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Russia to Prioritize Military Spending in 2025 Amid Escalating Ukraine War

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Russia’s military budget is set to soar to unprecedented levels in 2025, with spending on national defense surpassing allocations for health care, education, and social policy combined. This strategic shift underscores Moscow’s commitment to its war efforts in Ukraine as the conflict continues into its third year.

President Vladimir Putin has approved budget plans allocating 32.5% of next year’s budget—equivalent to over €137 billion—to defense. This represents a significant increase from the reported 28.3% spent on defense in 2024. The budget was formally ratified by both chambers of Russia’s parliament in recent weeks, reflecting a unified stance on bolstering the country’s military capabilities.

The war in Ukraine, which began in February 2022, remains Europe’s largest conflict since World War II, draining resources on both sides. While Kyiv receives substantial aid from Western allies, including financial and military support, Russia continues to leverage its larger and better-equipped armed forces. Recent months have seen Russian troops steadily pushing back Ukrainian forces in the contested eastern regions.

Escalating Violence on Both Sides

The conflict remains marked by deadly exchanges, with both nations employing drone strikes in increasingly aggressive tactics. On Sunday, three civilians were killed, and seven were injured in Kherson, southern Ukraine, when a Russian drone struck a minibus, according to regional Governor Oleksandr Prokudin.

The aftermath of a missile strike on Dnipro on Saturday revealed a rising toll, with 24 injured, including seven in serious condition, and four fatalities, Dnipropetrovsk Governor Serhiy Lysak reported.

Meanwhile, Ukraine faced an onslaught of 78 Russian drones overnight into Sunday. Ukrainian officials stated that their air force destroyed 32 drones, while 45 others were electronically jammed and neutralized.

In a retaliatory strike, Ukrainian drones targeted Russian territory, resulting in the death of a child in the Bryansk region near the border, according to Governor Alexander Bogomaz. The Russian Defense Ministry claimed to have intercepted 29 Ukrainian drones in four western regions, including Bryansk, Kaluga, Smolensk, and Kursk.

Economic and Strategic Implications

The record-breaking military budget highlights the strain the conflict places on Russia’s economy, as spending on domestic welfare programs diminishes. Analysts suggest the increased defense spending reflects Moscow’s aim to maintain its strategic advantage over Ukraine while preparing for a protracted conflict.

With no immediate end to the war in sight, the intensified focus on military spending signals Russia’s prioritization of its geopolitical objectives, even at significant domestic cost. As the conflict drags on, the global community remains watchful of its far-reaching consequences.

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France, Algeria Expel Diplomats in Escalating Diplomatic Dispute

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Tensions between France and Algeria have escalated further this week, as both nations continue a tit-for-tat expulsion of diplomats in a worsening diplomatic standoff.

France announced on Wednesday that it will expel an unspecified number of Algerian diplomats in direct response to Algeria’s decision to remove 15 French officials from the country over the weekend. This follows an earlier episode in mid-April, when Algeria expelled 12 French diplomatic personnel, prompting France to retaliate by expelling an equal number of Algerian officials and recalling its ambassador from Algiers.

French Foreign Minister Jean-Noël Barrot confirmed the latest move during an interview with BFM TV, stating that Algerian officials holding diplomatic passports but lacking valid visas to operate in France would be required to leave. He declined to specify the exact number of expulsions, saying, “It’s not so much a question of numbers, it’s a question of quality. Algeria wanted to send back our agents — we’re sending back theirs.”

On Tuesday, the French Foreign Ministry summoned Algeria’s chargé d’affaires to formally notify him of the decision. The diplomatic escalation came just two days after Algeria had informed France’s chargé d’affaires in Algiers that 15 French civil servants on temporary assignments would be expelled.

While Algeria’s Foreign Ministry has yet to release an official statement, the state-run Algerian Press Agency (APS) reported that the expelled French personnel were appointed under what it described as “irregular conditions.”

France responded with a sharply worded statement accusing Algeria of breaching a 2013 bilateral agreement, which governs the movement and duties of officials holding diplomatic, official, or service passports. The statement condemned Algeria’s “new conditions of access” for French officials and described the expulsion as unjustified.

Barrot characterized Algeria’s action as “incomprehensible and brutal,” and insisted that France’s response was “immediate, firm, and proportionate.” He added that further measures could be taken depending on the evolution of the situation.

The dispute adds to a growing list of irritants in Franco-Algerian relations. Key points of contention include Algeria’s refusal to repatriate nationals facing deportation from France and the continued detention of dissident Franco-Algerian writer Boualem Sansal.

Relations took a significant downturn in July 2024, when France expressed support for Morocco’s claim to Western Sahara — a move that angered Algiers, a staunch supporter of Sahrawi self-determination.

Although French President Emmanuel Macron and Algerian President Abdelmadjid Tebboune shared a reportedly positive phone conversation in early April, hopes of a diplomatic thaw appear to have been short-lived.

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EU Seeks Closer Defence Ties with Ukraine, Citing Battle-Tested Innovation

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The European Union has launched a new initiative to deepen defence cooperation with Ukraine, drawing on the war-torn country’s battlefield experience to strengthen European capabilities in key areas such as drone production.

The EU-Ukraine Defence Industries Task Force held its inaugural meeting on Monday, aiming to enhance industrial collaboration between Kyiv and Brussels. The effort was announced by European Commissioner for Defence and Space Andrius Kubilius during the second EU-Ukraine Defence Industry Forum.

Kubilius emphasized the urgency of integrating Ukraine’s rapidly evolving defence sector into Europe’s broader security framework, particularly in light of its advancements in unmanned systems and supply chain resilience.

Today, we announce the creation of the inter-institutional EU-Ukraine Task Force,” he said. “Ukrainian and European experts will now work together to develop joint projects and facilitate procurement processes that strengthen both our defence industries.”

The task force will focus on priority capabilities, especially explosives and drones. According to Kubilius, Ukraine’s innovation in drone production has positioned it as a global leader in the field. “We need to learn from Ukraine how to create a drone production and operation infrastructure,” he said, asserting that Europe stands to gain even more from this integration than Ukraine.

Since Russia’s full-scale invasion in 2022, Ukraine has increased its annual defence production capacity to €35 billion — a 35-fold rise. Kubilius highlighted Ukraine’s ability to deliver modern, cost-effective defence solutions, describing its companies as “fast” and capable of producing at “half the price” of their European counterparts.

Alexander Kamyshin, an advisor to President Volodymyr Zelenskyy, told the forum that the ongoing conflict would be remembered as “the first world drone war.” He noted Ukraine’s success in developing autonomous targeting systems and swarming drone capabilities, technologies he said the country is willing to share with European allies.

We’re here to build the arsenal of the free world together,” Kamyshin declared.

The EU is set to invest heavily in its defence sector over the next four years, including up to €650 billion in new fiscal allocations and €150 billion through a new loan programme dubbed SAFE. The initiative is designed to support joint procurement and could benefit Ukrainian firms as well.

Talks on the SAFE programme are expected to conclude by the end of May, with disbursements likely to begin by early 2026. Meanwhile, a broader strategic planning effort, including a new Industry Outlook based on member states’ capability targets, is set to be unveiled in June.

Peace through strength will come from production power and brain power,” Kubilius said. “To stop Putin, we need to produce more, innovate more, and we need to do that together: in the EU and with Ukraine.”

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Spy Scandal Strains Hungary-Ukraine Relations as Minority Rights Talks Collapse

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A deepening espionage scandal has plunged Hungary and Ukraine into a new diplomatic rift, with Budapest abruptly suspending planned talks on the rights of ethnic Hungarians in Ukraine’s Transcarpathia region.

According to Ukrainian officials, negotiations that were due to take place on May 12 in Uzhhorod were called off at the last minute by Hungary, despite the Ukrainian delegation already having arrived in the border town. The discussions were meant to address 11 Hungarian recommendations to strengthen the rights of the Hungarian minority living in the southwestern Carpathian region.

The suspension comes amid a growing diplomatic row sparked by Ukrainian allegations of Hungarian espionage. On May 9, Ukraine’s Security Service (SBU) announced that it had uncovered a Hungarian military intelligence network operating on Ukrainian territory. Two former Ukrainian soldiers were detained, accused of collecting sensitive military information for Budapest. The network was reportedly overseen by a Hungarian intelligence officer.

In response, Ukraine expelled two Hungarian diplomats. Hungary retaliated in kind, expelling two Ukrainian officials. Hungarian Foreign Minister Péter Szijjártó dismissed the allegations as “propaganda,” stating that Hungary had not received any formal communication from Kyiv regarding the charges.

Tensions escalated further on Friday when Hungary’s Counter-Terrorism Centre detained a Ukrainian citizen in central Budapest. According to Hungarian authorities, the individual—described as a middle-aged man previously operating under diplomatic cover—was expelled from the country overnight for espionage. The National Directorate General for Aliens determined that his activities posed a “serious threat to Hungary’s sovereignty.”

The individual was deported after the situation was clarified,” the Hungarian government said in a statement, adding that the suspect no longer had diplomatic immunity.

The deteriorating relations have cast a shadow over longstanding concerns about minority rights in Transcarpathia, where ethnic Hungarians have lived for generations. Hungary has frequently criticized Ukraine for failing to uphold linguistic and cultural rights, while Kyiv has accused Budapest of interfering in its internal affairs.

With both sides now trading expulsions and suspending dialogue, the prospects for resolving the minority rights dispute — or cooling tensions more broadly — appear increasingly uncertain.

The incident marks the latest flashpoint in what has been a historically uneasy relationship between the two neighbours, now further complicated by war, security fears, and mounting geopolitical pressure.

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