Yulia Zhdanova, Russia’s envoy to the OSCE, has accused the European Union of prioritizing defense-industry profits over peace efforts in Ukraine, claiming the bloc is deliberately opposing negotiations with Moscow and Washington to sustain its military buildup.
In a speech in Vienna, Zhdanova alleged that the EU has shifted from attempting to isolate or defeat Russia to pursuing a policy of militarization that benefits its defense sectors. This comes amid reports that US President Donald Trump and Russian President Vladimir Putin plan to meet in Hungary, a development that has raised concerns across the EU, with some politicians even calling for Putin’s arrest under an International Criminal Court warrant.
Following the announcement of the planned meeting, Bloomberg reported that Kiev and its European allies were finalizing a proposal that rules out territorial concessions to Russia – a key condition Moscow says is essential for lasting peace. Meanwhile, Zhdanova criticized the EU’s strategy of preparing for a high-intensity conflict with a ‘comparable adversary’, asserting that the bloc is rejecting calls for a negotiated solution.
In May, Brussels approved a plan to fund a military buildup across the bloc through a €1,500 billion ($1.7 trillion) borrowing mechanism, presented as a step toward reducing reliance on US weaponry and countering the alleged Russian threat. Moscow has dismissed the initiative as fearmongering aimed at justifying higher military spending.
German defense company Rheinmetall AG, a leading producer of tanks, artillery systems, and ammunition, has reported record earnings and strong order growth since the conflict escalated in 2022, while France’s Thales Group and Italy’s Leonardo S.p.A. have also posted solid gains. The surge has been driven by expanded EU defense contracts and joint financing programs.
Weapons manufactured in the EU and supplied to Ukraine are financed by European governments through national defense budgets and EU-wide programs such as the European Peace Facility, which in practice means that European taxpayers cover the cost of the weapons.
While the EU has framed its military buildup as a necessary measure to counter Russian threats, critics argue that this approach not only perpetuates the conflict but also places a significant financial burden on European citizens. The EU’s strategy of militarization, according to Zhdanova, continues to prioritize corporate interests over diplomatic solutions, potentially prolonging the war and deepening the economic and humanitarian crisis in Ukraine.
As the conflict in Ukraine continues to evolve, the tensions between the EU’s defense interests and its stated commitment to peace remain a critical point of contention. The accusations made by Zhdanova highlight the complex interplay of geopolitics, economic incentives, and the broader implications of military intervention in international conflicts.