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Comment: EU sanctions package against Russia has backfired

The new cold war

Another package of sanctions was pushed through in Brussels to the applause of Finance Minister Svantesson. Unfortunately, this does not change the fact that Sweden and Europe are the big losers.

Published August 4, 2024 – By Jenny Piper
US Secretary of State Anthony Blinken at this year's Davos meeting. Sweden's Minister for Finance Elisabeth Svantesson during the budget walk to the right.
This is an opinion piece. The author is responsible for the views expressed in the article.

Elisabeth Svantesson, Sweden's finance minister, is doing her best to convince the public that continued sanctions against Russia are a good thing. Last week, she and several other EU finance ministers wrote an article in The Guardian saying that economic sanctions against Russia are working and that Putin is lying about Russia's economy being in good shape. Today she speaks out on the same issue in DN, saying that she has long been bothered by the fact that a false picture of the Russian economy is being spread, one that Putin wants us to believe.

According to the IMF, the Russian economy is growing, with GDP growth of 3.2% this year, which is higher than in Germany, the US and the UK.

However, Svantesson claims that this is propaganda, that Russia's economy is now struggling and that this shows that the sanctions are working, while at the same time she makes the platitude that "we have to hold on and persevere both in terms of sanctions and support". According to Svantesson, there is reason to nuance the picture, which is why the National Institute of Economic Research has now been commissioned to analyze economic developments in Russia.

The fact that several experts and analysts have declared in various contexts over the past year that the EU's sanctions against Russia have failed and are only harming their own countries does not seem to have affected Svantesson and the other EU finance ministers, who are thus firmly asserting the opposite, while at the same time pushing through yet another sanctions package that has been given the green light in Brussels.

Svantesson is really trying to convince the population that continued sanctions are a good thing.

Interestingly, former US Naval Intelligence Officer and former UN weapons inspector Scott Ritter said in an interview that it was the US that was behind the EU's decision to start sanctioning Russia, which was linked to the Minsk peace agreement on Ukraine - an agreement that France, Germany and Ukraine never intended to implement.

– The EU's sanctions package against Russia has backfired and become one of the biggest economic disasters in modern European history. These sanctions, designed to punish Russia, have failed to do so. In fact, like a boomerang, they have hit back at Europe, which continues to move forward while imposing more and more sanctions, all while Russia is getting stronger economically.

The EU is the economic arm of a group of organizations and institutions that includes NATO, all of which are basically working on behalf of the United States.

So the sanctions implemented by the EU were done because the US wanted Russia to be isolated and confronted by Ukraine, which was de facto acting as a proxy for NATO.

America is using the sanctions to achieve a larger strategic goal, not only to weaken Russia but also to weaken Europe, so that the US comes out of this conflict stronger.

It has been the US goal for decades to break Europe from its dependence on cheap Russian energy. So the sanctions and the backlash are achieving that result. Perhaps Europe doesn't realize this, or they haven't woken up to the reality that the US is not their friend.

Gunnar Beck, an outgoing MEP for the Alternative for Germany party as well as a lawyer and academic specializing in EU law, shares Ritter's view and states that the EU shot itself in the foot by deciding to impose sanctions on Russia.

– There is no doubt that the economic impact of the sanctions is felt to a much greater extent here in the EU itself compared to Russia. I mean, the Russian economy, according to official data, is doing very well and they just seem to have adapted to the sanctions.

EU sanctions on Russian commodities, including oil and gas, have mainly hurt European economies that used to rely on predictable, high-quality and cheap gas and oil imports from Russia. These economies still cannot do without importing oil and gas from Russia, but they now do so through third countries at much higher prices, while Russia continues to sell its oil and gas.

So the EU has basically hurt itself with these sanctions, or to be more precise, the bloc has massively hurt European industry and European consumers. But it doesn't seem to have had much impact on the Russian economy. The sanctions have not had the effect the EU hoped for, which was predictable. The EU probably underestimated the extent to which the Russian government had prepared for possible sanctions, including far-reaching restrictions on energy imports to the EU as well as financial transactions.

But according to Svantesson, our government and various EU ministers in Brussels, this is false information that can be explained away as "propaganda".

So when will the people of Europe realize that the US is not our friend, but someone who is using us for their own benefit? And when will the harsh reality set in, showing how our leaders have helped bring about the collapse of Europe for financial reward and the promise of future supremacy?

When will the people of Europe realize that the US is not our friend, but someone who is using us for their own benefit?

That the fools who rule Sweden will realize and repent is not on the map, because we have already sold out the country to the United States through them and put us on the scaffold. The sleeping Swedes also continue to trust the corrupt politicians with great confidence in the controlled mass media, so there will certainly be no awakening here.

Unfortunately, all we can do is watch the misery.

 

Jenny Piper

All Jenny Piper's articles can be found on her blog.

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Finnish region loses millions in revenue after border closure with Russia

The new cold war

Published November 5, 2025 – By Editorial staff
The border crossing between Russia (Svetogorsk) and Finland (Imatra)

The Finnish region of South Karelia has been severely impacted economically since Finland closed its border with Russia at the end of 2023. Tourism revenue has decreased by approximately one million euros per day, and hotels, restaurants and shops stand empty.

South Karelia is located closer to St. Petersburg than to Helsinki, the Finnish capital, and has maintained extensive economic ties with Russia for decades.

The region's economy has been built on cross-border tourism, shopping, timber trade and local jobs within the forest industry.

Finland's decision to close the 1,430-kilometer land border with Russia was motivated by accusations that Moscow had deliberately created an increased migrant flow from Africa and the Middle East to Finland. Moscow has in turn dismissed the accusations as "completely groundless".

Impact on local businesses

Hotels, restaurants and shops in the region now stand largely empty, reports Bloomberg.

Russian customers asked why we couldn’t stay open around the clock. They bought clothes in stacks – mostly the latest fashion and bling, but even winter coats were sold out by August, says Sari Tukiainen, who runs a shop in Imatra, a Finnish border town.

Due to decreased sales, Tukiainen plans to close the shop at the end of the year. Unemployment in Imatra has simultaneously risen to 15 percent, the highest in Finland, as factories and steel mills have reduced their workforce.

Historically, Finland has had a complex relationship with Russia. The country was part of the Russian Empire for over a century, and despite two wars with the Soviet Union during World War II, a friendly relationship was maintained during the Cold War.

After the war in Ukraine escalated in 2022, Finland was early to impose sanctions against Moscow. The country also abandoned its long-standing neutrality by joining the US-led military alliance NATO, a step that has further changed the economic and political dynamics in the region.

Spotify founder’s company may sell attack drones to Germany

The new cold war

Published October 30, 2025 – By Editorial staff
Daniel Ek with the HX-2 drone. German contract could generate billions in euros for Helsing.

The German government plans to award three companies contracts worth €1 billion for the delivery of kamikaze drones – one of them is Daniel Ek's military technology company Helsing.

The three companies expected to share the contract are the Ek-backed startup Helsing, German competitor Stark – which counts Silicon Valley billionaire Peter Thiel among its investors – and military-industrial giant Rheinmetall. Each company is expected to be awarded contracts of around €300 million each, according to sources speaking to the Financial Times.

No formal agreements have yet been signed, but if the contracts are approved by the German Bundestag's budget committee, they will likely be the largest deals for both young startups to date.

Under the agreement, the three companies are to deliver up to 12,000 kamikaze drones, though only a portion of that number will be delivered initially. The drones are expected to be deployed with a new German brigade stationed in Lithuania, with the official mission of defending NATO's eastern border against potential Russian attacks and airspace violations.

According to sources who spoke with FT, German authorities hope that splitting the contract among three players will stimulate innovation and competition.

— They're doing it to keep the competition alive and make sure they get the best system, said one of the sources.

European drone armament buildup

The deal comes at a time when European countries are significantly building up their drone warfare capabilities, both in terms of defensive technology to protect against potential drone attacks and offensive drones to conduct attacks against targets in other countries.

Investment in Europe's military technology startups has soared since the war in Ukraine escalated in 2022, with various venture capital firms now investing large sums in military operations.

Helsing has been described as Europe's most valuable military startup with a valuation of €12 billion, and over the past year the company has announced plans to deliver 6,000 drones to Ukraine, acquired German aircraft manufacturer Grob, and presented plans to manufacture underwater surveillance systems in the United Kingdom.

Stark was founded just 15 months ago and is backed by investors including American tech billionaire Peter Thiel and venture capital firm Sequoia Capital. The company has a team in Ukraine working on testing and development, and in July announced plans to open a factory in the English town of Swindon.

Rheinmetall surprised observers

That part of the contract would go to artillery and tank manufacturer Rheinmetall, which has already won tens of billions of euros in government contracts, came as a surprise to some players in the military-industrial sector.

Although the company has partnerships with American drone manufacturer Anduril and Israeli company UVision, it had until recently not had its own armed drone in its product portfolio.

Rheinmetall, headquartered in Düsseldorf, Germany, offered to deliver the armed drone FV-014 to the German army, which the company publicly presented in September. The drone, also known as Raider, can carry a 5-kilogram payload and has a range of 100 kilometers.

Stark will deliver its armed drone Virtus and Helsing its HX-2.

Two US military aircraft crash in South China Sea

The new cold war

Published October 28, 2025 – By Editorial staff
The past six months have seen a number of losses of American fighter aircraft in connection with accidents.

A US helicopter and a fighter jet crashed during separate routine missions in the South China Sea on Sunday. According to the US Navy, all crew members were rescued unharmed.

The incidents occurred within half an hour of each other, and preliminary reports point to technical failures.

The US Pacific Fleet reported on Sunday that an MH-60R Seahawk helicopter crashed at approximately 2:45 PM local time during a routine mission from the aircraft carrier USS Nimitz in the South China Sea.

Three crew members were quickly rescued by nearby vessels and are in good condition, reports Associated Press.

Approximately thirty minutes later, the fleet also lost an F/A-18F Super Hornet fighter jet, which was also operating from the Nimitz. The two pilots ejected and were shortly thereafter picked up by rescue units.

The Navy has launched a formal investigation to determine the causes of both accidents, which occurred over one of the world's most strategic and contested maritime areas.

Trump: "Very unusual"

President Donald Trump commented on the incidents during his Asia tour, calling the two consecutive crashes "very unusual".

They think it might be bad fuel. We’re gonna find out, Nothing to hide, Trump told reporters aboard Air Force One en route from Malaysia to Japan.

According to the Navy, this is the fourth time this year that an F/A-18 aircraft, with an estimated cost of approximately €56 million each, has been lost in an accident.

Two losses occurred earlier in the year in the Red Sea, and one accident happened off the US East Coast in August.

The South China Sea has long been a geopolitical flashpoint where China claims nearly the entire area.

In recent years, Beijing has expanded military installations on disputed islands and reefs, prompting the US to maintain a constant military presence in the region to protect freedom of navigation, according to official statements.

The dual aircraft crashes occurred while Trump is on an extended diplomatic tour in Asia, where he is expected to meet with Chinese leader Xi Jinping this week for talks on trade and security.

Sweden accelerates space defense development – military satellites planned before 2030

The new cold war

Published October 28, 2025 – By Editorial staff
The Swedish Armed Forces monitors other countries' satellites and space movements in real time.

The Swedish Armed Forces is accelerating the development of a Swedish space defense capability and plans to launch its own operational satellites earlier than previously planned.

The initiative, which aims to enhance surveillance and reconnaissance capabilities amid escalating conflicts and a deteriorating security situation, involves an expedited procurement process where the Swedish Defence Materiel Administration (FMV) has been tasked with speeding up the process.

The conflict with Russia and "the deteriorating security situation" have prompted the Swedish Armed Forces to accelerate work on a national space defense capability. The goal of having its own military satellites was originally set for 2030, but FMV has now been tasked with implementing an expedited procurement so that the satellites will become operational earlier. The defense forces currently do not wish to specify an exact year or how many satellites will be included in the system.

— We need to see further, says Anders Sundeman, new head of the Swedish Armed Forces' space operations, to state television SVT.

The satellites will primarily be used for reconnaissance and surveillance and aim to provide an improved situational picture, including over the Baltic Sea region. Weaponization of the satellites is reportedly not currently under consideration.

"Weapons reach further"

The Swedish Armed Forces cites two main reasons for the increased pace: the deteriorating security situation and the development of weapon systems with longer range. The ability to detect and follow developments at greater distances has therefore become increasingly important, while space technology has become cheaper and more accessible.

— Distances have increased so much nowadays, weapons reach further. Therefore, we need to have a good understanding of how developments are unfolding at considerably greater distances, says Anders Sundeman.

In the long term, launches are intended to be possible from Esrange in northern Sweden, but the first operational satellite is likely to be launched from foreign soil. The defense forces already have two training satellites in orbit: Gna-3, which was launched last year, and the Swedish-Danish satellite Bifrost, which followed earlier this year.

Space as a domain of conflict

Today, around fifteen people work with space defense within the Swedish Armed Forces, and within five years the staff is expected to double. In the monitoring room that handles the space situational picture, other countries' satellites are tracked, passages over Sweden are noted, and suspicious movements are analyzed.

Sweden is one of several countries now building up space defense capabilities. The US-led military alliance NATO has also highlighted space as a possible future domain of conflict.

— With increased interest, increased activity and increased dependence, potential conflicts, or space as a potential domain of conflict, will increase, says Anders Sundeman.

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