In response to Berlin’s repatriation of migrants who have crossed the border “illegally,” Polish Prime Minister Donald Tusk announced that it is “very probable” Poland will implement “partial controls” at its border with Germany.

Speaking in parliament yesterday before a vote of confidence in his government, Tusk also stated that the Polish government is seeking support from other European Union countries to restrict or end visa-free travel for Georgian citizens, whom it holds responsible for a wave of crime.

Under normal circumstances, no controls are conducted at the border between Poland and Germany, as both countries are part of Europe’s Schengen free-travel area. However, in 2023, Germany reintroduced controls on its side of the border to prevent the illegal entry of migrants.

This move drew criticism from Poland due to the additional burden placed on people crossing the border and Germany’s repatriation of thousands of migrants without the right of entry.

Poland’s main opposition party, the national-conservative Law and Justice (PiS), staged protests against Germany’s repatriation of migrants. The party accuses the Tusk government of being too lenient on this issue, although such repatriations also occurred when PiS was in power.

Speaking in parliament on Wednesday, Tusk stated that they had informed Chancellor Friedrich Merz’s new government that “on the Polish side, we will control very critically and very thoroughly any attempts to send any migrants to Poland.”

According to Polsat News, Tusk said, “I have informed not only the Germans but also other neighboring countries that if the situation and pressure at the border escalate, I will not hesitate to make the decision to introduce temporary controls.”

“It is very likely that such partial controls will be introduced at the German border this summer,” Tusk said, without providing details on what these would entail or exactly when they would be implemented.

Tusk acknowledged that such measures would create difficulties for Poles living near the border, especially those who reside on one side and work on the other, and he stated that the government would do its best to minimize their hardship.

In March of this year, Tusk announced that Poland would cease to comply with the EU’s Dublin Regulation, which permits the return of asylum seekers to the member state where they first applied for protection. However, his government has yet to take action in this regard.

In his speech to parliament on Wednesday, Tusk also announced that he is working to “form the necessary majority” among EU member states to limit or even completely suspend visa-free travel for Georgian citizens to the EU.

According to Radio Zet, the prime minister said, “One-third of Georgians want to share our values… But I am in favor of restricting visa-free travel with countries that do not meet the standards.”

Earlier this year, the Tusk government took strong measures against what it claimed was an increase in “imported crime,” particularly crimes committed by migrants from Georgia.

The European Union plans to add two Chinese banks to its sanctions list due to their commercial ties with Russia.

According to information from Bloomberg, based on European Commission documents, this step is being considered as part of the EU’s 18th sanctions package against Russia. The European Commission presented the 18th sanctions package on Tuesday. Sources indicate that two regional banks operating in Chinese provinces bordering Russia are expected to be blacklisted.

These regional banks became a key channel for payments between Russia and China after the US tightened its financial sanctions late last year, threatening secondary measures against all credit institutions transacting with Russia.

Following Russian President Vladimir Putin’s visit to Beijing in May of last year, a payment network was established, involving at least six regional Chinese banks.

According to the European Commission document, these banks are accused of providing crypto services that help Russia evade sanctions, in addition to facilitating payments and export financing. Under the sanctions regime, the banks in question will be completely cut off from the European Union’s financial system.

As part of the EU’s 18th sanctions package, more than 30 individuals and legal entities are also planned to be added to the list.

Furthermore, there are discussions about removing another 22 Russian banks from the SWIFT system and blacklisting 77 tankers belonging to the “shadow fleet.” These measures aim to further restrict Russia’s financial and logistical capabilities.

The European Commission is proposing a ban on restarting the Nord Stream natural gas pipeline and a reduction of the price cap on Russian oil from $60 to $45 per barrel. According to the announced plan, shipments above this price will be excluded from European insurance coverage, and European tanker companies will be prohibited from transporting such oil. These steps are expected to further reduce Russia’s energy revenues.

In a statement yesterday, German Chancellor Friedrich Merz indicated that the new sanctions package will likely be approved next week. Merz stated, “Russia poses a security threat on both sides of the Atlantic,” adding that the US Congress is also working on new measures.

German importers of rare earth minerals and magnets are eagerly awaiting details after Beijing announced last week that it would expedite export approvals for European companies.

Two major importers told Nikkei Asia that China’s export controls on seven rare earth elements, implemented on April 4 in retaliation for Washington’s extensive trade tariffs, disrupted nearly all supplies to Germany for about two months. With China holding a near-monopoly on these commodities, some companies have depleted their inventories.

The US informed reporters on Tuesday that a dispute over China’s rare earth export restrictions had been resolved by both sides following two days of talks in London, though no specifics were provided.

Rare earths are crucial for electronics manufacturers and automakers, used in components such as electric seats, steering wheels, brakes, wipers, and even sound systems. They are also utilized in weapons manufacturing due to their ability to withstand high temperatures.

Since Beijing’s April 4 announcement, Chinese authorities have rarely granted export permits through processes that the Federation of German Industries described as lacking transparency and clarity. China is seeking to have Europe relax its technology export restrictions, particularly on semiconductor manufacturing equipment produced by the Dutch company ASML.

So far, German automakers have not been as severely affected as smaller manufacturers, such as those in the electronics sector. Companies like Volkswagen and Mercedes-Benz operate large production facilities in China and often source rare earth elements directly. Amid this turmoil, Volkswagen confirmed it had received a limited number of import permits.

The process has been much more challenging for Noble Elements, a Berlin-based importer and trader of physical raw materials.

“We ordered dysprosium, but it never left the port, so we changed the order to the light rare earth elements neodymium and praseodymium because we didn’t want to have the $100,000 we paid for it blocked there,” Managing Director Andreas Kroll told Nikkei Asia.

Dysprosium, which is almost entirely controlled by China, is one of the heavy rare earth elements subject to Beijing’s export controls. It is in high demand for permanent magnets used in electric vehicle motors and wind turbine generators. According to data from Noble Elements, its wholesale price surged by over 50% to €550 ($808) per kilogram in the two months leading up to June 4.

The prices of neodymium and praseodymium, also vital for permanent magnets, are now rising as Chinese producers increase the prices of these lighter rare earth elements to compensate for lost sales.

Kroll mentioned that Chinese officials demanded pictorial evidence of processing methods and the intended end-use to prevent the production of military equipment.

“Given [China’s recent assurances], the licensing process is now expected to become faster, but the main issue will be the proof of civilian use, which will depend on how extensively the checks are conducted,” Kroll said, adding that Beijing will consider Europe’s stance on chip technology exports.