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Europe Needs Ukraine to Fight Russia With Reduced US Help: Think Tank

Europe Needs Ukraine to Fight Russia With Reduced US Help: Think Tank

Miami Herald25-06-2025
Russia is looking to take its aggression beyond Ukraine, and reduced U.S. support will force European countries to work together to confront this threat, a Kyiv think tank said.
A report released Wednesday by the KSE Institute, an analytical center at the Kyiv School of Economics, outlined how Russia's long-range, strategic, and hypersonic weapons program showed Moscow's intentions beyond its full-scale invasion.
As the Trump administration previously said that the United States should no longer be Europe's primary security guarantor, Europe requires substantial and sustained defense investments to address the threat posed by Russia, the KSE said.
"Russia is preparing capabilities that are clearly not tied to war in Ukraine, including naval forces for a possible confrontation in the Arctic," report co-author Pavlo Shkurenko told Newsweek.
The two-day NATO summit started on Tuesday, and on the agenda was the alliance's support for Ukraine in the face of Russian President Vladimir Putin's aggression.
However, looming over the summit is U.S. President Donald Trump's insistence that members commit to spending at least 5 percent of their GDP on defense, with the president casting doubt on Washington's security commitment to countries that do not meet this level.
The KSE report states that tackling Russia's threat requires not only larger defense budgets but also spending wisely on low-cost and scalable technologies, as well as integrating Ukraine's technical and military capabilities into those of Europe.
In 2018, Putin touted long-range, strategic, and hypersonic weapons, such as the Sarmat intercontinental ballistic missile, the Avangard glide vehicle, the Zirkon cruise missile, and the Poseidon nuclear torpedo, as examples of Russia's growing military prowess.
But these weapons have little tactical relevance to the war in Ukraine and instead challenge Western deterrence and defense in the future when the U.S. no longer wants to be Europe's main security guarantor, the KSE report said.
Despite economic turbulence in Russia caused by sanctions, Putin continues to drive ever-increasing military expenditure, which is expected to reach 13.5 trillion rubles ($145 billion) in 2025, nearly a third (32 percent) of total budget expenditure.
"That much spending in the military sector is creating circumstances for them to then threaten Europe and beyond, " Shkurenko told Newsweek.
"We have to understand it's very unlikely that Russia will be interested in any kind of peace as of this moment."
Ukraine's experience since the start of the full-scale invasion can be a strategic asset for Europe, offering a blueprint for rapid innovation and defense technologies in a war being fought as much through data and artificial intelligence as it is through munitions, the KSE said.
Russia's regular barrage of Shahed and reconnaissance drones renders traditional surface-to-air missiles (SAMs) an inefficient defense, the report said, but technology, including interceptor drones—a domain in which Ukraine has expertise—can offer a more cost-effective solution when used in conjunction with air defense.
Low-cost attack drones can destroy high-value assets, and as such, Europe can build deterrence against Russia in an agile and cost-effective way, it added.
Addressing the NATO conference on Tuesday, Ukrainian President Volodymyr Zelensky said that Ukraine can produce over 8 million drones of various types annually, but currently lacks the necessary financial backing.
Zelensky called for allies to scale up investments in joint weapons production, including drone technologies, artillery, and interceptors and said that Ukraine's defense capabilities are essential to protecting NATO in the long term.
The KSE report said Ukraine should be incorporated into European defense and granted partner or observer status in European security committees.
Europe also should have "a balanced system of military production," KSE report co-author Olena Bilousova told Newsweek, as the continent can benefit from Ukraine's expertise in, for example, drones, while other countries play to their strengths in air defense or missiles.
"We should consider specializations in our common production," she added.
Pavlo Shkurenko, compliance and international sanctions adviser, KSE Institute: "Despite Russia experiencing economic problems, a lot of resources poured into its military industry. That much spending in the military sector is creating circumstances for them to threaten Europe and beyond."
Ukrainian President Volodymyr Zelensky at the NATO summit on Tuesday: "We must lead in the drone race, both in strike drones and interceptors...All the weapons we produce become part of a new, stronger European defense and security system."
The KSE report's conclusion aligns with Zelensky's message that the cost of supporting Ukraine's defense is minimal compared to what Europe would face if Ukraine were to fall.
Zelensky also called on Tuesday for NATO members to increase defense spending to 5 percent of GDP and for 0.25 percent of GDP to support Ukraine's military needs directly, as he warned Russia is planning new operations on alliance territory.
The second day of the NATO summit in The Hague on Wednesday will likely see wrangling over whether members can agree on the hefty new defense spending target, as well as whether Trump will attend.
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TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Given how hard the stock market has rallied, any company reporting guidance that is perceived as subpar will get punished. A good example of that will play out with Texas Instruments (TXN) in today's session. The stock is getting pounded premarket, down 12% after third quarter guidance on earnings per share that was 14 cents below consensus on the low end. TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Japanese auto stocks surge as US announces lower-than-expected tariffs Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Trending tickers in after-hours trading Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month. Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month. 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