LONDON — A new system of border checks on goods arriving from Europe is expected to force rocketing U.K. food prices even higher as businesses grapple with hundreds of millions of pounds in extra fees.
British business groups last week got sight of the U.K. government’s long-awaited post-Brexit border plans, via a series of consultations. One person in attendance said the proposals will “substantially increase food costs” for consumers from January.
That could spell trouble in a country which imports nearly 30 percent of all its food from the EU, according to 2020 figures from the British Retail Consortium, and where the annual rate of food and drink inflation just hit 19.2 percent — its highest level in 45 years.
Government officials told business reps at one consultation that firms will be hit with £400 million in extra costs as a result of long-deferred new checks at the U.K. border for goods entering from the EU.
Ministers have argued that the full implementation of the new post-Brexit procedures — which will eventually include full digitization of paperwork and a “trusted trader scheme” for major importers in order to reduce border checks — will more than offset these costs in the long-run as they will also be rolled out for imports coming from non-EU countries as well.
Supply-chain disruption caused by the Ukraine war, poor weather and new trade barriers due to Brexit have all been blamed for the U.K.’s surge in food prices.
A member of a major British business group, speaking on the condition of anonymity, said that incoming post-Brexit red tape will mean “some producers on the EU side will find it is no longer possible to trade with the U.K.” and that “some small businesses will find themselves shut out.”
“It will add to the costs, and probably inflation, but I think we need to go through this so we can work with the EU to find advantageous improvements,” they said.
“We can’t keep running away from the fact we need to implement our own border checks.”
‘Not business as usual’
Britain has delayed the implementation of full post-Brexit border checks multiple times, while the EU began its own more than two years ago.
The government’s new “target operating model,” published last month, will see the phased implementation of new border and customs checks for EU imports from October.
This will include a new fee that must be paid from January for all goods that are eligible for border checks, including items like chilled meat, dairy products and vegetables.
A new fee will be applied from January for all goods that are eligible for border checks, including items like chilled meat, dairy products and vegetables | Paul Faith/AFP via Getty Images
Each batch of goods that could be subject to checks, even if they are ultimately not chosen by border staff for inspection, will be hit with a fee of between £23 to £43 at inland ports.
The first business figure quoted above said the scale of the new fees came as a surprise, after firms had been previously assured by the government that these costs would be dependent on whether goods had actually been checked.
“[Former minister] Jacob Rees-Mogg said there would be minimal costs. Initially we thought it was business as usual, but it’s not,” they said.
“There were people at this [consultation] saying that this is not a massive increase, but it will substantially increase food costs.”
William Bain, trade expert at the British Chambers of Commerce, said there is a “strong prospect” of higher inflation due to the new Brexit checks.
“EU suppliers may be less willing to trade with British based companies, because of increased costs and paperwork. The costs of imported goods would almost certainly increase,” he said.
But he added: “We knew this day was coming and that inbound controls on goods would be applied. It’s a part of having a functional border and complying with the U.K.’s international commitments.”
Reality check
The U.K. has seen trade flows with the EU disrupted since leaving the bloc’s single market and customs union.
Recent analysis by the Financial Times found that Britain’s goods exports are dropping at a faster rate than in any other G7 country.
Recent figures from the Office for National Statistics meanwhile show that U.K. trade in goods with EU countries fell at a much faster rate than from non-EU countries in January.
Conservative MP Tobias Ellwood told POLITICO that he fears his party will pay a price at the next general election, due to be held by January 2025, if the government does not seek better trading arrangements with the EU.
“There’s certainly a revision across the nation when it comes to Brexit — people are realising that what we have today isn’t what they imagined, whether you voted for Remain or for Brexit,” he said.
“The reality check is that it has become tougher economically to do business with the Continent and quite rightly there’s an expectation that we fix this.”
A government spokesperson said: “The target operating model implements important border controls which will help protect consumers and our environment and assure our trade partners about the quality of our exports.
“It implements these important controls in a way which minimises costs for businesses and prevents delays at the border.”
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( With inputs from : www.politico.eu )
Mumbai: The airport customs has seized 2.4 kg of heroin worth Rs 16.8 crore at the Chhatrapati Shivaji Maharaj International Airport after arresting a foreign national, an official said on Monday.
According to the official, based on specific intelligence, the Mumbai airport customs intercepted the foreign national who arrived from Entebbe, Uganda, and seized 2.4 kg of the contraband value at Rs 16.8 crore from him on Sunday.
During the probe, customs personnel found the drug was concealed in a false cavity of a carton, he said.
The passenger has been arrested under relevant sections of the NDPS Act and further investigation was on, the official added.
Gurugram: A 61-year-old woman here was allegedly duped of Rs 2 crore on the pretext of customs clearance by a man she came in contact with on social media, police said.
The woman in her complaint alleged that in December 2022 she received a “follow request” from a person who introduced himself as a British Airways pilot, the police said.
“On December 5, he said he had a surprise package with gift items like i-phone, artificial jewellery, watch, accessories and cash and asked for my address and phone number,” she said in her complaint.
The fraudster said that he would send the package to the woman if she paid him Rs 35,000. After she paid the money, she received a call from another person posing as an airport authority official and was asked to pay a penalty of Rs 1 lakh, police said.
On the fraudster’s assurance of getting the penalty money back, she transferred Rs 95,000 and sometime later he again called the woman and asked me to pay another Rs 2 lakh for a certificate required for doing currency exchange from USD to INR and she again got cheated, they said
The fraudsters did not stop there, on December 9 she received an SMS from another number claiming to be from United Nations Anti-Terrorist Department’, saying that she had to get a clearance form for the package, for which she had to pay.
“I was forced to take a loan against all my jewellery with Muthoot Finance and scammers forced me to transfer that loan amount as well,” the woman said.
She transferred Rs 35 lakh from her account and also sold a plot to arrange for Rs 50 lakh more. She also borrowed Rs 24.5 lakh from her relatives, police said.
“I was asked then for more money so I withdrew money from my joint bank account with my son and when my son was alerted of the withdrawal, he called me to inquire. After that it was revealed that the whole story was a scam and the scammer duped me of almost Rs 2 crore,” the complainant said.
An FIR was registered against unidentified fraudsters under sections 419 (cheating by impersonation) and 420 (cheating) of the Indian Penal Code and section 66-D of the IT Act at the cyber crime police station, Manesar on Monday and a probe is underway, said Naresh Kumar, the investigating officer.
Hyderabad: Customs Air Intelligence of Hyderabad Customs, RGIA, apprehended a male passenger on Thursday carrying 514 gms of gold paste hidden in the rectum in the form of three capsules.
The gold is worth Rs 32,08,902 lakhs, officials say.’
The passenger arrived from Riyadh by flight SV-750 on Thursday. A case has been registered and further investigations are on.
Gurugram: A Nigerian national was arrested for duping a Gurugram woman of Rs 2 lakh on the pretext of custom clearance after they met on a matrimonial site, police said on Monday.
The accused, identified as Ignatus Ngosine, was arrested from Delhi on Sunday night, they said.
According to the complainant, she started talking to the accused, who posed as a project manager working with a Turkish company, in March, police said.
The accused, who introduced himself as Shiva Jhadav from India, asked the woman for her address saying that he wanted to send her some gifts. The complainant then received a call from one Sunita who posed as a customs officer from Mumbai Airport, they said.
The fraudster told the complainant that some parcels have been received from Turkey in her name and asked her to pay Rs 38,500 for custom clearance.
She also said that if I did not pay the clearance then she will be arrested by the police and I paid the amount twice, the woman said in her complaint.
On March 20, the victim received another call from the same woman demanding Rs 1,35,000 for custom certificate clearance, she alleged.
“Due to pressure I again paid the amount and later they demanded Rs 2.5 lakh more and then I found myself duped and moved to police,” she said in her complaint.
An FIR was registered under sections 419 (cheating by impersonation), 420 (cheating), and 120-B (criminal conspiracy) of Indian Penal Code at cybercrime, south police station on Friday, police said.
“The accused, along with other gang members, is involved in this kind of fraud and he had cheated many women. We are questioning him to solve other incidents,” said Subhash Boken, spokesperson of Gurugram police.
Vijayawada: The Customs Commissionerate in Vijayawada seized 12.97 kilogram of gold worth Rs 7.48 crore and nabbed four individuals during a special operation, officials said on Wednesday.
According to officials, the gold was being smuggled to Andhra Pradesh.
The operation involved interception at multiple locations across the state where the customs officials got hold of carriers of smuggled gold who were travelling in different modes of public transport.
Four individuals carrying the precious yellow metal were arrested under provisions of the Customs Act 1962 and further investigations are on.
According to a release, the customs officers seized 12.97 kg gold, estimated to be worth Rs 7.48 crore. “The gold seized predominantly included gold whose foreign markings were deliberately defaced to try and camouflage the smuggled nature of the gold,” it added.
As he jets off for a state visit to Moscow this week, China’s President Xi Jinping is doing so in defiance of massive international pressure. Vladimir Putin, the man Xi once called his “best, most intimate friend,” has just become the world’s most wanted alleged war criminal.
The International Criminal Court issued an arrest warrant for Putin on March 17 for his alleged role in illegally transferring Ukrainian civilians into Russian territories. But that isn’t deterring Xi, who broke Communist Party norms and formally secured a third term as Chinese leader this month.
But why is China’s leader so determined to stand by Putin despite the inevitable backlash, at a time when the West is increasingly suspicious of Beijing’s military aims — and scrutinizing prized Chinese companies like TikTok — more closely than ever?
For a start, Beijing’s worldview requires it to stay strategically close to Russia: As Beijing’s leaders see it, the U.S. is blocking China’s path to global leadership, aided by European governments, while most of its own geographical neighbors — from Japan and South Korea to Vietnam and India — are increasingly skeptical rather than supportive.
“The Chinese people are not prone to threats. Paper tigers such as the U.S. would definitely not be able to threaten China,” declared a commentary on Chinese state news agency Xinhua previewing Xi’s trip to Russia. The same article slammed Washington for threatening to sanction China if it provided Russia with weapons for its invasion of Ukraine. “The more the U.S. wants to crush the two superpowers, China and Russia, together … the closer China and Russia lean on each other.”
It’s a view that chimes with the rhetoric from the Kremlin. “Washington does not want this war to end. Washington wants and is doing everything to continue this war. This is the visible hand,” Putin’s spokesman Dmitry Peskov said earlier this month.
10-year bromance
To understand Xi’s preference for Putin even though China’s economy is so intertwined with the West, analysts say it’s not just important to factor in Beijing’s vision for the future, but also to grasp the history that the Chinese and Russian leaders share.
“They’re just six months apart in terms of age. Their fathers both fought in World War II … Both men had hardships in their youths. Both have daughters,” said Alexander Gabuev, a senior fellow at the Carnegie Endowment for International Peace think tank and an expert on Russo-Chinese relations. “And they are both increasingly like an emperor and a tsar, equally obsessed with Color Revolutions.”
Their “bromance,” as Gabuev put it, began in 2013 when Xi met Putin toward the end of the Asia-Pacific Economic Cooperation summit in Bali — on Putin’s birthday. Citing two people present at the impromptu birthday party, Gabuev said the occasion was “not a boozy night, but they opened up and there was a really functioning chemistry.”
Russian President Vladimir Putin with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation Summit in Nusa Dua in 2013 | Mast Irham/AFP via Getty Images
According to Putin himself, Xi presented him with a cake while the Russian leader pulled out a bottle of vodka for a toast. The pair then reminisced over shots and sandwiches. “I’ve never established such relations or made such arrangements with any other foreign colleague, but I did it with President Xi,” Putin told the Chinese CCTV broadcaster in 2018. “This might seem irrelevant, but to talk about President Xi, this is where I would like to start.”
Those remarks were followed by a trip to Beijing, where Xi presented Putin with China’s first friendship medal. “He is my best, most intimate friend,” Xi said. “No matter what fluctuations there are in the international situation, China and Russia have always firmly taken the development of relations as a priority.”
Xi has stuck to those words, even after Putin launched his invasion of Ukraine just over a year ago. Less than three weeks beforehand, Putin visited Beijing and signed what China once referred to as a “no limits” partnership. Chinese officials have steered clear of criticizing Russia — and they wouldn’t even call it a war — while echoing Putin’s narrative that NATO expansion was to blame.
Close but not equal
Concerns are mounting over Beijing’s potential to provide Russia with weapons. Last week, POLITICO reported that Chinese companies, including one connected to the government in Beijing, have sent Russian entities 1,000 assault rifles and other equipment that could be used for military purposes, including drone parts and body armor, according to customs data.
Chinese and Russian armed forces have also teamed up for joint exercises outside Europe. Most recently, they held naval drills together with Iran in the Gulf of Oman.
During Xi’s visit this week, the two leaders are expected to conclude up to a dozen agreements, according to Russian media TASS. Experts say Xi and Putin are likely to sign further agreements to boost trade — especially in energy — as well as make more efforts to trade in their own currencies.
Xi is also expected to reiterate China’s “position paper” with a view to settling what it calls the “Ukraine crisis.” The paper, released last month, mentions the need to respect sovereignty and resume peace talks, but also includes Russian talking points such as dissuading “expanding military blocs” — a veiled criticism of U.S. support for Ukraine to potentially join NATO. There are also reports that Xi could be talking by phone with Ukraine’s President Volodymyr Zelenskyy after the Moscow visit.
But Beijing’s overall top priority is to “lock Russia in for the long term as China’s junior partner,” wrote Ryan Hass, a senior fellow at the Brookings Institution, a think tank. “For Xi, cementing Russia as China’s junior partner is fundamental to his vision of national rejuvenation.”
To achieve this, Putin’s stay in power is non-negotiable for Beijing, he wrote: “China’s … objective is to guard against Russia failing and Putin falling.”
What better way, then, to show support than attending a state banquet when your notorious friend needs you most?
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( With inputs from : www.politico.eu )
LONDON — It was clear when Boris Johnson was forced from Downing Street that British politics had changed forever.
But few could have predicted that less than six months later, all angry talk of a cross-Channel trade war would be a distant memory, with Britain and the EU striking a remarkable compromise deal over post-Brexit trade rules in Northern Ireland.
Private conversations with more than a dozen U.K. and EU officials, politicians and diplomats reveal how the Brexit world changed completely after Johnson’s departure — and how an “unholy trinity” of little-known civil servants, ensconced in a gloomy basement in Brussels, would mastermind a seismic shift in Britain’s relationship with the Continent.
They were aided by an unlikely sequence of political events in Westminster — not least an improbable change of mood under the combative Liz Truss; and then the jaw-dropping rise to power of the ultra-pragmatic Rishi Sunak. Even the amiable figure of U.K. Foreign Secretary James Cleverly would play his part, glad-handing his way around Europe and smoothing over cracks that had grown ever-wider since 2016.
As Sunak’s Conservative MPs pore over the detail of his historic agreement with Brussels — and await the all-important verdict of the Democratic Unionist Party of Northern Ireland — POLITICO has reconstructed the dramatic six-month shift in Britain’s approach that brought us to the brink of the Brexit deal we see today.
Bye-bye Boris
Johnson’s departure from Downing Street, on September 6, triggered an immediate mood shift in London toward the EU — and some much-needed optimism within the bloc about future cross-Channel relations.
For key figures in EU capitals, Johnson would always be the untrustworthy figure who signed the protocol agreement only to disown it months afterward.
In Paris, relations were especially poisonous, amid reports of Johnson calling the French “turds”; endless spats with the Elysée over post-Brexit fishing rights, sausages and cross-Channel migrants; and Britain’s role in the AUKUS security partnership, which meant the loss of a multi-billion submarine contract for France. Paris’ willingness to engage with Johnson was limited in the extreme.
Truss, despite her own verbal spats with French President Emmanuel Macron — and her famously direct approach to diplomacy — was viewed in a different light. Her success at building close rapport with negotiating partners had worked for her as trade secretary, and once she became prime minister, she wanted to move beyond bilateral squabbles and focus on global challenges, including migration, energy and the war in Ukraine.
“Boris had become ‘Mr. Brexit,’” one former U.K. government adviser said. “He was the one the EU associated with the protocol, and obviously [Truss] didn’t come with the same baggage. She had covered the brief, but she didn’t have the same history. As prime minister, Liz wanted to use her personal relationships to move things on — but that wasn’t the same as a shift in the underlying substance.”
Indeed, Truss was still clear on the need to pass the controversial Northern Ireland Protocol Bill, which would have given U.K. ministers powers to overrule part of the protocol unilaterally, in order to ensure leverage in the talks with the European Commission.
Truss also triggered formal dispute proceedings against Brussels for blocking Britain’s access to the EU’s Horizon Europe research program. And her government maintained Johnson’s refusal to implement checks on goods entering Northern Ireland from Great Britain, causing deep irritation in Brussels.
But despite the noisy backdrop, tentative contact with Brussels quietly resumed in September, with officials on both sides trying to rebuild trust. Truss, however, soon became “very disillusioned by the lack of pragmatism from the EU,” one of her former aides said.
“The negotiations were always about political will, not technical substance — and for whatever reason, the political will to compromise from the Commission was never there when Liz, [ex-negotiator David] Frost, Boris were leading things,” they said.
Former British Prime Minister Liz Truss announces her resignation outside 10 Downing Street in central London on October 20, 2022 | Daniel Leal/AFP via Getty Images
Truss, of course, would not be leading things for long. An extraordinary meltdown of the financial markets precipitated her own resignation in late October, after just six weeks in office. Political instability in Westminster once again threatened to derail progress.
But Sunak’s arrival in No. 10 Downing Street — amid warnings of a looming U.K. recession — gave new impetus to the talks. An EU official said the mood music improved further, and that discussions with London became “much more constructive” as a result.
David Lidington, a former deputy to ex-PM Theresa May who played a key role in previous Brexit negotiations, describes Sunak as a “globalist” rather than an “ultra-nationalist,” who believes Britain ought to have “a sensible, friendly and grown-up relationship” with Brussels outside the EU.
During his time as chancellor, Sunak was seen as a moderating influence on his fellow Brexiteer Cabinet colleagues, several of whom seemed happy to rush gung-ho toward a trade war with the EU.
“Rishi has always thought of the protocol row as a nuisance, an issue he wanted to get dealt with,” the former government adviser first quoted said.
One British officialsuggested the new prime minister’s reputation for pragmatism gave the U.K. negotiating team “an opportunity to start again.”
Sunak’s slow decision-making and painstaking attention to detail — the subject of much criticism in Whitehall — proved useful in calming EU jitters about the new regime, they added.
“When he came in, it wasn’t just the calming down of the markets. It was everyone across Europe and in the U.S. thinking ‘OK, they’re done going through their crazy stage,’” the same officialsaid. “It’s the time he takes with everything, the general steadiness.”
EU leaders “have watched him closely, they listened to what he said, and they have been prepared to trust him and see how things go,” Lidington noted.
Global backdrop
As months of chaos gave way to calm in London, the West was undergoing a seismic reorganization.
Russia’s large-scale invasion of Ukraine triggered a flurry of coordinated work for EU and U.K. diplomats — including sanctions, military aid, reconstruction talks and anti-inflation packages. A sense began to emerge that it was in both sides’ common interest to get the Northern Ireland protocol row out of the way.
“The war in Ukraine has completely changed the context over the last year,” an EU diplomat said.
A second U.K. official agreed. “Suddenly we realized that the 2 percent of the EU border we’d been arguing about was nothing compared to the massive border on the other side of the EU, which Putin was threatening,” they said. “And suddenly there wasn’t any electoral benefit to keeping this row over Brexit going — either for us or for governments across the EU.”
A quick glance at the electoral calendar made it clear 2023 offered the last opportunity to reach a deal in the near future, with elections looming for both the U.K. and EU parliaments the following year — effectively putting any talks on ice.
“Rishi Sunak would have certainly been advised by his officials that come 2024, the EU is not going to be wanting to take any new significant initiatives,” Lidington said. “And we will be in election mode.”
The upcoming 25th anniversary of the Belfast/Good Friday peace agreement on April 10 heaped further pressure on the U.K. negotiators, amid interest from U.S. President Joe Biden in visiting Europe to mark the occasion.
“The anniversary was definitely playing on people’s minds,” the first U.K. official said.“Does [Sunak] really want to be the prime minister when there’s no government in Northern Ireland on the anniversary of the Belfast/Good Friday Agreement?”
The pressure was ramped up further when Biden specifically raised the protocol in a meeting with Truss at the U.N. General Assembly in New York in late September, after which British officials said they expected the 25th anniversary to act as a “key decision point” on the dispute.
The King and I
Whitehall faced further pressure from another unlikely source — King Charles III, who was immediately planning a state visit to Paris within weeks of ascending the throne in September 2022. Truss had suggested delaying the visit until the protocol row was resolved, according to two European diplomats.
The monarch is now expected to visit Paris and Berlin at the end of March — and although his role is strictly apolitical, few doubt he is taking a keen interest in proceedings. He has raised the protocol in recent conversations with European diplomats, showing a close engagement with the detail.
One former senior diplomat involved in several of the king’s visits said that Charles has long held “a private interest in Ireland, and has wanted to see if there was an appropriately helpful role he could play in improving relations [with the U.K].”
By calling the deal the Windsor framework and presenting it at a press conference in front of Windsor Castle, one of the king’s residences, No. 10 lent Monday’s proceedings an unmistakable royal flavor.
The king also welcomed von der Leyen for tea at the castle following the signing of the deal. A Commission spokesperson insisted their meeting was “separate” from the protocol discussion talks. Tory MPs were skeptical.
Cleverly does it
The British politician tasked with improving relations with Brussels was Foreign Secretary Cleverly, appointed by Truss last September. He immediately began exploring ways to rebuild trust with Commission Vice-President and Brexit point-man Maroš Šefčovič, the second U.K. official cited said.
His first hurdle was a perception in Brussels that the British team had sabotaged previous talks by leaking key details to U.K. newspapers and hardline Tory Brexiteers for domestic political gain. As a result, U.K. officials made a conscious effort to keep negotiations tightly sealed, a No. 10 official said.
“The relationship with Maroš improved massively when we agreed not to carry out a running commentary” on the content of the discussions, the second U.K. official added.
This meant keeping key government ministers out of the loop, including Northern Ireland Minister Steve Baker, an arch-Brexiteer who had been brought back onto the frontbench by Truss.
British Foreign Secretary James Cleverly is welcomed by European Commission Vice-President Maroš Šefčovič ahead of a meeting at the EU headquarters in Brussels on February 17, 2023 | Kenzo Tribouillard/AFP via Getty Images
The first U.K. official said Baker would have “felt the pain,” as he had little to offer his erstwhile backbench colleagues looking for guidance while negotiations progressed, “and that was a choice by No. 10.”
Cleverly and Šefčovič “spent longer than people think just trying to build rapport,” the second U.K. officialsaid, with Cleverly explaining the difficulties the protocol was raising in Northern Ireland and Šefčovič insistent that key economic sectors were in fact benefiting from the arrangement.
Cleverly also worked at the bilateral relationship with German Foreign Minister Annalena Baerbock, while Sunak made efforts to improve ties with French President Emmanuel Macron, Lidington noted.
A British diplomat based in Washington said Cleverly had provided “a breath of fresh air” after the “somewhat stiff” manner of his predecessors, Truss and the abrasive Dominic Raab.
By the Conservative party conference in early October, the general mood among EU diplomats in attendance was one of expectation. And the Birmingham jamboree did not disappoint.
Sorry is the hardest word
Baker, who had once described himself as a “Brexit hard man,” stunned Dublin by formally apologizing to the people of Ireland for his past comments, just days before technical talks between the Commission and the U.K. government were due to resume.
“I caused a great deal of inconvenience and pain and difficulty,” he said. “Some of our actions were not very respectful of Ireland’s legitimate interests. I want to put that right.”
The apology was keenly welcomed in Dublin, where Micheál Martin, the Irish prime minister at the time, called it “honest and very, very helpful.”
Irish diplomats based in the U.K. met Baker and other prominent figures from the European Research Group of Tory Euroskeptics at the party conference, where Baker spoke privately of his “humility” and his “resolve” to address the issues, a senior Irish diplomat said.
“Resolve was the keyword,” the envoy said. “If Steve Baker had the resolve to work for a transformation of relationships between Ireland and the U.K., then we thought — there were tough talks to be had — but a sustainable deal was now a possibility.”
There were other signs of rapprochement. Just a few hours after Baker’s earth-shattering apology, Truss confirmed her attendance at the inaugural meeting in Prague of the European Political Community, a new forum proposed by Macron open to both EU and non-EU countries.
Sunak at the wheel
The momentum snowballed under Sunak, who decided within weeks of becoming PM to halt the passage of the Northern Ireland Protocol Bill in the House of Lords, reiterating Britain’s preference for a negotiated settlement. In exchange, the Commission froze a host of infringement proceedings taking aim at the way the U.K. was handling the protocol. This created space for talks to proceed in a more cordial environment.
An EU-U.K. agreement in early January allowed Brussels to start using a live information system detailing goods moving from Great Britain to Northern Ireland, seen as key to unlocking a wider agreement on physical checks under the protocol.
The U.K. also agreed to conduct winter technical negotiations in Brussels, rather than alternating rounds between the EU capital and London, as was the case when Frost served as Britain’s chief negotiator.
Trust continued to build. Suddenly the Commission was open to U.K. solutions such as the “Stormont brake,” a clause giving the Northern Ireland Assembly power of veto over key protocol machinations, which British officials did not believe Brussels would accept when they first pitched them.
The Stormont brake was discussed “relatively early on,” a third U.K. official said. “Then we spent a huge amount of effort making sure nobody knew about it. It was kept the most secret of secret things.”
Yet a second EU diplomat claimed the ideas in the deal were not groundbreaking and could have been struck “years ago” if Britain had a prime minister with enough political will to solve the dispute. “None of the solutions that have been found now is revolutionary,” they said.
An ally of Johnson described the claim he was a block on progress as “total nonsense.”
The ‘unholy trinity’
Away from the media focus, a group of seasoned U.K. officials began to engage with their EU counterparts in earnest. But there was one (not so) new player in town.
Tim Barrow, a former U.K. permanent representative to the EU armed with a peerless contact book, had been an active figure in rebuilding relations with the bloc since Truss appointed him national security adviser. He acquired a more prominent role in the protocol talks after Sunak dispatched him to Brussels in January 2023, hoping EU figures would see him as “almost one of them,” another adviser to Sunak said.
Ensconced in the EU capital, Barrow and his U.K. team of negotiators took over several meeting rooms in the basement of the U.K. embassy, while staffers were ordered to keep quiet about their presence.
Besides his work on Northern Ireland trade, Barrow began to appear in meetings with EU representatives about other key issues creating friction in the EU-U.K. relationship, including discussions on migration alongside U.K. Home Secretary Suella Braverman.
Barrow “positioned himself very well,” the first EU diplomat quoted above said. “He’s very close to the prime minister — everybody in Brussels and London knows he’s got his ear. He’s very knowledgeable while very political.”
But other British officials insist Barrow’s presence was not central to driving through the deal. “He has been a figure, but not the only figure,” the U.K. adviser quoted above said. “It’s been a lot of people, actually, over quite a period of time.”
When it came to the tough, detailed technical negotiations, the burden fell on the shoulders of Mark Davies — the head of the U.K. taskforce praised for his mastery of the protocol detail — and senior civil servant and former director of the Northern Ireland Office, Brendan Threlfall.
The three formed an “unholy trinity,” as described by the first U.K. official, with each one bringing something to the table.
Davies was “a classic civil servant, an unsung hero,”the official said, while Threlfall “has good connections, good understanding” and “Tim has met all the EU interlocutors over the years.”
Sitting across the table, the EU team was led by Richard Szostak, a Londoner born to Polish parents and a determined Commission official with a great CV and an affinity for martial arts. His connection to von der Leyen was her deputy head of cabinet until recently, Stéphanie Riso, a former member of Brussels’ Brexit negotiating team who developed a reputation for competence on both sides of the debate.
Other senior figures at the U.K. Cabinet Office played key roles, including Cabinet Secretary Simon Case and senior official Sue Gray.
The latter — a legendary Whitehall enforcer who adjudicated over Johnson’s “Partygate” scandal — has a longstanding connection to Northern Ireland, famously taking a career break in the late 1980s to run a pub in Newry, where she has family links. More recently, she spent two years overseeing the finance ministry.
Gray has been spotted in Stormont at crunch points over the past six months as Northern Ireland grapples with the pain of the continued absence of an executive.
Some predict Gray could yet play a further role, in courting the Democratic Unionist Party as the agreement moves forward in the weeks ahead.
For U.K. and EU officials, the agreement struck with Brussels represented months of hard work — but for Sunak and his Cabinet colleagues, the hardest yards may yet lie ahead.
This story was updated to clarify two parts of the sourcing.
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( With inputs from : www.politico.eu )
KYIV — Heads are rolling in President Volodymyr Zelenskyy’s expanding purge against corruption in Ukraine, but Defense Minister Oleksii Reznikov is denying rumors that he’s destined for the exit — a move that would be viewed as a considerable setback for Kyiv in the middle of its war with Russia.
Two weeks ago, Ukraine was shaken by two major corruption scandals centered on government procurement of military catering services and electrical generators. Rather than sweeping the suspect deals under the carpet, Zelenskyy launched a major crackdown, in a bid to show allies in the U.S. and EU that Ukraine is making a clean break from the past.
Tetiana Shevchuk, a lawyer with the Anti-Corruption Action Center, a watchdog, said Zelenskyy needed to draw a line in the sand: “Because even when the war is going on, people saw that officials are conducting ‘business as usual’. They saw that corrupt schemes have not disappeared, and it made people really angry. Therefore, the president had to show he is on the side of fighting against corruption.”
Since the initial revelations, the graft investigations have snowballed, with enforcers uncovering further possible profiteering in the defense ministry. Two former deputy defense ministers have been placed in pre-trial detention.
Given the focus on his ministry in the scandal, speculation by journalists and politicians has swirled that Reznikov — one of the best-known faces of Ukraine’s war against the Russian invaders — is set to be fired or at least transferred to another ministry.
But losing such a top name would be a big blow. At a press conference on Sunday, Reznikov dismissed the claims about his imminent departure as rumors and said that only Zelenskyy was in a position to remove him. Although Reznikov admits the anti-corruption department at his ministry failed and needs reform, he said he was still focused on ensuring that Ukraine’s soldiers were properly equipped.
“Our key priority now is the stable supply of Ukrainian soldiers with all they need,” Reznikov said during the press conference.
Despite his insistence that any decision on his removal could only come from Zelenskyy, Reznikov did still caution that he was ready to depart — and that no officials would serve in their posts forever.
The speculation about Reznikov’s fate picked up on Sunday when David Arakhamia, head of Zelenskyy’s affiliated Servant of the People party faction in the parliament, published a statement saying Reznikov would soon be transferred to the position of minister for strategic industries to strengthen military-industrial cooperation. Major General Kyrylo Budanov, current head of the Military Intelligence Directorate, would head the Ministry of Defense, Arakhamia said.
However, on Monday, Arakhamia seemed to row back somewhat, and claimed no reshuffle in the defense ministry was planned for this week. Mariana Bezuhla, deputy head of the national security and defense committee in the Ukrainian parliament, also said that the parliament had decided to postpone any staff decisions in the defense ministry as they consider the broader risks for national defense ahead of another meeting of defense officials at the U.S. Ramstein air base in Germany and before an expected upcoming Russian offensive.
Zelenskyy steps in
The defense ministry is not the only department to be swept up in the investigations. Over the first days of February, the Security Service of Ukraine, State Investigation Bureau, and Economic Security Bureau conducted dozens of searches at the customs service, the tax service and in local administrations. Officials of several different levels were dismissed en masse for sabotaging their service during war and hurting the state.
“Unfortunately, in some areas, the only way to guarantee legitimacy is by changing leaders along with the implementation of institutional changes,” Zelenskyy said in a video address on February 1. “I see from the reaction in society that people support the actions of law enforcement officers. So, the movement towards justice can be felt. And justice will be ensured.”
Yuriy Nikolov, founder of the Nashi Groshi (Our Money) investigative website, who broke the story about the defense ministry’s alleged profiteering on food and catering services for soldiers in January, said the dismissals and continued searches were first steps in the right direction.
“Now let’s wait for the court sentences. It all looked like a well-coordinated show,” Nikolov told POLITICO. “At the same time, it is good that the government prefers this kind of demonstrative fight against corruption, instead of covering up corrupt officials.”
Still, even though Reznikov declared zero tolerance for corruption and admitted that defense procurement during war needs reform, he has still refused to publish army price contract data on food and non-secret equipment, Nikolov said.
During his press conference, Reznikov insisted he could not reveal sensitive military information during a period of martial law as it could be used by the enemy. “We have to maintain the balance of public control and keep certain procurement procedures secret,” he said.
Two deputies down
Alleged corruption in secret procurement deals has, however, already cost him two of his deputies.
Deputy Defense Minister Vyacheslav Shapovalov, who oversaw logistical support for the army, tendered his resignation in January following a scandal involving the purchase of military rations at inflated prices. In his resignation letter, Shapovalov asked to be dismissed in order “not to pose a threat to the stable supply of the Armed Forces of Ukraine as a result of a campaign of accusations related to the purchase of food services.”
Another of Reznikov’s former deputies, Bohdan Khmelnytsky, who managed defense procurement in the ministry until December, was also arrested over accusations he lobbied for a purchase of 3,000 poor-quality bulletproof vests for the army worth more than 100 million hryvnias (€2.5 million), the Security Service of Ukraine reported. If found guilty he faces up to eight years in prison. The director of the company that supplied the bulletproof vests under the illicit contract has been identified as a suspect by the authorities and now faces up to 12 years in prison if found guilty.
Both ex-officials can be released on bail.
Another unnamed defense ministry official, a non-staff adviser to the deputy defense minister of Ukraine, was also identified as a suspect in relation to the alleged embezzlement of 1.7 billion hryvnias (€43 million) from the defense budget, the General Prosecutors Office of Ukraine reported.
When asked about corruption cases against former staffers, Reznikov stressed people had to be considered innocent until proven guilty.
Reputational risk
At the press conference on Sunday, Reznikov claimed that during his time in the defense ministry, he managed to reorganize it, introduced competition into food supplies and filled empty stocks.
However, the anti-corruption department of the ministry completely failed, he admitted. He argued the situation in the department was so unsatisfactory that the National Agency for the Prevention of Corruption gave him an order to conduct an official audit of employees. And it showed the department had to be reorganized.
“At a closed meeting with the watchdogs and investigative journalists I offered them to delegate people to the reloaded anti-corruption department. We also agreed to create a public anti-corruption council within the defense ministry,” Reznikov said.
Nikolov was one of the watchdogs attending the closed meeting. He said the minister did not bring any invoices or receipts for food products for the army, or any corrected contract prices to the meeting. Moreover, the minister called the demand to reveal the price of an egg or a potato “an idiocy” and said prices should not be published at all, Nikolov said in a statement. Overpriced eggs were one of the features of the inflated catering contracts that received particular public attention.
Reznikov instead suggested creating an advisory body with the public. He would also hold meetings, and working groups, and promised to provide invoices upon request, the journalist added.
“So far, it looks like the head of state, Zelenskyy, has lost patience with the antics of his staff, but some of his staff do not want to leave their comfort zone and are trying to leave some corruption options for themselves for the future,” Nikolov said.
Reznikov was not personally accused of any wrongdoing by law enforcement agencies.
But the minister acknowledged that there was reputational damage in relation to his team and communications. “This is a loss of reputation today, it must be recognized and learned from,” he said. At the same time, he believed he had nothing to be ashamed of: “My conscience is absolutely clear,” he said.
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( With inputs from : www.politico.eu )
Top EU leaders are traveling to Ukraine this week, but they won’t be bringing promises that the war-torn country can join the bloc anytime soon.
Brussels is expected to pour cold water on Ukraine’s hopes that it could swiftly join the EU during a two-day summit in Kyiv, according to a draft statement set to be issued at the event and seen by POLITICO.
The statement makes no specific mention of the ambitious timeline Ukraine has set out, with the country’s prime minister, Denys Shmyhal, even telling POLITICO this week that he hopes to join within two years. Instead, the document offers only vague assurances about moving the process forward once all EU-mandated milestones are met.
“The EU will decide on further steps once all conditions specified in the Commission’s opinion are fully met,” the draft states. “Ukraine underlined its determination to meet the necessary requirements in order to start accession negotiations as soon as possible.”
The wording follows significant pushback from some EU countries about over-promising Ukraine on its EU membership prospects, a subject Kyiv asked to address at the summit, according to several EU diplomats and officials. Though EU national leaders will not be in attendance at Friday’s summit, officials at the European Council — which includes all 27 EU leaders — have been liaising with EU countries about the final communiqué.
EU leaders last June granted Ukraine formal candidate status in record time, but that move was much easier than rapidly moving Ukraine through the grueling negotiations required to align a candidate country with the EU’s byzantine systems, rules and regulations. That process typically takes years and years, and often stalls for long periods of time.
Still, EU countries have split over how quickly the bloc should try to move Ukraine through that accession process.
“There were clear tensions between Poland and the Baltic states on one hand and other EU countries on the language to EU accession,” said one EU official.
The official added that tensions between European Council President Charles Michel and European Commission President Ursula von der Leyen are playing into the debate as well.
“They are in a race of outbidding each other toward the Ukrainians,” the official said.
Still, while no breakthroughs are expected in EU accession talks, there is a strong will in Brussels to show solidarity with Ukraine on other issues.
“The mere fact that we’re holding a summit in a country at war” is itself significant, said a senior EU official ahead of the meeting.
Ukrainian President Volodymyr Zelensky and Commission President Ursula von der Leyen | Sergei Supinsky/AFP via Getty Images
Indeed, a large gathering of senior EU leaders and commissioners are expected to make the trek to Kyiv this week for meetings with EU officials.
Progress is expected in certain areas — for example, an agreement on a visa-free regime for industrial goods; the suspension of customs duties on Ukrainian exports for another year; movement on Ukraine joining an EU payment scheme easing bank transfers in euros; and integrating Ukraine into the EU’s free mobile roaming area.
Also on the summit’s agenda will be Volodymyr Zelenskyy’s 10-point peace plan, the reconstruction challenge facing Ukraine, and food security issues, with the EU set to announce a new €25 million humanitarian aid package to address Russian mining in the country.
Another EU official said that the summit sends “a strong signal that we support a country that is a victim of aggression and we underline the right of Ukraine to have a just peace at the end of this war. Ukraine has been attacked, Ukraine has a right to self-defense which they’re exercising … and only this can be a basis for a just peace.”
Reform path
The document also stresses the need for “comprehensive and consistent implementation of judicial reforms” in line with the Venice Commission’s advice, citing, in particular, the need to reform Ukraine’s Constitutional Court.
Though Ukraine recently announced changes to the court, particularly on how judges are appointed, the Venice Commission — a prominent advisory body featuring constitutional law specialists — still has concerns about the powers and composition of the body that selects the court’s candidates.
Shmyhal told POLITICO this week that Ukraine will address these questions. Kyiv has been keen to signal it is clamping down on corruption amid concerns in Washington and Brussels.
“We are holding consultations with the European Commission to see that all issued conclusions may be incorporated into the text,” he said.
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( With inputs from : www.politico.eu )
