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German journalist in Moscow faces banking restrictions amid sanctions climate

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Albrecht Müller, editor of NachDenkSeiten, said he had been in contact with Moscow-based journalist Ulrich Heyden, adding that their discussion focused on the closure of Heyden’s account by his Hamburg-based bank.

Heyden said Hamburg Sparkasse had terminated his account and outlined the process in detail. “In the written explanation sent to me, it was stated that all business relationships with customers residing in Russia were being reviewed and that these relationships were being terminated,” he said.

Heyden added that a bank official provided further clarification during a phone call. “The employee told me this was linked to sanctions on Russia and said the account could be maintained if I resided in Germany,” he said.

He noted that establishing a second residence in Germany was not legally feasible. “Since I spend most of the year in Russia, registering a second residence in Germany is not legal. I explained this to them,” he said.

Transfers to Russia had already been restricted

Heyden said the bank had previously imposed various limitations. “About a year and a half ago, my ability to transfer money to Russia was removed. The account still existed, but its functionality was severely limited,” he said.

He added that the bank had described itself as a “regional bank,” using this as justification for restrictions on international transactions. “This reasoning was also included in the written explanation,” he said.

Müller asked whether journalists working in other countries had encountered similar situations. Heyden said he was not aware of comparable cases among German journalists working in Moscow for major media outlets. “There are about ten German journalists in Moscow, and I have no information that they have faced such restrictions,” he said.

“There is a political dimension”

Heyden said he had sent a letter dated March 13 to Frank-Walter Steinmeier. “In the letter, I relayed the bank’s justification and noted that I found it quite unusual,” he said.

He added that he believed the decision might have a political context. “I did not describe it as a direct political attack, but I stated that there appears to be a political background,” he said.

Heyden also pointed to similar cases involving journalists Thomas Röper and Alina Lipp, who he said had been subject to sanctions. “These two individuals face more severe measures. They are directly under European Union sanctions,” he said.

He highlighted a common thread among the three journalists. “All three advocate for a more balanced or positive relationship with Russia, and that is notable,” he said.

A narrow framework in coverage of Russia

Reflecting on his career, Heyden said he had long observed a predominantly negative portrayal of Russia in Germany. “Since the 1990s, there has consistently been a negative perspective toward Russia,” he said.

He also referred to editorial expectations. “I was often asked to focus on negative topics such as crime, plane crashes, AIDS cases and social problems,” he said.

Alternative subjects, he added, received less attention. “Topics such as the diverse peoples of Russia, witnesses who survived the war, or historical experiences were not sufficiently covered,” he said.

According to Heyden, this approach narrowed the scope of reporting. “It was as if editorial offices had predefined expectations about what kind of content on Russia was required,” he said.

Relations sharply deteriorated after 2022

Heyden assessed the weakening of civil ties between Germany and Russia in the context of the Ukraine war. “After Russia’s military intervention in Ukraine in 2022, 95% of city partnerships were suspended,” he said.

He said the emotional climate during that period had been intense. “At that time, it was almost impossible to discuss events in a broader context,” he said.

Public institutions played a decisive role in this process, he added. “The termination of city partnerships largely occurred through official decisions,” he said.

He noted that some individual initiatives had continued. “Some people are trying to maintain these relations without official support,” he said.

War graves work has also slowed

Heyden said cooperation on war graves between Germany and Russia had also been affected. “After 2022, Russia significantly reduced permits for the exhumation of German soldiers’ remains,” he said.

He added that such activities had not stopped entirely but had slowed considerably. “These efforts have not completely ceased, but they have clearly lost momentum,” he said.

According to Heyden, the issue receives little attention in Germany. “The media almost never covers this topic,” he said.

He also referred to German soldiers who died in Russia during World War II. “It is estimated that around 3.5 million German soldiers lost their lives in Russia,” he said.

“I will pursue legal action”

Heyden said he would initiate legal proceedings against the bank’s decision. “Through a lawyer, I will challenge this decision and seek its reversal,” he said.

He noted that Sparkasse occupies an important position for freelancers. “Sparkasse has a certain monopolistic position, and I have been a customer of this bank for more than 30 years,” he said.

He emphasized that his relationship with the bank had been trouble-free. “Our relationship with the bank has always been evaluated positively. For this reason, the justification for the decision is unclear,” he said.

Heyden added that public attention could influence the process. “Bringing this issue into the public sphere could create a certain level of pressure,” he said.

He also relayed a remark by a bank employee. “The employee said there was pressure from the Federal Financial Supervisory Authority,” he said, referring to BaFin.

“People should establish direct contact”

At the end of the interview, Heyden offered suggestions on how relations between German and Russian societies could be improved. “Establishing direct communication with Russians living in Germany could be an important step,” he said.

He added that travel to Russia remains possible. “Travel is not difficult, but it requires individual organization,” he said.

Heyden outlined travel routes. “The most common method is via Istanbul. It is also possible to travel via Serbia,” he said.

He also commented on attitudes toward foreigners in Russia. “There is a very positive approach toward Western visitors, and young people in particular are open to communication,” he said.

As an alternative, he pointed to other ways of accessing information. “Those who cannot travel should seek information about Russia from different sources and read diverse perspectives,” he said.

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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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