Ukraine-Russia News
LAST UPDATE: July 18, 2025
Russian households’ inflation expectations steady at 13% in July
July data shows Russian households’ 1-year inflation expectations remain at ~13%, aligning with the Central Bank’s forecast and supporting a rate cut scenario.
Insight
Stable expectations indicate anchored inflation mindset; policymakers may have space to lower rates, but economic risks linger.
Zelenskiy says he and Trump are considering a drone ‘mega-deal’
Ukrainian President Zelenskiy revealed ongoing talks with U.S. President Trump on a “mega-deal”: Washington would import battlefield-tested Ukrainian drones (capable of striking ~800 miles), while Ukraine would buy U.S. weaponry.
Insight
This proposed exchange reflects growing U.S. interest in Ukraine’s drone technology and signals deepening military-technical cooperation. It may also influence U.S. defense budgeting and procurement priorities.
Ukraine Reshuffles Cabinet With Wartime Economy Struggling
Ukraine enacted its largest wartime cabinet reshuffle: appointing Yulia Svyrydenko (39) as prime minister and moving Denys Shmyhal to defense minister. The move aims to boost arms production and improve economic and diplomatic coordination.
Insight
The reshuffle refocuses government strength on wartime needs, civilian-military integration, and stronger ties with the U.S. However, economic strain and internal cohesion remain key challenges.
Ukraine’s new PM: a deal-maker as head of wartime government
AFP profile of PM Svyrydenko: she negotiated a major U.S.–Ukraine minerals deal and is expected to accelerate weapon production and economic reform under wartime conditions.
Insight
Her appointment strengthens the technocratic, Western-aligned core of Zelenskiy’s government and underscores economic diplomacy. It reflects Ukraine’s pivot toward self-sufficiency and international leverage.
Germany’s Merz: need clarity on how US to replace arms Europe sending to Ukraine
German Finance Minister Merz called for clarity on how U.S. weapons can replace European-supplied arms to Ukraine, amid debates over burden-sharing and defense supply chains.
Insight
Europe’s reliance on U.S. arms risks creating strategic dependencies; coordinated transatlantic defense planning is now essential to sustain Ukraine support without diminishing European defense.
Russia says Trump’s new weapons pledge a signal for Ukraine to abandon peace efforts
Russia said Trump’s pledge of new arms to Ukraine signals Kyiv should abandon peace efforts, interpreting U.S. support as reinforcing Ukraine’s war aims over negotiations.
Insight
Moscow’s reaction frames U.S. support as escalation, not diplomacy. This suggests Russia sees Western aid as undermining ceasefire potential, raising stakes for mediation.
Ukraine offers its front line as test bed for foreign weapons
Ukraine is offering front-line conditions to test foreign weapons systems in real combat, inviting defense manufacturers to validate performance under live conditions.
Insight
This strategy could accelerate adoption of effective systems but also sets high stakes: poor field performance could backfire on suppliers’ reputations and impact future arms deals.
Slovakia to allow approval of new EU sanctions package on Friday, PM Fico says
Slovak PM Fico announced plans to approve a new EU sanctions package on Russia. Slovakia’s agreement clears a major procedural hurdle for EU-wide sanctions expansion.
Insight
Bratislava’s shift signals waning internal EU resistance, paving the way to update sanctions. It emphasizes how member states shape collective EU foreign policy.
