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Frugal EU states seeking budget cuts are shooting their own regions in the foot

Six frugal countries this week circulated a letter threatening to block a deal on the next EU budget unless “hundreds of billions” of euros in spending was cut. 

The Dutch and Germans, ever the most zealous keepers of the frugal flame, want to redirect what remains away from regional and farming funds, towards innovation and defence.  

For those following EU fiscal debates, this song will sound familiar. So-called ‘net payer’ countries have never liked sending money to the economic periphery. 

In 2013, after a year of bickering, Britain, Germany, and the Netherlands killed a European Commission plan for a five percent increase and pushed through the EU’s first-ever budget cut, with farm and cohesion funds taking the biggest hit.

But new research suggests that the frugals may be shooting themselves in the foot. 

Last week, Olga Ivanova, a senior researcher at the Netherlands Environmental Assessment Agency (PBL), published a study in Dutch economics journal ESB calculating what EU money actually does for the Netherlands’ 12 provinces. 

And, for most of them, she found that the growth effect of EU investment outweighed their share of what the Netherlands paid into the budget. 

Using PBL’s own economic model, she traced 10 EU funding streams between 2013 and 2024, from Horizon science research grants to farm subsidies and regional development money. 

Across the Netherlands as a whole, provinces get back about 99 cents in extra growth for every euro paid out to the EU budget.

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Former MEP Rachida Dati’s 2014 emails derided corruption allegations, which now form core of French trial

Former French MEP Rachida Dati is facing intense scrutiny following allegations she took lobbying money from French energy giant GDF Suez/Engie during her time at the European Parliament, on top of a separate investigation into her ties with French car maker Nissan-Renault.

The 60-year-old, who was born to Arab parents and started out as a maid, is also a former French culture and justice minister, and now mayor of the affluent 7th arrondissement in Paris.

But she also risks wearing a police ankle-bracelet and faces four years in prison in ongoing trials into her ties with the French companies, which first hit the headlines in 2025.

And back in 2014, when she sat in the European Parliament on the benches of the centre-right European People’s Party (EPP) group, she threatened to sue EUobserver because we asked her about GDF Suez, which later changed its name to Engie, while deriding the corruption allegations against her as racist slurs.

EUobserver has published below some of the related email correspondence for the sake of transparency:

Dati email from 15 Apr 2014

“Rachida Dati will not hesitate to sue any media which will report such a defamatory statement,” her office also said in an email in 2015, after a German Green MEP, who was spearheading an ethics committee, said she was likely pocketing GDF Suez money.

Dati email from 15 June 2015

The allegedly “defamatory statement” had been made by Gerald Häfner, a former German MEP, who had chaired the parliament’s advisory committee on its Code of Conduct.

Häfner’s supposedly offensive words were:

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

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MEPs vote for €47bn in new Erasmus+ funds, as frugal states seek cuts to EU budget

The European Parliament’s culture committee on Tuesday (29 September) agreed to boost the flagship Erasmus+ student exchange programme by €7bn in 2028-2034 linked to rule-of-law conditions, even as so-called frugal countries seek to cut overall funding. 

MEPs backed in April to increase the European Commission’s original proposal from €40bn to €47bn as part of a interim report on the EU’s long-term budget (MFF).

On Tuesday, they also said funds should be linked to respect for the rule of law and transparency standards – a clear reference to the situation facing Hungarian universities in the past, which were unable to participate in Erasmus+ during the illiberal rule of former prime minister Viktor Orbán. 

Candidate countries, such as Ukraine and Moldova, may be able to participate in the next Erasmus+ in the coming cycle, provided they met “certain conditions,” Polish centre-right and lead MEP on the file, Bogdan Zdrojewski, said during a press conference in Brussels.

The UK and Switzerland are also set to rejoin the programme already in 2027.

And Canada might be able to participate too, Zdrojewski said, should it gain an associate EU membership – an unclear status presented by EU commission president Ursula von der Leyen during her State of the Union speech on 11 September and welcomed by Canada’s prime minister Mark Carney.

Around 17m participants have taken part in Erasmus+ since it was launched 39 years ago, in what is widely considered one of the most popular EU integration projects.

An estimated one million babies have also been born from couples who have met during their exchange. 

The committee boost comes amid long-term EU budget talks for the next seven years, in which frugal states such as Germany and the Netherlands want to pay in less than in the past, but Zdrojewski was “feeling optimistic” about getting through the proposed Erasmus budget increase. 

He said he counted on EU capitals to defend the programme in future negotiations.

MEPs want to make Erasmus+ more inclusive, highlighting special programmes for adult learners and students in informal education programmes.

They also aimed to set a 20 percent quota for participants with underpriviliged access to career and educational opportunities.

To make Erasmus+ easier to manage, they proposed dividing the funding between different areas: education and training (74 percent), youth and volunteering (15 percent), and sport (four percent).

The committee report will now be voted on by the EU Parliament plenary, although it is still unclear when, when it becomes part of MEPs’ formal basis for negotiations with EU capitals.

This article was updated on 30 September 2026 to make clear that the €47.39bn figure was first set out in Parliament’s interim report on the MFF, adopted in April. Tuesday’s committee vote incorporates that figure into the Erasmus+ regulation, alongside new rule-of-law and transparency conditions.

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EU’s centre-right EPP seeks asylum opt-outs, as commission silent on new crisis rules

The European Commission says it will not compromise on protecting the EU’s external borders, but will also respect human rights, while declining to specify if a new emergency rule could suspend people’s basic right to asylum.

The vague statements by Magnus Brunner, the EU home affairs commissioner, in Brussels on Tuesday (29 September), followed an equally vague proposal announced by commission president Ursula von der Leyen in her State of the Union speech on 11 September, who pledged to create a “European emergency response framework”.

When asked if her new framework would include the possibility to suspend asylum at the EU’s external border in cases that mirrored this summer’s Ceuta crisis, when tens of thousands of people entered the Spanish enclave in north Africa, Brunner said: “I can’t go into details, because it’s a discussion which is going on at the moment”.

His non-committal take on the hot button issue also came after a resolution adopted by the centre-right European People’s Party (EPP) in Brussels on Tuesday, which is demanding that member countries, in some cases, be given the option to temporarily suspend asylum applications.

Specifically, it calls on the EU “to adopt legislative measures authorising refusal of entry or returns without individual asylum procedures for illegal migrants used in a hybrid attack”.

Meanwhile, Brunner and von der Leyen come from the same conservative party in the EPP, posing questions to what extent political pressure has influenced the latest commission initiative.

Greece’s prime minister Kyriakos Mitsotakis (also EPP) in early August had already gone public with demands for new EU rules allowing for asylum to be suspended for newly arrived people.

The Polish government (EPP) also weighed in, claiming credit for getting von der Leyen to cite the idea in her big speech.

Warsaw had earlier this month extended its asylum ban on people entering from Belarus, in what rights groups say involves pushbacks that cause loss of life.

But for Brunner, the issue had already been broached in a commission asylum strategy report that was published back in January.

That report references “weaponisation of migration” by hostile countries, such as Belarus and Russia, and links it back to another commission document from December 2024 that argues there are certain exceptional situations in which the ban on pushbacks cannot apply.

For Michael O’Flaherty, who is the human rights commissioner at the Council of Europe, a rights watchdog based in Strasbourg, any effort to extend the existing EU ban criteria risked unraveling decades of human rights law.

The issue will be discussed by EU interior ministers on Thursday and Friday in Luxembourg, where migration weighs heavily on the agenda.

And those talks, in turn, will lean into and continue among heads of state and government at an EU summit on 15 October.

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Scientists flee burning building in Kyiv’s mini-9/11, as Russian drone also explodes 200m from EU embassy (Ukraine Battlefield update, Day 1,678)

  • Kyiv is currently in a worse situation than Kharkiv when it comes to air-raid alerts.

  • The Russians struck the National Academy of Sciences, forcing scientists to flee through windows. Why did they target it?
  • What upgrades they are testing on their Geran-5 drones.
  • According to Rybar, Russia’s goal in attacking Kyiv is also to persuade Europe to stop helping Ukraine.
  • Maps of the day: The situation near Lyman and the gap between the Russian ministry and reality.
  • Videos of the day: an attack on the border crossing with Poland; footage from the cockpit of an Su-25; a robot avoids a drone; Russians flee among a crowd of civilians.

Kyiv has experienced its worst attacks since the start of the war in recent weeks. According to an analysis by French OSINT analyst Clément Molin, the capital was hit by 155 Russian missiles and drones in September, compared with 113 in August and 21 in March.

Denník N reporter Mirek Tóda, who visited Ukraine last week, said that Kyiv was currently worse off than Kharkiv in terms of air attacks, even though Kharkiv lies just 30 km from the front line.

Even smaller, FPV (first-person view) drones have recently begun flying on Kharkiv’s outskirts, hunting cars, but the number of air-raid alerts and air strikes there has still been far lower than in Kyiv in recent weeks.

Molin added that the Russians had struck the heart of the capital 10 times a day in recent days.

The Russian independent group Conflict Intelligence Team wrote that Kyiv and its surroundings would probably account for the highest number of civilians killed and injured anywhere in Ukraine in September — more than in the Donetsk, Kherson, or Kharkiv regions.

An at a time when attacks causing casualties occur every day, it is becoming harder for foreign journalists to engage readers with reports about an attack on the Ukrainian capital.

But on Monday, however, the Russians managed to do so.

During the working day, they struck the historic building of Ukraine’s National Academy of Sciences. It caught fire, and footage of scientists and other employees attempting to climb out through smoke-filled windows circulated around the world.

A Russian strike against the building of the National Academy of Sciences of Ukraine. A rescue operation is underway: crews are putting out the fire and searching for people who may have been trapped inside. All services are deployed. Today in Kyiv, a pharmaceutical company and… pic.twitter.com/ccfIHnGFNg

— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) September 28, 2026

The images of people standing on a ledge may have recalled those seen after the 11 September attacks, although the terrorists then struck skyscrapers more than 100 storeys high in New York.

Horrific scenes out of Kyiv this morning as Russia used a jet-powered drone to blow up Ukraine’s National Academy of Sciences. People are escaping through windows as the building burns. Just like they target kindergartens and schools, now they are bombing science. pic.twitter.com/yvwzLz9DXe

— Nate Mook (@natemook) September 28, 2026

🚨 BREAKING: Terrifying footage captured people climbing out of windows after a Russian attack struck the National Academy of Sciences in central Kyiv in broad daylight.

The attack killed one person and injured at least three others, triggering a massive blaze. pic.twitter.com/wiWTU51QaL

— UNITED24 Media (@United24media) September 28, 2026

The historic building had only three floors. Thanks in part to this and the firefighters’ rapid response, only one person was killed and six were injured.

It is quite likely that the attack on the Academy of Sciences was not accidental and that the Russians were targeting an important individual.

Ukrainian analyst Viktor Kovalenko believed that the Russians had wanted to kill 86-year-old Volodymyr Horbulin. He is one of the architects of Ukraine’s missile and space programme.

He headed Ukraine’s space agency in the 1990s and, for five years under President Leonid Kuchma, served as secretary of the National Security Council. Despite his age, he remains active: he is vice-president of the National Academy of Sciences and focuses on security issues.

And the elderly scientist was in the building at the time of the attack. The drone hit a room one floor above his office. He sustained only minor injuries, but his assistant was killed.

A few hours later, the Russians struck the building of the Dobrobut medical centre, which caught fire. Several people were reported injured there.

Russia bombed the Dobrobut Medical Center in Ukraine's capital, Kyiv, this afternoon, setting the facility ablaze. pic.twitter.com/gs0d1X3eB5

— OSINTtechnical (@Osinttechnical) September 28, 2026

These attacks took place in the wider city centre and were felt by the EU ambassador to Kyiv, Slovakia’s Katarína Mathernová.

“Just moments ago, an explosion jolted me out of my chair in my Kyiv office. It was the loudest blast I have experienced here in three years. A jet-powered drone struck a building around 200 metres from the EU delegation. It happened in broad daylight. The target was a hospital,” Mathernová wrote.

While the Russians once attacked Kyiv mainly at night, attacks are now also taking place during the day. Although they target military and industrial sites as well, they frequently hit civilian facilities where many people are present during daytime.

“Today in Kyiv, a person can be killed in a supermarket, at a university, at a petrol station, on the street or at work. The campaign of indiscriminate attacks targeting the centre of the capital is unprecedentedly violent. The Russians are targeting data centres and regularly miss their targets,” French analyst Clément Molin wrote.

“What Russia is doing is pure terrorism. And we should treat neither its state leadership nor its military forces any differently. Why should we continue pretending that it is possible to negotiate with such terrorists on equal terms?” German analyst and former journalist Julian Röpcke wrote.

“Nothing expresses the ‘fight against Nato expansion’ quite as clearly as bombing the historic building of Ukraine’s National Academy of Sciences in central Kyiv, forcing ordinary scientists to jump from windows to escape death in the flames,” Ukrainian journalist Illia Ponomarenko added.

The Russians are attacking the capital virtually constantly. It is not merely one or two attacks a day. As Ukrainian analyst Bohdan Myroshnykov wrote on Sunday, Kyiv had been without an air-raid alert for only 5 hours and 55 minutes in the previous 24 hours.

“The current alert has lasted 8 hours and 20 minutes. The enemy deliberately launches drones in order to prolong the alert. Once they arrive in Kyiv, they begin circling over the city and its suburbs to keep people on edge for even longer,” he wrote.

According to him, the main weapons currently used by the Russians to attack Kyiv are Geran-5 jet drones. These are essentially smaller — though still six-metre-long — cruise missiles. By contrast, Geran-4 jet drones have the classic delta-wing shape of older Shahed drones.

Myroshnykov wrote that Ukrainians had more or less learned how to shoot down Geran-4 drones, but were having difficulties with the fifth series. While they intercept Geran-4s with an effectiveness of 70 to 80 percent, the rate for Geran-5s is only 50 to 65 percent. “The fourth series is intercepted en masse while approaching the Kyiv agglomeration, whereas the fifth is only intercepted within it,” the analyst wrote.

Last week, we wrote that Ukrainians had released the first videos showing them shooting down jet-powered Geran drones, including Geran-5s, using jet-powered interceptor drones capable of matching their speed. A video has now emerged of another new drone that apparently can already do this.

The problem, however, is that none of these drones is yet being mass-produced. Ukrainians therefore do not have enough of them to counter the growing number of jet-powered Gerans that the Russians are launching at Kyiv and other Ukrainian cities — as well as other targets.

“There are prototypes that have delivered varying results, but considerable effort is needed to bring a prototype into large-scale serial production. Sometimes this is impossible because access to certain components is limited,” former adviser to Ukraine’s defence ministry Serhii Sternenko wrote.

“It took us 3.5 years to find a more or less reliable anti-drone defence against conventional Shaheds. We began this path five months ago in the case of jet-powered drones. It may take us eight to 10 months to find a reliable anti-drone defence,” Myroshnykov wrote.

Ukraine’s defence minister, Yevhen Khmara, called on European partners at a meeting of his EU counterparts to help finance these interceptor drones, which have proved to be the best defence against conventional Gerans.

The Russians are also becoming increasingly creative in their efforts to strike targets in Ukraine. Serhii Beskrestnov, another former adviser to the defence minister, shared a video showing the Russians striking Incom’s office building in Kyiv. What is notable is that they filmed the strike themselves using a drone with a high-quality camera.

“The enemy attacked Incom’s office with a Geran-5 missile, while at the same time a jet-powered Shahed flew over Kyiv, circling above the attack site at an altitude of almost three km. It served as a radio-signal relay for the Geran-5 missile while also recording — and immediately transmitting — video of the attack on Incom. This Shahed then flew out of Kyiv and destroyed a McDonald’s warehouse,” Beskrestnov wrote.

He added that he was convinced the two operators had been sitting next to one another.

The Defence Express website also published an article about the Russians fitting their newest Geran-5-K5 jet drones with the Susanin navigation system, first reported by a Russian Telegram account. The system works by comparing current camera images with pre-recorded imagery.

“This enables the Geran-5 K5 to determine its coordinates even when satellite navigation is unavailable,” Defence Express wrote.

However, it works better during the day than at night, as it needs current images of objects on the ground.

It is often said that the Russians attack Ukrainian cities because they are unable to advance at the front. The aim may be to lower Ukrainians’ morale, degrade their economy and force them to surrender and accept Russian terms.

Although the attacks on Kyiv have been the worst since March 2022, they do not yet appear to have shifted Ukrainian public opinion. According to one recent poll, people were most concerned about government corruption (50 percent), with Russian air attacks only in second place (40 percent). Naturally, the poll was conducted not only in Kyiv but also in places where attacks are less frequent.

Recent polling by the Kyiv International Institute of Sociology (KIIS) indicates that the most worrying issue for Ukrainians right now is government corruption (at 50%), followed by Russian missile and drone attacks (40%) and unprofessionalism and incompetence of the authorities… pic.twitter.com/OvEbFz5jNQ

— AMK Mapping 🇳🇿 (@AMK_Mapping_) September 29, 2026

The attacks are often compared to the “war of the cities”, during which both countries attacked each other’s cities in the 1980s Iran-Iraq war. According to the Russian propaganda channel Rybar, they are also intended to undermine support from Europe.

This may be a somewhat far-fetched theory, but it is worth mentioning because it may indicate that people in the Kremlin think along these lines as well.

Rybar asks what the attacks mean for Ukraine’s “sponsors”. In its view, it is time for them to write off Ukraine, because there is no point pouring money into such a country. A “Marshall Plan”, it says, would be “pointless”.

“The more effective the strikes by the Russian armed forces in the framework of the ‘war of the cities’, the more likely the scenario in which the EU, even in the event of a ‘freezing’ of the situation, will ‘write off’ so-called Ukraine because further support for it is unsustainable. And without sponsors, the Kyiv regime cannot survive,” Rybar wrote.

This might perhaps apply if it were a war on the other side of the world, in which the EU was supporting one side. But the war over Ukraine is a conflict on the EU’s border, and there is a high likelihood that, if Ukraine does not stop the Russians, scientists will be fleeing from burning windows in Tallinn, Vilnius or Warsaw.

Maps of the day

On Monday, we wrote about how Ukrainians were gradually releasing parts of Operation Vivaldi, which is liberating territory north of Lyman. Russia’s defence ministry, as well as the Russian state agency Ria Novosti, continue to maintain their claims that the front line lies much further west.

This map compares official Russian claims with reality. At the point of greatest divergence, the maps differ by 40 km. For comparison, that is roughly the distance between Trnava and Bratislava. Overall, the Russians claim to control 1,360 square km more in this area than they actually do.

The yellow line on this map shows what the current official Russian maps portray the situation in the Lyman direction as (or what they would now consider the Izyum direction).

At it's furthest point, their claimed frontline is 40 km (!) west of my frontline. This was achieved… pic.twitter.com/Nd2SP3HJur

— AMK Mapping 🇳🇿 (@AMK_Mapping_) September 29, 2026

Russian Z-bloggers and propagandists are, however, closer to reality. The Two Majors channel wrote that the situation was “continuing to deteriorate”.

“The enemy is conducting counterattacks and trying to push Russian troops back beyond the Zherebets. (…) The Russian foothold west of the river has shrunk,” it said.

According to the channel, Ukrainians had entered the village of Zarichne from several directions, while fighting was also under way for Yampil.

According to Two Majors, this sector remains one of the most problematic parts of the front from the Russian perspective. The Russians’ aim is to stabilise it and retain at least some units on this bank of the river.

The Rybar channel wrote that Ukrainians had intensified fire on the few places where the river can be crossed, as well as attacks on logistics far behind the front line.

“Despite the stabilisation measures that have been launched, the situation remains extremely difficult and tense. The enemy’s gradual release of footage is a tool of information pressure, but it conceals a very real deterioration of the situation in the Lyman sector,” Rybar wrote.

Videos of the day

In addition to Kyiv, the Russians are attacking other parts of Ukraine. They again struck the Yahodyn border crossing on the Polish-Ukrainian border. A Geran-5 drone landed in a car park, around one km from Polish territory.

Recently, after a similar attack in which they hit a train, they also struck a petrol station 800 metres from the crossing. These are the attacks closest to Polish territory since the start of the war, not counting drones and a Kh-101 missile that have already entered Poland.

An enemy UAV struck near the "Yagodin" checkpoint on the border with Poland, according to social media posts pic.twitter.com/COrcYKrUoJ

— kolibri.93 🇺🇦 (@viktorikolibri) September 28, 2026

Footage from the cockpit of a Ukrainian Su-25 military aircraft during a mission in the east. The pilot flew low over the ground, then climbed higher, released a French AASM guided bomb and turned away.

Rare cockpit view from a Ukrainian Air Force Su-25 Frogfoot on a strike mission over the eastern front, screaming low over the ground before pitching up, clawing for altitude, and launching a French AASM guided bomb at a Russian target. pic.twitter.com/DmX2Pvfftw

— OSINTtechnical (@Osinttechnical) September 29, 2026

Ukrainian robot operators are also assisted by aerial reconnaissance drones during missions. This apparently helped the operator in the video skilfully evade a Russian drone at the last moment.

🤯 Insane operator skills!

A Ukrainian "Termit" ground drone dodges a Russian FPV strike mid-mission. pic.twitter.com/u2t4DMEj4L

— UNITED24 Media (@United24media) September 27, 2026

Ukraine’s Khartia Brigade released a video which it said showed Russian soldiers in civilian clothes, mixed in with actual civilians, trying to escape through a pipeline.

🚨 BREAKING: Drone footage from Ukraine’s Khartia Brigade reveals likely Russian soldiers disguised in civilian clothing, attempting to escape alongside elderly hostages and children.

Ukrainian troops refrained from firing to ensure civilian safety. pic.twitter.com/rByUK86i0E

— UNITED24 Media (@United24media) September 28, 2026

What are the losses

No update on Tuesday.

  • By Tuesday (22 September), Russia had verifiably lost 24,138 pieces of heavy equipment, compared with 24,098 on Monday (14 September). Of these, Ukrainians destroyed 19,105 (19,065) pieces, 1,000 (1,000) were damaged, crews abandoned 1,194 (1,194), and the Ukrainian army captured 2,839 (2,839). These included 4,448 (4,447) tanks, of which 3,353 (3,352) were destroyed in combat.

  • Ukraine had lost 12,175 (12,143) pieces of equipment, of which 9,579 (9,551) were destroyed, 702 (698) damaged, 695 (695) abandoned and 1,199 (1,199) captured. These included 1,464 (1,462) tanks, of which 1,125 (1,120) were destroyed in combat.

Note: Neither side regularly reports its own casualties or destroyed equipment. Ukraine publishes daily figures for Russian casualties and destroyed equipment, which cannot be independently verified. In this overview, we use data from the Oryx project, which has compiled a list of equipment losses documented exclusively by photographs since the start of the war.

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EU reduces funds for women’s rights groups, in wider budget bonfire of good causes

As the EU seeks budget cuts to break a stalemate in member states’ talks, women’s rights groups are on the chopping bloc, prompting advocates’ concern that the cause is fading from the common agenda.

Research published on Monday (28 September) by rights initiative MOTERIS showed a consistent loss of funding for feminist organisations across EU countries.

Some groups are also facing political conditions on the money they receive, for instance in Poland and Croatia, alongside groups reporting increasing dependance on unpaid work.

And the trajectory points toward decreased funding in the 2028-2034 EU multi-annual framework (MFF), which is currently being haggled in Brussels, making matters worse.

Feminist groups pointed toward AgoraEU as evidence of the trend – the proposed new single-funding stream is to merge grants for culture, media, equality and civil society under in the same MFF bracket, in what would make equally worthy causes and their defenders compete against one another for diluted resources.

And the ongoing cuts at national level meant that “EU funds are a crucial lifeline for many women’s rights groups where state funding is insufficient,” MOTERIS said.

Small, grassroots rights groups, many of whom MOTERIS represents, find it even harder to access grants due to heavy administrative requirements.

Meanwhile, the Czech Republic and Lithuania served as examples of EU countries whose philanthropy was dependent on external top-ups, making them “more vulnerable to geopolitical shifts, such as the withdrawal of US funding.”

MOTERIS staged a protest to push for MFF support for women’s rights groups outside the European Parliament in Brussels on Tuesday (29 September), ahead of an MEPs’ debate on the topic. 

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

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Private money follows profit, not ruins in Ukraine’s EU-backed reconstruction

Ukraine’s reconstruction is being planned from a map of destruction. Financing its private assets instead follows a map of earnings. 

Since the full-scale invasion, the European Bank for Reconstruction and Development (EBRD) has lent  $131m [€115.3m] to Nova Post, Ukraine’s largest parcel and courier network — an established business with visible demand, revenue, and an owner able to put up around a quarter of the cost itself.

Shipments grew 16 percent in 2024 as traffic reoriented towards western and central Ukraine and across Ukraine’s  borders with the EU. Part of the financing paid for more than 600 safety capsules and shelters at its premises. A wartime resilience need met an earnings stream, and a lender followed. 

Three sets of records show where else those conditions hold. 

The first is what the international financial institutions have financed. Over four years the EBRD,  European Investment Bank (EIB), International Finance Corporation (IFC) and World Bank announced some $19bn (€17bn) of project-level finance for Ukraine, more than two-thirds of it to public authorities and  state-owned companies.

Of the $2.4bn that went directly to private companies, eight corporates  took 83 percent — around $450m to ArcelorMittal’s steel mill at Kryvyi Rih alone.

Guarantees to banks, some $1.8bn of them, are meant to reach smaller and mid-sized firms. Yet bank lending accounts for under four percent of Ukrainian capital investment. Mid-sized companies appear to be underserved. 

The second is what foreign investors have done. They put around $2.9bn of new equity into Ukraine from 2022 to 2025, most of it into services rather than industry or energy.

Across 134 EBRD financed projects, announced third-party equity appears in three, all of them technology companies incorporated outside Ukraine. A growing number of international venture funds are entering Ukrainian defence technology, whose assets can travel with global demand. A food processor in Vinnytsia, for instance, has neither that pull nor that mobility. 

The third is what companies in Ukraine do with their own money, and it dwarfs the other two. Capital investment runs at around $18bn a year, and companies’ own funds finance 71 percent of it.

In construction, the pattern is starker still: unfinished apartment blocks in Kyiv are going up without bank debt, paid for by the people buying the flats. 

That money is heavily concentrated. Kyiv and its surrounding region take 54 percent of it; the eight western regions 16 percent. The eight frontline and border regions, which hold 78 percent of the damage and 62 percent of the projected cost of rebuilding, take seven percent. 

Three kinds of financing, one pattern. Lenders and investors follow earnings, not destruction. 

The limits of private money

Much of reconstruction will therefore remain publicly financed. International funding flows to public entities which meet urgent needs and will likely not go bankrupt. For the most part, this is right. A large share of the damage sits in assets that never earned or whose earnings the war has interrupted, and repairing schools, de-mining fields, or restoring homes whose owners cannot pay will remain public spending.

But the balance matters beyond making public funds reach further. State-led reconstruction creates revenue-generating assets in public hands. EU accession will subject them to competition and state-aid rules they do not currently face, and some will have to be restructured or sold. 

Expanding the overlap between the two maps means mitigating the externalities of war more effectively. Energy infrastructure was hit 4,500 times in 2025, drones striking transformers and substations and interrupting the cash flows of otherwise functioning power plants.

When the Kakhovka dam was destroyed in 2023, up to 1 million people lost access to drinking water, and water supplies across four regions, including Kryvyi Rih’s, have had to be replaced or rebuilt — and  the municipal utilities involved are counterparties private investors are reluctant to contract with. 

The Kakhovka dam’s spillways in use in 2013. It was destroyed in 2023 (Source: Wikimedia)

Despite around $200bn of international public non-military support to Ukraine since 2022, the instruments addressing those externalities are patchy at best. A solar developer financing a projec against a Ukrainian public buyer needs a payment obligation it can rely on, and insurance that covers both capital and cash flow.  

Closing those gaps is a political decision, not a technical one. European decision-makers need to mandate the EBRD and the EIB to stand behind public buyers of services, widen the guarantees and risk cover available to private investors, and take more risk on their own balance sheets. Of the  €9.6bn EU Ukraine Investment Framework, only €220m is equity, anchoring a fund meant to reach €1bn over time. That pool of public risk capital should be larger. 

Export credit agencies are a separate lever, and it is national governments that set how far they can  reach. Denmark’s agency has backed more than €450m of financing for Ukrainian wind farms built  with Vestas turbines, but uptake of a broader European export credit scheme administered by the EIB has been slow. 

None of this fully aligns the destruction and earnings maps. It widens the ground on which they  meet — the part of the rebuilding that can keep earning when the public money stops.

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Listen: Can EU countries agree on the next long-term budget?

Production: By Europod, in co-production with Sphera Network.

EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms.

Find the full transcript below:

The EU is negotiating its next long-term budget, worth 2 trillion euros. But reaching an agreement among the 27 member states is proving difficult. The deadline is approaching, and the stakes are high.

Will the EU member states be able to agree on the budget? And what are the different options?

The bloc’s next long-term budget covers the period from 2028 to 2032.

The aim is to reach an agreement by the end of this year. Then, in 2027, the European Parliament will have to give its consent, and the political agreement will need to be translated into legislation, with funding allocated to the different programmes.

But with just three months left before the end of the year, reaching a deal on time is proving difficult. A meeting of EU ministers dedicated to the budget last week led nowhere. Countries stuck to their positions.

On one side are the so-called frugals: Germany, Austria, Denmark, Finland, the Netherlands and Sweden. But they prefer to call themselves “modernisers”. They want to limit spending and are reluctant to increase their contributions to the EU budget.

On the other side are countries worried about receiving less European funding in the years to come.

The European Commission argues that the next budget needs to be bigger than the previous one to address new challenges, including European competitiveness and defence.

And it’s not just the Commission’s view. The European Parliament and many observers share it.

But the countries calling for spending cuts say the EU cannot simply add new priorities to existing ones. They argue that choices have to be made.

So the Commission has proposed another option: increasing the EU’s own resources.

These are revenues that go directly into the European budget, rather than relying entirely on contributions from member states. The idea is to raise additional money without asking national governments to pay more.

But this proposal is also facing opposition from countries calling for spending restraint. They argue that the bloc should not simply look for more money to fund all its priorities.

So how can the 27 countries break the deadlock?

When ministers cannot reach an agreement, the issue is taken up by EU leaders themselves. And that is exactly what is expected to happen in the coming months.

The president of the European Council is planning several meetings of EU leaders before the end of the year, in an attempt to bring countries closer together.

He is even said to be considering a summit lasting three to four days at the end of November, to give leaders enough time to reach an agreement and avoid a difficult December.

But what happens if the 27 countries still fail to agree before the end of the year? There is some room for manoeuvre in 2027. According to media reports, several dates have already been set aside early next year for last-minute negotiations, should an agreement not be reached in time.

But this leaves very little room for delay.

The European Parliament will still need several months to give its consent, and the EU will then have to finalise the legislation and prepare the different programmes.

That brings us very close to 2028, when the new budget is supposed to take effect.

And if everything is not ready by then, the EU does have a mechanism to keep things running.

It can continue covering certain ongoing expenses and payments that have already been committed, even without a new long-term budget in place.

Unlike in the United States, where a budget deadlock can lead to a government shutdown and some public employees being temporarily sent home without pay, the EU has a system designed to avoid such a complete halt.

But this would only be a temporary solution.

It would not provide the certainty needed to launch new programmes or guarantee that all European funding will be available as planned.

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From Munich to Prešov and Leipzig: a GRU-linked sabotage network operated from Slovak territory

German investigators have linked an arson attack in Munich, the planned sabotage of drone manufacturer Skyeton near Prešov, and an attempted attack using an explosive drone at Leipzig-Halle Airport to Russia’s military intelligence agency, the GRU, according to media reports.

The most important finding is that part of this network was said to have operated from Slovakia.

We do not yet know all the details of the ongoing investigation, and I trust that Slovak security authorities will thoroughly examine the circumstances of the case and determine the true scope of the entire operation.

However, according to the German security services’ findings so far, the Slovak connection is not marginal.

Slovakia may have served as one of the hubs of a wider network linked to Russia’s military intelligence agency, the GRU.

According to German security sources, two Bulgarian nationals detained after the arson attack in Munich on 3 September were part of a GRU-linked group operating from Slovakia. Incendiary devices were thrown near Rohde & Schwarz and Helsing, companies linked to the defence industry and support for Ukraine.

The same wider network was said to have been preparing an arson attack on Skyeton’s plant near Prešov, which produces reconnaissance drones for Ukraine. Slovak authorities thwarted the plan and detained Latvian and Ukrainian nationals. Another suspect was detained in Germany.

The nationality of those carrying out the attacks is not decisive.

The current model of Russian operations uses nationals of different countries, often recruited through intermediaries. A professional GRU officer can therefore remain several layers removed from the attack itself. Recruitment may take place via Telegram, payments through cryptocurrencies, and those carrying out the attacks may not even know precisely who the real instigator is.

German investigators argued there was also a link to an attempted attack using an explosive drone at Leipzig-Halle Airport on 4 August.

The target was reportedly a Ukrainian cargo aircraft used to transport material. The German government subsequently publicly attributed responsibility for the incident to Russia.

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From Yemen to Ethiopia and Europe: Everything is connected

The sudden escalation in fighting between Ethiopian federal forces and Tigrayan rebels in the Afar region, raising fears of a new civil war, is part of a wider potential cascade effect from Yemen that could hurt Europe. 

After months of low-level skirmishes, Ethiopian officials have accused the Tigrayan People’s Liberation Front of launching an all-out offensive against federal government positions in northern Ethiopia. 

So what does that mean for Europe and the EU? More than you might think. 

Ethiopia’s economy is particularly vulnerable following the capture of Yemen’s entire Red Sea coastline by the Houthi rebel group, who now control the Bab el-Mandeb Strait. 

Some 97 percent of Ethiopia’s trade is via Djibouti’s port. There is now a real prospect of a series of regional chain reactions and the prospect of civil war in northern Ethiopia is one of them. 

This doesn’t directly impact on the EU’s interests, but it could soon enough.  

Ethiopia is not alone in facing major new threats posed by the Houthis’ advances.  

Egypt, a vital ally for the EU on migration control, faces its own economic crunch as it relies on Suez Canal tolls as a main source of foreign currency. That could lead to more financial demands being made of Brussels 

For their part, Djibouti and Somalia face major security concerns. Djibouti hosts military bases for a handful of EU countries, as well as the EU itself, and the United States, China, and others.  

Somalia, meanwhile, has a longstanding African Union (AU)-led security mission aimed at combatting the Al-Shabaab terror group to which the EU is the biggest single donor.

And the AU mission is particularly reliant on the EU after the Trump administration pulled the plug on US financial support earlier this year. The Houthis already supply at least $100m (€88m) in arms to Al-Shabaab, a smuggling operation now made easier by its coastal advances. 

For the moment, the EU is offering only modest additional support. Last week, EU governments agreed to double financial support for the Djibouti Armed Forces to €20m under the European Peace Facility. 

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‘Made in everywhere’: MEPs clash over reach of EU industrial law

The MEPs steering the EU’s key industrial law want “Made in Europe” to mean that goods are actually produced in the EU.

Their draft report on the Industrial Accelerator Act (IAA), presented to three parliament committees on Monday (28 September), would reserve the label, and the subsidies and public contracts that come with it, for goods produced in the 27 member states.

Partner countries such as Japan or Korea could be added later, but only if they meet set criteria.

This is a break with the EU commission’s proposal, which would apply to virtually every country with a free-trade or procurement deal with the EU. 

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Kallas regrets EU delisting of oligarchs, as Russia ‘ridicules’ Germany after UN meeting

The EU’s delisting of two Russian oligarchs last week despite multiplying sabotage attacks in Europe was “regrettable”, while German-Russian talks at the UN ended in “ridicule”, EU foreign affairs chief Kaja Kallas has said.

“It is regrettable that this [delisting] was the decision,” said Kallas on Monday (28 September) in Brussels at a defence ministers’ meeting.

“We are putting forward more listings, targeting their military-industrial complex, also targeting the finances of Russia, because we want this war to stop,” she added, referring to the 22nd round of Russia sanctions, due on 12 October.

Lithuania’s defence minister Robertas Kaunas also called the delistings a “step backwards”, adding: “This is not the time to reduce sanctions. We have to strengthen the pressure on Russia and [Russian president Vladimir] Putin’s environs”.

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Munich talks keep EU return‑hub plan alive despite drop in border arrivals and budget questions

EU migrant return hubs became the subject of a summit held in Munich on Saturday (26 September) as interior ministers from member and associate states met the European Commission to advance projects aimed at offshoring rejected asylum seekers. 

But the meeting made little progress, partly because many of the attendees met in Copenhagen on 4 September, where leaders had announced an expected start to the policy by 2027. 

Instead, the main takeaways from Munich included rehashed commitments on improved emergency responses as well as broadened use of Frontex, the EU’s border control agency, and migration diplomacy with third states. 

The EU’s return regulation, approved in June, expects to fly rejected asylum seekers out of Europe and into migrant facilities to be hosted by third countries, for which Rwanda and Uganda are reportedly at the top of the queue.

Though the mass border crossing into Ceuta, the Spanish enclave in North Africa, was a subject of discussion, the 18 EU and non-EU interior ministers present in Munich did not include a representative from Spain, possibly due to Pedro Sánchez’s opposition to the return hubs policy. 

But the UK’s home secretary Shabana Mahmood was present, talking of the need for close cooperation within Europe on migration issues,” Germany’s interior minister and meeting host, Alexander Dobrindt, told reporters on Saturday.  

Despite Donrindt’s focus on “innovative solutions” for those with no right to stay in Europe but no way or returning, Berlin’s migration response would also be significantly dependent on expanded powers for Europe’s border agency, Frontex. 

“We are seeing that the Pact is working. The number of irregular arrivals is dropping across the EU while at the same time the numbers of returns to third countries are increasing. That said, we cannot become complacent,” Jim O’Callaghan, Irish interior minister, told the press before the meeting. 

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Protesters in Brussels press EU on ‘broken promises’ over caged animals

The European Commission is being pressed to deliver an animal cage ban by 2027 after failing to meet previous commitments.

Several hundred animal rights activists gathered at the EU’s office for health and food safety in Brussels on Monday (28 September) to encourage a ban on poultry cages and on the killing of male chicks. 

The commission’s livestock strategy had committed in July to proposing legislation to outlaw the two practices by the end of 2026, with similar legislation on pig welfare expected to follow by mid-2027.

The legislation stems from a European Citizens’ Initiative (ECI) signed by 1.4 million people in 2021 to ‘End the Cage Age’. A vast majority of MEPs also subsequently voted to endorse the transition to improved animal welfare. 

And while the commission had originally promised to table a proposal by 2024, this was derailed by farming lobbies and the deadline elapsed.

“We are here [at Monday’s protest in Brussels] because the EU has been delaying meaningful reforms for animals for years,” said Ombretta Alessandrini from Animal Equality, which organised the rally.

Person stands infront of EU institute.
Ombretta Alessandrini is campaign manager at Animal Equality. (Source: EUobserver)

“Our democratic ask needs to be respected. We feel betrayed by the EU’s broken promises and we want the commission to do what they say,” she told EUobserver.

Animal Equality has also joined legal action against the commission over its broken promises, in a case examined at the European Court of Justice in March.

The commission is legally obliged to respond to a citizens’ initiative once it reaches 1m or more signatures. 

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Baltic states seek to calm panic on Russia, in role reversal

This story is a part of the weekly newsletter about security, defence, and tech in the eastern flank of Nato, How we cee it.

Over the past few weeks, a new wave of fear has engulfed Europe. A number of intelligence and government officials have spoken out, saying Russia could possibly attack a Nato country within months, not years.

On 18 September, Polish prime minister Donald Tusk warned that Russia is planning hybrid strikes with drones or rockets on European countries that support Ukraine, such as Poland.

Two days later, Czech intelligence chief Michal Koudelka told the Guardian that, as well as increased drone activity, a small-scale invasion of Nato territory bordering Russia could be part of the Kremlin’s plans.

Then, last Thursday, Denmark’s defence intelligence service said that Russia is likely to intensify its hybrid war against the West in the coming months, with more frequent attacks against Nato countries.

On the same day, speaking at the Council on Foreign Relations in New York, Poland’s foreign minister Radosław Sikorski said, according to TVP World: “We are receiving information … that Russia is preparing something big this year.”

This is not the first time a wave of comments like this has appeared. A similar situation arose last year, when various officials in Europe took turns escalating their rhetoric about the Russian threat.

It is possible that they are speaking out again because new information has surfaced within the intelligence community. The communication goal could be letting Russia know that they know. Much like CIA director John Ratcliffe’s visit to Moscow last month, this could be an effort to make sure Russia doesn’t miscalculate.

The warnings also come in a different context from last year, when the Baltic countries were sounding the alarm. Russia has noticeably been turning up the temperature of its activity around Europe.

Back in July, a cruise missile crashed in Poland. According to experts, it was not a misguided missile, but one deliberately aimed at Poland. Then, in early August, a drone carrying an explosive device was discovered at Leipzig/Halle Airport in eastern Germany, close to Ukrainian cargo planes.

Germany’s interior minister Alexander Dobrindt said the Leipzig airport attack followed the “well-established pattern of Russian hybrid operations in Europe,” the BBC reported.

According to German investigators, who spoke to Frankfurter Allgemeine Zeitung, the incident was also connected to other events, such as an attempted arson attack on a drone manufacturer in eastern Slovakia, and an arson attack in Munich on September 3, when several incendiary devices were thrown from a passing car onto a construction site near the headquarters of defence firms Rohde & Schwarz and Helsing.

In fact, there have been so many different incidents recently that the semi-regular drone incursions into Romania and the Baltics have become almost normalised and struggle to make headlines anymore.

Hypothetical scenarios abound

Scenarios of where Russia could take its hybrid attacks next are as abundant as onlookers’ creativity allows. They range from small attacks on factories, through the seizure of a small piece of land by an elite drone unit, all the way to the capture of the Suwałki corridor – a strategic piece of land between the Baltic states and mainland Europe.

Most recently, the CIA warned that while all eyes had so far been on the Baltics, Russia may be preparing a drone strike against Spain, France, and Italy.

According to Marko Mihkelson, chairman of the Estonian parliament’s foreign affairs committee, the snowball of speculation about an imminent Russian attack on Europe is gathering pace.

But as he sees it, isolated facts are being mixed with wishful thinking, worst-case scenarios and, at times, little more than the need to grab attention.

As he wrote in an opinion piece for the Estonian news agency ERR: “Russia understands that it can confuse and paralyse us through information operations alone. Constant speculation about the Baltic states and Poland risks creating the impression that this is primarily a problem for two or three countries on Russia’s doorstep, while the rest of Europe can somehow remain untouched.”

According to Mihkelson, Russia’s campaign against the West would not necessarily begin with a conventional attack.

It could start by undermining Nato from within: interfering in elections, amplifying polarising narratives, exploiting political divisions, and spreading fear. It could seek to isolate Ukraine by limiting Western support, and then test Nato’s willingness to stand together.

As for worries that Russia will attempt to grab land from the Baltics or Poland, there are no significant material or military changes to note along the borders.

Belarus did hold a four-day military exercise near its border with the Suwałki corridor in mid-September, but that is nothing close to the signals we were getting from Russia just before the full-scale invasion of Ukraine. Back then, physical military infrastructure was being constructed ahead of the attack.

There are also no significant changes in the Russian military’s posture to launch a land attack against the Baltics.

Estonian government officials confirm this. According to Estonia’s minister of defence, Martin Herem, its assessment of the Russian threat remains unchanged.

That means Russia’s main effort remains focused on its war in Ukraine, and neither Estonia, Denmark, nor other Nato allies currently see a threat requiring raised military readiness.

Military experts in Lithuania also see no signs of new escalation. This doesn’t mean Russia won’t continue to be dangerous. It means that Russia has been engaged in provocations against Nato countries for years already, and similar behaviour will continue.

“No one is currently planning to conquer us – not at this moment, nor this year. In this case, specific, very precise attacks or provocations are more likely, designed not so much to cause physical damage as to sow serious panic in people’s minds,” Deividas Šlekys, a professor at Vilnius University’s Institute of Political Science and International Relations, told the Lithuanian wire LRT on Monday (28 September).

And so, while last autumn it was the Baltic states sounding the alarm about a potential Russian attack, now their officials are looking to calm the panic about their aggressive neighbour.

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Ukrainians captured 250 Russian soldiers during Operation Vivaldi (Ukraine Battlefield update, Day 1,677)

  • The Ukrainian offensive continues on the northern flank of the Sloviansk-Kramatorsk sector of the front.

  • Russia has begun targeting data centres in Ukrainian cities.
  • Ukrainian drones struck a factory producing missile guidance systems.
  • It is no longer discussed as often, but Ukraine’s medium-range campaign is continuing successfully.
  • Maps of the day – a map of sites struck in Kyiv; Ukrainian successes around Lyman and Sloviansk.
  • Videos of the day – a swarm of Russian drones approaches Kyiv; a Ukrainian drone carrying a flag flew over the occupied town of Hola Prystan; the Ukrainian army used drones to deliver food to residents of occupied Oleshky in Kherson region.

The Ukrainian offensive continues on the northern flank of the Sloviansk-Kramatorsk sector of the front. “The situation on the Lyman axis remains difficult. According to reports from the ground, the enemy is trying to push Russian forces beyond the Zherebets River, along which meeting engagements are continuing. Ukrainian forces are active in the Yampil area and on the approaches to Lyman. Heavy fighting is under way to stabilise the line and individual positions,” the Russian Z-channel Two Majors wrote on Monday (28 September) morning.

Last week, the Ukrainian army asked OSINT experts not to help Russia by publishing their analyses. We therefore currently have information mainly from Russian accounts and from what official Ukrainian sources selectively release to the public. By coincidence, several reports concerning this particular battlefield emerged on Monday morning.

Ukrainian president Volodymyr Zelensky was the first to announce, without further details, on Sunday afternoon that there were “important results from our units taking part in Operation Vivaldi on the Lyman axis”.

On Monday morning, the 3rd Army Corps, which is conducting Operation Vivaldi, released details. “The opponent was misled and slept through the real strike,” corps commander Andriy Biletsky said.

The 3rd Army Corps liberated the villages of Nove, Ridkodub, and Katerynivka, and “restored control” over Karpivka and Novomykhailivka. It should be noted that two different timelines intersect at this point.

While Two Majors and other Russian accounts refer to current events, the report by Biletsky’s corps only acknowledges events that took place at the beginning of the summer. The Ukrainian command has only now admitted them and described them as the third phase of Operation Vivaldi. It also reported the capture of 250 Russians.

The Ukrainians also released previously unknown footage from the operation, showing an outdated BTR-60 armoured vehicle loaded with explosives and remotely sent to destroy a fortified Russian position, which it succeeded in doing.

During Operation Vivaldi, Ukraine’s 3rd Army Corps converted Soviet-era BTR-60 armored personnel carriers into a massive unmanned explosive vehicles, using them to breach some of the Russian fortified positions during the offensive. https://t.co/1dKZ6TtE3H pic.twitter.com/9SR9FbrZjx

— Special Kherson Cat 🐈🇺🇦 (@bayraktar_1love) September 28, 2026

The Ukrainians managed to convince the Russians that their target was the village of Shandryholove, to which they sent their reserves for counterattacks. However, the Ukrainians struck in the village of Nove, further east. This is where the footage of the BTR-60 attack was recorded.

French analyst Clément Molin said that Biletsky was referring in this case to events from May and June. According to him, the battlefield map looked like this at the time:

Ukraine 🇺🇦 just announced the 3rd part of "Vivaldi" operation, liberating multiple villages back in May and June

-> This confirms the main push was done in Nove direction
-> Russia didn't retreat in a good order (250 prisoners, more dead) https://t.co/WuemIHSSBC pic.twitter.com/orfn5wm1g6

— Clément Molin (@clement_molin) September 28, 2026

Today, the situation is even worse for the Russians. The Russian military channel Military Informant published two maps which still show the now non-existent salient north of Lyman, but the area without a Russian presence around the city has expanded.

“The Ukrainian army is advancing and pushing the Russian Armed Forces away from the city and surrounding villages. Russian forces, in turn, are trying to bring the situation under control and are conducting counterattacks. It is not difficult to see that the loss of these positions significantly complicates the entire operation towards Sloviansk,” Military Informant wrote.

Importantly, the improvement has not only occurred near Lyman, but also partly east of Sloviansk. “On the Sloviansk axis, Ukrainian forces carried out local counterattacks and pushed Russian forces out of positions east of Mykolaivka, as well as from the areas of Rai-Oleksandrivka and Velykyi Lis. However, the enemy advanced west of Fedorivka Druha towards the Siverskyi Donets-Donbas Canal,” the Ukrainian account Petrenko said.

Rybar also confirmed Ukrainian attacks on the approaches to Sloviansk last week:

Finnish analysts from Black Bird Group recorded the same development. On their map, one Ukrainian advance runs from Sloviansk directly towards Rai-Oleksandrivka, while the other is slightly further north. Mykolaivka is in the centre, Sloviansk to its left and Lyman above it.

Russia has begun targeting data centres in Ukrainian cities. “Today, in Kyiv alone, Russian jet-powered drones ‘destroyed’ two kindergartens and two schools, an ordinary residential building, a car repair shop, several warehouses and telecommunications facilities,” Zelensky wrote on Sunday evening.

The following map shows some of these sites.

Weekend Ukraine map thread for Sunday 27th September 2026

Russian strikes targeting specifically civilian areas continue to increase, leaving many dead. The map below shows some (but not all) of the recent strikes upon Kyiv, which has been pounded this week. Cities will be left… pic.twitter.com/SW2mrzWdwn

— Ukraine Control Map (@UAControlMap) September 27, 2026

The last category in Zelensky’s list of “targets” – telecommunications facilities – is worth noting. More specifically, these are data centres, which Russian drones have begun attacking in an attempt to cause internet coverage outages. They reportedly struck, among other sites, the headquarters of the major telecommunications operator Kyivstar. The Russian Z-channel Veteran’s Notes wrote that nine centres had been struck over the previous week.

The Russian Telegram channel Rybar, which consistently refers to Ukraine as “so-called”, assessed the results as “visible”, but said no “digital collapse” had occurred.

According to Rybar, some services were disrupted, but destroying several servers was insufficient to cause more serious damage. Moreover, digital infrastructure is decentralised and therefore more resilient.

Nevertheless, the Russians expect the new campaign to deliver longer-term results. “In addition to causing economic damage, it allows us to identify the opponent’s weakest points,” Rybar wrote. It expects that this will eventually make it possible to maximise the damage.

Ukrainian drones struck a factory producing missile guidance systems. This happened overnight from Friday to Saturday, when at least five production halls at the Azov Optical-Mechanical Plant in Rostov region were damaged. Satellite imagery also confirms the strikes.

Satellite images from the Sept 26 strike on the Azov Optical-Mechanical Plant in Russia’s Rostov region show hits on 5 workshops across 6 buildings, foundry 022 burning, optics 008 hit twice, assembly 009 at least 3 times, galvanic 010 once, machining 024 twice with a roof… https://t.co/Zm6XEbdFl3 pic.twitter.com/lVLFPWjbY7

— WarTranslated (@wartranslated) September 27, 2026

The location of the factory is marked on a map published by the Ukrainian general staff. The Ukrainian army said that it produces optical and electronic systems for guiding artillery, missiles and anti-tank weapons.

⚡️⚡️ Azov Optical and Mechanical Plant hit

During the night of 26th September 2026, units of the Defence Forces of Ukraine struck production facilities at the Azov Optical and Mechanical Plant in Azov, Rostov region, russian federation.

A fire was reported in the foundry… pic.twitter.com/Aat2G1W3Z9

— Генеральний штаб ЗСУ (@GeneralStaffUA) September 26, 2026

The attack was complex. Ukrainian website Militarnyi reported that it involved, among other weapons, Neptune missiles originally designed as anti-ship missiles.

The same source wrote that Russia manufactures at the factory components for Kh-31P anti-radiation missiles, R-74 short-range and R-37M long-range air-to-air missiles, Kh-101, Kh-35U and Kh-59/Kh-69 cruise missiles, Oreshnik intermediate-range ballistic missiles, as well as guided glide bombs.

It is no longer discussed as often, but Ukraine’s medium-range campaign is continuing successfully. For the third consecutive month, Ukrainian drones have destroyed more than 600 trucks at distances of 35 to 300 km from the front, despite Russian countermeasures. The chart below, by Clément Molin, indicates that 640 Russian logistics vehicles have been destroyed so far in September.

When the campaign began with an effort to isolate Crimea, the Hornet drone was the most frequently mentioned. But even then, medium-range strikes were carried out by several types of drone. Military correspondent Francis Farrell wrote for the Kyiv Independent about one of them, named Zozulya.

“Its old-fashioned silhouette and simple piston engine driving a wooden propeller evoke the first fighters of the world wars. But without a pilot, and controlled from a command room anywhere in Ukraine via satellite coverage, this aircraft also represents the cutting edge of modern drone warfare,” the author wrote about the unmanned aircraft, a photograph of which was already shown by the Ukrainian army in April.

It does indeed show an almost primitive-looking weapon, on which nothing, apart from the panel receiving a Starlink satellite signal, evokes the 21st century:

Re are look at the Ukrainian "Zozulya" model strike drone https://t.co/WWLiIRP9nr pic.twitter.com/zcTUCMf3fA

— Special Kherson Cat 🐈🇺🇦 (@bayraktar_1love) April 25, 2026

Unlike Molin, the analytical account Playfra said that the number of so-called middle strikes had fallen slightly, but that they remained effective because the Russians “still cannot jam Starlink, which is essential if they want to stop Ukrainian medium-range strikes”.

The same source said that the smaller amount of video evidence was due to the Ukrainians no longer publishing it. This does not mean, however, that conclusive footage is not public. Some of it is also published by Russian sources, such as the Russian Telegram channel Military Informant in the images below:

Videos of the day

A swarm of Russian drones near Kyiv. Judging by the sound, these are older versions powered by a piston engine and a pusher propeller.

🇷🇺Shahed swarm near 🇺🇦#Kyiv pic.twitter.com/wsBAnkKBpL

— C4H10FO2P ☠️ (@markito0171) September 28, 2026

A drone carrying a Ukrainian flag flew over the occupied town of Hola Prystan in Kherson region, which had a population of 13,000 before the war. The town lies just 13 km south-west of the better-known Oleshky.

🇺🇦Над окупованою Голою Пристанню Херсонської області до 317-ї річниці міста пролетів український дрон із прапором громади. pic.twitter.com/2TcPlNwOXU

— МОСТ ХЕРСОН (@most_ks_ua) September 26, 2026

According to Ukrainian sources, the humanitarian crisis in Oleshky itself is deepening. Several thousand residents still live in the town and have very limited access to food. The Ukrainian army attempted to improve their situation using drones.

🔴 BREAKING: Ukraine delivered about 4 tons of food to temporarily occupied Oleshky in the Kherson region using drones.

The aid was delivered to 100 locations for residents, despite Russian forces reportedly shooting down aid drones and confiscating food. pic.twitter.com/TmGtZ9r3Bl

— UNITED24 Media (@United24media) September 27, 2026

What are the losses

No update on Monday.

  • By Tuesday (22 September), Russia had demonstrably lost 24,138 pieces of heavy equipment (24,098 on Monday [14 September]). Of these, 19,105 (19,065) were destroyed by Ukrainians, 1,000 (1,000) were damaged, 1,194 (1,194) were abandoned by their crews, and 2,839 (2,839) were captured by the Ukrainian army. This includes 4,448 (4,447) tanks, of which 3,353 (3,352) were destroyed in combat.
  • Ukraine lost 12,175 (12,143) pieces of equipment, of which 9,579 (9,551) were destroyed, 702 (698) were damaged, 695 (695) were abandoned and 1,199 (1,199) were captured. This includes 1,464 (1,462) tanks, of which 1,125 (1,120) were destroyed in combat.

Note: Neither side regularly reports its own deaths or destroyed equipment. Ukraine publishes daily figures for Russian casualties and destroyed equipment, which cannot be independently verified. This overview uses data from the Oryx project, which has compiled a list of equipment losses documented exclusively by photographs since the beginning of the war.

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What the new De Gaulle film leaves out on how WWII ended for eastern Europe

The new biopic about the wartime leadership of general Charles de Gaulle is a must-watch. The two-part epic depicts the transformation of France’s fortunes from defeat and collaboration to victory and sovereignty, exemplified by de Gaulle.

He arrives in London with nothing but moral authority and self-belief, and — if this is a plot spoiler I apologise — returns home in triumph as his country’s leader and liberator, albeit with a little help from the British, Americans, and others.

The film, a box-office record-breaker in France, has many virtues, chiefly the impeccable acting of Simon Abkarian in the title role, and Simon Russell Beale as Churchill (speaking admirably understandable, if accented, French). But other aspects of the story hit me the hardest. 

One was the all-too-topical depiction of the United States: vital for victory, yet misguided, sometimes even perfidious. In the cartoonish, goodies-and-baddies version of wartime history, few remember that US president Franklin Roosevelt did not back de Gaulle and his “Free French”.

Following the fall of France in 1940, the administration in Washington established full diplomatic relations with the collaborationist Vichy regime, regarding de Gaulle as an authoritarian pretender, and moreover militarily insignificant. Later, with the Nazis in retreat, the US planned to divide up post-war France and administer most of it as a colony: the place was too important to be run by the French. 

The film simplifies the more complicated real-life story (de Gaulle made mistakes too), but it depicts the outlines vividly and accurately: a much-needed revision. It also touches on the shameful treatment, at US insistence, of French African soldiers. Their presence offended entrenched principles of racial segregation. These warriors were banned from the Paris liberation parade, also at American behest, for fear of tainting the newsreel pictures. This episode is not shown in the film.

Other untold stories lie further east, with equally poignant echoes today. I watched the film with a Czech friend: its thrilling, joyous denouement, with the uprising in Paris, and the arrival of the longed-for liberators, contrasts painfully with the events in her capital city in May 1945. There was an uprising in Prague too, but the Americans (only 80km away) let the Soviets march in. Warsaw, destroyed in the 1944 uprising, fared even worse.

Further off-stage are the tragic, heroic events in Tallinn in that year, when Otto Tief’s government briefly tried to restore Estonia’s independence as the Germans fled. Like the Latvian Central Council under Pauls Kalniņš, it was savagely ended by Soviet occupation. 

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Listen: How are Europeans contributing to the reconstruction of Gaza?

Production: By Europod, in co-production with Sphera Network.

EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms.

Find the full transcript below:

Rebuilding Gaza will require tens of billions of dollars. European countries have just approved new funding for water and waste management. But with the ceasefire still fragile, can reconstruction really get underway?

The EU has just approved two projects aimed at helping rebuild Gaza. Together, they provide €43m in support for the Palestinian Authority, mainly for water and waste management.

The funding is intended to improve access to drinking water for around one million people in Gaza, restore waste collection and launch pilot recycling programmes.

This comes on top of a much larger €883.6m package announced by the EU in July for Gaza. This is totally independent from the board of peace initiated by Donald Trump.

The European Commission has brought together donors from EU member states, as well as countries such as Norway and Switzerland. The European Investment Bank and the European Bank for Reconstruction and Development are also involved.

That is the purpose of the donor conferences regularly organised by the Commission. And this format has sometimes been seen as an alternative to the reconstruction efforts led by Trump’s Board of peace.

As far as the Board of peace is concerned, it also made new announcements last week, on the sidelines of the United Nations General Assembly.

It announced a $2.45bn plan to support reconstruction over six months. Is that significant compared with Gaza’s needs? And do the two funding plans complement each other?

The short answer is: the funding is still far from enough. The needs for rebuilding Gaza are estimated at least $71bn.

The economy has also collapsed, with very little economic activity currently possible in Gaza and unemployment affecting almost the entire population.

But the different funding plans can complement each other.

The Board of Peace six-month plan is divided into dozens of areas of spending. One of the largest is the construction of permanent shelters to replace the tents where many people are currently living.

The plan also includes clearing rubble, rebuilding homes and restoring public transport, among other things.

But reconstruction also depends on security. Is the ceasefire holding, and is Israel committed to allowing aid and reconstruction to move forward? That’s one of the major questions.

European commissioner Dubravka Šuica stressed this point at the UN last week, saying that European assistance relies on clear commitments from Israel to facilitate the implementation of these projects.

Israel has reopened one crossing for international aid, but according to several international reports, it is still restricting the distribution of humanitarian assistance inside Gaza.

And although a ceasefire has been agreed, Israeli military operations targeting Hamas have continued, with civilians among those killed.

According to Gaza’s Health Ministry, 22 Palestinians were killed and 209 injured between 9 and 16 September alone.

Another 21 people were killed on 16 September when a residential building, already damaged during the war, collapsed.

Overall, more than 1,300 people have reportedly been killed in Gaza since the ceasefire began, according to Gaza health authorities.

What’s more, the National Committee for the Administration of Gaza, which is supposed to govern the territory under the peace agreement is still based in Cairo. Israel has not authorised all of its members to enter Gaza.

And the committee says the conditions for carrying out its mandate are not yet in place.

That is another obstacle to reconstruction getting fully underway.

There is one more source of uncertainty: possible Palestinian elections in November. Those elections could also be postponed.

So while funding for reconstruction is beginning to take shape, there are still major questions over security, governance and political stability.

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Volkswagen benefited from €1.5bn in German EV subsidies as it lobbies EU to hit Chinese cars harder

Tens of thousands of autoworkers in Germany protested last week against the car giant’s drastic cuts – spanning job losses and plant closures – even as Volkswagen benefited from some €1.48bn in state subsidies to entice people to buy their brand of electric cars.

The figure, released to EUobserver via a parliamentary demand tabled by German Green MP Julian Joswig, revealed that the German state has doled out €10.1bn in environmental bonuses between 2020 to 2026 to lure people into purchasing electric cars.

As an individual named brand, Volkswagen received the most, followed by Tesla with €889m ahead of other brands like Mercedes-Benz, BMW, Audi, Renault, Hyundai, Opel, SEAT and Kia.

“When more than €10bn in public funding is involved, it must be possible to trace where the money goes and what economic impact it generates,” said Joswig, in a statement.

German domestic interest in electric cars has shown a steady increase over the years. Last month, over 30-percent of all new cars registered in Germany were electric. That is a new record, according to Germany’s Federal Motor Transport Authority.

Even so, the German car industry, including Volkswagen, are shedding workers amid plans to cut plants after being caught off guard by US tariffs and China, whose own industry is now pushing into the European market.

On Monday (21 September), Volkswagen was removed from the Euro Stoxx 50 index given its shrinking market valuation.

Volkswagen, which is a state-owned company, recently announced plans to repurpose its Osnabrück factory in north-west Germany in order to manufacture weapons for Israel’s Rafael Advanced Defense Systems.

The irony is not lost given that Volkswagen was founded by Hitler largely on the back of Jewish slave labour, which is now set to produce arms for an Israel accused of having itself committed a genocide.

“I haven’t seen that being discussed here. Certainly not in the media. People do discuss it, but it’s not anywhere out in the public debate,” said Holger Görg, a professor of International Economics at the University of Kiel.

The car company also announced plans to close its plants in Emden, Hanover, Zwickau and Neckarsulm amid discussions of massive layoffs, potentially affecting some 100,000 people as well as job losses among numerous suppliers.

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THIS WEEK: Interior ministers discuss Fortress Europe, as Kallas goes to Syria

Interior ministers will discuss how to secure borders and deport more immigrants this week, while foreign affairs chief Kaja Kallas takes EU diplomacy to Syria.

Home affairs ministers meeting in Brussels on Thursday (1 October) will discuss “the overall state” and “security” of the Schengen free-travel area, as well as the adequacy of EU asylum law, after thousands of people entered the Spanish enclave of Ceuta in north Africa in July, prompting a border row between Italy, Denmark, and Spain.

The talks come ahead of the first post-Ceuta EU summit, due on 15 October, where rightwing EU leaders aim to drum up support for harsher measures.

The interior ministers will also “exchange views on how to improve returns of persons who do not have the right to stay in the EU through enhanced cooperation on readmission with priority non-EU countries”, the EU Council said, referring to potential deportations to Rwanda.

And they will examine how to increase surveillance of people’s movements, in order to get “early warning” of future “crisis situations”.

For her part, the EU foreign affairs chief, Kaja Kallas, will visit Syria, together with a large security detail, on Tuesday.

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