The European Union is preparing to impose sanctions on China for its alleged role in bolstering Russia’s war economy. A diplomat revealed that intensified Chinese support for Russia’s military operations is a significant concern for the bloc.

<h3>Trade Deal Tensions Simmer with U.S.</h3>
<p>Brussels plans to formally delay retaliatory measures against approximately €93 billion in U.S. goods, including aircraft and Kentucky bourbon. The EU awaits Washington's confirmation on a reduced tariff rate, with specific attention on automotive duties.</p>

<h4>Putin's Allies Face Growing Scrutiny</h4>
<p>Patience is wearing thin for China and India as they continue to sustain the Russian economy amidst its ongoing invasion of Ukraine. Both Brussels and Washington are reportedly coordinating strategies to penalize Beijing and Delhi for their persistent engagement with Moscow.</p>

<p>President **Donald Trump** recently voiced his displeasure on Truth Social, stating, “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits.” He threatened to significantly increase tariffs on Indian imports to the U.S.</p>

<p>Kremlin spokesperson **Dmitry Peskov** reiterated Moscow's stance, indicating that President **Vladimir Putin** will engage in talks only under specific preconditions, seemingly unfazed by Trump's threats.</p>

<p>An EU diplomat informed a colleague that the bloc has been aware of Chinese drone part transfers to Russia, often disguised as industrial components, for some time. “After August, we’ll push for sanctions,” the diplomat warned, emphasizing the need for both dialogue and action.</p>

<p>Chinese tech giant Baidu and American ride-sharing service Lyft are collaborating to launch Chinese-manufactured autonomous vehicles in Germany and the UK next year. Despite EU tariffs, these Chinese electric vehicles remain competitively priced. According to the International Energy Agency, electric vehicle sales globally surged by 35% in 2023, reaching 14 million units (IEA, 2024).</p>

<h3>NATO Boosts Ukraine Defense Funding</h3>
<p>The Netherlands has initiated a weapons-buying program for Ukraine with a €500 million contribution, becoming the first NATO member to participate in the alliance's recent agreement. The funds are designated for air defense systems, including Patriot interceptors, and ammunition.</p>

<p>U.S. NATO envoy **Matthew Whitaker** anticipates a series of donation announcements in the coming weeks, suggesting a sustained effort to equip Ukraine. Ukraine is reportedly developing its own affordable interceptor drones to counter Russian aerial threats.</p>

<h3>Polish Prime Minister Braces for New President</h3>
<p>Centrist Prime Minister **Donald Tusk** faces a challenging political landscape as populist **Karol Nawrocki** prepares to be sworn in as Poland's president. **Tusk**, who had hoped for a more amenable presidential ally, is now signaling readiness for political confrontation on issues like the rule of law and LGBTQ+ rights, while acknowledging the need for cooperation against Russia.</p>

<h4>Nawrocki's Controversial Campaign Trail</h4>
<p>**Nawrocki**'s presidential campaign was marked by accusations including the use of a fake persona to promote his book, admitted involvement in football hooliganism, and denied allegations of pimping. These controversies did not impede his electoral success.</p>

<h3>Middle East Conflict Escalates</h3>
<p>Israeli Prime Minister **Benjamin Netanyahu** is considering an expansion of the Gaza offensive to meet his government's war objectives, including the complete defeat of Hamas and ensuring Gaza no longer threatens Israel. Reports suggest a potential Israeli takeover of the entire Gaza Strip.</p>

<p>Meanwhile, German Social Democrats deputy leader **Siemtje Möller** stated that Berlin should contemplate sanctions against Israel or suspend its association agreement with the EU, reflecting a hardening stance among some European nations.</p>

<h3>Other Developments</h3>
<p>A fund associated with Liechtenstein's princely family is acquiring a minority stake in Teneo, a global consultancy firm. The valuation of Teneo has reportedly increased significantly since 2019.</p>
<p>**Rimantas Šadžius** has been sworn in as Lithuania's interim prime minister following the previous prime minister's resignation.</p>
<p>Lawmakers and NGOs are urging France and Brussels to prevent the destruction of nearly $10 million worth of contraceptives designated for a defunded U.S. Agency for International Development program.</p>
<p>Brazil's Supreme Court has placed former President **Jair Bolsonaro** under house arrest pending his trial for alleged coup plotting. This action has drawn sharp criticism from the U.S. State Department.</p>

<h3>Brussels Briefing</h3>
<p>Roadworks on the Brussels ring road are causing traffic disruptions, with lanes reduced until the end of August. Additionally, the ambitious Metro 3 project faces potential cancellation due to escalating costs and political deadlock.</p>

<p>Birthdays today include Commissioner **Valdis Dombrovskis** and French National Rally leader **Marine Le Pen**.</p>