Diplomacy

Leaders from across Europe have gathered at Prague Castle for the launch of the European Political Community. Apart from the leaders of the 27 EU member states, leaders from non EU member states are also attending, including Albania, Armenia, Azerbaijan. Bosnia and Herzegovina, Georgia, Iceland, Kosovo, Liechtenstein, Moldova, Montenegro, North Macedonia, Norway, Serbia, Switzerland, Turkey, Ukraine and the United Kingdom An unusual scene, even before the summit had started was of Armenian Prime Minister Nikol Pashinyan, Azerbaijan President Ilham Aliyev and Turkish President Recip Tayip Erdogan meeting informally before the opening of the summit. This story will be updated throughout the day.

On Tuesday (4 October), the European Union announced that it will integrate financial support to Ukraine into its 2023 budget, making its monetary contributions more structured and predictable, thus easing the economic pressures on war-torn Ukraine. The support payments will tighten the links between the EU and Ukraine, which got one step closer to achieving full EU membership after being granted candidate status earlier this year.  The decision to formalise the financial support was taken after criticism from the United States and others, who have accused the EU of delaying current support payments, and thereby raising doubts on how committed the EU is to Ukraine’s reconstruction after the war’s conclusion.  Out of the €9 billion promised in May this year, only €1 billion has so far been paid out, while the next payment of €5 billion is expected to reach Kyiv before the end of the year. Meanwhile, the United States has contributed over €10 billion in financial support, and over €25 billion in military aid to Ukraine since the beginning of the full-scale Russian invasion in late February. Financially, Ukraine is struggling significantly as a result of the ongoing war with Russia. Reports estimate that monthly foreign aid of approximately €5 billion is required for the Ukrainian economy to stay afloat. Oleg Ustenko, the economic adviser to Ukrainian President Volodymyr Zelensky, predicts that Ukraine’s deficit will shrink in the coming year to approximately €3.5 billion per month, as Ukraine has managed to resume initially disrupted economic activities in its western regions.

The Conference on Interaction and Confidence Building Measures in Asia (CICA) is set to become a fully fledged international organisation during a summit of leaders of its members to be held in Astana, Kazakhstan on 12-13 October. A Special Working Group (SWG) meeting held on 28-29 September, has made a major advance in preparing draft documents to be adopted at the upcoming sixth CICA Summit. The main document includes a draft Astana Statement on CICA Transformation, which is designed to transform CICA into a full-fledged international organization. Other draft documents include a draft of the CICA Leaders’ Statement on Cooperation in the Field of Security and in the Use of Information and Communications Technologies and draft the CICA Plan of Action on the Implementation of the United Nations (UN) Global Counter-Terrorism Strategy.

French president. Emanuel Macron on Monday (26 September) hosted Armenian prime minister Nikol Pashinyan at the Elysee Palace to discuss the current situation in the South Caucasus, and particularly Armenian-Azerbaijani relations. Macron described the situation following the recent armned clashes on 13-14 September as "critical". President Macron said France will do everything to pursue its goal, which is a stable, safe and prosperous South Caucasus." Macron also discussed the issue of relations between Armenia and Turkey. "This is a difficult but very necessary process and you know that France is also committed to this issue. This process is very important for the region", he said. In conclusion, Macron reiterated France's commitment to achieving peace and stability for Armenia and the entire region. "I welcome your sense of responsibility and your position to do everything to establish peace.  I want your country to have calm and peaceful borders", Macron told Pashinyan in his opening remarks.

The United Arab Emirates (UAE) and Germany signed a "landmark agreement" on Sunday (25 September) aimed at accelerating joint efforts to boost energy security, decarbonisation and combat climate change. The major deal was struck in the presence of UAE President, Sheikh Mohammed bin Zayed, and German Chancellor Olaf Scholz, who is currently visiting the Emirates. The deal secures the delivery of 137,000 cubic meters of LNG to be sent to the new LNG terminal in Brunsbüttel near Hamburg in December. According to the dpa news agency, the amount included in the first delivery equates to around 0.95 billion kilowatt hours of electricity. However, the LNG deal can only make up for a small part of the 56.3 billion cubic meters of gas that Germany received from Russia in 2020.