Ukraine's Zelenskyy sacks Defense Minister Fedorov, appoints ex-spy chief Khmara

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Ukraine Defence Reshuffle Sparks Surprise and Protests

A "big surprise." That was EU Defence Commissioner Andrius Kubilius' reaction to the decision by Ukrainian President Volodymyr Zelenskyy to remove his tech-savvy and popular defence minister, Mykhailo Fedorov, this week.

"We were working with him in a very good way," the commissioner told Euractiv. "I don't know who will be next."

The answer came soon enough in the form of former spy chief Yevhenii Khmara.

Zelenskyy's decision to remove Fedorov triggered days of protests across Ukraine. In Brussels, attention turned to what the reshuffle could mean for EU accession talks. As reported on Thursday, Zelenskyy chose to swap Vsevolod Chentsov, the ambassador in Brussels since 2021, with European Integration Minister Taras Kachka.

An advisor to the EU economy commissioner said Kachka "combines outstanding expertise on EU accession with deep trade knowledge and exceptional negotiating skills." Zelenskyy pointed to the need for "more sectoral, meticulous work" to advance in the negotiating clusters toward Ukraine's EU accession.

The week began with Commission President Ursula von der Leyen in Kyiv announcing a new defence partnership and declaring that "the tide is turning" in the war against Russia. It ended in a furore over Fedorov. His explosive final press conference – in which he declared that commander-in-chief Oleksandr Syrsky was dividing the country – was a warning that tides ebb and flow.

The Week from Euractiv Policy Desks

Tech – A Digital Iron Curtain?

What are Europe's prospects in the global AI race? It's a question driving a lot of EU tech policymaking these days, even as the premise it bundles – essentially the notion of a winner-takes-all dynamic prevailing at AI's cutting edge – seems to be drawing rather less attention.

AI experts are all too willing to predict doomsday outcomes lurking around the region's corner, with one group recently warning that only a wartime-scale mobilisation of investment – to massively expand tech infrastructure to run US AI – might stave off economic end-times for the bloc. The scenario hinges, in part, on China walling off access to alternative frontier AI models – a possibility that surfaced in a recent Reuters report.

The tech desk's Maximilian Henning takes up the baton in this piece, considering what Beijing's retreat on AI access could mean for Europe's leverage vis-à-vis the US and its frontier-riding AI giants. – Natasha Lomas

Europe has no answer if China follows the US in limiting its AIs – Europe is facing the prospect of a digital "iron curtain" that could cut off access… (5 minutes)

Energy, Environment & Transport – Friday Feast

After late-night talks Thursday and last-minute delays Friday morning, the European Commission finally emerged with a bumper package of energy policies ahead of the summer break:

• Plans for an economy-wide target to drastically shift Europe's energy consumption away from fossil fuels and towards electricity (46% by 2040, up from around 24% currently)
• A reform of the Emissions Trading System to let industry pollute nine years longer (to 2048)
• A move to hit some planes with the bloc's carbon price (though routes to American and Chinese airports, and all incoming flights, will be exempted)

– Robert Hodgson

EU targets neighbouring hub airports and private jets in carbon pricing overhaul – Commercial flights connecting Europe with the Middle East and North Africa, and all departing and… (3 minutes)

Agri – Weber's Seal on Organic Rules

It is rare, if not unprecedented, for the leader of the largest political group in the European Parliament to propose technical changes to the organic farming regulation, especially from outside the Agriculture Committee. Yet that is precisely what happened this week.

Amendments bearing EPP chief Manfred Weber's signature introduced exemptions to organic livestock rules that would mainly benefit Bavarian farmers. Entirely legitimate, but not without controversy, as Maria Simon Arboleas reports. – Angelo Di Mambro

Agri MEPs endorse Weber's organic livestock rules – The Parliament's agriculture committee amended a Commission proposal to ensure the continuity of organic trade,… (3 minutes)

Defence – Ukraine Drone Deal

Commission President Ursula von der Leyen announced on Wednesday a new "defence industrial partnership" with Ukraine, centred around an EU-Ukraine "drone deal" that could benefit from up to €10 billion from unspent SAFE funds.

The Commission says this new tie-up is meant to provide "a single, coherent EU-Ukraine framework to facilitate, coordinate and support" the full implementation of bilateral agreements.