An anti-corruption investigation reaching from Ukraine's Presidential Office into the management of state-owned Sense Bank has raised questions far beyond the alleged laundering of UAH 150 million. At stake are the governance of nationalised assets, the independence of Ukraine's anti-corruption institutions, a planned bank privatisation, an international arbitration worth more than $1 billion and Kyiv's credibility as it moves deeper into EU accession negotiations.

A week after Ukrainian anti-corruption investigators unveiled an operation carrying the improbable codename “Forrest Gump”, the affair has developed into one of the most consequential governance scandals to hit wartime Ukraine.

At its center is a deceptively simple question: Where did UAH 150 million — approximately $3.4 million — used to secure the release on bail of former Justice and Energy Minister Herman Halushchenko, a centerpiece of the biggest corruption scandal of Zelensky government, actually come from?

The answer alleged by Ukraine's National Anti-Corruption Bureau, NABU, and Specialised Anti-Corruption Prosecutor's Office, SAPO, is extraordinary.

Investigators say criminal proceeds under the supervision and manual management of deputy head of the Office of the president of Ukraine Iryna Mudra were converted into apparently legitimate funds through a series of companies and bank accounts. The source of the money is linked with the main suspect of another corruption scandal Timur Mindich, a close ally of president Zelensky, and the goal was to post bail for a suspect in the Operation Midas investigation into alleged corruption surrounding the state nuclear company Energoatom.

NABU's official account says members of a criminal organisation, acting with representatives and officials of a state-owned bank, arranged the laundering of UAH 150 million during June 2026. The cash was allegedly introduced into the legitimate financial system through accounts belonging to shell companies before being used for bail.

The most revealing evidence released by NABU is not just a bank transfer but Mudra’s own confessions, which give wider picture. In one recorded exchange, a female voice attributed to her says: “Corruption should be systematised and controlled… There is no need to fight it.” A male interlocutor adds: “And lead it.” This is said by one of the highest Ukrainian official in charge of judicial reform. Yet her own words are arguably more disturbing, presenting corruption not as an abuse to be eliminated but as a system to be organised and kept under political management.

Other recordings portray Mudra discussing state owned Sense Bank, where this money-loundering operation took place, as an asset to be under direct political control and used for enrichment. She recounts a proposed arrangement under which political figures politicians from Zelensky party Servant of the People would refrain from attacking the bank while “Sense Bank has to pay them”, and quotes an instruction she received from above to “take over the bank” because it contains “serious flows”. She then describes its managers as compliant figures who would carry money wherever a senior Presidential Office official instructed them, adding that they had “crawled” to her “like kittens” asking to be taken under protection.

NABU’s published recording also appear to show Mudra discussing protection from the institutions supposed to investigate such conduct. She asks how to mobilize votes for “our” candidates to NABU’s Public Oversight Council and describes SAP chief Oleksandr Klymenko as “not one of ours,” warning that if he secured a second term, “we’ll all be fucked.” Taken together, these phrases suggest something broader than participation in a single suspicious transaction: an alleged attempt to control a state-owned bank while influencing the bodies capable of investigating that control. If authenticated and confirmed in context, they would provide unusually direct evidence of political capture and consciousness of wrongdoing. Mudra denies criminal conduct and says the excerpts were released selectively and without their full context.

Taking over the bank  

Revelations are shocking in many dimension and will have influence for years to come. One of the most striking revelation is usage of the state-owned Sense Bank as systemic money-laundering machine.

Sense Bank carries unusual political and legal baggage. Until 2022 it was known as Alfa-Bank Ukraine and was owned through corporate structures associated with ABH Holdings. Among the beneficial shareholders were Russian businessmen including Mikhail Fridman and Petr Aven.

Ukraine subsequently imposed sanctions and, in July 2023, the government took Sense Bank into state ownership. Ukraine's Ministry of Finance says the measure was intended to maintain financial stability and protect depositors after sanctions were imposed on significant shareholders. The state today owns 100% of the bank.

It was therefore no ordinary commercial bank allegedly being exploited. It was an asset that Ukraine had taken into public ownership during wartime, in considerable part because of national-security concerns surrounding its previous ownership.

The source material examined by EU Reporter describes this as a crucial feature of the scandal: after nationalisation, the allegation is not simply that corrupt actors conducted transactions through Sense Bank, but that political influence was progressively established over the institution's governance.

That allegation remains contested and has not been established by a court. But documents released by NABU and widely reported by the Kyiv Independent and other leading Ukrainian media raise questions that are difficult for the Ukrainian authorities to ignore. The Kyiv Independent reported on 22 August that internal Nomination Committee records showed attempts to shape Sense Bank's supervisory board following nationalisation. The paper reported that Iryna Mudra, then deputy head of the Office of the President and chair of the committee involved in selecting supervisory-board members, strongly promoted Mykola Hladyshchenko for a place on the board despite objections concerning competence, potential conflicts of interest and previous employment. Hladyshchenko subsequently became chairman of the supervisory board.

The investigation also cited earlier leaked conversations in which prospective board candidates were allegedly described as “our guys”. Six people reportedly discussed in that context were subsequently appointed. EU Reporter has not independently authenticated those recordings or the leaked committee minutes, so their contents must remain attributed to the publications that obtained them.

However, now the anticorruption agencies established with support and guidance of the EU provide their findings suggesting that the bank was deliberately captured for criminal purposes. NABU says that by early June 2026 the alleged organisers had obtained de facto control of Sense Bank, enabling them to use accounts of controlled businesses in the laundering scheme. That allegation has now triggered action at the highest levels of financial regulation.

Bags of cash, shell companies and a banking bottleneck

The alleged mechanics of the operation read more like a crime thriller than a banking-compliance investigation. According to the investigative material compiled in the source document and subsequent Ukrainian reporting, cash was allegedly concentrated through businesses associated with former MP and developer Maksym Mykytas before being exchanged or routed through companies capable of putting apparently legitimate non-cash funds into the banking system.

The source describes alleged deliveries of cash in bags and boxes, routing through companies including Metrobud and other entities, and discussions about how transactions could pass financial-monitoring controls.

Ukraine's anti-money-laundering regime establishes a UAH 400,000 statutory threshold for certain financial-monitoring obligations, alongside wider risk-based requirements. It would be inaccurate to suggest that every payment above UAH 400,000 is automatically prohibited; rather, banks are expected to identify, scrutinise and where necessary report transactions according to statutory and risk criteria.

The significance of the NABU allegation is therefore not simply the size of the payment. Investigators allege that people involved in the transaction were actively discussing how to overcome or circumvent compliance barriers. Published recordings attributed to members of the alleged group include discussion of a Sense Bank compliance official who could prevent the transaction. Mudra in one recording says that she received demand “from above” to fire a bank official who refuse to clear transaction. The scheme released by NABU paint a shocking picture: to make the transfer the bank's automated monitoring arrangements were temporarily taken out of operation during the transaction.

Those are NABU allegations presented to the court. But the Ukrainian government has already treated them seriously enough to take immediate action. This confirms that NABU accusations are well grounded. 

Saving face

On 19 August, the Cabinet suspended supervisory-board chairman Mykola Hladyshchenko for six months and initiated the suspension of management-board chairman Oleksii Stupak. The Finance Ministry explicitly said that its intervention was designed to address risks including the possible use of Sense Bank for money laundering and inadequate oversight of AML procedures.

The following day, National Bank of Ukraine Governor Andriy Pyshnyi went further. The NBU concluded that Hladyshchenko no longer satisfied the statutory independence requirements for membership of the supervisory board and opened proceedings to examine the collective suitability of the entire board. On 21 August, the government terminated Hladyshchenko's powers altogether.  This regulatory reaction matters because it turns the episode from an allegation concerning individual criminal behaviour into a potential failure of corporate governance and banking supervision.

Sense Bank itself has said it is cooperating with the authorities. Following the NABU searches, the bank said it wanted the circumstances established “fully and objectively” and was providing investigators with the information required under legal procedures.

But the key question is different. There have been already multiple accusations of usage of nationalised Sense bank for allegedly corrupt or shadow schemes. NABU revelation did not come from nowhere and were not a separate incidental case. In previous NABU and journalistic investigations shocking facts of how bank has been used were presented. How was it possible that in time of war after nationalisation of one of the biggest banks  it could turn into money-laundering machine?

The Presidential Office role

The highest-profile suspect is Iryna Mudra. Mudra served as deputy head of the Office of the President and held responsibility for major legal and judicial-policy issues, including international mechanisms concerning Russian aggression and frozen Russian assets. President Volodymyr Zelenskyy dismissed her on 19 August. Presidential Decree No. 734/2026 confirms the dismissal but does not give a reason.  NABU and SAPO served Mudra with a notice of suspicion. On 25 August, Ukraine's High Anti-Corruption Court ordered her held in custody for 60 days while allowing release if UAH 20 million bail is posted. Prosecutors had requested considerably higher bail.

Mudra denies criminal wrongdoing. She has argued that the published recordings have been presented selectively and out of context. Through her lawyers, she has said that she is cooperating with investigators and is prepared to answer their questions through the proper legal process. The underlying source document expressly records those objections and cautions concerning the provenance and quality of some recordings.

On 24 August President Zelenskyy said the anti-corruption bodies had “no questions” for him regarding the investigation.

The billion-dollar shadow over Sense Bank

There is another legal dimension. Former shareholder ABH Holdings commenced ICSID arbitration against Ukraine after the 2023 nationalisation, seeking more than $1 billion and alleging unlawful expropriation. UNCTAD records the dispute as ABH v Ukraine, ICSID Case No. ARB/24/1, concerning the former ownership of Alfa-Bank/Sense Bank. A separate proceeding, EMIS v Ukraine, also concerns alleged unlawful expropriation of Sense Bank.

The government's 2023 decision was taken in the context of sanctions and financial-stability considerations. Whether it complied with the relevant investment treaties is a matter for international tribunals, not for a criminal investigation conducted three years later. Nevertheless, evidence about how the asset was governed after nationalisation could become relevant contextual material in those proceedings.

ABH's case alleges that the taking of Sense Bank was unlawful. Ukraine will defend the nationalisation on its own legal and national-security grounds. A subsequent allegation that politically connected actors exploited the nationalised institution does not answer that legal dispute, but it could make the factual history of the asset considerably more uncomfortable for Kyiv. The source analysis supplied to EU Reporter correctly identifies this potential intersection. Forrest Gump can raise a question about bad faith in the original nationalisation and the consequences might go much further than a bail for one allegedly corrupt official.

And the cherry on the top: Mudra was also one of the officials responsible for formulating and publicly defending Ukraine’s position against ABH Holdings, the former owner of Sense Bank, in its more than $1 billion ICSID claim over the bank’s nationalisation; she later chaired Ukraine’s delegation in other major international proceedings. This creates a particularly damaging contradiction: an official who defended the takeover as a lawful national-security and financial-stability measure is now accused of helping place the same bank under political control and use it to launder criminal proceeds. The allegations do not by themselves prove that the 2023 nationalisation was unlawful, but they seriously undermine the factual and moral credibility of Ukraine’s case and offer ABH a powerful argument that the bank was not transferred into genuinely independent state management, but into a system vulnerable to political capture.

Why Brussels should be watching

Forrest Gump is not an isolated investigation. Its roots reach into Operation Midas, NABU's investigation into alleged large-scale corruption at state nuclear operator Energoatom. NABU says Midas uncovered a criminal structure involved in substantial corruption and subsequent money laundering. Later investigative developments have continued into 2026.

The Forest Gump allegations concern money ultimately used as bail for an individual implicated in that wider investigation. This changes the character of the alleged conduct. If prosecutors prove their case, it would mean that money generated through criminal activity was not merely hidden or spent. It was allegedly recycled back into the criminal-justice system itself to secure the liberty of another suspect.

And here we come to the point vitally important for Brussels.

Ukraine formally opened negotiations on the EU's Fundamentals cluster on 15 June 2026. That cluster includes the judiciary, fundamental rights, justice and security, public procurement and financial control. Crucially, it is the first cluster opened and the last to close, and the European Commission has made clear that progress under it determines the overall pace of accession negotiations.

Ukraine is simultaneously receiving extraordinary financial support from the European Union. The Ukraine Facility provides up to €50 billion between 2024 and 2027, and support is tied to democratic mechanisms, the rule of law, sound financial management, anti-corruption safeguards and reform commitments.

The issue for Brussels is therefore not whether corruption exists in Ukraine. No serious accession process operates on the assumption that candidate countries are free of corruption.

The more important test is whether institutions can discover it, investigate it, prosecute it and correct the governance failures that allowed it without political obstruction. Viewed from that perspective, Forrest Gump presents two competing narratives. The negative interpretation is obvious: people occupying some of the highest positions in the Ukrainian state are alleged to have manipulated a nationalised bank and circumvented controls to launder criminal proceeds.

The more positive institutional interpretation is that Ukraine's own anti-corruption agencies investigated them, published evidence, served suspicion notices, triggered removals at a state bank and brought one of the country's most senior former presidential officials before an independent anti-corruption court.

Which narrative ultimately prevails will depend heavily on what happens next.

Brussels is tightening its grip on some of the internet’s fastest-growing services, designating ChatGPT, Reddit and Roblox for heightened scrutiny under the European Union’s Digital Services Act (DSA), writes Catherine Feore.

The European Commission said all three services meet the 45 million average monthly users threshold in the EU, triggering the DSA rules reserved for digital players considered large enough to pose systemic risks to European society.

“These new designations mean that ChatGPT, Reddit and Roblox will now be held to a higher standard of scrutiny and accountability in the European Union,” said Henna Virkkunen (pictured), the Commission’s executive vice-president for tech sovereignty, security and democracy.

The move puts the companies firmly in Brussels’ regulatory crosshairs. They must assess and mitigate risks ranging from illegal content and harm to minors to threats to fundamental rights, elections, public security, and users’ physical and mental well-being. Importantly, the designation also gives the Commission investigative powers to scrutinise relevant features and systems underpinning the services.

ChatGPT has been designated a Very Large Online Search Engine (VLOSE), while Reddit and Roblox are now Very Large Online Platforms (VLOPs). They have until the end of January 2027 to comply with the DSA’s tougher obligations.

ChatGPT’s inclusion is particularly significant. The Commission considers the AI service a hybrid product that qualifies as an online search engine because it can search the web when answering users’ queries, bringing a major generative AI service into the DSA’s toughest tier of oversight for the first time.

The Commission will supervise compliance with the DSA, in cooperation with Coimisiún na Meán (Ireland’s media regulator) for ChatGPT and Reddit, and the Dutch Authority for Consumers and Markets (ACM) for Roblox.

With the latest additions, 28 platforms and search engines have now received the EU’s “very large” designation.

Photo credit: Commissioner Virkkunnen Photographer: Lukasz Kobus © European Union

Four of CQUR’s five original directors came from VTB Capital or RCB Bank, a Cypriot lender then 46.29 per cent owned by VTB. After the Russian bank sold its stake in May 2022, two senior figures from that network remained as chairman and chief executive and later appeared in CQUR’s disclosed ownership chain. Public records show institutional continuity — but not who financed the sale or whether VTB retained any rights.

On 16 May 2022, less than three months after the United States and Britain imposed blocking sanctions, VTB announced that it had sold its 19 per cent stake in Qatar’s CQUR Bank. It disclosed neither the buyer nor the price.

On paper, VTB’s involvement ended there. The corporate record tells a more complicated story.

CQUR was established in the Qatar Financial Centre in 2019. The five directors named in contemporaneous reports citing the QFC were Makram Abboud, Ziad Al-Amin, Vladimir Zrazhevsky, Vladimir Ostrovsky and Nicolas Neophytou. Abboud and Al-Amin came from VTB Capital. Zrazhevsky and Ostrovsky came from RCB Bank in Cyprus, in which VTB then held 46.29 per cent. Four of CQUR’s five disclosed directors therefore came from VTB Capital or a bank nearly half-owned by VTB.

The board later changed substantially: four of its five current members were not on the 2019 list. But continuity remained at the top. Abboud, now CQUR’s chairman, previously ran VTB Capital’s Middle East and Africa business and sat on the board of VTB Capital plc. Al-Amin, CQUR’s chief executive, worked at VTB Capital and later headed RCB’s Dubai office.

Both men have since appeared inside CQUR’s ownership chain. Abboud is a director of Quince Holding, the bank’s current direct shareholder, and the disclosed significant shareholder of Quince Tree, one of the companies above it. Al-Amin is another director of Quince Holding. They did not simply remain employed by CQUR after VTB’s exit; they later took positions in the companies through which the bank is owned.

There was a striking precedent inside the same network. On 24 February 2022, the day VTB was sanctioned, its 46.29 per cent stake in RCB was acquired by Cypriot shareholders representing RCB’s management. Less than a month later, S&P suspended RCB’s ratings, saying it could not assess either the full effect of the management acquisition or the remaining links between RCB and VTB.

Large assets were also moving back towards the Russian bank. In 2020, VTB assigned CQUR rights to a RussNeft loan and a $100 million Kazchrome tranche. CQUR returned both in February 2022, when their reported value was about $1.18 billion. A month earlier, RCB had returned $1.7 billion in Kazchrome claims.

Audited company accounts therefore establish nearly $2.9 billion in transfers from CQUR and RCB back to VTB in January and February 2022. They do not disclose the price or purpose of those transactions. The transfers demonstrate intensive coordination before VTB’s exit from CQUR; they do not, by themselves, prove control after the sale.

Who bought VTB’s stake remains unclear. An archived CQUR page shows that the other 81 per cent of the bank was held by Amathus Investment Fund SPC, a private fund in the British Virgin Islands. After VTB’s departure, Amathus was the only significant shareholder named by the bank. But no public transfer document reviewed for this investigation identifies it as the buyer of VTB’s shares.

CQUR later said that it had been acquired by Middle Eastern private investors led by management. That wording was absent from the bank’s pages archived in November 2022 and February 2024; it appeared by January 2025. The statement does not reveal who paid VTB, how much was paid or where the money came from.

The ownership structure now recorded in Qatar took shape later. As of 25 August 2026, the QFC register named Quince Holding, incorporated four months earlier, as CQUR’s significant shareholder.

Its disclosed shareholders include Quince Tree, linked to Abboud, and MHF Holding, owned by the established Emirati group Al Hail. That offers a plausible independent explanation for the present structure. But all three vehicles were created after VTB’s exit. They show who sits in the chain now, not who bought the stake in May 2022.

CQUR also retained a clear capacity to serve Russia-linked business. Its latest published terms set a 1pm cut-off for payment orders in Russian roubles. Fix Price’s audited accounts show balances with CQUR worth RUB1.65 billion at the end of 2023 and RUB3.87 billion at the end of 2024. Those amounts are rouble equivalents used in Fix Price’s reporting, not proof that the account itself was denominated in roubles. They do, however, document substantial post-sanctions business with a group focused on the Russian market.

None of this proves sanctions evasion. Rouble payments and service to Russian companies are not illegal in themselves. Such a finding would require evidence of a transaction involving a blocked party, a concealed beneficiary or end user, false trade documents, or a regulator’s action. No such public record involving CQUR was found. The bank says it screens customers, beneficial owners and transactions against UN, Qatari, EU and US sanctions lists.

The evidence supports a firm but bounded conclusion. VTB’s departure did not produce a demonstrable institutional break. CQUR had been built around VTB Capital and RCB personnel; large credit assets returned to VTB shortly before the exit; senior alumni remained at the top and later appeared in the ownership chain; and the bank continued to contemplate rouble payments and serve Russia-linked business.

What the evidence does not establish is whether VTB financed the acquisition, retained voting or economic rights, or issued instructions after the sale. The documents that could answer that question remain undisclosed: the 2022 sale agreement, the identity of the original buyer, proof of funds, voting agreements, pledges, options and any nominee arrangements.

Until those records emerge, VTB’s exit from CQUR can be verified as a change of registered ownership — but not as a clean institutional separation.

The US Food and Drug Administration’s (FDA) decision to allow 20 ZYN nicotine pouch products to carry a specific reduced-risk claim has created a striking contrast with the direction of European Union policy, as Brussels prepares new product rules and proposes EU-wide taxation of nicotine pouches.

The United States Food and Drug Administration has authorised 20 ZYN nicotine pouch products to be marketed with a statement informing adult smokers that completely replacing cigarettes with the pouches can reduce the risk of several serious diseases.

The decision, issued on 30 June 2026, represents the first time that the FDA has granted Modified Risk Tobacco Product orders to nicotine pouches.

The authorised wording states:

“Using ZYN instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”

The orders cover ten varieties of ZYN, each sold in nicotine strengths of 3mg and 6mg. The products include Chill, Cinnamon, Citrus, Coffee, Cool Mint, Menthol, Peppermint, Smooth, Spearmint and Wintergreen.

The manufacturer, Swedish Match USA, is owned by Philip Morris International. The products had already received FDA authorisation to remain on the US market in January 2025, but the new decision goes considerably further by permitting a specific comparative health claim.

The FDA said its decision followed an extensive scientific review and was intended to give adult tobacco users accurate information about differences in risk between products.

“FDA’s review of modified risk products is intended to ensure that adult users have clear, science-based information about the relative harms of tobacco products, so they can make informed choices,” said Bret Koplow, acting director of the FDA’s Centre for Tobacco Products.

The ruling does not mean that ZYN is harmless, nor does it approve the products as medicines or smoking-cessation treatments. Nicotine is addictive, and the FDA continues to advise people who do not currently use tobacco or nicotine not to begin.

The significance of the decision lies instead in the regulator’s formal recognition that nicotine products can present very different levels of risk.

Switching, rather than dual use

A crucial qualification is contained in the phrase “instead of cigarettes”. The authorised claim applies to smokers who replace cigarettes with ZYN. It does not promise the same reduction in risk to consumers who use nicotine pouches while continuing to smoke.

Cigarettes burn tobacco, creating smoke containing toxic substances responsible for most smoking-related cancers, cardiovascular disease and respiratory illness. Nicotine pouches deliver nicotine through the lining of the mouth without burning tobacco or producing smoke.

This difference is central to the principle of tobacco harm reduction: smokers who cannot or do not wish to stop using nicotine may nevertheless reduce their health risks by moving away from combustible products.

The FDA’s decision therefore recognises an important distinction that is frequently blurred in political debate. A product can be addictive and unsuitable for non-users while still being substantially less dangerous than smoking.

UK-based public health commentator Clive Bates, a former director of Action on Smoking and Health, has argued that nicotine pouches could deliver benefits comparable to those associated with the use of Swedish snus in Scandinavia.

“Tobacco-free nicotine pouches with a consumer acceptable nicotine content have the potential to benefit public health in the same way that is documented for Swedish snus in Scandinavia, that is, by serving as a low-risk alternative to cigarettes”, Bates said.

“The European Commission should pay close attention to FDA’s exhaustive process and extensive reasoning. It’s unusual to have anything good to say about the Federal government these days, but this is an important exception, where the right answer has been reached for the right reasons”, he added.

Bates has also argued that poorly designed regulation, including excessively low nicotine limits, could make pouches less effective as substitutes for cigarettes and unintentionally protect the market for combustible tobacco.

Why the FDA decision matters for Europe

The American ruling comes at a particularly important moment for the European Union.

The European Commission is simultaneously advancing a formal proposal to overhaul tobacco taxation (TED) and preparing a broader revision of the EU legislation governing tobacco and nicotine products, their presentation, sale, advertising and promotion.

Nicotine pouches are not comprehensively regulated at EU level under the current Tobacco Products Directive (TPD). Because they contain nicotine but no tobacco, they fall outside many of the harmonised provisions that apply to cigarettes, roll-your-own tobacco, heated tobacco and electronic cigarettes. The result is a fragmented European market.

Some member states permit nicotine pouches subject to national restrictions. Others have introduced nicotine limits, packaging and warning requirements or advertising controls, while France has pursued a prohibition.

Different national rules create uncertainty for consumers and manufacturers and complicate enforcement across the EU’s internal market.

The Commission’s April 2026 evaluation of the European tobacco-control framework identified the rapid growth of nicotine pouches, electronic cigarettes and heated tobacco products as one of the main challenges that existing EU legislation is no longer adequately equipped to address.

The evaluation concluded that EU rules had contributed to falling smoking rates and smoking-related deaths but were failing to keep pace with changes in products, marketing practices and consumer behaviour.

The EC is particularly concerned about the use of novel nicotine products among children, adolescents and young adults. However, the FDA decision introduces an additional issue that EU policymakers will now find difficult to avoid: whether new EU rules should recognise differences in risk between combustible cigarettes and smoke-free nicotine products.

Two contrasting regulatory philosophies

The emerging difference between Washington and Brussels is not simply that one jurisdiction is permissive and the other restrictive.

The FDA subjects nicotine products to an exceptionally demanding premarket review. Products must receive authorisation before they can legally be marketed, and separate evidence is required before a manufacturer may make a modified-risk claim.

The FDA can impose marketing conditions, require post-market surveillance and withdraw an order if later evidence shows that the product no longer benefits public health.

Its approach nevertheless accepts that consumers should be told when credible evidence shows that completely switching from one product to another reduces disease risk.

The Commission’s current approach places greater emphasis on reducing the overall attractiveness and consumption of tobacco-related and nicotine products. Its taxation proposal explicitly presents nicotine pouches as products that can prolong addiction or act as substitutes for cigarettes, especially among young people.

These positions are not necessarily irreconcilable.

The EU could impose age controls, marketing restrictions, ingredient standards and proportionate nicotine limits while still recognising that adult smokers may benefit from switching completely away from cigarettes.

It could also prohibit unsubstantiated commercial claims while creating an evidence-based process through which manufacturers could apply for permission to communicate verified differences in risk.

The alternative would be to impose increasingly similar taxation, warnings and advertising rules on products with significantly different health consequences.

A test for evidence-based policymaking

The EC ran a public consultation on revisions to both the Tobacco Products Directive (TPD) and the Tobacco Advertising Directive (TAD) from 22 May to 14 August this year. The consultation, is intended to inform a revision of the legislative framework planned before the end of 2026.

It creates an opportunity to consider evidence that was not available when the current Tobacco Products Directive was adopted in 2014.

Nicotine pouches were then a marginal product. They now represent a rapidly expanding category, and national governments are adopting increasingly divergent responses.

The FDA decision does not compel Europe to follow the US model. The EU has different legal structures, public-health priorities and attitudes towards commercial nicotine.

It does, however, establish a significant regulatory precedent.

One of the world’s most influential public-health authorities has concluded that there is sufficient evidence to tell adult smokers that completely switching to specified nicotine pouches reduces their risk of mouth cancer, heart disease, lung cancer, stroke, emphysema and chronic bronchitis.

That finding sits uneasily with any policy or public communication suggesting that cigarettes and smoke-free nicotine products are essentially equivalent.

The issue is particularly relevant to the Commission’s tax proposal. Taxation affects consumer behaviour partly by changing the relative prices of products. If pouches are taxed so heavily that the economic advantage over cigarettes is substantially reduced, smokers may have less incentive to switch.

Conversely, setting taxes too low could increase affordability and use among young people who have never smoked.

The task for EU legislators is therefore not simply to choose between regulation and deregulation. It is to develop a framework that calibrates restrictions, taxation and consumer information according to evidence about risk, behaviour and population-level effects.

Europe’s choice

While Washington is recognising that adults deserve accurate information about lower-risk alternatives, Brussels is looking for ways to restrict, tax or ban them.

Meanwhile, the EU is failing to control illegal disposable vapes, banned flavours, excessive nicotine levels and unauthorised devices moving through black-market channels. Regulated products are demonised, while illegal and unregulated products keep reaching consumers, including young people.

The forthcoming EU debate will test whether Brussels can reconcile its tobacco-free objective with the potential role of lower-risk alternatives.

The FDA decision makes three points that are likely to shape that discussion.

First, nicotine pouches are not harmless and should not be promoted to children or people who do not use nicotine.

Second, the absence of combustion means that their risks can differ substantially from those associated with cigarettes.

Third, the greatest potential benefit arises when smokers switch completely rather than using pouches alongside continued smoking.

The Commission is right to address gaps in the existing legislation and fragmentation between member states. Common product standards, youth protections and enforcement rules may be necessary for the Single Market to function properly.

But regulation that fails to acknowledge relative risk could also have unintended consequences.

Clive Bates and other harm-reduction advocates argue that treating all nicotine products as though they are similarly dangerous can preserve smoking by discouraging consumers from moving to safer alternatives. European health campaigners respond that the growth of commercially marketed nicotine products could create a new generation of dependent users.

The revised Tobacco Products Directive (TPD) will need to address both concerns.

As the EC completes its consultation and develops its legislative proposal, the American decision gives European policymakers a concrete case study rather than a theoretical argument.

The question is no longer whether a regulator could authorise a carefully limited reduced-risk claim for a nicotine pouch. The FDA has now done so.

The question for Europe is whether its forthcoming legislation will allow comparable scientific evidence to influence regulation, taxation and communication — or whether nicotine pouches will be treated principally as another product to be restricted, irrespective of their potential role in moving smokers away from cigarettes.

Adilet wins 110 seats in the 145-member Kurultai, while four smaller parties share the remaining 35, writes Georgi Gotev.

Kazakhstan’s Central Election Commission announced final results on 25 August confirming a decisive victory for the Adilet party in the country’s first elections to the new unicameral Kurultai. Adilet won 71.17 percent of the vote and 110 of the 145 seats, establishing a dominant position in the legislature created under the constitution that took effect on 1 July.

Adilet is the recently formed pro-presidential party in Kazakhstan created months before the elections as the successor after the long-ruling Amanat party dissolved into it.

Final figures show 9,351,539 ballots cast from an electoral roll of 12,623,289, for a turnout of 74.08 percent. Five parties cleared the 5 percent threshold required for representation:

Adilet: 6,528,948 votes (71.17 percent) — 110 seats

Auyl People’s Democratic Patriotic Party: 574,621 votes (6.26 percent) — 10 seats

Respublica: 509,631 votes (5.56 percent) — 9 seats

Aq Zhol Democratic Party: 478,083 votes (5.21 percent) — 8 seats

Nationwide Social Democratic Party: 469,058 votes (5.11 percent) — 8 seats

The People’s Party of Kazakhstan (3.11 percent) and Baytaq Green Party (1.07 percent) fell short. A further 2.51 percent of voters chose the “against all” option.

The Kurultai replaces the former bicameral parliament and is elected entirely by proportional representation from party lists in a single nationwide constituency. The 23 August vote was the first parliamentary election held under the new constitutional framework approved in a March referendum.

First session convened

President Kassym-Jomart Tokayev has signed a decree convening the inaugural session of the Kurultai for 28 August at 11 a.m. The opening will formally launch the work of the new 145-member legislature and mark the next stage in implementing the institutional changes introduced by the constitution.

Once the Kurultai begins its work, the sitting government is required to resign. Under the new rules, the president will nominate a candidate for prime minister after consultations with the party factions represented in the chamber. The appointed prime minister then has ten days to propose the structure and composition of the cabinet; ministers are appointed by the president following further consultations with the Kurultai.

The constitution also creates the office of vice president. Tokayev has indicated that an appointment — “a well-known person you all know” — would be announced within days of the election and must receive Kurultai approval within two months of the first session. The vice president may not serve as a lawmaker or belong to a political party and would assume presidential powers if the head of state leaves office early.

Experts: Higher stakes for parties and foreign policy

At an expert discussion organised by the Kazakhstan Institute for Strategic Studies (KazISS) on 24 August, analysts said the vote raises the stakes for political parties, the functioning of the new parliament, and Kazakhstan’s positioning amid growing geopolitical interest in Central Asia.

KazISS Director Zhandos Shaimardanov highlighted the combination of high turnout and a dominant party alongside four smaller ones as features likely to shape the legislature. “The task now is to understand how this electoral choice will translate into the work of the new Kurultai, its legislative priorities and the parties’ day-to-day activities,” he said.

Italian Asia expert Domenico Palmieri stressed that the election itself is only the beginning. The real test of the institutional reform will come in the months ahead as deputies begin legislating. He noted the relatively high turnout compared with many European countries and described the voting process as technically smooth.

Political scientist Andrey Kazantsev cautioned against reading the strong participation solely as enthusiasm for party politics. In a period of international uncertainty, many voters appeared more concerned with the country’s overall direction and the future for their families. Because deputies are now elected exclusively from party lists, parties face greater responsibility for translating public expectations into concrete policy. “The demand is high. Now the parties have to provide the supply side,” he said.

Ken Moriyasu of the Hudson Institute placed the transition in a wider regional and global context. Interest in Central Asia has risen in both Washington and Beijing as the United States seeks to diversify critical mineral supplies away from China and Beijing looks to overland Eurasian routes less vulnerable to maritime disruption. “Both China and the U.S. are trying to escape each other, and they’re meeting each other in Central Asia,” Moriyasu observed. Greater clarity and stability in Kazakhstan’s domestic institutions, he argued, could strengthen Astana’s ability to maintain its multi-vector foreign policy and contribute to gradual regional consolidation.

What comes next

With final results certified and the first session scheduled for 28 August, attention turns to the practical launch of the new system: formation of the government, the appointment of a vice president, and the early legislative agenda of a chamber in which one party holds a commanding majority while four others retain a formal presence.

The high turnout and orderly conduct of the vote have been widely noted. Whether the new Kurultai delivers more responsive and effective governance – and how the dominant Adilet faction works with the smaller parties – will determine if the constitutional redesign of 2026 translates into lasting political change.

The blue economy is no longer limited to traditional activities such as fishing, shipping, or offshore energy. A new generation of startups is applying climate technology, AI, robotics, biotechnology, and advanced water treatment to make the use of oceans and water resources cleaner, safer, and more efficient.

EU-Startups’ 2026 coverage shows Europe’s blue economy attracting capital across a widening range of technologies and business models. Among the larger disclosed rounds were €17 million for cargo.one alongside its acquisition of ocean-freight platform Cargofive or €10 million for marine-biofuel developer Kvasir Technologies.

These deals form part of a broader funding landscape in which startups are tackling an increasingly diverse set of challenges linked to how Europe uses, manages and protects its water and marine resources.

From restoring coastal ecosystems and generating tidal power to removing hazardous pollutants, improving wastewater treatment, supporting aquaculture, automating maritime operations, and digitalising shipping workflows. The 10 startups featured below, founded between 2020 and 2026, show how innovation is reshaping the sector, in alphabetical order.

Apolownia is a Paris-based ClimateTech startup committed to making the world more environmentally responsible. It develops end-to-end coastal ecosystem restoration and blue carbon projects, including mangroves and seagrass, which help absorb carbon, reduce coastal flooding and erosion, improve water quality, and provide vital habitats for fish and other marine life.

Its projects use satellite imagery, drones, field data and AI to monitor ecosystem recovery, estimate carbon capture and verify environmental results in a clear, data-driven way. Founded in 2024, it has raised €1 million in funding.

Headquartered in Heidelberg, Blue Activity develops sustainable water treatment solutions for industrial cooling systems. Its technology replaces toxic biocides with natural microorganisms and uses biopolymer-based additives, supported by digital monitoring. This reduces chemical use, water and energy consumption, maintenance needs, and operating costs.

They promote cleaner industrial water use and reduce harmful substances discharged into the environment, contributing to healthier water resources and more sustainable industry. Founded in 2021, Blue Activity secured €8.5 million in funding.

Launched in 2024 in Oxford, Caudal Energy takes a bio-inspired approach to tidal power, using ocean currents to generate predictable renewable electricity. Its system replaces conventional rotating turbines with moving fins inspired by marine animals, offering a lower-impact solution with simpler installation and maintenance.

This activity matters because tidal energy provides a more predictable source of renewable power than solar and wind, which are more dependent on weather conditions. By harnessing ocean currents, Caudal Energy can support the transition away from fossil fuels while making sustainable use of marine resources. Its innovative approach has enabled them to raise €6.43 million in total funding.

Heidelberg-based Enzo focuses on preventing water damage before it becomes costly. Its one-drop sensor attaches to a building’s main water pipe. The startup uses AI to identify unusual water-use patterns and small leaks in real time, allowing homeowners, property managers, and insurers to act before major damage occurs.

Its activity is especially useful as early leak detection can prevent water waste, expensive repairs, and unnecessary use of materials and energy, contributing to more sustainable water management. Launched in 2021, Enzo raised €6.3 million in funding.

Lir Labs develops an AI-powered microscopy for wastewater treatment, turning microscopic activity in water into real-time operational insights. Its automated sensors use deep-learning models to identify changes in microorganisms and particles, allowing treatment plants to detect problems earlier and adjust processes before they become costly or disruptive.

Their approach to better wastewater monitoring can reduce pollution, unnecessary energy and chemical use, and the risk of poorly treated water reaching natural ecosystems. Founded in 2025 in London, Lir Labs raised €245k in funding.

Mirai Robotics is a Maritime Technology startup building AI-powered systems that allow boats and other maritime vehicles to operate with little or no human control. Its technology can guide vessels, process data from onboard sensors, and make real-time decisions during activities such as sea patrols, inspections, monitoring, and transport.

Its activity is relevant to the blue economy because it can make maritime operations safer, faster, and more efficient, particularly in remote or hazardous areas where deploying human crews can be costly or risky. Launched in 2025 in Bari, this innovative approach to maritime automation and safety has helped Mirai Robotics secure €3.6 million in funding.

Founded in 2023 in Ireland, Nernst Electric develops on-site oxygen generation for aquaculture. Its technology uses ceramic membranes to separate high-purity oxygen directly from the surrounding air, allowing fish farms to produce oxygen where it is needed instead of relying on costly deliveries. A reliable oxygen supply is essential for maintaining healthy fish and productive farming conditions, particularly at remote sites.

Its efficient way of producing oxygen can make aquaculture more reliable, cost-effective, and sustainable while reducing energy use and dependence on transported liquid oxygen. Nernst Electric has a total funding of €1.7 million.

NPHarvest has developed a new hardware solution for the collection and recycling of nutrients from wastewater, turning them into valuable ingredients for fertilisers. Installed at wastewater, biogas, and agricultural facilities, its system captures nitrogen and phosphorus that would otherwise be lost as waste and converts them into reusable resources. The technology can recover up to 90% of these nutrients while operating with relatively low energy use.

As excesses of nitrogen and phosphorus can pollute waterways and contribute to eutrophication, managing levels in the water is important. By recovering these nutrients before they reach the environment, NPHarvest supports cleaner aquatic ecosystems while creating a circular source of fertiliser. Founded in 2023 in Espoo, they raised €3.4 million in total funding.

Zürich-based Oxyle tackles some of the hardest-to-remove pollutants in water, particularly PFAS, also known as “forever chemicals”. Rather than simply filtering these substances out, the company’s treatment systems break them down at the molecular level, preventing them from being transferred into another waste stream. The technology is designed for contaminated groundwater and industrial wastewater across sectors such as chemicals, pharmaceuticals, semiconductors, and waste management.

Removing hazardous chemicals from wastewater helps prevent them from reaching rivers, groundwater, and marine ecosystems, supporting cleaner and safer water resources. Founded in 2020, Oxyle has raised €19 million in funding.

Founded in 2021 in Berlin, Tilla is a MaritimeTech startup bringing greater efficiency to crew changes in the shipping industry. Its digital platform brings voyage schedules, crew information, port services, flights, and travel requirements into one place, allowing shipping companies to plan and manage crew movements with fewer manual tasks, lower costs, and better coordination.

By digitalising a process still heavily dependent on spreadsheets, emails, and manual coordination, Tilla supports more efficient maritime operations and improves the working experience of seafarers. The company raised €4 million in total funding.

Episode 12 of the DGT podcast: Languages and Technology is now available.

How does a European Commission document become 24 equally valid language versions of itself?

Anna Holmén takes us behind the scenes with Ivana Zeljković and Iva Vatova-Ivanova from DG Translation’s Demand Management Unit. They reveal how translation work is planned and coordinated, how tight deadlines are managed, and how technology and human expertise come together to keep multilingual Europe running — with deadline compliance above 99%.

Step inside the engine room of EU multilingualism and discover the people and processes that make 24-language communication possible every day.

Tune in to hear more

As negotiations enter their final phase in Brussels, the ECB's electronic money project for 2029 transcends the technical aspects. It is a geopolitical imperative in the face of American payment giants.

The European Union's financial landscape is poised for its biggest transformation since the introduction of banknotes in 2002. The European Parliament, the Council, and the European Central Bank (ECB) are intensifying their discussions to finalize the regulatory framework for the digital euro. If the draft legislation is adopted as planned by the end of the year, the first large-scale practical tests with financial institutions will begin in the autumn of 2027.

The goal? Official rollout to citizens by 2029.

This gradual rollout is not accidental. It is designed to guarantee the stability of an interconnected banking system. The digital euro will not be a private or speculative cryptocurrency, but rather an electronic extension of fiat money, issued and guaranteed directly by the ECB. It will function as a direct complement to coins and banknotes, without ever replacing them.

For European citizens, this innovation will represent a public and sovereign alternative to the private tech and credit giants. In practical terms, everyone will be able to use these services directly through their own commercial bank's app.

The major technical advance lies in offline use.

Money transfers between devices will occur simply by being near each other, even without an internet connection or in the event of a power outage. This option will also guarantee complete confidentiality, since peer-to-peer transactions will not pass through commercial servers.

To reassure the traditional banking sector and prevent a massive flight of deposits during the crisis, the ECB will impose a strict limit. The current holding ceiling is €3,000 per person. Any excess amount received in this public wallet will automatically be transferred to the user's regular commercial bank account.

Beyond the technical aspects, the issue is crucial for the real economy, particularly for small and medium-sized enterprises (SMEs) and the tourism sector within the single market. Currently, almost all European merchants rely on payment infrastructures controlled by American companies, such as Visa and Mastercard. With each transaction, the local economy relinquishes a portion of its profit margins in intermediation fees.

The digital euro aims to break this dependence.

The European Parliament is pushing for acceptance fees imposed on merchants to be significantly lower than current rates, or even completely free for microtransactions.

Intra-European tourism will also benefit from increased fluidity. A traveler will be able to pay for their expenses instantly in any member state using their home country's electronic wallet, without friction, without going through third-party networks and without hidden cross-border fees.

Despite the Commission's optimistic pronouncements, the European banking sector remains on the defensive. Banks are concerned about the operational costs associated with upgrading their technological systems, but above all about the risk of liquidity loss if clients choose to place their funds under the direct custody of the central bank.

The decisions made in the coming months will therefore be highly political. The challenge will be to define the necessary economic incentives for banks to agree to distribute this currency. For the European Union, the 2029 deadline provides the necessary time to orchestrate this new era of financial autonomy and strategic sovereignty.

A leading Belgian animal park is doing its bit to save a critically endangered species.

International Orangutan Day was recently celebrated (August 19) to raise global awareness about the status of orangutans and the urgent need to protect their natural habitats.

All three species—the Bornean, Sumatran, and Tapanuli orangutans—face a high risk of extinction due to rapid habitat loss.

Widespread deforestation for palm oil plantations, illegal logging, mining, and the illegal pet trade threaten their survival.

Orangutans mainly eat fruit and are essential for dispersing seeds across the rainforest, helping the wider ecosystem flourish. They are known as gardeners of the forest.

For every captive orangutan sold in the exotic pet market, up to 11 other orangutans are killed while trying to protect the poached ape. Many captive animals also don’t survive the journey.

Pairi Daiza,  privately owned zoo and botanical garden located in Brugelette, Hainaut, Belgium is playing its part in trying to save the species.

It is home to nine Sumatran orangutans living in two family groups in the park’s “Kingdom of Ganesha.”

Ujian, Sari, Berani and Mathaï live in the Flower Temple. Just opposite them, Kembali, Rosa, Indah, Yori and Bukit have found their home in the “House of the Artisan.”

The second family arrived at the park in November last year from Frankfurt Zoo as part of the European Ex Situ Programme coordinated by the European Association of Zoos and Aquaria.

Their arrival enabled the five orangutans to remain together while contributing to the responsible management of a healthy European population of this critically endangered species.

In July, both orangutan families were outside at the same time for the very first time, “a wonderful milestone for us,” said Niels Vandemeulebroucke, orangutan care taker at Pairi Daiza.

“For Kembali and his family, almost everything was new: trees to climb, ropes and branches to explore, birds, toys, places to rest, and an entire world of movement around them.

“You could really see how stimulating their new environment was,” added Niels.

“Their neighbours in the Flower Temple were just as intrigued. At first, the whole family climbed high into the trees to get a better look at the newcomers. Interestingly, there were no striking vocalisations or direct interactions, and the initial curiosity quickly settled down.

“Today, both families are once again mainly focused on the relationships within their own group.”

As “ambassadors” for their species, Pairi Daiza’s orangutans help visitors understand the “extraordinary intelligence” of these great apes, he added.

They also provide a powerful connection with their wild relatives and the rapidly disappearing forests on which their survival depends.

Niels went on: “Our role is to keep challenging them.

“We continuously create new enrichments and opportunities to explore, think and interact, because orangutans are exceptionally intelligent animals. I’m looking forward to sharing those observations, and some of their individual personalities, with visitors during this special weekend."

The 75-hectare large animal park is located on the site of the former Cistercian Cambron Abbey, and is home to over 7,000 animals.

On 13 August, Zambia re-elected President Hakainde Hichilema for a second term in a historic landslide vote which was independently verified against public polling-station records. Yet since that day, a handful of so-called statistical critiques have circulated questioning the result. It is crucial to walk through what the underlying data actually show, writes Dr Namuunda Mutombo.

Start with how the count was verified from the more than 13,000 polling stations. Results in Zambia are recorded on Gen 20 forms, completed and displayed publicly at each polling station, in front of party agents and observers, before a single figure travels anywhere. That is the record of what happened, station by station, and it is available for anyone to check against the final declaration. Independent monitors did check it. Transparency International Zambia ran its own parallel count against those station-level forms and found it matched the electoral commission's figures to within roughly one percentage point. SADC observers, covering the near totality of the polling stations they visited, reported a calm and orderly process. None of this is the electoral commission grading its own homework. It is outside verification, against a public paper trail, converging on the same number.

The other claim making the rounds is more technical: that in some constituencies, more people voted for president than for their MP, and that this gap is suspicious. As a statistician, I would ask anyone making that argument to first rule out the far more mundane explanation, which is roll-off, the well-documented tendency, in any democracy holding simultaneous elections, for turnout to differ across the ballot depending on how satisfied voters are with each race. Survey work published earlier this year (ironically by those academics now making the negative claims), before a single vote was cast, already told us to expect exactly this pattern here: strong national approval for the president alongside real frustration with sitting MPs in specific provinces. When the geography of the "gap" lines up precisely with where that pre-election dissatisfaction was strongest, the simplest explanation is usually the right one. It is not manipulation. It is Zambians voting for a president and against an MP in the same afternoon, which is their right; and exactly what was predicted.

No election, anywhere, is without noise, complaint, or contested reading of the data. That is not a Zambian shortcoming; it is what elections are in democracies worldwide. The standard by which a result should be judged is not whether every number is uncontested, because by that standard no democracy on earth would ever pass. The standard is whether the process was open enough, and the paper trail public enough, that the disputes can actually be checked, and whether they change the outcome when you do. Here, they don't. Even the more skeptical readings of the data, taken at face value, leave the president's win comfortably intact.

That is, in the end, also the judgment the country's own political actors have reached. The National Reconciliation Party for Unity and Progress, the opposition party which fought a hard campaign and won roughly 60 parliamentary seats in the process, has formally accepted the result, congratulated President Hichilema, and said it will now focus on its role as a check on government from within Parliament. That is what functioning democratic competition looks like: parties that contest hard, then accept the count and get to work.

Zambia's constitution provides a clear, evidence-tested route for any candidate who still disputes the outcome: a petition to the courts, not a headline. That door remains open. What the data do not support is the idea that the result itself is in doubt. I would simply ask that the same rigor applied to the graphs be applied to the conclusions drawn from them.

Dr Namuunda Mutombo is a seasoned Demographer with over two decades of experience. He holds PhD, MA, and BA degrees in Demography, and serves as a Senior Lecturer in the Department of Demography, Population Science, Monitoring & Evaluation at the University of Zambia.