayamsevak Sangh (RSS), with most in India’s cabinet, and Modi himself, current or former members of RSS. According to the leader of the Sri Lankan Sinhalese-Buddhist nationalist group Bodu Bala Sena, the group had discussed the possibility of forming a “Hindu-Buddhist peace zone” with RSS to counter what they frame as Islamic extremism in South Asia (although RSS denied this claim). This growing alignment between Buddhist and Hindu nationalist actors contributes to a perception among the Muslim community that exclusionary majoritarianism is regionally coordinated. In this context, overt alignment with a Hindu-nationalist India during a Kashmir crisis could inflame domestic tensions, further narrowing Colombo’s already limited strategic space.

Nepal: Blockade memories and the limits of neutrality

Nepal has long pursued a balancing act between India and China, using subregional frameworks such as the Bangladesh, Bhutan, India, Nepal Motor Vehicles Agreement and Belt and Road Initiative rail diplomacy to diversify its dependencies. Yet, heightened Indian security sensitivities during periods of crisis make this balancing act harder to sustain. Kathmandu knows too well what happens when it asserts too much sovereignty: In 2015, Nepal adopted a new constitution over Indian objections, refusing to amend provisions that New Delhi viewed as not inclusive of concerns held by the Madhesi populations—ethnic groups with strong ties to India. This was followed by a months-long blockade at key border points, which, while officially denied by India, was widely perceived in Nepal as Indian coercion. That perception was not unfounded—India had previously imposed an official economic blockade on Nepal in 1989 in part in response to arms purchases from China. The 2015 blockade triggered widespread fuel and medicine shortages and ignited a surge in anti-India nationalist sentiment across Nepal. More recently, India and Nepal have been locked in a cartographic dispute, following India’s 2019 release of a new political map that included contested territory. That move provoked diplomatic escalation and led the Nepalese parliament to publish its own revised map—an assertive gesture of sovereignty.

In moments of India-Pakistan escalation, Kathmandu’s efforts to remain equidistant may be recast as disloyalty by New Delhi. With its foreign policy under scrutiny and nationalism rising at home, Nepal may face a shrinking space for strategic hedging. The ambiguity that once gave it leverage, such as balancing infrastructure deals, cross-border trade, and diplomatic signaling, may now be a liability in an increasingly polarized regional environment.

Bhutan: Quiet hedging in a noisy region

Bhutan is expected to remain aligned with India, given their close historical, economic, and security ties, with the countries having signed a Treaty of Friendship in 1949. Yet, Indian military distraction on the western front creates a vacuum of attention in the north, where Chinese territorial pressure has grown steadily. That has particularly been the case since the Doklam standoff in 2017, when Indian and Chinese troops engaged in a seventy-three-day face-off over a road China was constructing in a strategically sensitive area near the trijunction of India, China, and Bhutan—in territory claimed by both China and Bhutan and considered vital to India’s security posture in the northeast.

While Thimphu’s foreign policy appears cautious, the reality is more complex. Bhutan practices hedging of a different kind, where it defines its international posture through minimalist diplomacy and self-protective slowness, rather than binary choices.

While crises like Kashmir do not dramatically alter Bhutan’s foreign policy, they add pressure on Thimphu to quietly reassess its strategic environment, particularly as India’s regional bandwidth narrows and Chinese overtures in the north continue to intensify.

Maldives: Between militarization and backlash

In the Maldives, the Kashmir flare-up may rekindle anti-India backlash among Islamist and conservative political groups, just as New Delhi is looking to deepen its naval presence in the Indian Ocean. The president of the Maldives, Mohamed Muizzu, won the 2023 election with an “India Out” campaign, which framed Indian military presence on the archipelago as an infringement of Maldivian sovereignty. Muizzu has since moved to recalibrate the country’s foreign policy orientation, including by asking Indian troops to pull out from his island nation. Even though the Maldivian president has recently softened his stance with his trip to India, political figures, particularly those aligned with conservative groups, may now seize on the conflict in Kashmir to amplify anti-India sentiment, framing the crisis as part of a broader campaign against Muslims, who form the majority in the Maldives.

At the same time, Malé’s close economic ties to China and development partnerships with India put it in a bind. The country’s hedging strategy, balancing regional power interests while cultivating leadership on climate security, relies on maintaining diplomatic maneuverability. The India-Pakistan conflict narrows that space.

Strategic hedging, under pressure

What ties these disparate responses together is a common strategy: Hedging. These five “swing states” have, in recent years, mastered the art of calibrated ambiguity. They seek economic gain from and security cooperation with multiple powers—India, China, and the United States—without being drawn into hard alliances. This allows them to maximize autonomy and avoid capture, whether through aid dependency, military pressure, or infrastructure entanglements.

Yet, India-Pakistan crises stress test this architecture. Each episode forces these “swing states” to signal their preferences, take rhetorical positions, or manage public backlash, which is often at the expense of their preferred strategy of quiet recalibration.

Washington must take note

The United States increasingly views India as a pillar of its Indo-Pacific strategy, but India’s regional leadership is only as strong as its relationships with its neighbors. A South Asia in which every India-Pakistan skirmish pushes the “swing states” toward anti-India sentiment or deeper engagement with China is a region less stable—unfavorable for US interests.

At the same time, the United States continues to prioritize maritime-centric approaches and groupings such as the Quad in its Indo-Pacific strategy, focusing primarily on the Chinese threat to maritime stability. While it does so, it is sidelining the very terrain where regional contestation is already unfolding: in continental South Asia. Such contestation has taken place over land connectivity, subregional diplomacy, maritime security, and crisis responses among the five nonnuclear countries.

If Washington wants to invest in long-term regional stability in South Asia, it must understand not only the loud actors, but also the quiet strategists—the five “swing states.” Ignoring their pivotal roles risks ceding ground to rival powers and destabilizing South Asia’s fragile geopolitical balance, with consequences far beyond the subcontinent.


Rudabeh Shahid is a nonresident senior fellow at the Atlantic Council’s South Asia Center. 

Nazmus Sakib is a lecturer in the Lewis Honors College at the University of Kentucky.

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Can the EU-UK summit lead to a new post-Brexit partnership? https://www.atlanticcouncil.org/blogs/new-atlanticist/can-the-eu-uk-summit-lead-to-a-new-post-brexit-partnership/ Thu, 15 May 2025 16:41:38 +0000 https://www.atlanticcouncil.org/?p=847104 With shared challenges at home and abroad, the United Kingdom and European Union have an opportunity to renew their trade and security ties.

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Almost a decade after the Brexit referendum, leaders from the European Union (EU) and United Kingdom will meet in London on Monday. The meeting will be the first of what is to become an annual bilateral summit focused on building a stronger partnership to meet the growing economic and security threats that both Britain and the bloc face.

The EU and Britain need each other. Their shared challenges, including sluggish economic growth, the protracted war in Ukraine, and a US administration erecting tariffs on European goods and seeking to disengage from the continent’s defense, have made this abundantly clear.

Faced with these common challenges, EU and UK leaders are looking to sign three agreements at the summit. The first is a broad statement of shared values and common principles—a “geopolitical preamble” to shape a new strategic partnership. This statement is expected to reaffirm a commitment to free and open trade, Ukrainian sovereignty, and multilateral action to address global issues such as climate change.

For all the political difficulties, this is a time for both the EU and the United Kingdom to be bold.

The second, and most urgent, prospective agreement is a security and defense pact, which would open the way to the United Kingdom’s participation in EU-backed military spending. This agreement would allow Britain to take part in joint procurement for military capabilities alongside the bloc’s member states and to enable EU countries to purchase British-made military equipment as part of the new €150 billion European instrument to ramp up defense spending.

As one of Europe’s leading miliary powers, Britain is essential to achieving the continent’s aim of taking the primary role of defending itself in the wake of the Trump administration’s stated desire to reduce the United States’ commitment to defending Europe. In February, UK Prime Minister Keir Starmer pledged that Britain would increase its defense spending to 2.5 percent of its gross domestic product by 2027 and to 3 percent during the next parliament.

European fears about Russian aggression and US withdrawal from the continent have increased the pressure for decisive action on defense and security, and the EU-UK pact would represent a welcome step toward developing the continent’s defense industrial base and enhancing effective military cooperation.

The third item on the summit’s agenda is to agree to a “common understanding” on a range of issues concerning the trade and economic relationship between Britain and the EU. Current UK-EU trade arrangements are governed by the Trade and Cooperation Agreement (TCA) signed by the two sides in late 2020.

For all the fanfare associated with the economic deal the United Kingdom signed with the United States on May 8, the EU remains Britain’s single largest trading partner by far. Boosting economic ties weakened by Brexit could bring desperately needed dividends for both sides, even if it doesn’t produce the growth that would come from Britain rejoining the European single market, a policy Starmer promised not to pursue on the campaign trail.

The TCA is subject to a joint review next year, and both the United Kingdom and EU have bilateral issues they want to amend. The United Kingdom is keen to negotiate an agreement to reduce border checks on agricultural products and secure a mutual recognition agreement for professional qualifications to help open up markets for UK service exporters.

On the EU side, there are calls from France and others to support EU fishing rights in UK waters and a European Commission proposal to create a youth mobility scheme, which would allow young people from across Europe to work and travel freely between the United Kingdom and the EU.

Some of these issues will require political risks and trade-offs from both sides. Starmer’s popularity has slumped since he was elected last summer, and Brexiteers in the United Kingdom will be ready to accuse him of compromising on the outcome of Britian’s referendum to leave the European Union.

This domestic pressure has become more intense after local elections in England earlier this month that represented a heavy defeat for the governing Labour Party and a significant victory for the populist right-wing party, Reform UK, led by the arch Brexit champion Nigel Farage.

There will be pressure on European governments, too, not to compromise the principles of the EU single market for a deal on defense and security. And there remain concerns in European capitals about Britain’s long-term commitment to closer ties with a club it chose to leave nine years ago.

Yet, for all the political difficulties, this is a time for both the EU and the United Kingdom to be bold. Squabbles about fishing or veterinary checks cannot be allowed to undermine the vital steps that must be taken to confront the economic and security threats facing Britain and the EU today.

Europe has always been stronger when the United Kingdom and its continental neighbors are united. Next week’s summit can mark a modest but important step forward for UK-EU relations and demonstrate that the friction and pain of the last decade can be replaced by a new partnership with mutual benefits.


 Ed Owen is a nonresident fellow of the Atlantic Council’s Europe Center and a former UK government adviser.

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Trump’s remarkable Middle East tour is all about striking megadeals and outfoxing China https://www.atlanticcouncil.org/content-series/inflection-points/trumps-remarkable-middle-east-tour-is-all-about-striking-megadeals-and-outfoxing-china/ Wed, 14 May 2025 02:04:04 +0000 https://www.atlanticcouncil.org/?p=846771 The Trump administration would rather swim in a stream of Gulf investments than get bogged down in the region’s enduring problems.

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There has never been a US presidential visit to the Middle East like this one.

This week, success will be measured not in conventional diplomacy, peace deals, or arms sales, although Donald Trump did make some news by lifting sanctions on the Syrian leadership, urging Saudi Crown Prince Mohammed bin Salman to join the Abraham Accords by normalizing relations with Israel, and agreeing to a $142 billion weapons package for Riyadh.  

What sets Trump’s visit apart is the greater focus on the hundreds of billions of dollars of new Middle Eastern investments into the United States ($600 billion from Saudi Arabia alone). Gulf partners will measure success by the Trump administration’s willingness to lift restrictions on the sale of hundreds of thousands of advanced semiconductor chips to the United Arab Emirates and Saudi Arabia. Trump will also measure success by his ability to outmaneuver China in securing a closer relationship with Gulf monarchies than the Chinese have, even though Beijing is their biggest fossil-fuel customer.

It’s not that Middle East security threats or peace negotiations have gone away. There’s the war in Gaza, and this week’s release of the American hostage Edan Alexander. There are new efforts to rein in Iran’s nuclear-weapons potential through negotiations. And there’s Trump’s dream of finding a path to Saudi-Israeli diplomatic normalization (and ongoing progress toward a civilian nuclear deal with the kingdom).

However, my conversations with senior Middle Eastern officials involved in planning Trump’s trip underscored that the overwhelming focus has been on doing deals. The Trump administration would rather swim in a stream of Gulf investments than get bogged down in the region’s enduring problems.

In an extraordinary speech in Riyadh that set the tone for all that will follow, Trump said: “Before our eyes, a new generation of leaders is transcending the ancient conflicts and tired divisions of the past, and forging a future where the Middle East is defined by commerce, not chaos; where it exports technology, not terrorism; and where people of different nations, religions, and creeds are building cities together—not bombing each other out of existence.”

The contest for Gulf money is also about gaining the upper hand in the Trump administration’s ongoing trade standoff and technology contest with Beijing. That remains Washington’s overriding objective, notwithstanding the dramatic news Monday morning that the two countries would de-escalate their confrontation by reducing tariffs from 145 percent to 30 percent on the US side and from 125 percent to 10 percent on the Chinese side during a ninety-day pause for further negotiations.

In that spirit, one piece of major news that’s flying under the radar is Trump’s decision to rescind the Biden administration’s “AI Diffusion Rule,” which imposed restrictions on the export of advanced semiconductor chips to countries that included the United Arab Emirates and Saudi Arabia—as well as India, Mexico, Israel, Poland, and others—due to the danger that they could be “leaked” to adversarial nations, in particular China.

The New York Times reported that, in conjunction with the rule change, the Trump administration is considering a deal that would send hundreds of thousands of the most advanced US-designed artificial intelligence (AI) chips to G42, an Emirati AI firm that cut its links to Chinese partners in order to partner with US companies.

“The negotiations, which are ongoing, highlight a major shift in US tech policy ahead of President Trump’s visit,” the New York Times reported, noting tension within the administration between those who are eager to advance the US trade and technological edge over China and national security officials who continue to worry about leakage of critical technologies to Beijing.

On Tuesday, the White House also unveiled deals with Saudi Arabia that included a commitment by Riyadh’s new state-owned AI company, Humain, to build AI infrastructure using several hundred thousand advanced Nvidia chips over the next five years. Humain and Amazon Web Services also announced plans to invest more than five billion dollars in a strategic partnership to build a first-of-its-kind “AI Zone” in the kingdom—part of Riyadh’s evolving ambitions to be a global AI leader.

What seems to be winning out is the Emirati and Saudi argument that if they are going to throw in their lot with the United States, and if they are to restrict their advanced technology relationships with China in the global AI arms race, Washington needs to do its part and remove the restrictions placed upon its tech.

During Trump’s first term and during the Biden administration, there was a long-running debate within the US government around whether the United States should seek to block China from getting advanced chips or instead just try to stay one or two generations ahead of the Chinese technologically. That debate has been settled: China—as demonstrated most visibly by DeepSeek—will find a way to sidestep US restrictions to make major strides. For the United States to stay a step or two ahead in the AI race, it will require new investments and partnerships. That shift is at the heart of what we’re witnessing this week in the Middle East.

Trump’s moves this week underscore his seriousness of purpose, but the battle has been far from won. Trump the aspirational peacemaker will still try to strike deals on Gaza and Iran, as uncertain as they are, but Trump the dealmaker has a clearer path to closing artificial intelligence and investment deals that this week are higher and more achievable priorities.


Frederick Kempe is president and chief executive officer of the Atlantic Council. You can follow him on X: @FredKempe.

This edition is part of Frederick Kempe’s Inflection Points newsletter, a column of dispatches from a world in transition. To receive this newsletter throughout the week, sign up here.

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How much longer will Putin be allowed to continue stalling for time? https://www.atlanticcouncil.org/blogs/ukrainealert/how-much-longer-will-putin-be-allowed-to-continue-stalling-for-time/ Tue, 13 May 2025 21:59:27 +0000 https://www.atlanticcouncil.org/?p=846743 President Trump has made a legitimate effort to broker a generous peace, but the time has now come to acknowledge that Putin is not negotiating in good faith and will only respond to the language of strength, writes Peter Dickinson.

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The leaders of Britain, France, Germany, and Poland arrived in Kyiv last weekend amid much fanfare to deliver an unprecedented ultimatum to the Kremlin. The time for talk was over, they announced. If Russian President Vladimir Putin did not agree to an unconditional 30-day ceasefire by Monday, he would face tough new sanctions and increased weapons transfers to Ukraine. “All of us here, together with the US, are calling Putin out. If he’s serious about peace, then he has a chance to show it now,” declared British Prime Minister Keir Starmer.

For a brief moment, it seemed possible that this bold move could revive faltering peace efforts. After all, if Putin agreed to a ceasefire, the way would be open for more substantive negotiations. If he refused, the West would now be obliged to turn up the pressure on Moscow and force Russia to rethink its position. Putin, however, had other ideas. At a hastily arranged midnight press conference in the Kremlin, he chose not to directly address the West’s ultimatum, and instead proposed bilateral talks with Ukraine.

Putin’s announcement that he was ready to resume negotiations with the Ukrainian authorities for the first time since the initial months of the war succeeded in overshadowing Saturday’s ultimatum. It also undermined any fleeting sense of Western unity and decisiveness. Predictably, US President Donald Trump was the first to break ranks, posting a statement urging Ukraine to “immediately” accept Putin’s offer in order to determine whether a peace deal is actually possible.

Elsewhere, confusion reigned. Was the original ultimatum still in place? There seemed to be no clear answer. In Berlin, German officials stated on Monday that “the clock is ticking,” but then took no action when their subsequent midnight deadline came and went. Meanwhile, according to Bloomberg, the Kyiv quartet quietly decided to wait until after a potential Russia-Ukraine meeting on Thursday in Istanbul before taking any action. This was the exact opposite of US President Theodore Roosevelt’s famous foreign policy advice to “speak softly and carry a big stick.” European leaders had instead opted to speak very loudly while carrying no stick at all.

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Putin’s evasive response to last weekend’s ceasefire ultimatum was wholly in line with his elusive approach to the entire US-led peace process. Since tentative talks first began in February, Putin has consistently voiced his support for peace. At the same time, he has offered endless excuses and presented a long list of additional demands that make genuine progress toward a peaceful settlement of the war virtually impossible. At one point, he even questioned the legitimacy of the Ukrainian authorities and suggested the country should be placed under United Nations administration.

In contrast, Ukraine has demonstrated a readiness to make compromises in the interests of peace. Kyiv has acknowledged that any negotiated settlement will likely leave Russian-occupied regions of Ukraine under de facto Kremlin control, and has backed a US proposal for a 30-day unconditional ceasefire. It came as no surprise on Sunday when Ukrainian President Volodymyr Zelenskyy promptly agreed with Trump’s call to accept the Russian offer of bilateral talks. In the current climate, even the most obtuse of observers cannot help but conclude that Putin is now the main obstacle to peace.

It remains theoretically possible that this week’s proposed bilateral talks will lead to some kind of breakthrough, but past experience suggests there is very little prospect of any real progress. On the contrary, negotiations are far more likely to end inconclusively, with the Russian delegation offering up just enough false hope to justify yet another round of time-consuming meetings. The real question is how long Putin will be allowed to continue engaging in stalling tactics before Western patience finally runs out.

It should be obvious by now that Putin has no genuine interest in ending the war. He refuses to offer any meaningful concessions and continues to insist on maximalist peace terms that would leave postwar Ukraine partitioned, disarmed, isolated, and defenseless in the face of future Russian aggression. It does not require much imagination to anticipate exactly what Putin has planned for Ukraine if his conditions are met.

Anyone who thinks Putin is willing to compromise over Ukraine clearly does not understand his profoundly revisionist worldview or his imperial ambitions. While Western leaders speak about the need for diplomatic dialogue and mutual concessions, Putin himself views the current invasion in far more existential terms as an historic mission to reverse the Soviet collapse and revive the Russian Empire.

The Russian leader is perfectly happy to entertain the idea of negotiations in order to buy time and weaken Western resolve, but in reality he has no intention of stopping until Ukrainian statehood has been extinguished. Trump has made a legitimate effort to broker a generous peace, but the time has now come to acknowledge that Putin is not negotiating in good faith and will only respond to the language of strength.

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

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Experts react: Trump just announced the removal of all US sanctions on Syria. What’s next?  https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react-trump-just-announced-the-removal-of-all-us-sanctions-on-syria-whats-next/ Tue, 13 May 2025 20:51:11 +0000 https://www.atlanticcouncil.org/?p=846683 Our experts provide their insights on how the removal of US sanctions on Syria would affect the country and the wider region.

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“We’re taking them all off.” US President Donald Trump announced on Tuesday that Washington will remove all US sanctions on the Syrian government. The announcement comes five months after the overthrow of dictator Bashar al-Assad’s regime, in a snap opposition offensive led by new President Ahmed al-Sharaa’s militant group.  

The new Syrian leadership and its supporters have pushed for sanctions relief to help rebuild from the rubble of more than a decade of civil war—accompanied by promises of establishing a more free and tolerant Syria. But skepticism remains regarding al-Sharaa’s past links to al-Qaeda and communal massacres against minority groups that have taken place since he came to power.  

How will the removal of US sanctions affect Syria’s economy and future US-Syria relations? And what are the wider implications for the region? Our experts offer their insights below.  

Click to jump to an expert analysis:

Qutaiba Idlbi: This is an opportunity to secure a long-term US strategic victory in the region 

Kirsten Fontenrose: Watch for a Saudi-Syria deal, Russia’s renewed presence, and Iran’s next moves

Daniel B. Shapiro: Trump is making a smart gamble, Congress should back him up

Sarah Zaaimi: A US carte blanche to al-Sharaa may lead to sectarian backsliding

Thomas S. Warrick: Trump has made clear that he is listening to Arab leaders

Amany Qaddour: Now is the time to move beyond politicizing aid

Alan Pino: A clear signal to Iran

Kimberly Donovan: Lifting the complex Syrian sanctions regime will require careful strategy

Celeste Kmiotek: Bashar al-Assad must be held accountable\

Maia Nikoladze: This move aligns US Syria sanctions policy with the EU and UK 

Ömer Özkizilcik: This represents a diplomatic success for Saudi Arabia and Turkey

Sinan Hatahet: Engagement must go beyond sanctions relief

Diana Rayes: A critical reprieve for Syrians everywhere   

Elise Baker: Now is the time to establish the Syria Victims Fund

Lize de Kruijf: Without meaningful financial support, the US risks ceding influence in Syria 


This is an opportunity to secure a long-term US strategic victory in the region

Trump’s decision to lift US sanctions on Syria is a pivotal shift that could define his legacy in the Middle East. The move signals an opportunity to secure a long-term US victory in Syria by stabilizing the region, countering rivals such as Russia and China, and opening economic opportunities for US businesses. 

Trump has long portrayed himself as a dealmaker, and his record on Syria supports that image. Unlike the Obama and Biden administrations, Trump responded decisively to al-Assad’s chemical weapon attacks in 2017 and 2018, launched airstrikes to deter further atrocities, and cooperated with Turkey in 2020 to halt the Assad regime’s and Russia’s assault on Idlib. He also signed the Caesar Syria Civilian Protection Act, which crippled the Assad regime financially, leading to its fall last December. Now, however, those same sanctions are undermining the prospects of Syria’s new post-Assad regime government, which is attempting to rebuild and distance itself from Iranian and Russian influence. 

The current sanctions are weakening a new government that seeks US and Gulf support. If these sanctions were to stay in place, Syria’s economy would remain in free fall, making it increasingly reliant on Russia, China, and Iran. This would open the door to renewed extremism, regional instability, and the resurgence of the Islamic State of Iraq and al-Sham (ISIS). Lifting sanctions will allow US companies to compete with Chinese firms for contracts in Syria’s expected $400 billion reconstruction effort. It will also enable Trump to leverage Gulf funding, create jobs in both Syria and the United States, and demonstrate Washington’s role as a stabilizing force. A prosperous Syria would reduce refugee flows, weaken Hezbollah and the Islamic Revolutionary Guard Corps, and eliminate Syria as a threat to Israel—a country with which the new Syrian leadership seeks peaceful relations. 

The new Syrian government is not without flaws, but it has made pragmatic moves. It started reintegrating territories with the Syrian Democratic Forces, cracked down on drug trafficking, made efforts aimed at protecting minorities, and distanced itself from Hezbollah and Iranian forces. These steps show a willingness to cooperate with the West and align with its goal of regional stability. If Trump follows through, he could secure a rare bipartisan win, outmaneuver Russia, and reshape the future of Syria in a way that serves US interests and regional peace. 

Qutaiba Idlbi is a senior fellow with the Atlantic Council’s Rafik Hariri Center and Middle East Programs where he leads the Council’s work on Syria. 


Watch for a Saudi-Syria deal, Russia’s renewed presence, and Iran’s next moves

I am hearing that the lifting of US sanctions on Syria took some members of Trump’s own administration by surprise. Since January, Syria has been a counterterrorism file, not a political one. Al-Sharaa received a list of milestones from the US administration this spring, and meeting these would have meant a gradual rollback of sanctions. So this sudden lifting must feel like a new lease on life for the Syrian ruler.

But this sudden decision to lift sanctions should not be interpreted as a sign that the United States is making Syria a priority. In fact, it indicates the opposite. Both Saudi leader Mohammad bin Salman and Turkish President Recep Tayyip Erdogan will have had to promise Trump that they will hold al-Sharaa accountable and will shoulder the burden of reconstruction. The United States has never colonized or invaded Syria, and the United States committed a lot of manpower and funding into supporting opposition to al-Assad under the first Trump administration. It is hard to make an argument that the United States has any obligation to fund Syria’s reconstruction. That responsibility will fall to those who pressed Trump to lift sanctions. 

Going forward, there are three things to watch:   

One, watch for Saudi Arabia’s deal with al-Sharaa. He will owe them big time for making this happen. (Erdogan will argue that he is owed as well, having greased the skids on a phone call with Trump just before his meetings in Riyadh.) Expect Saudi Arabia to require that foreign fighters be ejected from senior government roles and demand that Iran is kept out of Syria. Look for Saudi companies to be granted the contracts to undertake reconstruction projects in Syria, an easy give for al-Sharaa and a no-brainer in this situation. 

Two, for Europe especially, watch Russia. Moscow may find it easier to establish its interests in Syria now. Saudi Arabia and Israel will see a Russian presence as a way of counterbalancing Turkey’s influence in Syria.

Three, watch for shifts in Iran’s foreign policy. Syria is now proof that Trump will in fact lift sanctions under certain conditions—if your leadership promises to change its stripes and favored foreign partners vouch for you. Expect to see a charm offensive by Tehran.

— Kirsten Fontenrose is a nonresident senior fellow at the Scowcroft Middle East Security Initiative in the Atlantic Council’s Middle East Programs. Previously, she was the senior director for the Gulf at the National Security Council during the first Trump administration, leading the development of US policy toward nations of the Gulf Cooperation Council, Yemen, Egypt, and Jordan.


Trump is making a smart gamble

Trump’s announcement that he will provide sanctions relief to Syria is a gamble, but it is the right one. The collapse of the Assad regime, whose brutality, misrule, and collaboration with malevolent regional actors destroyed Syria, has given long-suffering Syrians a chance to build a different future. 

The road to recovery will not be an easy one. Many are rightly suspicious of Syria’s new acting president, Ahmed al-Sharaa, and others in his Hayat Tahrir al-Sham movement, due to their violent jihadist past. As one cannot look inside another’s soul, it is unknown if they have truly shed their extremist ideology amid a rebranding since coming to power in December. 

What can be judged are actions. So far, al-Sharaa has said and done many of things Western and Arab nations have called for. He is making efforts to be inclusive, including appointing women and minorities into his cabinet. He says strict Sharia law will not be imposed. He has begun negotiations with the Kurdish Syrian Democratic Forces on their peaceful integration into Syrian national institutions. He claims to want Syria to pose no threat to any of its neighbors, including Israel, and he wants to keep Iran from re-establishing influence in Syria. He is aligning himself with moderate Arab states and US partners like Saudi Arabia and the United Arab Emirates. 

These words and actions must be tested and verified over time. But to have any chance to succeed in stabilizing Syria, the new government needs resources to make the economy function. Reconstruction and resettlement of refugees, not to mention restoring services disrupted by years of civil war, will be expensive. Without a significant measure of US sanctions relief, none of this is possible. It would nearly guarantee Syria’s descent back into chaos and provide fertile ground for extremists. 

Congress should work with Trump on crafting sanctions relief such that, if necessary, sanctions can be restored. But Trump is right to seize this opportunity. 

Daniel B. Shapiro is a distinguished fellow with the Atlantic Council’s Scowcroft Middle East Security Initiative. From 2022 to 2023, he was the Director of the N7 Initiative. He has previously served as US deputy assistant secretary of defense for the Middle East and as US ambassador to Israel.


A US carte blanche to al-Sharaa may lead to sectarian backsliding 

Lifting sanctions presents a tremendous opportunity to revitalize the Syrian economy and provide a genuine chance for the al-Sharaa government to implement the vision for social unity it has advocated since December. However, the United States should make sure not to give carte blanche to the new Syrian regime and lose all of its leverage over a ruler who has only recently self-reformed from a dangerous radical ideology, especially when it comes to managing ethnic and religious diversity. 

Al-Sharaa has publicly and repeatedly pledged to build a nation for all Syrians, regardless of their identities. He also appointed a Christian woman to his newly announced government and welcomed a delegation of Jewish religious officials to return for the first time since their synagogue was closed back in the 1990s. Still, his first five months in power have also been marked by violent confrontations with certain religious minorities and the ascension to power of foreign fighters with questionable pasts. Back in March, over one thousand Alawites were killed in a violent crackdown on the minority’s stronghold on the Syrian coast. Meanwhile, the Druze remain divided, and many refuse to turn in their arms, fearing the escalation of sectarian tensions. 

Similarly, many other sects remain anxious about their future, including Christians and Twelver Shia, who saw the lowering of the Sayeda Zainab flag—a revered pilgrimage site on the outskirts of Damascus—as a sign of the prevalence of a monochrome orthodox version of Islam. Another worrying signal was the sweeping authority provided to the presidency in the new Syrian constitution, which also excluded mention of minority rights and societal diversity, making Islam the only supreme law of the land. 

Al-Sharaa and his entourage have a historic chance to start anew and build a plural and inclusive Syria for all its citizens. Until then, Washington and its allies should continue monitoring the state of minorities in this complex sociocultural context and signal to the new lords of the land that lifting sanctions is a provisional chance and not an unconditional license to lead Damascus into another sectarian spiral.   

Sarah Zaaimi is a resident senior fellow for North Africa at the Atlantic Council’s Rafik Hariri Center and Middle East programs, focusing on minorities and cultural hybridity. She is also the center’s deputy director for media and communications. 


Trump has made clear that he is listening to Arab leaders 

No one can say that Trump does not listen to Arab leaders—clearly, he does. Arab leaders were united in telling Trump and his administration that the United States should lift sanctions against Syria to help move the country toward peace with all its neighbors. 

Officials in the Trump administration had different views on how to respond to al-Sharaa’s statements calling for peace with Syria’s neighbors and openness to the West. But no one expected Trump to announce the lifting of sanctions on this trip. As recently as April 25, a senior administration official said that the new Syrian government needed to combat terrorism, prevent Iran from regaining influence in Syria, expel foreign fighters from Syria’s government and security apparatus, destroy all chemical weapons, adopt nonaggression policies toward all neighboring countries, and clear up the fate of missing American Austin Tice. “We will consider sanctions relief, provided the interim authorities take demonstrable steps in the directions that I have articulated,” he said. “We want Syria to have a second chance.” 

On March 20, I and other US experts on the Middle East called for Syria to express interest in joining the Abraham Accords. I think that al-Sharaa’s April 19 offer to discuss joining the Abraham Accords did exactly what it needed to do: It broke through to get Trump’s attention. 

Trump is now willing to give Syria a second chance. Sanctions against terrorist groups like Hayat Tahrir al-Sham, which brought al-Sharaa to power (with support from Turkey), are likely to remain in place. Syria needs to make substantive progress on sidelining extremists within al-Sharaa’s ranks and engaging in serious talks (either direct or indirect) with Israel that could eventually lead to joining the Abraham Accords. Trump could change his mind tomorrow, but for now, it is clear Trump is listening. 

Thomas S. Warrick is a nonresident senior fellow in the Scowcroft Middle East Security Initiative and a former deputy assistant secretary for counterterrorism policy in the US Department of Homeland Security. 


Now is the time to move beyond politicizing aid

What a monumental shift for Syria—one of the most significant since the December fall of the Assad regime.  

Having just returned recently from the country, I could clearly see that the humanitarian situation has stagnated. The Trump administration’s massive US Agency for International Development (USAID) cuts—amid already dwindling funds for Syria—have had a catastrophic impact. The soul-crushing sight of destroyed buildings across the country as a result of the regime’s brutality was still visible in so many of the previously besieged areas like Douma and Harista of Eastern Ghouta. The Assad regime’s deprivation, oppression, and collective punishment of millions has left the country in a state of decay.  

In my view as a humanitarian and public health practitioner, sanctions have been one of the most critical hindrances to early recovery. Syria’s health sector is decimated after over a decade of destruction to critical civilian infrastructure like hospitals and clinics—not to mention schools and marketplaces— from aerial attacks by the regime and its allies.  

As long as sanctions are in place against the new government in Syria, the recovery of the country is impossible, and civilians will continue to the pay the price, just as they did under the Assad regime. Beyond the need for Syria’s early recovery and reconstruction from a physical infrastructure standpoint, the country needs to heal. This is an opportune moment to capitalize on this shift. The politicization of aid throughout the entirety of conflict has translated to the suffering of millions. Now is the time to move beyond that politicization of aid and recovery efforts and give Syrians the chance to start the healing process. Lifting sanctions will allow for that and bring Syria back from being a pariah state. 

Amany Qaddour is a nonresident senior fellow for the Atlantic Council’s Middle East Programs. She is also the director of the 501(c)(3) humanitarian nongovernmental organization Syria Relief & Development. 


A clear signal to Iran

Trump’s decision to lift economic sanctions on Syria provides a needed lifeline to Syria’s struggling economy, aligns Washington’s Syria policy with that of regional Arab powers, and pointedly signals a determination to prevent Iran from rebuilding its presence and influence in this key country. 

Popular unrest—including increasing criticism of al-Sharaa and his new government—has been growing in Syria over the poor economy and living conditions as the country attempts to recover from over a decade of civil war. The lifting of US sanctions opens the way for an infusion of regional and international aid, investment, and expertise to help the al-Sharaa government begin rebuilding the country and heading off the political instability that could otherwise arise. 

Removing sanctions also shows US support for efforts by Washington’s Arab partners in the Gulf, Egypt, and Jordan to reintegrate Syria into the moderate Arab fold after decades of alignment with Iran.  The controversy over the invitation of al-Sharaa to the Arab Summit in Baghdad because of his and his follower’s past ties to al-Qaeda makes clear that Syrian reintegration will need to proceed slowly, based on a demonstrated commitment to eschew all ties to terrorism and apply equal justice to all minorities in Syria. 

Finally, Trump’s decision to lift sanctions on Syria puts down a marker that Washington is not only determined to prevent Iran from getting a nuclear weapon, but to check Iranian efforts to try to restore its badly weakened resistance axis aimed at threatening Israel and wider reigonal domination. 
 
Alan Pino is a nonresident senior fellow with the Scowcroft Middle East Security Initiative at the Atlantic Council’s Middle East programs. 


Lifting the complex Syrian sanctions regime will require careful strategy

Trump’s announcement in Riyadh that the United States will end sanctions on Syria is a major foreign policy shift. Lifting sanctions on Syria is complicated and will require strategy to determine which sanctions to pull down and when, as well as what measures implement to enable the snap-back of sanctions should the situation in Syria deteriorate. 

Syria has been on the US state sponsor of terrorism list since 1979 and is subject to sanctions and export controls pursuant to numerous executive orders and legislation for a range of issues including human rights abuses, smuggling Iranian oil, and supporting terrorist groups. A further complicating factor is that Hayat Tahrir al-Sham (HTS), which overthrew the Assad regime, is leading the interim Syrian government. HTS, formerly known as al-Nusrah Front and once al-Qaeda’s arm in Syria, is designated as a terrorist organization by the United States, Canada, and other governments. HTS is also designated as a terrorist group by the United Nations (UN), a designation that all UN member states must comply with, including the United States. The UN designation of HTS and al-Sharaa include an asset freeze, travel ban, and arms embargo. 

Trump’s announcement is a welcome shift in US foreign policy. The Syrian government and the Syrian people will need sanctions lifted to have a chance of rebuilding the country. This is a delicate and complicated situation on top of a complex sanctions regime. To move forward with this shift in foreign policy, as a next step, the United States will need to consider which sanctions it is willing to lift on Syria to meet specific goals and it will need to start engaging with the United Nations to consider if and how sanctions should be lifted on HTS. 

Kimberly Donovan is the director of the Economic Statecraft Initiative at the Atlantic Council’s GeoEconomics Center. She previously served in the federal government for fifteen years, most recently as the acting associate director of the Treasury Department Financial Crimes Enforcement Network’s Intelligence Division. 


Bashar al-Assad must be held accountable 

Trump’s removal of sanctions on Syria is a welcome development. As many organizations have argued, while the sanctions were a tool meant to influence Bashar al-Assad and his regime, they instead became a tool “to punish the Syrian people and hinder reconstruction, humanitarian aid, and prospects of economic recovery.” 

However, from the information available, it is unclear how the United States will approach targeted sanctions designating individuals and entities for human rights abuses under executive orders related to Syria (as opposed to broad-based sectoral sanctions). While these designations, too, must be lifted when an individual no longer meets the relevant criteria, this does not mean that Washington should embrace impunity. Namely, the US must not allow al-Assad and his allies who have been designated for serious violations of human rights to walk away without consequences. While al-Assad may have fled Syria, he has yet to provide redress for a “horrifying catalogue of human rights violations that caused untold human suffering on a vast scale.” 

Lifting targeted sanctions could allow al-Assad, for example, to enter the United States, to access previously frozen US assets, and to engage in transactions involving the US dollar. Instead, Washington could pursue targeted designations under other relevant programs, such as the Global Magnitsky program for serious human rights abuse. The Trump administration could additionally use this moment as an opportunity to re-commit Washington to pursuing domestic criminal accountability for atrocities in Syria and other accountability avenues.  

Celeste Kmiotek is a staff lawyer for the Strategic Litigation Project at the Atlantic Council.


This move aligns US Syria sanctions policy with the EU and UK

Trump’s announcement on lifting Syria sanctions is a surprising and welcome alignment of Washington’s sanctions strategy with that of the European Union (EU) and United Kingdom. European officials have been calling on Washington to remove sanctions on Syria because multinational companies and large banks will not enter the Syrian market as long as US secondary sanctions remain in place.  

While the specifics of the US sanctions removal plan are yet unknown, Washington should use the EU and UK sanctions-lifting playbook. In February, the European Council announced that the EU would lift sectoral sanctions on Syria’s energy and transport sectors, delist four Syrian banks, and ease restrictions on the Syrian central bank. However, EU sanctions against the Assad regime, the chemical weapons sector, and the illicit drug trade, as well as sectoral measures on arms trade and dual-use goods, will remain in place. Last month, the United Kingdom followed suit and lifted sanctions on the Syrian central bank and twenty-three other entities. Like the EU, the United Kingdom still maintains sanctions on members of the Assad regime and those involved in the illicit drug trade.  

Washington should replicate the EU’s and United Kingdom’s gradual approach to lifting sanctions. This means starting with the finance and energy sectors to create a favorable environment for multinational companies to enter the Syrian market. At the same time, the United States should promote the dollarization of the Syrian economy, provide financial assistance, and help the Syrian government establish regulatory oversight to prevent the diversion of funds from reconstruction efforts. 

Maia Nikoladze is an associate director at the Atlantic Council’s Economic Statecraft Initiative within the GeoEconomics Center. 

This represents a diplomatic success for Saudi Arabia and Turkey

Trump’s decision to lift all sanctions on Syria carries profound significance for the Syrian people. It offers them a genuine opportunity to rebuild their country and begin the process of recovery. While the sanctions were originally enacted with the intent of protecting civilians and deterring the Assad regime from further war crimes, over time—especially following al-Assad’s fall—they became a major hindrance, primarily harming ordinary Syrians. 

Yet, beyond its humanitarian implications, this move also marks a geopolitical win for the United States. By removing sanctions, Washington enables its allies to invest in Syria, preventing Damascus’s potential reliance on China and Russia, both of which could potentially circumvent sanctions to gain influence. This declaration by Trump should not merely be viewed as a lifting of punitive measures; it is also the first step toward formally recognizing the interim Syrian authorities as the legitimate government of Syria. 

Regionally, the end of sanctions represents a diplomatic success for Saudi Arabia and Turkey. As the principal supporters of the new Syrian government, both nations worked in tandem to persuade the Trump administration to shift its stance—initially marked by hesitation—toward greater engagement with Syria’s new leadership. Their coordinated diplomatic efforts played a pivotal role in shaping this policy reversal. 

This shared success could also pave the way for deeper regional collaboration between Riyadh and Ankara, highlighting the potential of US allies in the region when they act in concert. Syria is slowly but steadily turning from a regional conflict zone into a zone of regional cooperation. 

Ömer Özkizilcik is a nonresident fellow for the Syria Project in the Atlantic Council’s Middle East Programs. He is an Ankara-based analyst of Turkish foreign policy, counterterrorism, and military affairs


Engagement must go beyond sanctions relief

Washington’s decision to lift its sanctions on Syria emerges within a geopolitical context marked by unprecedented regional alignment around the newly formed Syrian government, led by Ahmed al-Sharaa. This government has uniquely achieved consensus among historically divergent regional powers, long characterized by strategic competition over regional hegemony. Al-Sharaa’s administration has been credited with fostering this consensus through a national vision, closely aligned with regional objectives aimed at overall stability, collective benefit, and cooperation, rather than the zero-sum dynamics that al-Assad used to impose on his direct and indirect neighborhood. 

However, two regional actors remain notably wary despite the broader regional consensus. Iran—an ally of the ousted Assad regime—views the consolidation of authority by the current government in Damascus as potentially adverse, perceiving it as a direct challenge to its strategic and security interests in the Levant. Israel, similarly, remains skeptical due to ongoing security concerns and its direct military involvement within Syrian territory. 

From a practical standpoint, lifting sanctions must be matched by corresponding bureaucratic agility. This includes swift administrative measures that enable Syrian public and private institutions to comply with international legal frameworks effectively. The cessation of sanctions should not only be a political gesture but also a procedural and institutional reality. To achieve this, regional governments alongside European and US counterparts, must proactively facilitate knowledge transfer, reduce procedural hurdles, and accelerate essential reforms. Such reforms represent a fundamental prerequisite to ensuring that the lifting of sanctions translates into tangible economic and political progress for Syria. 

Sinan Hatahet is a nonresident senior fellow for the Syria Project in the Atlantic Council’s Middle East Programs and the vice president for investment and social impact at the Syrian Forum. 


A critical reprieve for Syrians everywhere

This policy shift has already brought what feels like a collective sigh of relief for a population weighed down by a humanitarian and development crisis. Today, the majority of Syrians live below the poverty line. More than 3.7 million children in Syria are out of school—including over half of school-age children. Only 57 percent of the country’s hospitals, including only 37 percent of primary health care facilities, are fully operational Despite widespread need, humanitarian aid is lacking—largely exacerbated the Trump administration’s now-dropped sanctions and its enduring foreign aid cuts.   

Sanctions relief is a critical first step in stabilizing essential systems, particularly the health sector, which the Syrian government has identified as a national priority. It will help restore access to essential medicines, supplies, and equipment. This shift will also unlock broader international investment, encouraging governments and private sector actors to reengage in Syria as a key regional player. Infrastructure firms, pharmaceutical companies, and development partners that have long been on standby now have an opportunity to support early recovery and rebuild systems that sustain daily life. 

This policy change is also seismic for Syrians who have been displaced for decades around the world. Supporting early recovery efforts through sanctions relief will enable safe and voluntary returns while contributing to broader regional stability, and countries hosting Syrian refugees should follow Trump’s lead.  

Diana Rayes is a nonresident fellow for the Syria Project in the Atlantic Council’s Middle East Programs. She is currently a postdoctoral associate at Georgetown University’s School of Foreign Service. 


Now is the time to establish the Syria Victims Fund

With the downfall of the Assad regime, sanctions imposed “to deprive the regime of the resources it needs to continue violence against civilians and to pressure the Syrian regime to allow for a democratic transition as the Syrian people demand” are no longer appropriate, and are in fact hindering much needed rebuilding and recovery in Syria. But lifting sanctions alone is not enough. 

Over the past fourteen years, the United States and other Western countries have been profiting from enforcing sanctions against Syria. Where companies and individuals have violated Syria sanctions, the United States and other countries have taken enforcement action, levying fines, penalties, and forfeitures in response. The proceeds are then directed to domestic purposes, with none of the recovery benefitting Syrians. 

Now is the time to change this policy. Syria is finally ready for rebuilding and recovery, refugees are returning, and victim and survivor communities are beginning to heal. In addition to lifting sanctions on Syria, the United States and other countries should direct the proceeds from their past and future sanctions enforcement to benefit the Syrian people and help victim and survivor communities recover. This can be done by listening to the calls from Syrian civil society and establishing an intergovernmental Syria Victims Fund, which the European Parliament has endorsed. 

Elise Baker is a senior staff lawyer for the Strategic Litigation Project. She provides legal support to the project, which seeks to include legal tools in foreign policy, with a focus on prevention and accountability efforts for atrocity crimes, human-rights violations, terrorism, and corruption offenses. 


Without meaningful financial support, the US risks ceding influence in Syria 

The United States lifting sanctions on Syria is a necessary first step, but it is not enough to unlock the meaningful foreign investment that Syria needs for its recovery and reconstruction. After years of conflict and isolation, Syria needs more than an open economy—it must rebuild trust and demonstrate long-term stability. Investors will not return simply because sanctions have been lifted—they need assurances of stability, legal protections, and clear signals from the international community. 

Private investors often follow the lead of governments and multilateral institutions. Countries that receive significant foreign aid post-conflict also tend to attract more private capital. Europe and the United Nations have begun developing a positive economic statecraft approach, pledging billions in grants and concessional loans to support Syria’s recovery. However, the United States has yet to commit financial support this year, citing expectations that others will shoulder the burden. This creates a leadership vacuum and leaves space for geopolitical rivals to step in. 

Countries including Turkey, Saudi Arabia, Qatar, Russia, and China have already begun doing so, rapidly expanding their influence in Syria through investments in oil, gas, infrastructure, reconstruction projects, and paying off Syria’s World Bank debt. In exchange for financial support, they are gaining access to strategic sectors that will shape Syria’s future—and the broader dynamics of the region. If the United States is absent from Syria’s recovery, its risks ceding long-term influence to adversaries.  

Reconstruction is not only a humanitarian imperative—it is a strategic opportunity. The lifting of sanctions opens a door, but a coordinated positive economic statecraft response—including tools like World Bank risk guarantees and US development finance—is necessary to ensure Syria’s recovery aligns with broader international interests.

Lize de Kruijf  is a project assistant with the Economic Statecraft Initiative.

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The father of ‘soft power,’ a supreme intellect, and an eternal optimist: The Atlantic Council remembers Joseph Nye https://www.atlanticcouncil.org/blogs/new-atlanticist/the-father-of-soft-power-a-supreme-intellect-and-an-eternal-optimist-the-atlantic-council-remembers-joseph-nye/ Tue, 13 May 2025 17:38:26 +0000 https://www.atlanticcouncil.org/?p=846536 Members of the Atlantic Council community reflect on the enduring impact of Joseph Nye’s scholarship and public service.

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Joseph S. Nye Jr., the public servant and professor who coined the term “soft power” to describe US cultural influence around the globe, died on May 6. Nye served on the Atlantic Council’s board of directors from 2014 until his passing. He was an active contributor to the Atlantic Council’s work, including an essay for our New Atlanticist section in August drawing from his memoir, A Life in the American Century. He concluded the article by striking an optimistic note:

  • “Some historians have compared the flux of ideas and connections today to the turmoil of the Renaissance and Reformation five centuries ago, but on a much larger scale. And those eras were followed by the Thirty Years’ War, which killed a third of the population of Germany. Today, the world is richer and riskier than ever before.
  • I am sometimes asked whether I am optimistic or pessimistic about the future of the United States. I reply, ‘Guardedly optimistic.’ The United States has many problems—polarization, inequality, loss of trust, mass shootings, deaths of despair from drugs and suicide—just to name a few that make headlines. There is a case for pessimism. At the same time, we Americans have survived worse periods in the 1890s, 1930s, and 1960s. For all its flaws, the United States is an innovative and resilient society that, in the past, has been able to recreate and reinvent itself. Maybe Generation Z can do it again. I hope so.”

Below, members of the Atlantic Council community reflect on the impact Nye made on both our work and the wider world.

Click below to jump to an expert reflection:

Matthew Kroenig: “In a dangerous and turbulent time in global affairs, he remained an optimist”

Chuck Hagel: “He brought clarity to so many complicated issues”

Jan Lodal: He “changed our language to better communicate important diplomatic concepts”

Paula Dobriansky: “His policy advice and brilliant ideas will endure”

Daniel Fried: “He acted and advocated in the best American tradition of wanting to apply US might in the service of right”


“In a dangerous and turbulent time in global affairs, he remained an optimist”

Just recently, our CEO Fred Kempe applied the “Joe Nye rule” as a guide to the Atlantic Council’s geostrategy work. He advised that our regular, private Strategy Consortium convenings bring together the caliber of strategic thinkers who will entice people like Joe Nye to remain engaged.

We are deeply saddened to learn of Nye’s passing and that his participation in our convenings will no longer be possible. He was a longstanding Atlantic Council board director and a regular participant in our private Strategy Consortium meetings for many years, most recently in December 2024 on the topic of anticipating a future Trump administration national security strategy. He also contributed to our strategy work in other ways, authoring forwards for our Atlantic Council Strategy Papers series and articles for our website.

He was a towering intellect and a resolute and courteous commentator on global affairs. He brought penetrating insights to our meetings and did not shy away from expressing disagreement, but always in a generous way, intending only to elevate the discussion and improve the quality of the work.

In a dangerous and turbulent time in global affairs, he remained an optimist about American power, alliances, and global engagement. Even though he is no longer with us, Nye’s strategic clarity, civility, and optimism will continue to inspire the Atlantic Council.

Matthew Kroenig is vice president and senior director of the Atlantic Council’s Scowcroft Center for Strategy and Security and the Council’s director of studies. 


“He brought clarity to so many complicated issues”

We have lost an exceptional human being. He brought clarity to so many complicated issues over the years. We all learned from him and benefitted from his wisdom and knowledge and unpretentious style. He’ll be missed by many.

—Chuck Hagel is a member of the Atlantic Council international advisory board, a former US secretary of defense, and a former US senator from Nebraska.


He “changed our language to better communicate important diplomatic concepts”

Joe’s contributions to his students, his family, and world peace and security were unparalleled. His impact will be felt indefinitely. 

Joe was also a magnificent personal friend and colleague. We survived numerous hikes to the top of the mountains in Aspen after the exhilarating discussions he had organized for the Aspen Strategy Group. He asked me to take over the group when he had to step down, which I was honored to do. I then imposed on him to join my team as assistant secretary for international security affairs under Bill Perry in the Clinton administration. He was the best ever in that storied office. 

Joe actually changed our language to better communicate important diplomatic concepts—”soft power” being perhaps the most memorable. He was a devoted husband to his dear wife, Molly, and a great art dealer from whom we obtained twelve paintings that grace our walls and remind us daily of Joe. We will miss him greatly. 

Jan Lodal is a distinguished fellow at the Atlantic Council, a former principal deputy under secretary of defense for policy, and a former senior staff member of the National Security Council.


“His policy advice and brilliant ideas will endure”

Joe Nye was an extraordinary scholar, intellect, professor, and public servant. He was a prolific writer whose books, articles, and op-eds advanced innovative ideas and provided cogent analyses of complex national security issues. Described as a “towering figure in international affairs,” he produced writings that have had a profound impact on policymakers both at home and abroad. He was widely known for having conceived the “soft power” approach in US foreign policy, which promotes American power through influence, persuasion, and diplomacy.

Joe’s service at the Pentagon as assistant secretary of defense for international security affairs and as chair of the National Intelligence Council was distinguished and results-driven. During his tenure at the State Department as deputy to the under secretary for security assistance, science, and technology, he chaired the consequential National Security Council interagency group on nonproliferation of nuclear weapons.

I have long admired Joe’s achievements in foreign policy and public service. On a more personal level, I was also proud to have been his colleague and friend. He touched my life in so many ways. While at Harvard for my master’s and Ph.D. degrees, Joe was not only my professor there, but a wonderful mentor. One of his many admirable qualities that I loved was his desire to have a good lively policy debate. He always brought opposing points of view into a discussion and relished a vibrant exchange of opinions. His calm demeanor in the midst of bureaucratic squabbles or crises was exemplary.

I will miss him terribly, but I am gratified that his policy advice and brilliant ideas will endure. He was indeed a giant in international affairs and leaves a remarkable legacy.

Paula J. Dobriansky is the vice chair of the Scowcroft Center for Strategy and Security and a former US under secretary of state for global affairs.


“He acted and advocated in the best American tradition of wanting to apply US might in the service of right”

Joe Nye was the rare combination of government foreign policy practitioner with political thinker and public scholar of the first order. He has been called a “neo-liberal.” But that term, like its twin “neo-conservative,” is more of an epithet than a useful guide. Roughly put, Nye believed that the rules-based international system that the United States created and led for three generations after World War II was a good thing—that it had more potential to generate prosperity, avoid world war, and advance American values and thus American interests than the competition. Because the competition in the twentieth century was fascism and communism, Nye’s judgment was a sure thing.

But Nye’s optimistic view now seems eclipsed by the dark neo-nationalism espoused by many in the United States and indeed across Europe. When some in the Trump administration, including US President Donald Trump, call for seizing Greenland, they seem to argue that only physical control of (and raw power over) territory can secure US interests, that there is no place for cooperation between nations to achieve goals that benefit both. That’s not a new view; it’s a mere repackaging of old European, great-power imperialism that brought disaster in its time and could bring disaster in ours. Such thinking would reduce the United States to a mere grasping, greedy superpower, a larger version of Vladimir Putin’s Russia, seeking to dominate through force and fear.

Nye’s views are now, more than ever, worth considering. He was no naif about the need for power in the international arena. But he acted and advocated in the best American tradition of wanting to apply US might in the service of right. When he spoke of such things, he meant it: artful, creative, committed, and realistic in the best sense. What a compelling and inspiring legacy he leaves behind.

Daniel Fried is the Weiser family distinguished fellow at the Atlantic Council and a former US ambassador to Poland.


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Ullman in the Hill on the United Kingdom’s “defense dividend” and hybrid Russian aggression   https://www.atlanticcouncil.org/insight-impact/in-the-news/ullman-in-the-hill-on-the-united-kingdoms-defense-dividend-and-hybrid-russian-aggression/ Tue, 13 May 2025 12:36:20 +0000 https://www.atlanticcouncil.org/?p=846423 On May 12, Atlantic Council Senior Advisor Harlan Ullman published an op-ed in the Hill urging the United Kingdom and its Western allies to build greater capacity to respond to future Russian hybrid attacks. He argues that, without public support, governments will struggle to meaningfully increase defense spending and counter malign influence. 

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On May 12, Atlantic Council Senior Advisor Harlan Ullman published an op-ed in the Hill urging the United Kingdom and its Western allies to build greater capacity to respond to future Russian hybrid attacks. He argues that, without public support, governments will struggle to meaningfully increase defense spending and counter malign influence. 

International Advisory Board member

Harlan Ullman

Senior Advisor

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Charai in The National Interest: The Last Chance for a Durable Peace in the Middle East https://www.atlanticcouncil.org/insight-impact/in-the-news/charai-in-the-national-interest-the-last-chance-for-a-durable-peace-in-the-middle-east/ Mon, 12 May 2025 19:26:32 +0000 https://www.atlanticcouncil.org/?p=846434 The post Charai in The National Interest: The Last Chance for a Durable Peace in the Middle East appeared first on Atlantic Council.

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From A to F, here’s how to grade a possible nuclear deal with Iran https://www.atlanticcouncil.org/blogs/new-atlanticist/from-a-to-f-heres-how-to-grade-a-possible-nuclear-deal-with-iran/ Mon, 12 May 2025 17:32:44 +0000 https://www.atlanticcouncil.org/?p=846302 Trump may well be on his way to getting a deal with Iran over its nuclear program. But whether it passes the test will depend on its details.

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Sunday’s fourth meeting between US President Donald Trump’s Middle East Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi didn’t end with a framework agreement, as reports before the meeting indicated it could. But sufficient progress was apparently made that negotiations will continue, and the sides may have gotten closer together on key differences. That progress comes even as public comments from both sides highlight conflicting redlines, suggesting that behind closed doors, one or both sides are willing to be more flexible than they’re saying in public. It could also mean that either Iran or the United States is confident it can convince the other side to move off its current position.

If Iran and the United States ultimately bridge these differences and reach a deal, how will we know if it’s a good one? Here’s my guide for how to grade various potential outcomes of these high-stakes negotiations.

A: Resolution of the nuclear problem and regional malign influence

The issue of Iran’s nuclear program is almost certainly the focus of the talks, and an understandable one given how close Iran is to having enough enriched uranium for a bomb. But if it is indeed the only issue on the table, siloing it off from the Islamic Republic’s efforts to advance its ballistic missile programregional malign influenceterrorism operations, and global assassination and hostage-taking campaigns is a mistake—one that ensures a great deal worthy of an A grade is already off the table. 

In seeking a narrow, nuclear-only deal, Trump is almost certainly ensuring most, if any, of those other challenges will simply never be addressed, just as they were not after the 2015 Joint Comprehensive Plan of Action (JCPOA). That would leave Iran’s position in the Middle East strengthened and the region less safe overall. 

B: Full dismantlement

To get a good deal and earn a solid B grade, Trump would have to ensure that Iran fully dismantle its nuclear program, giving up its right to enrichment for civilian nuclear power. Iran claims this is the purpose of its current program, but the option to have nuclear power exists without enrichment. Other countries import the fuel, run it through their reactors, and ship the spent fuel back to its origin.

This agreement alone would not be enough to achieve a B grade, though. Iran would also have to agree to give up all of its centrifuges, which are used for spinning uranium to build a stable nuclear device, and allow them to be removed from the country. In other words, a good deal means Iran being willing to give up its program fully, similar to what Libya did in 2003. Witkoff recently said that if Iran doesn’t want a nuclear weapon, as its leaders have long claimed, then “their enrichment facilities have to be dismantled. They cannot have centrifuges.”

But such a scenario is highly unlikely. Iran has continuously professed its right to enrich uranium and its current “moderate” political leaders, President Masoud Pezeshkian and Araghchi, would almost certainly struggle to convince an already skeptical Supreme Leader Ali Khamenei to agree to give up a right he has long advocated—particularly given how things ended for Libya’s dictator. Moreover, Pezeshkian and Araghchi would probably be concerned that even offering that trade could prompt such intense blowback from hardliners that their own leadership could be at risk.

C: “Civilian” enrichment with stringent conditions

In a deal worthy of a C grade, Iran would be permitted to enrich uranium to 3.67 percent, the course of action seemingly preferred by at least some in the administration, including Vice President JD Vance. Such an amount would be sufficient for Iran to have a civilian program, but Iran would have to accept more permanent restrictions than existed as part of the JCPOA deal. 

Iran would have to give up its more advanced centrifuges—known as IR-8, IR-6, and IR-2 centrifuges—that, in essence, provide it with the capability to more quickly enrich uranium than its original IR-1 design. But there would also have to be strict limits on the IR-1s themselves. Otherwise, production capacity would eventually exceed that of more advanced centrifuges; it would just take a while.  

Moreover, a deal earning a C would not put a time limit on the restrictions or have sunset clauses like in the JCPOA, something Witkoff claimed would be the US position, stating, “there’s no sunsetting of their obligations.” Among the most critical sunsetting provisions in the JCPOA were those that expired in 2023 related to ballistic missiles and those set to expire in 2031 that lifted restrictions on Iran’s uranium enrichment level and stockpile. Finally, Iran would have to agree to inspections from not only the International Atomic Energy Association (IAEA) but also from the permanent five members of the United Nations Security Council and Germany, aka the “P5+1” nations that negotiated the JCPOA. 

Such a deal would be far from ideal. The threat of Iran being able to obfuscate its enrichment development would be perpetually present, no matter how intense the inspections. But even if Iran complied with the new agreement and restrictions, the domestic conditions in Iran, and the regional situation in the Middle East, will not remain stagnant. If conditions deteriorate, an Iranian regime under threat could quickly decide to restart its nuclear program. Iran could give up a lot in a deal, but there is no Men in Black “neuralyzer” to erase Iranian knowledge of how to properly enrich uranium and create a nuclear weapon.

D: “Civilian” enrichment with advanced centrifuges

For a below-average D grade, a deal would have the same bounds as for a C, but without Iran agreeing to give up its more advanced centrifuges or allowing in inspectors from the P5+1 to monitor its compliance with the agreement. Such a deal would leave Iran perpetually on the cusp of having a nuclear weapon, with less leverage than ever by the United States and its allies to prevent it.

F: “Civilian” enrichment with sunset clauses

And finally, an F would be the correct grade for a deal that permits an Iranian civilian nuclear program with domestic enrichment, does not compel Iran to give up its centrifuges (only to put them in storage), prohibits non-IAEA inspectors, and contains multiple sunset clauses.

Allowing sunsets almost ensures Tehran’s return to the concept of strategic patience and that some years from now, the world will once again be at risk of another crisis over Iran getting a nuclear weapon. Buying time is not always an unreasonable strategy; it wasn’t during the original JCPOA. But that was at a time when Iran was months to years from having enough enriched uranium for a single bomb. Today, Iran is only days away.

Trump may well be on his way to getting a deal with Iran over its nuclear program. But whether it passes the test will depend on its details.


Jonathan Panikoff is the director of the Scowcroft Middle East Security Initiative at the Atlantic Council and a former deputy national intelligence officer for the Near East on the US National Intelligence Council.

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