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France pushes for Russian nuclear partnership in Germany despite security concerns

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A Russian state-owned company is set to become involved in nuclear fuel production within the heart of the European Union as part of a controversial French proposal currently awaiting approval from German officials.

The French-Russian joint venture, slated to manufacture nuclear fuel rods and assemblies in Lingen in northwestern Germany, is being pitched as a key component of EU energy security at a time when nuclear power is viewed as indispensable for transitioning away from fossil fuels.

However, this initiative coincides with the EU’s broader push to ban all energy imports from Russia. The proposal has sparked concern within regional and federal governments regarding the risks of espionage and other security threats.

German officials are expected to decide whether to approve the plans within the next few weeks.

The facility would be operated by Framatome, a subsidiary of the French state energy company EDF, utilizing Russian components supplied by TVEL, a division of the Kremlin-controlled nuclear giant Rosatom.

TVEL will not be directly involved in the facility’s operations but will supply the Russian-made components essential for the production of the nuclear fuel.

The Russian-designed fuel is currently utilized in 19 Soviet-era nuclear reactors across five EU nations in Eastern and Northern Europe, as well as in 15 reactors in Ukraine.

Framatome is lobbying intensely for German officials to approve the project, mobilizing the full weight of the French government—right up to President Emmanuel Macron—and arguing that what is good business for the company is also good for Europe.

Nevertheless, saying yes is politically difficult for Germany. Officials in Berlin are concerned about security risks and Russian espionage, with some warning against allowing a Russian firm to establish a foothold in the country.

German regional authorities must also approve the plan, and they are not particularly enthusiastic. Lower Saxony Environment Minister Christian Meyer is notably skeptical; his department holds the final authority for the Lingen project.

“Germany once allowed Gazprom access to critical energy infrastructure at the Rehden gas storage facility and became vulnerable to blackmail when Putin turned off the gas tap during the crisis,” Meyer told POLITICO.

Meyer warned that they risk repeating a similar mistake if they grant Rosatom access to sensitive nuclear technology for fuel element production in Lingen.

The project is currently under review by Germany’s environment ministry and national security agencies. POLITICO has examined how Framatome is quietly applying pressure behind the scenes to secure a decision from Berlin, even as the German government seeks to reach a legally watertight conclusion.

The collaboration between Framatome and Rosatom is not new. In 2021, the two companies signed a long-term partnership agreement for nuclear fuel production. They also established a joint venture in France, in which Framatome holds a 75% stake and Rosatom’s subsidiary TVEL holds 25%.

In March 2022, just weeks after the war began, Advanced Nuclear Fuels—a wholly-owned subsidiary of Framatome—applied to the Lower Saxony environment ministry for an atomic regulatory license to manufacture Russian-designed nuclear fuel assemblies in Lingen.

The company has spent more than three years working toward the goal of producing hexagonal fuel in Lingen using Rosatom’s technology and components. The company argues that this move will ultimately reduce dependency on Russia.

The French nuclear company’s project will ultimately lead to a “100% sovereign, genuine European solution.” Lionel Gaiffe, senior executive vice president at Framatome, told POLITICO, “Only Framatome can do this.”

“I am not saying it is perfect,” the executive added, but he argued that the project would enable Europe to reduce its reliance on Russian nuclear fuel “very quickly.”

The French firm’s project consists of two phases. Through the joint venture, it aims to reproduce the Russian design at its factories in Lingen and Romans-sur-Isère, France, using Russian-made components.

The Lingen factory will produce fuel for four VVER 1000 reactors located in Bulgaria and Czechia, while the French factory will supply fuel for 15 VVER 440 reactors in Finland, Czechia, Slovakia, and Hungary.

In parallel, Framatome is working to develop its own in-house design and guarantees that the teams working on these two projects are “completely separate.”

Framatome insists that no Russian engineers have set foot in the Lingen facility and that contacts with representatives of the Russian firm have been limited since the start of the war in Ukraine.

“We can have discussions between Russia and France, make contact, and sometimes meet and argue. Everything we do is, by definition, done in conjunction with the relevant administrations and supervisory authorities. There is no doubt about that,” said Gaiffe.

On the other hand, an expert report commissioned by the German federal government in 2023 cast doubt on this explanation. The report warned that cooperation with Rosatom at the Lingen facility could pose serious threats to national and external security.

These threats include direct interference in the facility’s operations, influence over security-related decisions, intelligence gathering on internal processes, and risks of industrial espionage.

Referencing the report written by German academic Gerhard Roller, the Lower Saxony ministry requested classified assessments from federal ministries and agencies in 2024 during Chancellor Olaf Scholz’s tenure, but the government collapsed before a decision could be reached.

The Lower Saxony government is awaiting updated assessments from federal agencies before deciding how to proceed in coordination with the federal environment ministry.

It remains unclear whether the federal government shares Lower Saxony Environment Minister Meyer’s critical view. According to individuals familiar with the process, there is sympathy for the project in Berlin.

Paris supports the project but is careful to remain cautious. “This is a highly sensitive subject. It is not something we want to advertise,” said a French official who requested anonymity.

Two individuals familiar with the discussions indicated that Merz and his French counterpart Macron discussed the Lingen issue once this year.

A French nuclear executive at EDF said the project could be summarized by a single question: “Should Russian fuel be replaced by French or American fuel?”

“This is a matter of a trade and economic war against the US,” the EDF executive added.

This perception is not limited to Paris. On the other side of the Atlantic, Washington’s strategic calculations are equally clear.

“The US is definitely not pleased about Russia entering Germany’s fuel element production market via Rosatom. This could backfire on Germany in the long term,” said Meyer.

Meanwhile, Framatome is lobbying German officials to influence the decision. According to Bundestag lobbying records, the company has commissioned the consultancy firm Berlin Global Advisors to lobby for the approval of the Lingen application in 2024.

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UK underwater deterrent facing scrutiny as all active Astute-class submarines remain in port

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All five of the Royal Navy’s active Astute-class nuclear-powered attack submarines are reportedly held in port for repairs or maintenance, leaving the UK with no operational vessels of this class ready for deployment.

According to a report by The Telegraph, which cited naval sources, although a sixth submarine of the same class has officially joined the fleet, it is not yet ready for deployment.

The current situation means that the UK temporarily lacks any nuclear-powered attack submarines cleared for active operations. Ryan Ramsey, a former nuclear submarine commander, described the development as a serious warning signal. “We look vulnerable,” Ramsey said. “The Russians know we can’t get our submarines to sea. When you cannot provide a deterrent at sea, you lose credibility in the eyes of the Russians.”

Lord Alan West, the former First Sea Lord and former security minister, also described the state of the submarine fleet as unacceptable and deeply concerning.

The UK Ministry of Defence stated in response to the reports that it does not normally comment on the operational status of the submarine fleet. Emphasizing that British waters remain protected at all times through a range of measures, the ministry added that strengthening underwater capability continues to be a top priority.

Astute-class nuclear submarines are tasked with protecting the UK’s Vanguard-class strategic ballistic missile submarines, which carry the country’s nuclear deterrent, as well as the aircraft carriers HMS Queen Elizabeth and HMS Prince of Wales during their deployments.

Separately, the UK’s Vice Chief of the Defence Staff, General Gwyn Jenkins, admitted in an interview with the Swedish newspaper Svenska Dagbladet in April that the Royal Navy was not sufficiently prepared for a potential war.

While noting that the navy possesses the resources to conduct combat operations and that personnel stand ready to carry out orders, Jenkins added: “But are we as ready as we should be? I think not.” He indicated that efforts to improve readiness levels remain ongoing.

Previously, The Sun newspaper reported that only two of the UK’s six Type 45 destroyers were operational. One of these active vessels, HMS Dragon, was deployed to the Mediterranean to protect British military bases in Cyprus.

The Telegraph also reported that due to a shortage of available ships, the government in London was forced to utilize a German vessel.

The state of the Royal Navy has been described in the British parliament as a “national embarrassment,” while US President Donald Trump has criticized the fleet, referring to it as a “toy navy,” according to reports by The Guardian.

Meanwhile, Russian President Vladimir Putin has repeatedly stated that Russia has no intention of fighting a war with Europe, dismissing such claims as nonsense. Putin has maintained that Western governments are escalating the situation to portray Russia as an adversary.

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Middle East energy shock threatens 1.3 million EU jobs as industrial giants warn of regulatory drag

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Morten Wierod, the Chief Executive Officer of ABB, the Swiss-Swedish multinational industrial technology giant, has warned that Europe could face mass unemployment unless it urgently deregulates its economy in the face of an energy shock triggered by war in the Middle East.

In an interview with the Financial Times, Wierod stated that European policymakers are failing to show the necessary sense of urgency regarding reforms, noting that rising gas prices are undermining the European Union’s competitiveness against the United States.

“I hope we don’t have to see a much more severe crisis that leads to mass unemployment. Such a crisis should not be a mandatory prerequisite to gain that sense of urgency,” Wierod said.

ABB, a global leader in electrotechnical and industrial automation, employs approximately 110,000 people worldwide and generates $33.2 billion in revenue. The company operates critical infrastructure businesses, including electrical distribution, building management, robotic equipment for manufacturing facilities, and data center support. Its technologies are utilized in one out of every four data centers globally.

Wierod argued that the single market and the EU as a whole must completely eliminate, rather than merely simplify, excessive regulations to stimulate economic growth. He also criticized Brussels’ plans to reduce dependence on foreign technologies, warning that this approach will lead to unforeseen consequences and rising costs.

“When you build regulation around the ‘Made in Europe’ debate, we always see that there are side effects,” Wierod stated.

Nevertheless, Wierod acknowledged that Europe possesses strong assets, including a skilled workforce, access to high-quality education, and extensive experience in crisis management. He cited the region’s success in reducing its reliance on Russian gas from 35% to less than 10% within a single year as an example of this capability.

However, Wierod pointed out that rising gas prices—driven by supply disruptions in the Middle East caused by the war between the US and Iran—have increased competitive pressures on Europe. “I am not worried that there will be no gas in Europe. There will be gas, but it will be at a higher price,” Wierod said, adding that elevated prices will persist until 2027.

Following operations by the US and Israel, Iran announced the suspension of trade through the Strait of Hormuz. The strategic waterway carries 15% to 20% of global oil, condensate, and petroleum products, as well as more than 30% of global liquefied natural gas (LNG) supplies.

Roxana Minzatu, the European Commissioner for Jobs and Social Rights, also warned earlier this week that rising energy prices could lead to the loss of up to 1.3 million jobs across the EU.

According to European Commission estimates reported by Reuters, the automotive sector is expected to suffer the largest employment decline, with a projected loss of 600,000 jobs. The construction, metallurgy, chemical, and transport sectors could lose 56,000 jobs combined. Additionally, approximately 85,000 jobs in battery manufacturing projects and 58,000 jobs in solar panel manufacturing are reportedly at risk.

European Commission data shows that in 2023, 68% of medium-sized enterprises reported a shortage of qualified personnel, and in 2024, 77% of firms identified this shortage as an obstacle to investment.

According to information obtained by Politico, the Commission plans to include a distinct, dedicated block in its recommendations for the first time, emphasizing the necessity of investing in education, vocational training, adult learning, and staff reskilling.

Data from Eurostat indicates that the EU’s manufacturing sector employs approximately 30 million people. In 2023, the sector accounted for one-quarter of the EU economy’s €9.9 trillion net turnover.

In an analysis published in March, The Wall Street Journal reported that the energy crisis stemming from the war between the US and Iran could drag the European economy into a recession. The newspaper forecast that this development would come as a “bitter surprise” for Europe, noting that most of the announced support measures require large and immediate public expenditures.

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German lawmakers block over €1 billion in defense contracts in procurement crackdown

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Two German lawmakers have blocked or forced the renegotiation of defense procurement contracts valued at more than €1 billion, exerting strict parliamentary oversight over the military’s budget spending.

According to a report by the Financial Times, Andreas Mattfeldt of the Christian Democratic Union (CDU) and Andreas Schwarz of the Social Democratic Party (SPD) serve on the Budget Committee of the Bundestag, Germany’s federal parliament.

The committee holds the authority to approve all military procurement projects valued at over €25 million.

In January, the two lawmakers vetoed a €600 million contract intended for Munich-based electronics group Rohde & Schwarz to supply a mobile intelligence system. The parliamentarians objected to the contract being awarded directly without a competitive bidding process.

One month later, they blocked a €462 million direct agreement with defense contractors Rheinmetall and MBDA. The contract was aimed at developing a laser system designed to protect naval vessels from drone attacks.

In February, the lawmakers also successfully lowered the maximum cost of three contracts intended for the procurement of kamikaze drones. Later in April, they halted the planned purchase of 900 diesel fuel tanker containers for the German armed forces, the Bundeswehr. The representatives intervened after discovering that the price of the tankers had doubled compared to a similar purchase made five years prior.

“We have brought about a paradigm shift because we are responsible for the immense amount of money entrusted to us by taxpayers,” Mattfeldt said in an interview with the Financial Times. “I want to be able to say that we have contributed to the Bundeswehr getting the best equipment at the best price.”

Schwarz, who, like his colleague, previously served as a municipal mayor, added: “We do not get involved in ideologies; we use our common sense.” While colleagues and aides jokingly refer to the pair as “the two Andys,” the two lawmakers have nicknamed themselves “the A-Team.”

Budget committee powers stem from past cost overruns

The extraordinary powers of the budget committee over defense procurement date back to 1981. At the time, parliament reacted to severe cost overruns in the Tornado fighter jet program by decreeing that all military projects exceeding 50 million deutsche marks must receive legislative approval.

Today, that threshold stands at €25 million, a limit that one official described as “completely outdated.”

A spokesperson for the German Ministry of Defense said: “Parliamentary control over major acquisitions is an important oversight tool in our democracy.”

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