Ukraine-Russia News
LAST UPDATE: September 18, 2025
Ukraine, US launch fund for critical minerals projects with $150m investment
Ukraine and the U.S. International Development Finance Corporation will each contribute US$75 million to establish a joint US$150 million investment fund. The fund is part of a minerals deal aimed at supporting Ukraine’s reconstruction and strengthening supply chains for critical minerals.
Insight
This move reflects efforts to tie economic recovery from conflict to long-term resilience: securing supply chains, attracting private investment, and coupling reconstruction with strategic natural resource development. It also signals that U.S. foreign economic policy is increasingly focused on infrastructure and strategic minerals, not just aid.
Slovakia, Hungary Resist Trump’s Bid to Halt Russian Energy
Bloomberg
Slovakia and Hungary have pushed back on U.S. pressure—led by President Trump—to stop importing Russian oil and gas. They say they need reliable alternative energy infrastructure first to avoid harm to their industries and economies.
Insight
The resistance highlights how energy dependency still constrains unified policy in the EU. Countries with high reliance on Russian energy see the cost of abrupt change as too high without structural support, exposing tensions between geopolitical goals and domestic economic realities.
Poland urges EU to end Russian oil imports by 2026, citing geopolitical risks
Reuters
Poland called for all EU member states still importing Russian crude oil to cease doing so by end-2026. The demand comes amid concerns over recent Russian drone incidents and strategic vulnerabilities. Poland also offered to assist countries that are energy-dependent in transitioning away from Russian oil.
Insight
Poland is pushing for an accelerated timeline, putting political pressure on the EU to move faster on energy decoupling. The proposal may force trade-offs for dependent states but could strengthen EU coherence and strategic autonomy if implemented.
Ukraine’s economic police need more to fight shadow economy, director says
Reuters
The director of Ukraine’s Economic Security Bureau (ESBU) said the agency is under-resourced in staff and funding and cannot adequately tackle the shadow economy—estimated at USD 14.5-24 billion. He emphasized that tax revenues are crucial for funding the war effort and for economic recovery.
Insight
Improving fiscal capacity by reducing tax evasion and corruption is essential for Ukraine’s resilience and path toward EU integration. Weak enforcement undermines both domestic legitimacy and international support; bolstering these institutions may yield multiple dividends for stability and growth.
Trump and Europe Are at Odds Over How to Sanction Russia
DJ / Wall Street Journal
European leaders are debating whether to follow President Trump’s more aggressive proposals—such as cutting off oil imports and imposing tariffs on China and India—for sanctions on Russia. While Trump demands tougher measures, many EU countries hesitate due to economic risks and energy dependency.
Insight
The discord reveals a shifting dynamic in transatlantic relations: the U.S. is pushing for more punitive and expansive measures, while Europe is balancing sanctions with protection of its own economic interests. This could lead to simmering friction or force compromises in how sanctions are structured.
Russian government explores way to make ends meet as budget deadline looms
The Russian government is considering raising VAT from 20% to 22% to reduce the projected budget deficit, which is expected to exceed earlier estimates. Military and social spending remain largely untouched; the draft budget is due to be submitted on September 29. Inflation remains above 8%, and GDP growth is slowing.
Insight
The possible tax hike reflects mounting fiscal stress in a wartime economy, where revenue shortfalls force difficult trade-offs. The move shows that Russia’s leadership is increasingly accepting that growth cannot offset rising costs, especially under sanctions and volatile energy markets.
