The global defense industry appears to be entering a period of structural transformation, driven by rising military spending, technological change, and increasing private-capital involvement.

The “Aerospace & Defense M&A Report 2026: Deal Activity, Market Trends and Outlook,” published by Ropes & Gray LLP  on October 7, 2026, says that Aerospace and Defense Mergers and Acquisitions (M&A), Private Equity (PE), and Venture Capital (VC) funding are likely to expand further, showing that 2026 is on track to be one of “the strongest deal-making years” on record.

The report highlights that Defense Tech/Services is the fastest-growing segment at a 22% Compound Annual Growth Rate (CAGR), followed by Aerospace at 16% CAGR; Aircraft Manufacturers, Parts & Components at 14% CAGR; and Air, Land, & Sea Defense at 9% CAGR.

The report argues that the growth is not simply a temporary response to international conflicts. Governments are rebuilding industrial capacity, replenishing weapons inventories, strengthening supply chains, and accelerating the development of advanced military technologies.

In the United States, the largest market, proposed increases in defense resources, procurement reforms, longer-term contracts, and financial support for defense technology companies aim to attract private capital and expand manufacturing capacity.

In Europe, the EU’s Security Action for Europe initiative aims to mobilize about €800 billion in defense-related investment through national fiscal flexibility, loans, and related financing support.

Germany’s increased spending and procurement reforms can accelerate equipment acquisition and industrial expansion. Collectively, these policies are reshaping the geography of defense investment in Europe.

In fact, the report says that  Europe has emerged as a major driver of new activity. “Europe has become a primary engine of deal flow, not a secondary market. Rising national budgets and new EU-wide financing mechanisms are reshaping where capital is being deployed as well as dictating deployment speed”, it says. NATO’s higher spending ambitions, European rearmament and new financing arrangements are encouraging companies to expand, consolidate and acquire specialist capabilities.

Meanwhile, the Indo-Pacific is undergoing a rapid, structural alignment driven by what regional planners call a “contested era.”

China is consolidating its domestic defense industry, though restrictions on cross-border investment limit Western investors’ access. Japan is rapidly reshaping its defense posture and adapting to an environment where the traditional binary definitions of “peacetime” and “wartime” have effectively blurred.

In this era of continuous competition, the report says Japan has elevated allied burden-sharing to its foundational organizing principle.

This shift is most visible in the digital domain. With the operationalization of Japan’s Active Cyber Defense Oversight Commission, Tokyo has adopted a proactive cyber defense strategy. By implementing legal public-private threat reporting and neutralized-access protocols, Japan is signaling a willingness to legally counter and neutralize state-sponsored infrastructure targeting before cyber assaults can cripple critical domestic networks.

One of the report’s most important observations is that defense investment is increasingly a private-equity story. Private-equity firms are acquiring established manufacturers, selling businesses to strategic buyers and building larger companies through additional acquisitions. Venture capital is also financing newer businesses developing military technologies.

Among the ten largest transactions listed for 2026 up to September 30 was GE Aerospace’s $11.8 billion acquisition of Consolidated Precision Products. Other major deals involved aerospace leasing, maritime defense, aircraft components, and specialist detection technologies.

Dubai Aerospace Enterprise bought Macquarie Airfinance for $9.0 billion in what was a leasing consolidation. In a move that signals European rearmament, land-defense scaling, and main-battle tank production, KfW Group (German State Bank) is backing KNDS [Franco-German tank maker Krauss-Maffei Wegmann + Nexter] with $7.8 billion.

In other words, private investors are no longer confined to peripheral suppliers. They are becoming key participants in the industrial ecosystem that supports national defense.

Significantly, the traditional reliance on a handful of legacy prime contractors is giving way to an ecosystem heavily backed by private equity and venture capital.

The private sector is now driving global defense deal-making as it pivots toward software-defined defense, autonomy, and next-generation platforms.

The report shows how defense technology is changing the industry’s center of gravity. Although aerospace and defense remains one of the most active and strategically complex sectors for private capital deployment, software-defined defense, autonomy, and next-generation platforms are pulling ahead as the fastest-growing corner of the market.

Investors are particularly interested in artificial intelligence and software-defined defense systems; autonomous platforms, including unmanned aircraft and maritime systems; counter-drone and missile-defense capabilities; space infrastructure and surveillance; and specialist electronics, communications, and mission-critical components.

However, while these technologies can drive rapid growth, they also carry risks due to restrictive policies in the US and Europe. The report notes that regulatory compliance is becoming a structural hurdle rather than an afterthought.

In the United States, the largest market by transaction value, more national security vetting—including CFIUS (Committee on Foreign Investment in the United States) and FOCI (Foreign Ownership, Control, or Influence) mitigation—is becoming foundational to ensuring a clean exit.

In other words, the global defense landscape seems to be marked by a distinct paradox.

On the one hand, geopolitical threat vectors are accelerating at breakneck speed. On the other hand, the financial and regulatory machinery needed to field next-generation capabilities faces structural friction.

As a result, companies may depend heavily on a single government customer, handle classified information, or face restrictions on intellectual property developed under government contracts. Cybersecurity compliance and access to sensitive facilities can also complicate acquisitions.

In the United States, the CFIUS can scrutinize foreign investment for national-security risks. FOCI can also affect access to classified work and sensitive facilities.

Similarly, European foreign-investment screening is marked with many complexities. Even businesses that are not conventional arms manufacturers may face scrutiny if they supply strategically important electronics, software, communications or other dual-use technologies.

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Commercial risks matter too. Fixed-price government contracts can leave manufacturers exposed when costs rise unexpectedly. Buyers must therefore examine contract liabilities, working capital, supply-chain resilience, workforce retention and the restrictions that could affect a future sale, the report advises.

The report’s overall conclusion, therefore, is that while defense investment opportunities are expanding,  success increasingly depends on technological relevance, reliable industrial execution, regulatory compliance and the ability to navigate national-security restrictions throughout the ownership cycle.

What lessons could India draw from the trends above?

For India, the report is particularly relevant because it highlights a shift in how advanced military capabilities are developed and financed. The implications extend beyond aircraft, missiles, and ships to defense electronics, artificial intelligence, autonomous systems, space technology, supply chains, and foreign investment.

India’s first opportunity is to integrate more deeply into international aerospace and defense supply chains. As Western manufacturers expand production and diversify their suppliers, Indian companies could become more important producers of precision components, avionics, electronics, aerospace structures, and maintenance services.

The most instructive lesson may come from GE Aerospace’s September 8, 2026 acquisition of Consolidated Precision Products (CPP). Experts say that it was a paradigm shift in aerospace and heavy industrial manufacturing. For decades, aerospace primes aggressively outsourced manufacturing to optimize their balance sheets, shifting capital-expenditure risks onto multi-tiered supply chains.

But years of systemic, compounding engine delays—magnified by the Pratt & Whitney GTF powder metal crisis and Boeing’s structural manufacturing gridlock — exposed a fatal flaw: primes (like GE) outsourced execution, but they could never outsource the risk.

Therefore, GE Aerospace decided to buy the absolute bottleneck of jet engine production: structural castings and complex airfoils. Its deal with private equity firms Warburg Pincus and Berkshire Partners is meant to address persistent, industry-wide shortages of critical engine parts and airfoils. In other words, GE bought the supply chain to control the delivery.

For India, this implies that beyond focusing on “Make in India” as screwdriver assembly, it should also consider “Own the Supply Chain.”

Second, as defense technology gains primacy, expanding AI-enabled systems, autonomous platforms, counter-drone technology, advanced sensors, and space infrastructure could be more relevant for India than producing isolated components.

Some experts argue that because European primes are cash-rich and seeking low-cost engineering, they would prefer a JV with India to meet capacity needs.

Lastly, as the Ropes & Gray LLP  report illustrates, private equity and venture capital can help consolidate fragmented industries, finance expansion, and support specialized technology businesses. India could adapt this approach to build stronger domestic defense suppliers.

• Author and veteran journalist Prakash Nanda is Chairman of the Editorial Board of the EurAsian Times and has been commenting on politics, foreign policy, and strategic affairs for nearly three decades. He is a former National Fellow of the Indian Council for Historical Research and a recipient of the Seoul Peace Prize Scholarship.
• The author can be reached at prakash.nanda (at) hotmail.com

The post Europe Is Rearming — and U.S. Wall Street is Writing the Checks, Including GE’s Nearly $12 Billion Deal appeared first on EURASIAN TIMES.

Social media platform Meta has 48 hours to respond to claims by Brazil's leftwing candidate and incumbent President Luiz Inacio Lula da Silva's campaign accusing the tech platform of blocking content on the company's platforms. Brazil's Superior Electoral Court on Saturday gave the social media giant 48 hours to clarify whether it reduced the reach of posts by Lula's campaign ahead of the tight October 25 run-off against rightwing candidate Flavio Bolsonaro. 

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No one expected that Donald Trump, after a congratulatory birthday phone call to his Russian counterpart, would declare that Russian diesel fuel would prove to be the solution to America’s current fuel shortages. If the Trump presidency has yielded anything it is a lot of interesting headlines that seem to come out of nowhere, that can sadly, quite often, fade right back into the mist from whence they came. Sometimes Trump’s words can fill us with hope like this ‘Diesel Deal’, and others like his recent UN speech, where he threatened to potentially kill all Iranians, fill us with dread. This declaration by our enigmatic leader presents a very interesting media narrative and a potential end to ‘Project Ukraine’ that is worth taking a deeper dive into.

Trump has blamed Zelensky for the global energy shortages, especially those concerning diesel fuel. At the time, everyone thought this was just a cheap Twitter-style deflection from the failed war against Iran, which certainly caused a lot of fuel transport disruption. That is to say, the White House was projecting this crisis, that it allowed to happen, or actively caused, to be thrown onto the scapegoat Zelensky. However, this form of deflection or projection is no longer just words in a pre-election narrative, but has become action. Sanctions on Russian diesel have been lifted and the first shipment is already on its way as I write these words. Something tangible has occurred.

Zelensky was actually warned some six times to stop attacking Russian oil infrastructure. Blow up children in the Donbass and beyond ‘sure’, but attacking what the West wants from Russia more than anything is ‘totally unacceptable’. Zelensky, who as stated above was warned half-a-dozen times to back of strikes on oil/gas, upon hearing of Trump’s decision to purchase Russian diesel fuel did the following:

1) He quickly attacked Russian oil infrastructure again seemingly to spite the U.S. President

2) He immediately cut off peace talks in Miami with the Trump’s aides, the Kushner-Witkoff duo, which is yet another spitting in the face of Donald Trump.

The wildest thing of all is that the ‘narcissist’ Trump has already publically thanked President Putin twice for this deal. Appearing at a rally, Americans standing behind Trump wildly cheered in favor of the announcement of peace with Russia plus extra fuel for America. Russophobia is a hobby of the globalist bourgeoisie and Epstein Island, not American truckers and farmers.

It’s a great narrative, let’s hope it lasts

Trump has now put 100% of the blame for global energy/fuel problems directly onto Zelensky, and called him out personally for keeping the war going over the last two years. Thus, the narrative is forming into something like: If the war in Ukraine is the cause of the fuel shortages, and Zelensky is the cause of the war continuing, that means the U.S. can make a deal with Russia even if ‘they started it’, with the corollary that Zelensky logically needs to go as he is the source of the problem. But going even deeper into the narrative we can see the most interesting thing of all or as they like to say online ‘the quiet part’: Trump has essentially declared that Russian energy output is of vital strategic interest to the United States.

It is these kind of words that take the black pill out of my mouth and directly inject ‘hopium’ into my bloodstream. The idea of the American President declaring that NOT being at war with Russia is of vital strategic interest to the USA is something I have been dreaming of my entire adult life. This is exactly the logic that we need to finally and ultimately end the Cold War + Project for a New American Century mentality in politics and finally allow the USA to rebuild and invest into itself. This very well could be America’s mulitpolar awakening by using a logic trap similar to the other ones that have been used to do the exact opposite and keep the USA locked in eternal foreign wars of luxury for ‘national security’. This new logic trap could look something like this: “So you want war with Russia? That must mean you want to harm America, you dirty traitor! You’ll take the fuel from farmer Joe and our kids will starve, you monster! Russia being left alone to produce fuel is a national security interest of America, are you against our country’s national security? Do you want to weaken manly America for those gay Europeans?”.

But as we slam that hopium injection into our veins we have to remember that Donald Trump has said a lot of things, changed his mind many times, or was forced to change it, and perhaps isn’t quite the unilateral decider that he makes himself out to be on TV.

It takes two to tango, but one orange man to keep his word.

The transcripts from this now famous birthday phone chat look very different on the American and Russian sides, which is par for the course. Trump’s team tends to write discussed things as proven facts whereas the Russians are more noncommittal in their language. But the diesel sanctions are gone for now and the boats are moving, so this looks to be real… at least until the mid-term votes are cast.

The American side has since threatened to cut Zelensky off from intelligence sharing, which could be an instant deathblow to their military efforts as many experts believe that only U.S. intel has allowed them to survive this long. Without such targeting data they will be sent back to 20^th century warfare instantly, and they would no longer be able to strike deep into Russia. RT wrote the following on this issue:

A Ukrainian official told Axios that Witkoff and Kushner threatened to cut off US intelligence sharing with Kiev if it continued to ignore Trump’s requests to halt strikes on Russian oil refineries, but the US official denied that any such threat had been made.

But here is where we have to hold our breath, for despite how nice this new narrative sounds, and how it is the perfect exit for the USA from its participation in Project Ukraine we should not forget the words of President Putin from some time ago when he talked about the true power of any U.S. President:

“So a person is elected — he comes with ideas… Then people with briefcases come visit him, well-dressed, in dark suits — kind of like mine.”

So the real question might be, will the Zionist Lobby, Epstein Elite, Three-Letter Organizations, Influential Billionaires, and all the other spooks on Capitol Hill actually let President Trump actually end this war? Will the POTUS be allowed to do this?

We should recall that after Zelensky acted disgracefully in the White House at the start of Trump’s second term everyone thought this conflict would be over. Trump the famous narcissist seemed visibly angry and offended on camera during their verbal spat. But the war went on. There was the Anchorage Summit, which had tons of hype and everyone thought then that the U.S. would pull support from Kiev. But it did not. Trump’s enemies including the Biden Clan are linked to massive corruption in Ukraine which has all been exposed. This would have been a great off ramp from the conflict, but Trump did not or could not take it. And in general, Trump’s rhetoric towards Zelensky and other European politicians has been overtly harsh and disrespectful. The man accused of being a ‘blowhard’ somehow always speaks quite politely behind the backs and to the faces of Putin and Xi.

Thus, although I want peace and mutually-respectful cooperation between the USA and Russia perhaps this deal will only last till the midterm elections, when all of a sudden Zelensky will go back to being “a bastard, but he’s our bastard”, and the conflict will go marching on. Perhaps this is our October Surprise from the Republican side of the aisle? And in December we can all be ‘surprised again’ when the war resumes full-force and thousands more Slavs die on the battlefield?

Now, Donald Trump with gritted teeth is slinging forth the idea that he thinks “it’s time for Ukraine to get a new President”. But after the votes are counted in America he may just go back to passively hating and tolerating Zelensky till the end of his term or till an Oreshnik finds the mark one day. We also cannot forget that the West has been lobbying for a major ceasefire from the Russians for a long time. Presumably this would be used to regroup, rest, rearm and then just go right back to fighting till the last Ukrainian. Now Trump wants elections in Kiev, which will probably demand a ceasefire to enact. But will he be pushing for a three-day ceasefire, or try to trick the Russians into agreeing to a month-long freeze or more?

One ‘good’ sign on this issue from a Russian standpoint is that there are now already calls for Zelensky to resign over this issue on Twitter/X coming from all sides even pro-Ukrainian ones:

“’Zelensky must resign’ – Ukrainian media. That was quick. Zelensky ignored Trump’s warnings not to attack Russian oil refineries SIX times. This morning, Zelensky has bombed another Russian oil refinery. Ukrainians are calling for Zelensky‘s resignation.

Former Ukrainian MP and Metinvest co-owner Vadym Novynskyi has called on Zelensky to resign and hand over all power to Ukraine’s Verkhovna Rada following the Trump-Putin agreements.”

We have to remember that Ukraine in 2026 is already a police state where any dissent means you could get thrown into a bus and taken to the front to die or vanish into a prison as a Russian ‘spy’. Thus, when important people gang up against Zelensky openly it is much more of a potent statement than Hollywood actors safely making Tik-Toks against Trump from their luxurious bedrooms.

The rest of the world won’t sit around and do nothing.

Some moronic ‘Putin sold out the BRICS’ counter-narrative is sure to arise from Kiev’s bot accounts soon. Obviously someone is going to say that the Kremlin threw their Iranian brothers to the Zio-lobby machine! But in actuality, it looks like the Iranians are going to just ship their oil through Russia and sell it as ‘Russian’ and everyone will be happy. The Caspian Sea will be even more busy in the near future. If sanctioned accomplished anything they really increased trade between Russia and Iran.

No one in Moscow is planning on selling out Tehran; they want America to join the Multipolar World while still saving face and reduce the global threat level of nuclear war which is vastly too high at present. Iran and China were surely consulted on this issue before any Diesel Deal was finalized.

The real danger of Trump calling for the removal of Zelensky comes from Europe, where certain factions, politicians and their financiers may take radical action in response. And Trump’s reaction to this response could be even more radical now. Would it be possible that NATO might greenlight the Baltics to just open up another front to ‘see what happens’? Will France finally go through on its threat and just deploy troops openly en masse to save the Napoleon in Green from political or potentially physical death? So far the EU has only threatened even more sanctions. If the previous 20+ packages of sanctions failed, I wonder what is left to actually sanction. Ursula is promising the biggest and most expansive sanctions packet for Monday, October 12^th, but I doubt it will change anything. The only thing that would change the situation is if the EU did something really aggressive, drastic and stupid militarily.

What about the rest of the sanctions?

The Russian media has done a disservice to the public by writing that “Trump will lift sanctions” over-and-over again when the only sanctions being lifted are on diesel exports for half a year. All of the rest of the sanctions are still there. You still cannot fly directly from Moscow to New York, and money transfers via SWIFT are still mostly blocked. We have to remember that at least in theory sanctions are a form of punishment for crimes committed against, in this case, international law and the United States. So how can relations between the USA and Russian Federation truly be normalized when one still accuses the other of crimes it believes it did not even commit?

After Project Ukraine ends things could change rapidly, but there can be no true friendship until Washington trusts Aeroflot enough to let them land on U.S. territory. We cannot be both under a sanctions war and normalized at the same time. But this new Trump narrative, if he can stick with it to its logical conclusion, is the perfect off-ramp for America and the way we can finally end this war and go back to some sense of normalcy with the apocalypse pushed far off into the future beyond all of our lifespans.

Europe’s “strategic autonomy” is a project through which Europe is rebuilding its own imperial and militarist capabilities.

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We remember Nokia as the company behind some of the most popular mobile phones of the past, as well as its famous slogan, “Connecting people.”

Founded in Finland in 1865 and now operating as a multinational company in telecommunications and information technology, Nokia continues to work in the field of communications – that is, to “connect people.” But with its latest project, it appears that the company is now preparing to connect people in uniform.

Nokia has teamed up with ICEYE, another Finnish company specializing in the production of microsatellites that provide high-resolution Earth observation data day and night and in all weather conditions.

The two companies have partnered to develop secure and sovereign satellite communications systems for governments and defense customers, with the first communications satellites planned for launch in 2028.

Defense, border security, emergency response…

Announced on October 1, the project envisages satellite systems operating in low Earth orbit (LEO) for use in areas including defense, border security, emergency services and disaster response.

Under the project, governments will be able to own and control not only the satellites themselves, but also the ground infrastructure and user terminals.

Rafal Modrzewski, co-founder and CEO of ICEYE, said countries should not leave control over their communications infrastructure in the hands of foreign commercial satellite operators, emphasizing that the project is ultimately aimed at reducing external dependence.

As part of the partnership, Nokia will contribute its expertise in secure networking technologies and network management, while ICEYE will provide its experience in satellite platforms, satellite constellation operations and ground infrastructure.

The cooperation between Nokia and ICEYE is not entirely new. Nokia was among the companies that participated in an investment round announced by ICEYE in June 2026, through which the company secured more than €1 billion in financing.

First satellites planned for 2028

The first satellites are scheduled to be launched in 2028. If the project is implemented, ICEYE will expand its activities in government-controlled satellite intelligence into the communications sector, while Nokia will strengthen its presence in Europe’s rapidly growing defense and space communications market.

Europe’s “strategic autonomy”: the militarization of civilian technology

The new partnership between Nokia and ICEYE is a striking example of where the concepts of “strategic autonomy” and “technological sovereignty,” which Europe has increasingly embraced in recent years, are actually heading.

The satellite communications systems being developed by the two Finnish companies may initially appear to be nothing more than a technological investment. Yet the companies themselves explicitly list defense, border security and government operations among the project’s intended areas of use. With the first satellites planned for launch in 2028, the system is also designed to remain under government control, including its satellites, ground stations and terminals.

What is significant here is not simply that two companies are entering the defense sector. The boundary between civilian and military technology is increasingly disappearing in Europe.

Companies operating in telecommunications, artificial intelligence, satellite technology, data analysis and digital infrastructure are being turned into direct components of European states’ rearmament and security policies.

This transformation is being marketed under the rhetoric of “European independence.” Yet what is emerging is not a Europe moving away from militarism. On the contrary, Europe is building its own militarized infrastructure.

Reducing dependence on the U.S. does not eliminate militarism

Europe’s basic argument is that it should not remain dependent on U.S.-based companies for its security and communications infrastructure. That is why European states are seeking to develop their own satellite systems, defense technologies and secure communications networks.

But there is a serious contradiction here.

The infrastructure being developed to reduce dependence on U.S. companies is being used to expand the military capabilities of European states. In other words, the question of “militarism or peace?” is being reduced to a choice between “American militarism or European militarism.”

The EU’s IRIS² program is a larger-scale example of this transformation. Although the system was initially presented as a secure communications and digital infrastructure project, the program was expanded in August 2026 to include 66 additional LEO satellites for defense, security and emergency services, bringing the total planned core constellation to 348 satellites. The European Commission has also explicitly identified defense and security applications as among the main drivers behind the changes.

What we are therefore witnessing is not simply a European space program designed to “improve internet access.” Space infrastructure is being transformed into a component of Europe’s security and defense architecture.

Companies are becoming part of the war economy

More importantly, this transformation is not taking place solely through state institutions.

The European model places private companies at the center of this process. As in the case of Nokia and ICEYE, private technology companies are developing infrastructure designed to meet the defense and security needs of governments. Public-private partnerships are also at the heart of the IRIS² model.

The program’s total cost over 12 years has been set at €10.6 billion, with €6 billion expected to be provided by the EU and more than €4 billion by the private sector.

Thus, the expansion of Europe’s “defense capacity” does not simply mean larger state budgets. Private capital is becoming a direct partner in Europe’s emerging security economy.

This transformation is also changing the fields in which technology companies operate. Technologies once associated primarily with consumer communications, the internet, software or civilian infrastructure are now becoming integrated into border surveillance, military communications, intelligence and crisis-management systems.

This is not the neutralization of Europe’s technology sector. It is its militarization.

The technological infrastructure of “Fortress Europe”

All of these developments cannot be considered separately from the increasingly powerful concept of “Fortress Europe.”

Tighter border controls, the treatment of migration as a security issue, increased military spending and the expansion of Europe’s own defense industry are different components of the same political direction.

Satellite technology is no exception. Indeed, border surveillance is explicitly listed among the intended uses of IRIS² in EU documents.

In this way, seemingly positive concepts such as “digital sovereignty,” “technological independence” and “strategic autonomy” are, in practice, becoming technological instruments for building a stronger European security apparatus.

The fundamental issue here is not that Europe is reducing its dependence on the United States. There is nothing inherently wrong with any country developing its own technological capabilities. The question is what those capabilities are being developed for.

If the result of technological independence is more military satellites, more sophisticated border surveillance systems, stronger military communications networks and larger defense budgets, then what is being created is not simply independence. It is the expansion of the militarist capacity of European states and European capital.

From this perspective, the Nokia-ICEYE agreement represents more than a technological partnership.

As Europe seeks to create an alternative to the United States’ military and technological dominance, it is simultaneously building its own military-technological complex.

And perhaps the most important feature of this process is that the war economy is no longer built solely in arms factories.

Telecommunications companies, satellite companies, artificial intelligence firms and other high-tech corporations are becoming increasingly important actors in this economy.

Europe’s “strategic autonomy” therefore cannot be understood merely as a project to become independent from Washington. It is also a project through which Europe is rebuilding its own imperial and militarist capabilities.

By rejecting the transformation of their country into a new front against Russia, Georgians preserved their strategic autonomy.

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In recent years, Georgia has become the stage for a struggle whose implications extend far beyond its borders. The political conflict, often presented as a debate over democracy, European integration, and civil rights, should in fact be understood as another chapter in the delicate geopolitical game unfolding across the Caucasus.

It is against this backdrop that Tbilisi’s decision to distance itself from the confrontational policies promoted by its Western partners takes on particular significance.

The fundamental question is not whether Georgia should be “European” or “Russian.” Such a framework is excessively simplistic. The real issue is whether a small state situated between major centers of power should be free to determine its own foreign policy or whether its international position should be dictated by the strategic interests of outside actors.

The Georgian government chose the first option.

The rise of Georgian Dream brought about a significant shift in the country’s foreign policy. Rather than automatically echoing the anti-Russian rhetoric prevailing in  Brussels, Tbilisi adopted a more pragmatic approach. Its priority became avoiding another war while preserving economic relations with its neighbors.

For Georgia, this is no abstract matter. Russia remains an important economic partner. Trade, tourism, energy, and the movement of people create realities that cannot simply be erased by political decisions. Fully adopting the Western sanctions regime against Moscow would have particularly serious consequences for an economy far smaller and more vulnerable than those of Europe’s major powers.

This is where Tbilisi’s policy fundamentally diverges from the strategy advocated by Brussel’s hawks. Brussels wants Georgia to become increasingly integrated into European political structures. The Georgian government, however, has insisted that integration cannot mean automatically submitting to the European Union’s geopolitical priorities.

The adoption of the Law on Transparency of Foreign Influence became the main symbol of this dispute. Its critics regard the legislation as a democratic setback. Its supporters see it as a legitimate attempt to limit the political influence of organizations financed from abroad.

The same divide is evident in cultural matters. Georgian legislation concerning LGBT propaganda provoked a strong European reaction and reinforced the perception among its critics that Tbilisi was abandoning the liberal values promoted by the European Union.

Yet one question rarely receives the same attention: who should determine Georgia’s political and cultural rules?

For Georgian Dream, the answer is the Georgian state itself. It was precisely this insistence on autonomy that made the government the target of increasingly intense international pressure.

Recently, Tbilisi Mayor Kakha Kaladze openly accused Brussels of financing an attempted coup in Georgia during last year’s protests. He claims that European actors funded groups involved in the demonstrations and supported efforts to bring about a change of government. According to Kaladze, the objective was to install political forces more closely aligned with the interests of the European Union.

In fact, such allegations should come as little surprise in the current geopolitical environment. Brussels is now discussing the possibility of imposing sanctions on most Georgian Dream leaders and government officials. These developments nevertheless reveal the broader geopolitical dimensions of the crisis. The dispute is not merely a controversy over domestic legislation, but a genuine struggle over the country’s strategic orientation.

Here lies the principal danger facing Georgia. The Caucasus is not a neutral space. The region lies between Russia, Turkey, Iran, and the Euro-Atlantic world. Any attempt to turn Georgia into a platform for confrontation with Moscow would have far greater consequences for Georgians themselves than for the powers supporting such a policy from a distance.

The experience of Ukraine has made this reality even more obvious. A state can receive political, financial, and military support from foreign powers while ultimately paying the highest price when rivalries between those powers escalate into open conflict. For a small country such as Georgia, avoiding this fate is a fundamental strategic consideration.

It was precisely on this point that Tbilisi projected a different course from Kiev. Rather than accepting the transformation of the country into another frontline state, the Georgian government sought to preserve workable relations with Moscow. This does not mean that Georgia has formed an alliance with Russia. The two countries still lack formal diplomatic relations, and Tbilisi maintains its own disagreements with the Kremlin. The national priority, however, is to safeguard strategic autonomy, peace, security, and development.

By avoiding direct confrontation with Moscow, Georgia reduces the risk of opening another military front near Russia’s borders. It also preserves economic ties with neighboring countries and retains greater freedom to engage with different centers of power simultaneously.

What is at stake is the sovereignty of a small state amid competition between major powers. In a region increasingly shaped by geopolitical rivalry, the most important question may not be which side Georgia belongs to, but how the country intends to protect itself amid the confrontation between opposing external forces.

The Georgian people have shown that Georgia’s interests come first. And they were right to make that choice.