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Morning Headlines
FT: Brussels is urgently exploring ways to cover a shortfall of up to $19bn in Ukraine’s budget next year, as Kyiv grapples with diminishing US support and receding prospects for a ceasefire with Russia (archive).
Politico: Halted shipments of some American military aid to Ukraine could resume after a series of high-level meetings in Italy and Ukraine over the coming week.
The Kyiv Independent: The EU will introduce the "toughest sanctions... imposed (on Russia) in the last three years" in coordination with U.S. senators, French Foreign Minister Jean-Noel Barrot said in a television interview on July 7.
FT: Europe’s largest port is gearing up for a potential conflict with Russia by reserving space for ships carrying military supplies and planning where to divert cargo if war breaks out (archive).
ISW: Russian forces appear to be reprioritizing offensive operations in the Pokrovsk direction over the Kostyantynivka direction after several weeks of unsuccessful activity aimed at advancing toward Kostyantynivka.
More News
The Kyiv Independent: The European Bank for Reconstruction and Development (EBRD) will enable Ukrainian banks to provide up to 900 million euros in new loans by sharing credit risks, the EBRD announced in a press release on July 7.
Reuters: Britain on Monday targeted two Russian individuals and one Russian entity as part of its chemical weapons sanctions regime, in its latest effort to punish Moscow for the war in Ukraine.
The Insider: Russia is assembling Shahed-type kamikaze drones using Chinese components — many of them purchased directly from major Chinese companies, an investigation by The Insider has found.
The Kyiv Independent: Russia’s growing ability to sustain weapons production despite Western sanctions is being driven by a flow of Chinese components and materials, Vladyslav Vlasiuk, the Ukrainian president’s commissioner for sanctions, told journalists on July 7.
Reuters: At least one person was killed and 71 wounded in Russian drone attacks on the northeast Ukrainian city of Kharkiv, officials said on Monday.
The Kyiv Independent: The projects Kyiv has submitted to the U.S. for consideration as part of a profit-sharing deal for Ukraine's resources include a shelf and deepwater project and an oil refinery that comes under frequent attack by Russia.
Reuters: Russia struck two military recruitment centres in separate drone attacks on Monday, Ukraine's military said, doubling down on a new campaign of strikes Kyiv says is aimed at disrupting military recruitment.
Defense Express: Drone manufacturing in Ukraine keeps scaling up reaching a tenfold increase in monthly output compared to 2024.
Reuters: Russia's budget deficit reached 3.69 trillion roubles ($46.89 billion), or 1.7% of gross domestic product, in the first half of the year, the same as expected for the full year, the finance ministry said.
The Moscow Times: Russia has sharply reduced state support for small and medium-sized businesses as it grapples with a widening budget deficit and economic slowdown, raising concerns among economists and business leaders about the sector’s long-term health.
The Kyiv Independent: Major shutdowns at Russia's key airports on July 5–6 caused by Ukrainian drone attacks could cost Russian airlines around 20 billion rubles ($254 million), the pro-Kremlin outlet Kommersant reported on July 7, citing airline representatives and industry experts.
Reuters: Russia's sacked transport minister has been found dead in his car outside Moscow with a gunshot wound and the principal hypothesis is that he took his own life, state investigators said on Monday, hours after Putin fired him.
The Kyiv Independent: Long-range Ukrainian drones struck the Ilsky oil refinery in Russia's Krasnodar Krai on July 7, hitting one of the facility's technological workshops.
Ukrinform: A chemical plant in Krasnozavodsk, located in Russia’s Moscow region, has been attacked. The facility produces explosives and components for missile weaponry.
Reuters: Ukrainian President Volodymyr Zelenskiy discussed replacing the current ambassador to the U.S., Oksana Markarova, during his phone call with Trump on Friday, Bloomberg News reported on Monday.
FT: Liechtenstein has launched an emergency task force to tackle a crisis of “zombie” trusts, which has left hundreds of entities linked to wealthy Russians in legal paralysis (archive).
worth mentioning
Russian tour companies introduce trips to Taliban-ruled Afghanistan for $3K
Ukrainian troops struggle to hold the line on the eastern front
Russian drone documents draw line from China to Ukraine’s skies
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