EU energy supply uncertain after Ukraine seizes Russian gas hub

Good morning from Brussels,

After two weeks of fighting, Ukraine claims to have taken control of 1,250 square kilometres of Kursk Oblast in Russia, including a gas terminal that is highly strategic for Europe.

Russian town of Suzdha is the only entry point for Russian gas into Ukraine before it reaches European customers.

Despite the EU’s restrictive measures limiting the flow of energy from Russia, EU countries Slovakia, Hungary and Austria still depend on Russian gas through the Sudzha pipeline, with Italy and Croatia also getting a share of the gas.

For now, the impact of the Ukrainian incursion appears to be limited as Kyiv claims the gas site remains operational. However, a local expert said things may change if Russia decides to use heavy artillery and air strikes.

Reporting on the ground from Sumy in Ukraine, Clara Marchaud has all the details.

As Ukraine escalates on Russian territory by launching on Wednesday “one of largest ever” drone attacks on Moscow in Europe, there is a growing Polish-German diplomatic spat.

Warsaw refused to help Berlin arrest a Ukrainian citizen living in Poland suspected of causing the Nord Stream 2 explosion, with Prime Minister Donald Tusk telling Germany to remain quiet. Read the entire story here.

As member states mount pressure on the EU Commission to enforce external borders, the EU’s border agency, Frontex, has launched tenders totalling around €400 million for equipment, including purchasing more drones and other surveillance technology. Eliza Gkritsi and Magnus Lund Nielsen have more.

On the trade front, on Tuesday, we had two developments.

In a move that could ease ongoing trade tensions between Brussels and Beijing, the EU executive lowered its proposed tariffs on China-made electric vehicles.

Moreover, the Commission reintroduced tariff quotas on Ukrainian honey as import volumes exceeded the limit fixed in the regulation, setting trade benefits for Kyiv.

PARIS

It is time to turn the page on President Emmanuel Macron and LFI leader Jean-Luc Mélenchon, Raphael Glucksmann, the French Socialist leader in the European Parliament, said in an interview with Le Point. Read more.

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BERLIN

Von der Leyen rings in chipmaker TSMC’s Dresden plant as EU greenlights German €5bn subsidy plan. European Commission President Ursula von der Leyen doubled down on EU efforts to turbo-charge the bloc’s domestic semiconductor production by attending the official groundbreaking ceremony for Taiwanese firm TSMC’s Dresden plant on Tuesday – after the institution she heads greenlighted a €5 billion state aid scheme for the facility. Read more.

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VIENNA

Austria submits 2030 climate plan late as Germany, Spain flout June deadline. Just ten EU countries have submitted their long-term climate action plans to Brussels, with Austria being the most recent, as large countries like Germany and Spain continue to disregard the June 2024 deadline. Read more.

VILNIUS

Lithuania to review potential for military training zones as demand rises. Lithuania is set to expand its military training infrastructure, with the Defence Ministry considering the districts of Tauragė and Šilalė as potential sites for new training centres amid growing demand for military training. Read more.

ROME

Italian coalition split in citizenship reform debate. A new rift has emerged within Italy’s governing coalition over the controversial and hotly debated issue of citizenship reform, with Lega (ID) and Fratelli d’Italia (ECR) warning their ally Forza Italia (EPP) not to join forces with the opposition on the matter. Read more.

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MADRID

Spanish MEP causes controversy, stirring up social media with racist child murder ‘fake news’.The new rising star of the Spanish extreme right, Alvise Pérez, is using the stabbing of an 11-year-old boy last Sunday in central Spain, to spread racist and xenophobic messages against immigrants, especially those of African origin. Read more.

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LISBON

Portuguese incomes rising, average wage still close to minimum wage. Portuguese incomes are growing, even with inflation, but wage increases are slowing, with the average wage still close to the minimum wage. Read more.

WARSAW

Polish-German relations appear to have hit a low point after Warsaw refused to help Berlin arrest a Ukrainian citizen living in Poland suspected of causing the Nord Stream 2 explosion, with Prime Minister Donald Tusk unexpectedly telling Germany to remain quiet. Read more.
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BRATISLAVA

Slovakia to change rules on NGO involvement in monitoring EU funds. NGOs in Slovakia could soon no longer select civil society representatives to monitor EU funds as the government plans to have this done by the Plenipotentiary for the Development of Civil Society, against the wishes of NGOs. Read more.

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PRAGUE

Czechia will use part of Russian frozen assets profits to fund Ukraine’s ammunition. The European Union has officially tasked Czechia to use revenues from frozen Russian assets to fund the next ammunition supply for Ukraine, Czech Defence Minister Jana Černochová said on Tuesday. Read more.

SOFIA

Bulgarian Patriarch supports pro-Russian Metropolitan in Kyiv. Bulgarian Patriarch Daniil supported the head of the pro-Russian Ukrainian Orthodox Church, Metropolitan Onufry, with a congratulatory address on the 10th anniversary of his “solemn consecration as Metropolitan of Kyiv and of all Ukraine.” Read more.

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[Edited by Sarantis Michalopoulos, Daniel Eck, Alice Taylor]