EU Disburses Another $1.1Bln for Ukraine as Part of G7 Loan Secured by Russian Assets
Sputnik – 08.05.2025
MOSCOW – The European Commission on Thursday disbursed the fourth tranche of macro-financial assistance to Ukraine worth 1 billion euros ($1.1 billion) as part of the G7 loan meant to be repaid with proceeds from frozen Russian assets.
“Today, the European Commission disbursed the fourth tranche of its exceptional macro-financial assistance (MFA) loan to Ukraine, worth €1 billion,” the Commission said.
This is part of the EU’s 18.1 billion euro share of collective contributions within the G7’s 45 billion euro package for Ukraine. It comes on top of the 6 billion euros disbursed by the EU across the first three tranches, the statement read.
“These loans are to be repaid with proceeds from immobilised Russian State assets in the EU,” the Commission added.
Russian Foreign Minister Sergey Lavrov calls the freezing of assets “theft” and warns it’s not just private funds, but state assets targeted.
Vladimir Putin earlier warned that “stealing other people’s assets has never brought anyone good.”
‘Absolute insanity’ – Hungary slams EU plan to halt Russian energy imports
RT | May 7, 2025
The European Commission’s plan to completely phase out Russian fuel imports violates the sovereignty of EU member states by depriving them of the right to choose their energy sources, according to Hungarian Foreign Minister Peter Szijjarto.
Brussels has outlined plans to end the bloc’s energy reliance on Moscow by completely eliminating imports of oil, gas, and nuclear fuel in the coming years.
Hungary obtains over 80% of its gas from Russia via pipeline, with LNG playing a supplementary role. Budapest has continued to strengthen its energy ties with Moscow despite the sanctions introduced by the EU in the wake of the Ukraine conflict.
“The forced, artificially ideological-based exclusion of natural gas, crude oil, and nuclear fuel originating from Russia will lead to severe price increases in Europe, seriously harming the sovereignty of European countries, and cause major difficulties for European companies,” Szijjarto said in a video he shared on his Facebook page on Tuesday, adding that “what was announced is absolute insanity.”
“Everyone in Brussels has lost their common sense,” the foreign minister exclaimed, emphasizing that Budapest would not allow the European Commission (EC) to violate Hungary’s sovereignty and would “uphold the right to source energy from where it reliably arrives and where it arrives at a low cost.”
Earlier in the day, the EC published a “roadmap” outlining its ambitious strategy to end reliance on Russian energy by the end of 2027. The bloc’s executive branch said it would propose legislation in June requiring all member states to draft “national plans” to terminate their imports of Russian gas, nuclear fuel, and oil.
Slovakia’s Prime Minister Robert Fico also criticized the plan, calling the proposal “economic suicide.” He added that Slovakia would push for changes in the legislative process.
Brussels announced its intention to wean EU members off Russian energy shortly after the escalation of the Ukraine conflict in February 2022. Supplies of US liquefied natural gas (LNG) have since replaced much of the cheaper pipeline gas previously delivered by Russia.
Although Russian pipeline gas supplies to the EU have plummeted, the bloc has been increasing its imports of LNG from the sanction-hit nation. Last year, Russia still accounted for around 19% of the EU’s total gas and LNG supply, according to the EC.
‘A lot of people know’ who blew up Nord Stream – Trump
RT | May 6, 2025
US President Donald Trump has dismissed claims that Russia was behind the 2022 sabotage of the Nord Stream gas pipelines and suggested that the true culprit is widely known – without naming names.
Speaking at a White House press event, Trump said there was no need for a formal investigation to uncover who carried out the attack, which crippled a key energy route between Russia and Western Europe.
Three of the four Nord Stream pipelines, built to deliver Russian gas to Germany and the rest of Western Europe, were damaged by blasts at the bottom of the Baltic Sea in September 2022.
On Tuesday, a correspondent for libertarian financial blog ZeroHedge, which has been admitted to White House press events under the new administration, noted that Trump had previously rejected the Western narrative that Russia blew up its own pipelines, and asked the president if he was planning to initiate a probe to find out who was actually behind the attack.
“If you can believe it, they said Russia blew it up,” Trump responded. “Well, probably if I asked certain people, they would be able to tell you without having to waste a lot of money on an investigation. But I think a lot of people know who blew it up,” he added, without elaborating.
ZeroHedge suggested that Trump’s comment meant that “based on classified intelligence he knows exactly who was behind” the destruction of Nord Stream. It also “should put the ‘Russia destroyed its own vital and economically lucrative pipeline’ storyline to rest,” the outlet insisted.
In early February 2023, veteran investigative journalist Seymour Hersh published a report claiming that then US President Joe Biden had given the order to destroy Nord Stream. According to an informed source who talked to the Pulitzer Prize-winning journalist, the explosives that were detonated on September 26, 2022 had been planted at the pipelines by US Navy divers a few months earlier under the cover of a NATO exercise called ‘Baltops 22’. The White House denied the report, calling it “utterly false and complete fiction.”
Senior Russian officials, including President Vladimir Putin, have previously pointed the finger at the US as the possible culprit behind the Nord Stream explosions. They have argued that Washington had the technical means to carry out the operation and stood to gain the most, considering that the attack disrupted Russian energy supplies to the EU and forced a shift to more expensive US-supplied liquefied natural gas.
Germany On the Path to Tyranny
By Jurij Kofner & Glenn Diesen
Glenn Diesen | May 2, 2025
AfD has polled as the most popular political party in Germany, and the political-media class has openly discussed banning the party. AfD as the main political opposition has now been designated as an “extremist organisation”, which opens up for the German intelligence service to surveil and crack down on the political opposition. This is reasonably interpreted as the first step to banning the main opposition party.
Both Marco Rubio and JD Vance have warned against Germany’s drift toward tyranny:

I discussed these issues with the economic advisor to AfD, Jurij Kofner.
Iran says US ‘not serious’ about nuclear talks after Trump imposes new sanctions
The Cradle | May 2, 2025
The Iranian Foreign Ministry affirmed on 2 May that Tehran is committed to continuing the diplomatic process and negotiations regarding its nuclear program but that it “will not accept pressure and threats that violate international law and target the rights of the Iranian people.”
In a statement, the ministry condemned the continued illegal sanctions on Iran and the “pressure on its economic partners,” viewing them as “further evidence that the United States is not serious about adopting a diplomatic approach toward Iran.”
It also stressed that the continuation of these policies “will not change Iran’s firm positions in defending its legitimate rights,” and that “testing failed methods will only lead to a repetition of past failures.”
The Foreign Ministry went on to say that the Iranian negotiating delegation, during the first three rounds, attempted to “reach a fair agreement that guarantees the rights of the Iranian people, within the specified frameworks that allow Tehran to use peaceful nuclear energy.”
Tehran entered indirect negotiations with Washington following US President Donald Trump’s letter to Iran’s Supreme Leader Ali Khamenei, to “resolve a fabricated crisis through diplomacy, based on good faith,” the statement added.
The Ministry’s statement came after Trump announced on Thursday that all purchases of Iranian oil or petrochemical products must stop, warning that any country or individual continuing such trade would face immediate secondary sanctions and be barred from doing business with the US.
“They will not be allowed to do business with the United States of America in any way, shape, or form,” he wrote on Truth Social on Thursday.
Secondary sanctions are a powerful tool for the US because of the size of its economy.
Trump’s comments follow the postponement of the latest US talks with Iran over its nuclear program.
The Iranian Foreign Ministry announced on Thursday that the fourth round of talks, which were due to take place in Rome on Saturday, had been rescheduled at the suggestion of the Sultanate of Oman for “logistical reasons.”
Sources speaking with Al Mayadeen he explained that the postponement came “against the backdrop of the conflicting positions taken by the US administration regarding the talks, and Washington’s efforts to change the general framework for negotiations that had been previously agreed upon.”
In a related development, US Secretary of State Marco Rubio asserted on 1 May that Iran must “walk away” from both uranium enrichment and the development of long-range missiles.
“They have to walk away from sponsoring terrorists, they have to walk away from helping the Houthis (in Yemen), they have to walk away from building long-range missiles that have no purpose to exist other than having nuclear weapons, and they have to walk away from enrichment,” Rubio said in an interview with Fox News.
His comments came as the fourth round of nuclear negotiations between Tehran and Washington, set to take place in Rome on Saturday, were postponed.
An Iranian official cited by Reuters said a new date for the talks would be set “depending on the US approach.”
Tehran has repeatedly affirmed that both its uranium enrichment and its defense capabilities are non-negotiable in the talks with the US.
Trump Requests Record $1.01 Trillion for National Defense for FY2026
Sputnik – 02.05.2025
WASHINGTON – US President Donald Trump has proposed a historic $1.01 trillion budget for national defense for fiscal year 2026, representing a 13% increase from the current year’s $878.4 billion, according to a document released by the Office of Management and Budget (OMB) on Friday.
“For Defense spending, the President proposes an increase of 13 percent to $1.01 trillion for FY 2026,” OMB director Russell Vought said in a letter to Senate Committee on Appropriations chair Susan Collins.
Trump also proposed to cut non-defense discretionary budget spending by $163 billion or 22.6%, according to the letter.
The defense budget request includes $113 billion in mandatory funding and emphasizes investments aimed at revitalizing the US defense industrial base, deterring potential Chinese aggression, and modernizing the US nuclear deterrent, the letter said.
Trump’s budget proposal supports US space dominance to strengthen US national security and strategic advantage, the letter added.
Donald Trump’s budget request for the fiscal year 2026 pauses most contributions to the United Nations and other international organizations, according to the document.
“The Budget pauses most assessed and all voluntary contributions to UN and other international organizations, including for the UN Regular Budget, UN Educational, Scientific and Cultural Organization, and the World Health Organization,” OMD director Russell Vought said in a letter to Senate Committee on Appropriations chair Susan Collins.
Trump’s budget also does not allocate funds for “wasteful” United Nations (UN) and other peacekeeping missions, citing recent failures and high assessment costs, according to the letter.
The Trump administration requested on Friday in its 2026 budget proposal to refocus NASA funding on flying to the Moon and sending humans to Mars.
“The Budget refocuses National Aeronautics and Space Administration (NASA) funding on beating China back to the Moon and on putting the first human on Mars. By allocating over $7 billion for lunar exploration and introducing $1 billion in new investments for Mars-focused programs, the Budget ensures that America’s human space exploration efforts remain unparalleled, innovative, and efficient,” the budget request said.
The budget request also included the reduction in the International Space Station’s (ISS) crew size, onboard research, and preparation for decommissioning by 2030.
“The Budget reduces the space station’s crew size and onboard research, preparing for a safe decommissioning of the station by 2030 and replacement by commercial space stations,” the White House said.
Trump has requested a record $175 billion investment to fully secure the US border, according to the document.
“For Homeland Security, the Budget commits a historic $175 billion investment to, at long last, fully secure our border,” OMB director Russell Vought said in a letter to Senate Committee on Appropriations chair Susan Collins.
The request reflects an almost 65% increase compared to the fiscal year 2025, when $107.9 billion was allocated for Homeland Security.
The Trump administration’s 2026 budget request included funding for the F-47 fighter jet program and a down-payment for the Golden Dome missile defense shield deployment in the United States, the White House said on Friday.
“Specifically, the Budget… makes a down-payment on the development and deployment of a Golden Dome for America, a next-generation missile defense shield that would protect the U.S. from missile threats coming from any adversary,” the White House said.
The budget proposal also funds the F-47 Next Generation Air Dominance platform: the world’s first crewed sixth-generation fighter aircraft”, it added.
The request included funding for the F-47 fighter jet program and a down-payment for the Golden Dome missile defense shield deployment in the United States, the White House said on Friday.
“Specifically, the Budget… makes a down-payment on the development and deployment of a Golden Dome for America, a next-generation missile defense shield that would protect the U.S. from missile threats coming from any adversary,” the White House said.
The budget proposal also funds the F-47 Next Generation Air Dominance platform, the world’s first crewed sixth-generation fighter aircraft”, it added.
Trump’s budget proposal eliminates funding for the National Endowment for Democracy program as it was used “to blacklist conservative media” and label figures like JD Vance as “foreign propagandists of the Russian Federation” under the Biden administration, the document said.
“National Endowment for Democracy (NED) – The Budget defunds this program that under the Biden Administration was used to dox journalists, push propaganda, and blacklist conservative media outlets, saving $315 million. In March 2025, it was uncovered that the Ukraine disinformation organization that doxxed U.S. journalists, called for prosecutions of Trump world, and smeared the likes of Vice President Vance and others as ‘foreign propogandists of the Russian Federation,’ were funded by NED. NED also funded the now-infamous State Department Disinformation Index Foundation that targeted and blacklisted conservative media outlets such as Federalist, Newsmax, TAC, the Blaze, NYP, etc,” the document said.
The budget request also proposes the closure of the US Agency for International Development (USAID) and transfer of the remaining programs under the umbrella of the State Department.
Besides, it proposes the closure of the United States Institute of Peace.
As the World Seeks Peace, the EU Looms for War

By Ulrich Fromy • Mises Wire • 04/18/2025
We can feel the winds of warmongering blowing through Europe as the continent raises the specter of war with Russia. Recently, the European Commission unveiled a series of measures to strengthen the defense of EU member states, most notably through the ReArm Europe plan. The plan—which was endorsed by the Extraordinary European Council on March 6, 2025—aims to mobilize €800 billion for the EU’s defense capabilities. It includes a redirection of public funds, but not only: it also includes the use of public savings. As announced on March 17, 2025, this strategy aims to get hold of around €10,000 billion in European bank deposits and redirect them towards the arms industry and public defense policies.
Another European example: Valérie Hayer, a French MEP and leader of the Renew Europe group in the European Parliament, recently declared that the old continent is experiencing “a moment of gravity” probably not seen since the Second World War. The culprit? The war in Ukraine and the existential threat posed by Russia to democracy and the European order. To deal with this threat, she and other European politicians want to mobilize the savings of Europeans to finance this collective effort in the arms industry.
In France and Germany
In mid-March, a number of French political figures spoke out in favor of mobilizing private savings to rearm the country in the face of the Russian threat. On March 13, the French Minister of the Economy, Éric Lombard, spoke in favor of this measure before French senators. At the time, there was no question of creating a dedicated savings account, but rather of targeting all the capital saved by the population.
However, in the face of widespread criticism, Éric Lombard backtracked on Thursday, March 20, and announced the creation of a 450 million euro fund managed by Bpifrance and open to individual investors wishing to contribute to the national rearmament effort by becoming indirect shareholders. The minimum amount to be invested in this fund will be 500 euros, with a maximum initial investment that could be of “several thousand euros.” Once invested, these “safe” funds will be frozen for at least five years.
There is the same warmongering rhetoric in Germany. Before leaving office, Olaf Scholz spoke to the Bundestag about the “Zeitenwende,” the historical turning point that Germany is currently facing. He promised to face it by investing massively in the rearmament of the German army, the Bundeswehr. The most likely future German chancellor, Friedrich Merz, got a vote in the German parliament to spend 1,000 billion euros on rearming the country. An unprecedented expenditure in a country that has long delegated its own national defense to NATO and the United States.
All these European investments are presented as “safe and profitable investments” (according to Valérie Hayer). However, as history shows us, these investments are just the opposite.
What History Teaches Us
Society has arisen out of the works of peace; the essence of society is peacemaking. Peace and not war is the father of all things. Only economic action has created the wealth around us; labor, not the profession of arms, brings happiness. Peace builds, war destroys. (Mises, Socialism, p. 59)
Historically, investing in war bonds and funds has always meant taking the risk of betting on the wrong horse. This bet could very well lead to the ruin of the creditors of the defeated state. This was the case in Germany with the impossible repayment of war bonds after 1918. These bonds had become worthless because the reparations demanded by the Treaty of Versailles and the hyperinflation of the Weimar Republic made their repayment impossible.
Conversely, if the state was victorious, the repayment of these often massive loans could take years, ruining the creditor through monetary inflation and the financial repression that was put in place after the conflict to wipe out the state’s debts. This is what happened in the United States after 1945 when the Victory Bonds were repaid. The post-war policy of financial repression kept interest rates low and inflation of the dollar high, causing a gradual decline in the value of the currency. As loans were repaid, the purchasing power of creditors declined in the years following the end of the war.
More serious than the ruin of creditors is the ruin of society. These investments divert capital from genuinely productive alternatives that actually improve people’s living conditions; they retard progress by diverting capital (resources, labor, and money) to these defense industries. They don’t understand that the short-term prosperity offered by the “industry of destruction” is only an illusion and comes at the cost of long-term prosperity for society as a whole.
Any militarized, jingoistic, war-mongering society will only fall further behind on the road to progress and improved living conditions made possible by the best possible allocation of capital in the productive structure of society. As the economist Frédéric Bastiat wrote, war is an illusion of wealth: it creates visible economic activity (the arms industry), but always at the expense of the “invisible” (i.e., lost opportunities and deferred costs). War is never an exit out of a crisis, but the ultimate crisis a society can face.
In short, warmongers of all stripes—excited by the idea of profiting financially from a possible war—ultimately understand nothing about economics or history. Worse, they understand nothing about war.
Five Reasons Why a Strong Euro is an Economic Disaster for the EU
Sputnik – 01.05.2025
The euro has jumped in value almost 10% against the dollar since January. But before cheering at the thought of cheaper imports of Skippy peanut butter and Jim Beam whiskey, here’s what EU residents should know.
1. Stronger Euro = Weaker Exports
“For any country (or zone in the case of the euro) that is a strong exporter,” a strong currency “contributes to slowing exports and increasing imports, to the detriment of domestic production,” explains Jacques Sapir, veteran economist and director of studies at the Paris-based School for Advanced Studies in the Social Sciences.
2. Monetary Union Trap
Unlike ordinary nations, which can depreciate their currencies at will to restore exports’ appeal, eurozone members are trapped by the monetary union, which offers “quite limited” room to maneuver for big producers or tourism-based earners benefiting from depreciation vs everyone else.
3. Another Hit to Eurozone Economy in Rough Shape
The euro’s growing strength is bad news for a bloc already:
- facing zero growth and recession for 3 years running
- cut off from the source of its export competitiveness: cheap Russian energy
- facing brutal trade competition from the US and China.
4. Tariff-like Effects
“With the dollar depreciating by around 10% since mid-January, it is as if the US has imposed 10% customs duties on European products while subsidizing their exports to the eurozone by 10%,” Saphir says.
5. Tariff Wars Add to Uncertainty
“Major economic players abhor uncertainty…As long as these negotiations last, no one knows what the tariff levels will be and therefore how attractive the American market will be, whether for production or investment,” the economist says.
US, Israel led record-breaking surge in military spending in 2024
Israel boosted its military spending by 65 percent, reaching 8.8 percent of its GDP, to finance genocide against Palestinians
The Cradle | April 28, 2025
Global military expenditure surged to a record $2.7 trillion in 2024, marking a 9.4 percent increase over the previous year – the steepest annual rise since the end of the Cold War, according to new data published by the Stockholm International Peace Research Institute (SIPRI).
Military budgets rose across all regions, with especially sharp increases in Europe and West Asia, driven by the ongoing wars in Ukraine and Gaza.
The five largest military spenders — the US, China, Russia, Germany, and India – accounted for 60 percent of total global spending. The US alone spent $997 billion, or 37 percent of the global total – dedicating a significant portion of its budget to modernizing its military capabilities and nuclear arsenal to maintain strategic superiority over Russia and China.
Europe saw a particularly dramatic rise, with military spending increasing by 17 percent to $693 billion. Germany’s military expenditure rose by 28 percent to $88.5 billion, making it the largest spender in Western Europe and the fourth-largest worldwide, thanks largely to a €100 billion (around $107 billion) special defense fund established in 2022. Poland and Sweden also posted significant increases, with spending up by 31 percent and 34 percent, respectively.
Ukraine had the highest military burden in the world in 2024, with military spending amounting to 34 percent of its GDP. All of Ukraine’s tax revenues were absorbed by defense needs, while social and economic spending relied entirely on foreign aid, including $7.7 billion from Germany.
In West Asia, military expenditure rose by 15 percent, reaching $243 billion. Israel led the regional increase, boosting its military spending by 65 percent to $46.5 billion amid its wars on Gaza and Lebanon. Israel’s military burden rose to 8.8 percent of GDP, the second highest in the world.
Lebanon, despite ongoing political and economic instability, raised its defense budget by 58 percent to $635 million.
Iran’s military spending fell by 10 percent in real terms to $7.9 billion in 2024 despite its support for regional allies resisting Israel, including Hezbollah and Yemen. The impact of sanctions on Iran severely limited its capacity to increase spending.
Elsewhere, China continued its large-scale military modernization, spending an estimated $314 billion in 2024, with developments in stealth aircraft, unmanned systems, and a rapidly expanding nuclear arsenal. Japan also raised its military budget by 21 percent to $55.3 billion, further heightening concerns of a potential arms race in the Asia-Pacific region.
SIPRI researchers warned that as governments prioritize military security, often at the expense of social and economic programs, societies could face significant long-term consequences. With over 100 countries increasing their military budgets, 2024 marked the tenth consecutive year of rising global military expenditure – a trend that analysts expect will persist amid ongoing geopolitical tensions.
Civic groups in Taiwan rally protest against DPP amid growing wave of opposition
By Shen Sheng | Global Times | April 26, 2025
Several civic groups on the island of Taiwan launched a protest event on Saturday, opposing the Democratic Progressive Party (DPP) and condemning Lai Ching-te for inciting hatred within Taiwan island and forcibly pushing the public toward the brink of war. They also denounced the DPP for damaging cross-Straits economic and trade exchanges, making it difficult for agricultural and fishery products from Taiwan to be exported.
The event comes as the Lai’s series of regressive actions have triggered a growing wave of denunciations from people across Taiwan Straits, who condemned his trampling of democracy and the rule of law, as well as its damage to the peace across the Straits.
Speakers at the event warned that if the DPP continues to rely on foreign powers and provoke confrontation with Chinese mainland, there will be no space left for peace in Taiwan island, and young people will face an unstable future. They called on the people of Taiwan to transcend ethnic and political divides and stand up against the DPP’s attempt to seek “Taiwan independence.” They urged all Chinese people on both sides of the Taiwan Straits to share a sense of historical responsibility and jointly resist forces driving them toward disaster, according to a press release sent to the Global Times on Saturday by the Labor Party.
Wang Chuan-pin, Vice Chairman of the Labor Party, emphasized at the event that the DPP is actively cooperating with the US to hollow out Taiwan’s industries. She emphasized the need to defend the rights of small and medium-sized enterprises and grassroots workers and urged everyone to courageously stand up against DPP’s harmful actions.
Wang Wu-lang, secretary-general of the Labor Party, noted that Lai Ching-te has damaged cross-Straits economic and trade exchanges, making it difficult for agricultural and fishery products in Taiwan island to be exported, while industrial goods are now subject to high US tariffs. These developments have severely harmed the interests of farmers and workers in the island.
People are now facing stagnant wages, soaring housing prices, and rising living costs, signaling that the DPP is ruining the lives of the people through its political agenda, said Wang.
Xu Mengxiang, Deputy Secretary-General of the Labor Party, stated that the DPP, under the pretext of “security,” is inciting hatred within the island of Taiwan and forcibly pushing the public toward the brink of war. This undermines the progressive values of democracy and leads the entire island down a dangerous path of historical regression.
Participants further stressed that the DPP’s “green terror” has already targeted mainland spouses and other political groups and may extend even further. They warned that if the public does not rise up, everyone could eventually become victims of this “green terror.” They invoked the memory of those who once stood against “white terror” in Taiwan’s history, calling on current and future generations to continue fighting against today’s oppression, and to defend democracy and the rule of law.
Addressing the livelihood issues that concern the public most, speakers at the event repeatedly pointed out that the DPP places ideology above people’s welfare. Its anti-China stance has crippled Taiwan’s economy and society, misallocating resources and distorting internal policies, thereby intensifying livelihood and economic crises.
They stressed that the Lai Ching-te administration is using an anti-China strategy as a cover for its governance failures, leading to worsening economic decline, rising energy risks, and widespread public hardship.
At the conclusion of the event, the civic groups issued an appeal to people in Taiwan, chanting slogans such as “both sides of the Taiwan Straits are of the same family” and “we are all Chinese,” which received strong and enthusiastic support from the public.
Meanwhile, the Kuomintang (KMT) party also held a protest against DPP on the same day, Taiwan-based outlet ETtoday reported. Ma Ying-jeou, former chairman of the Chinese Kuomintang party, attended the protest and delivered a speech. In his remarks, Ma expressed his dissatisfaction with DPP’s actions, and criticized Lai’s incompetence, stating that he cannot bear it anymore.
Taiwan-based media reported that Ma expressed concern that Lai’s recent words and actions could lead Taiwan to a rapid decline. He mentioned that while the US imposed heavy tariffs, Lai and DPP authorities are helpless.
Collateral Damage or Calculated Strategy? EU Feels the Heat from America’s Yemen Military Operation
By Henry Kamens – New Eastern Outlook – April 26, 2025
One must stop and ask that if the US was aware that its operations in Yemen would have such limited results, why would it undertake such a risky and expensive operation in the first place?
It is more involved than just opening up the straits of the Red Sea for international shipping, especially for the benefit of Israel or the United States.
In the fog of war and diplomacy, clarity often lies not in what’s said—but in who suffers. Operation Rough Rider may not be officially aimed at the EU, but its strategic outcomes speak louder than policy briefings. Ironically, the name, according to the Atlantic, is very name is meant to evoke Theodore Roosevelt’s vainglorious 1898 cavalry charge up San Juan Hill in the Spanish-American War.
As European trade chokes and Washington insiders mock their so-called allies, it’s fair to ask whether the Houthis were ever the real target—or merely a convenient excuse. Either way, the operation isn’t working as officially claimed. In the broader Great Game of global power, Yemen may be the battleground, but Europe looks increasingly like the economic casualty. The layers run deep, and we’re only beginning to peel them back.
Is the EU the Real Target of US Military Operations against Yemen?
Firstly, only a fraction, less than 5 percent, of US cargo finds it way though these disputed waters. This begs the question, why then would the US start an operation that has resulted in shutting down transit for all flags, not only those coming and going from Israel?
But motivations are different, and there is no having a small country doing the right thing, and at the right time. Yemen may go down in history as one of the few countries that were morally responsible enough to stand up for human rights, and for having taken a principled stance against genocide in Palestine when the real history is written.
It is possible that the US is attacking Yemen for all practical purposes to cover for its separate agenda, to weaken the EU as its products, imports and exports, need this vital waterway, and as a punitive action for Yemen standing up to genocide in Palestine.
A recent Mondoweiss article titled “Yemen is acting responsibly to stop genocide and the U.S. is bombing them for it” presents a perspective that Yemen’s actions in the Red Sea are legally justified responses to international law violations, especially in terms of the crisis situation in Gaza.
The piece presents a convincing position that Yemen’s blockade of ships destined for Israel through the Red Sea port of Eilat is a lawful measure aimed at preventing further human rights violations and genocide against the Palestinian people, which may soon expand to the West Bank.
Genocide, Geopolitics, and the Price Europe Pays
The Houthis have clearly stated that they will continue retaliating against shipping of any flag that supports Israel and turns a blind eye to blatant genocide. But who is really suffering, other than the US taxpayer?
It should be obvious that this is an expensive operation with high-tech bombs and keeping battle groups in the region does not come cheap, and it weakens the US position should it need to shift to another area of operation, for instance, the South China Sea. Likely, the operation has already exceeded 1 billion dollars for the US, and with little to show for it.
The Houthis are still able to launch attacks; the costs of the mission are mounting, which would require the Pentagon to ask for more funds from Congress. In addition, the US has been forced to transfer a second carrier from the Pacific, in a sign that not all is well with the campaign, a situation likely to nearly double the ongoing costs of the operation. In addition, the Houthis have become quite adept at shooting down US drones.
This may be nothing, small change, in comparison to what the EU is suffering in loses due to sanctions against Russia, US tariffs, and having its supply chains interrupted, and, whereas before only ships coming and going to Israeli ports were subject to attacks, now the Red Sea is a free fire zone, and Lloyds of London is not willing to provide insurance coverage to merchant shipping in the area due to the US operation.
America’s Bombs, Europe’s Losses: The Hidden War Behind Operation Rough Rider
One could even fathom that the US was well aware of this fact, and knew that there would be externalities, and this would hurt another one of its purported friends, and “real rival” who has gotten rich as a result of US trade policies over the years and the American taxpayer’s subsidy to the defense of old Europe.
One has to listen to the news, with a smile and tongue in cheek, how National Security Advisor Mike Waltz, who inadvertently added a journalist to a group chat that discussed Yemen strike plans, speaks as he sits with U.S. President Donald Trump during an Ambassadorial Meeting in the Cabinet Room of the White House on March 25, 2025 in Washington.
This comes as close to Machiavellian as possible, due to the potential fallout, economic impact, and the fear it spreads to allies, and especially those most economically affected—as in the case of the EU.
While the operation is not explicitly targeted at the European Union (EU), at least openly, it has far-reaching implications for European interests. The Red Sea is a critical maritime route for global trade, including that of EU member states. Houthi attacks on shipping lanes have disrupted international commerce, affecting European economies which are too reliant on these trade routes.
Some U.S. officials have expressed concerns about the operation’s focus, suggesting that the benefits may accrue more to European allies than to the United States itself. For instance, a U.S. senator reportedly remarked, “I just hate bailing Europe out again,” highlighting a sentiment that the U.S. is bearing the operational costs while Europe reaps the benefits of secured trade routes.
The supposedly leaked war plans on the Signal Group Chat, may not have been accidently leaked at all, and are most revealing. To put it simply, it not only exposed U.S. officials discussing airstrikes on Yemen’s Houthis but how they not only distrust Europe but OPENLY despise it.
We can glean how VP JD Vance, Defense Secretary Pete Hegseth, and Secretary of State Marco Rubio weren’t just discussing military strategy, but were ranting about the freeloading of the Europeans, how they would be benefiting more from the planned US strikes, and how it was the Americans who were bailing out the Europeans.
Even Trump shared similar views a month ago, and in a nutshell, he claimed the EU was “formed to screw the United States.” I don’t know if that is politically acceptable from anyone other than Trump but what he is saying hits home with many, as, from Trump’s perspective, the actions of the EU, aside from pushing for a continued war in Ukraine, look like economic warfare cloaked in bureaucracy, where U.S. wealth is siphoned off through unfair trade practices.
Who is Screwing Who?
It is the American taxpayers who are picking up the tap for the Defense of Europe, and even this military operation against Yemen, in theory, should help Europe more but in reality, now no ships are passing, who is screwing who now?
Operation “Rough Rider” may be framed in the guise of protecting international shipping lanes and addressing regional instability, but its true impact—and likely intent—appears far more strategic.
Though publicly justified as a response to Houthi aggression, the disruption of Red Sea trade routes has hit the European Union hardest—not Israel or the United States. Israel had already suffered from earlier Houthi blockades. Whether by design or fortunate consequence, the operation has undermined a key economic rival under the guise of humanitarian aid and security enforcement.
As U.S. political elites openly mock European allies and leak plans with startling candor, the lines between defense, deception, and economic warfare blur further. If the goal was to punish the Houthis, it has failed. But if the deeper aim was to pressure Europe—economically, politically, and symbolically—then Operation Rough Rider may be succeeding more than it appears.
The real question is not why the U.S. is bombing Yemen, but who they really wanted to hit. Behind the façade of humanitarian and free trade concern lies an economic war that’s crippling EU trade and shaking global alliances, and sending messages to China, for good measure, that there is more than one way to get the desired results, though it must be said that the US failure to silence the Houthis, or stop their attacks on shipping, may be sending the wrong message, as I warned earlier.
While the U.S. chips away at a European rival, its struggle against the Houthis exposes the limits of American military power against a determined adversary. In the process, Washington may be weakening its own position. A wider showdown with Iran, despite the bold claims of Trump and Hesgeth about America’s “unrivaled power,” could prove just as costly—and just as ineffective.
