Ukraine signed bilateral ten-year security agreements with the United States and Japan on June 13 as other partner states reaffirmed their long-term support for Ukraine within the Group of 7 (G7) and Ramstein formats. Ukrainian President Volodymyr Zelensky announced on June 13 that he signed bilateral ten-year security agreements with US President Joe Biden and Japanese Prime Minister Fumio Kishida on the sidelines of the ongoing G7 Summit. The US-Ukraine agreement provides for long-term cooperation in defense and security, economic recovery and reform, and the advancement of Ukraine’s Euro-Atlantic integration. The Japan-Ukraine agreement provides for Japan’s $4.5 billion contribution to Ukraine in 2024 and continued ten-year long support in security and defense, humanitarian aid, technical and financial cooperation, reconstruction efforts, and sanction measures against Russia. Zelensky lauded both agreements as historic breakthroughs for Ukraine’s bilateral relations with both the United States and Japan. The United Kingdom (UK) Prime Minister’s Office reported on June 12 that UK Prime Minister Rishi Sunak will announce up to £242 million (about $208 million) in bilateral assistance for Ukraine’s humanitarian, energy, and economic and social recovery needs while at the G7 Summit. French outlet France24 reported that G7 leaders are also finalizing details on the transfer of up to $50 billion in frozen Russian assets to Ukraine by the end of 2024. G7 countries collectively possess $235 billion in frozen Russian assets, and G7 leaders are reportedly brokering a deal that would rely on a US-led $50 billion loan that would reach Ukraine by the end of 2024 and be “topped up” with contributions by other allies. NATO Secretary General Jens Stoltenberg also announced during a Ukraine Defense Contract Group at the Ramstein Airbase in Germany on June 12 that NATO partners will agree on a comprehensive military and financial aid package for Ukraine during the upcoming NATO summit in July 2024 and emphasized that NATO will lead efforts to provide security assistance and training for Ukraine. Stoltenberg also stated that the supply of weapons to Ukraine may become mandatory for NATO members in order to ensure that NATO’s security assistance for Ukraine remains “reliable and large-scale.”
The United States finally sanctioned the Moscow Exchange, other significant Russian financial institutions, and Russian defense manufacturers 839 days into Russia’s full-scale invasion of Ukraine. The US Department of the Treasury announced on June 12 sanctions against more than 300 individuals and entities supporting Russia’s wartime economy, including the Moscow Exchange and its subsidiaries; major banks VTB Bank, Sberbank, and Tochka Bank; and leading Russian defense industrial base (DIB) entities including state owned defense conglomerate Rostec, the state owned aerospace and defense company United Aircraft Corporation, vehicle and vehicle components manufacturer Kamaz, main Russian tank manufacturer Uralvagonzavod, and helicopter design and manufacturing company Russian Helicopters. The UK also announced similar sanctions targeting Russian financial institutions, entities supporting the Russian DIB, and Russia’s shadow fleet of oil tankers.
Key Takeaways:
- Ukraine signed bilateral ten-year security agreements with the US and Japan on June 13 as other partner states reaffirmed their long-term support for Ukraine within the Group of 7 (G7) and Ramstein formats.
- The US finally sanctioned the Moscow Exchange, other significant Russian financial institutions, and Russian defense manufacturers 839 days into Russia’s full-scale invasion of Ukraine.
- The Russian government appears confident that these new sanctions will minimally impact the Russian financial system, and the delay in US and other Western countries sanctioning these entities has given the Russian financial system time to prepare and mitigate such sanctions.
- US President Joe Biden reiterated his opposition to allowing Ukrainian forces to strike military targets in Russia’s operational or deep rear areas in Russian territory with US-provided weapons.
- Sustained Ukrainian strikes against Russian military targets in occupied Crimea appear to be forcing the Russian military to commit additional air defense assets to Crimea in order to defend existing bases and logistics infrastructure, and further Ukrainian strikes against such air defense assets may render the peninsula untenable as a staging ground for the Russian military.
- The People’s Republic of China (PRC) is reportedly using diplomatic channels to convince other countries to not support the upcoming June 15-16 Global Peace Summit in Switzerland.
- The US, United Kingdom (UK), and Canada released a joint statement on July 13 acknowledging and condemning Russian subversive activity and electoral interference efforts in Moldova, which is consistent with ISW’s long-standing assessment of the Kremlin’s ongoing hybrid campaign to destabilize Moldovan democracy.
- Ukrainian forces recently advanced north of Kharkiv City and Russian forces marginally advanced near Siversk and Avdiivka.
- Russian federal subjects (regions) continue to increase monetary incentives to recruit military personnel.