A (8:20)
Well, thanks, Dom. Many will argue that is indeed an accurate summary. But first of all, let's just pick up from where we were yesterday with European leaders dashing to Paris for that emergency summit to discuss their response to the approach adopted by the United States. So Keir Starmer, the British prime minister, had declared that London would be willing to put troops on the ground in the event of a peace deal, echoing similar sentiments by French President Emmanuel Macron and the Swedish government. But after that meeting, Olaf Scholz, Germany's chancellor, said that suggestion was completely premature, highly inappropriate, and that he was a little irritated. Indeed. Germany, Spain and surprisingly, Poland all signalled reluctance to deploy troops to Ukraine as part of that settlement, pledging support in terms of logistics and political support to countries that will possibly want to provide such guarantees in in the future. Those were the remarks by Polish Prime Minister Donald Tusk. Now, Scholz seems to be more outraged at the discussions about European security happening over the heads of the talks taking place between Russia and the US Than the fact that those talks between Russia and the US Are taking place over the heads of the Europeans. The Chancellor insisted that discussions on possible European troop deployments were being held over the heads of the Ukrainians and that possible peace talk being discussed. At the moment, they haven't even started. This is highly inappropriate, to put it bluntly and honestly. We don't even know what the outcome will be there. I think many can guess, Mr. Schultz. But anyway, many other countries, including the Netherlands, are also said to be undecided. So major splits remain. NATO Secretary General Mark Rutter was also in attendance, posting this morning that Europe is ready and willing to take a leadership role in providing Ukraine with security guarantees. It's ready and willing to step up to lead in providing security guarantees for Ukraine, ready and willing to invest a lot more in our security. The details will need to be decided, but the commitment is clear. Now. Bear in mind that Mr. Rutte is going to be split now divided between the Europeans and the Americans. He's going to be trying to keep the Americans on side while perhaps being sympathetic to the European position and crisis. So a very difficult maneuvering act he will have to be playing. There are real concerns, as the Financial Times report today, that Putin wants NATO troops removed from the whole of the former Soviet empire. Trump is, they think, likely to potentially agree to withdrawing U.S. troops from the Baltics and perhaps further west, leaving the EU vulnerable to a Russian army that NATO governments warn is preparing for a larger conflict beyond Ukraine. That, of course, being the view of many intelligence services, as we reported on the podcast over the past three years. As such, the German press are claiming that the EU is preparing a multi billion euro package, perhaps as much as 700 billion euros, to buy weapons for Ukraine. Officials say the plan will be revealed only after the German election on February 23rd. To avoid controversy, Berlin's Foreign Minister Baerbock hinted that a package of unprecedented scale is. Is coming. But again, we return to the perennial question to achieve what. What are Europe's objectives in Ukraine? As Franz Stephan Gady at the Institute for Strategic Studies writes, that's where Dom was last week. The first step surely should be to define our European objectives in Ukraine and access how vital they are to Europe's security. Only then can we determine what we are willing to risk. The second step is to outline a coherent operational plan, and the third to identify the required forces, the mandate in which they would operate and the duration of their deployment. We are working backwards. He goes on. The longer we delay this debate, particularly in Berlin, the more apparent it becomes that either Germany does not view Ukraine as crucial to Europe's security architecture, as its rhetoric suggests, or that there is genuine decision paralysis driven by fear of committing to a military mission without direct US military support. So big fissures remain, and it looks more and more likely that there will have to be some kind of coalition of the willing formed that is willing to be more decisive, though they would be acting for the good of Europe. I'm thinking here of countries like Britain. Britain would not be in the direct sense, conventional warfare sense, threatened in the short term by Russia. Certain countries on the eastern flank would be. And yet those countries may not be all of them willing to act as decisively as London might. That is a cause of, well, concern, but also may well be the reality that we are in here. But let's turn to the other major summit of the moment that taking place between the US and Russia in Saudi Arabia, formulating a peace proposal for the war over the heads of Europe and Ukraine. We've now had our first picture from inside the room where those officials met for talks. Sitting at the top of a long brown table are two Saudi officials sitting in front of U.S. and Russian flags. Pretty extraordinary in and of itself. Also in the room were Mike Waltz, the White House National Security Advisor, Marco Rubio, the US Secretary of State, and Steve Witkoff, the Middle east envoy. It's a striking image. It really feels it belongs to a different age. Great powers determining the futures of free peoples. At the stroke of a pen, Putin is ready to talk to President Zelensky if necessary, he said, which was good of him today, with Dmitry Peskov, the Kremlin spokesperson, saying Putin had repeatedly said that he is ready to speak about peace, but that Moscow's wider security issues must be addressed first. To give that quote in full, he said Putin himself said that he would be ready to negotiate with Zelenskyy if necessary, but the legal basis of agreements needs discussion. Considering the reality that Zelenskyy's legitimacy can be questioned. Pretty extraordinary coming from Moscow, but nonetheless speaks to their strategy here of undermining President Zelenskyy and his position and legitimacy in in Ukraine. Now, interestingly, the Kremlin also tried to dangle a carrot to act that they are behaving in good faith, they said. With regard to Ukraine joining the eu, it is the sovereign right of any country, but it is completely different when it comes to security issues and military alliances. Here we have a different approach that is well known. Clearly, Moscow favors the idea that if it has to agree to anything, it is the idea of Ukraine joining the EU at some point. But it would be presumably of a Ukraine that is more like Hungary and Slovakia politically than one that is as westward leaning as this current administration. And it bears repeating that EU membership is not something that until now has been considered as being at all likely. In the medium term, will that be something that is accelerated? Perhaps. But to say that there are no security aspects of EU membership is also inaccurate. There are some, and we'll of course be returning to that at some point very soon, I imagine. In terms of this summit, though, nothing else concrete has come out as yet. But the Telegraph yesterday published the details of Trump's demand for a $500 billion payback from Ukraine for its support in the war. It goes far beyond US control over the country's critical minerals. It covers everything from ports and infrastructure to oil and gas and the larger resource base of the country. As our writer Ambrose Evans Pritchard writes, the terms of the contract that landed at Zelenskyy's office a week ago amount to the U.S. economic colonization of Ukraine in legal perpetuity. It implies a burden of reparations that cannot possibly be achieved. The US will take 50% of recurring revenues received by Ukraine from the extraction of resources and 50% of the financial value of all new licenses issued to third parties for the future monetization of resources. There will be a Lewin on view of revenues in favor of the US that clause means pay us first and then feed your children, said one source close to the negotiations. Ambrose goes on this states that for all future licenses, the US Will have a right of first refusal for the purchase of exportable minerals. Washington will have sovereign immunity and acquire near total control over most of Ukraine's commodity and resource economy. The fund shall have the exclusive right to establish the method, selection criteria, terms and conditions of all future licenses and projects. It seems to have been written by private lawyers, not the U.S. departments of state or Commerce. And he wraps up by saying President Zelenskyy himself proposed the idea of giving the US a direct state in Ukraine's rare earth elements and critical minerals. On a visit to Trump Tower in September, hoping to smooth the way for continued arms deliveries, he calculated that it would lead to US Companies setting operations on the ground, creating a political tripwire that would deter Putin from attacking again. He probably did not expect to be confronted with terms normally imposed on aggressor states defeated in war. They are worse than the financial penalties imposed on Germany and Japan after their defeat in 1945. Most countries were ultimately net recipients of funds from the victorious allies. If this draft were accepted, Trump's demands would amount to a higher share of Ukrainian GDP than reparations imposed on Germany at Versailles. At the same time, he seems to be willing to let Russia off the hook entirely. We'll have a link to that piece in the show. Notes Essential reading I would say at the present moment, it really speaks to just the shift in the White House towards Ukraine, which is, as many have said, vindictive. Frankly, it is clear that this deal could never be accepted. Most likely, the Trump administration are hoping for two outcomes, either a lesser but still massively profitable counteroffer from Kyiv or an outright rejection. Will Trump use that as an excuse, then, to say that the US has been treated unfairly and cut them off? Many think so. Only a week ago, it was the Russian economy that was widely believed the Americans would try to squeeze further. That, after all, was what Trump suggested in his first week of office. But now, at least in the short term, the reverse looks set to happen. The ruble is stabilizing somewhat, the stock market has rallied, and analysts believe that Moscow will be able to avoid sanctions better because Trump has dismantled or crippled agencies that enforce them. And third, countries are more likely to be willing to work with the Russians without fear of consequences. Even if a sharp reverse were to occur in These talks, or further down the line, months of economic buoyancy have just been gifted to the Russians as a result of the White House's actions. That will sharpen the focus of European leaders as they will realise they cannot rely on, on the Russian economy being what ultimately brings this war to a close. Now it will need to be military and political actions, the two areas that Europe has been most hesitant to move on.