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Capital-Hungry OpenAI Discussing $10 Billion Investment From Amazon

Capital-Hungry OpenAI Discussing $10 Billion Investment From Amazon

Amazon is in talks with ChatGPT-maker OpenAI to invest more than $10 billion, The Information reported, citing multiple people familiar with the discussions. The proposed round would value OpenAI at half a trillion dollars, underlining just how capital-hungry Sam Altman’s chatbot company has become, as it expects to burn through more than $100 billion over the next four years.

The Amazon investment would help OpenAI fund large-scale cloud-computing commitments and potentially broaden Amazon’s role in the AI sphere.

Here's more from the report:

OpenAI last month announced it would spend $38 billion renting servers from AWS over the next seven years, making AWS one of at least five cloud providers OpenAI uses to develop its artificial intelligence.

The deal could also help Amazon find a new customer for its Trainium AI server chips, which compete with the Nvidia AI chips that OpenAI primarily uses today. As part of the deal under discussion, OpenAI plans to use Trainium chips, two people said.

Amazon has discussed potential commercial partnerships, including OpenAI’s plan to turn ChatGPT into a shopping and referral platform and to sell an enterprise version of ChatGPT to Amazon. However, that remains unclear because Amazon will not be able to sell OpenAI models to its cloud customers, as Microsoft, which owns about 27% of OpenAI equity, has secured an exclusive right to do so.

The people noted that Amazon financing could prompt additional fundraising rounds with more investors for the capital-hungry chatbot company, which is expected to burn more than $100 billion over the next four years.  

OpenAI told investors months ago that its 2027 fundraising target is $90 billion, earmarked for investments in talent, servers, and data centers. 

The Information noted, "That could theoretically include an initial public offering." 

Ahead of the new year, spending commitments for Altman's company have been piling up. OpenAI plans to spend hundreds of billions of dollars on Microsoft and Oracle - something we have described as "circular." It also struck deals to rent servers from Google, a major rival in developing AI, and AI cloud provider CoreWeave.

Let's see how the circular part looks on paper: 

OpenAI has also said it will invest billions in developing its own data centers and may rent servers from other companies.

The Information noted, "For Amazon, an OpenAI deal would mirror Microsoft's approach, its fiercest cloud-services rival. After Microsoft made large equity investments in OpenAI, it recently announced an investment in rival AI developer Anthropic and agreed to use that company’s AI."

Tyler Durden Wed, 12/17/2025 - 07:45

Euroclear: The Line Europe Can't Cross Without Breaking Global Trust

Euroclear: The Line Europe Can't Cross Without Breaking Global Trust

Submitted by Thomas Kolbe

Euroclear and the Looming Breach of Trust

The alliance financing the war in Ukraine is facing a new problem. Seven members of the European Union want to block the expropriation of the Russian central bank assets held at Euroclear. This puts the continuation of war financing at risk. At the same time, the specter of a financial crisis looms—one that would once again leave taxpayers footing the bill.

The negotiation marathon between representatives of Ukraine, the EU and the United Kingdom, with a US delegation acting as mediator, continues in Berlin. As usual, it is accompanied by familiar phrases about “progress” on the road to peace and assurances that roughly 90 percent of the target has already been reached.

How much weight this interim result actually deserves will become clear in the coming days. Expect a frantic ramp-up of the propaganda machine, drones over airports (and over Wolfram Weimer’s residence), and growing pressure on US President Donald Trump. The militarily precarious situation of Ukraine’s armed forces is now colliding with an almost equally dramatic financial situation among Kyiv’s creditors.

Everything points to mounting pressure to cut the Gordian knot—sooner rather than later—as war costs on both sides threaten to spiral out of control.

This brings the latest developments in the debate over the expropriation of the Russian central bank and its assets parked at Euroclear back into sharp focus.

A Critical Demarcation Line

Euroclear could turn into a personal Waterloo for EU Commission President Ursula von der Leyen. She is working at full throttle to convert the current crisis into a massive expansion of power for Brussels—and thus for her Commission.

Hungary, Slovakia and Belgium—already outspoken critics of expropriating Russian assets—are now joined by Italy, Bulgaria, Malta and Cyprus. Resistance to Brussels’ escalation push is growing by the day.

Notably, this resistance coincides with a clear shift in timing. Since the United States effectively withdrew from financing Ukraine, Europe’s financial reality has come into view without cosmetic filters. Without access to roughly €210 billion in Russian assets—about €25 billion of which are spread across various EU states—continued financing of this war of attrition appears barely feasible.

All major creditors—Germany, France and the United Kingdom—have long overstretched their budgets and are running new debt levels between four and six percent. The Ukraine project is on the brink of fiscal collapse.

The Illusion of Expropriation as a Lifeline

What is being attempted is as simple as it is dangerous. These assets—partly government bonds, partly matured bond holdings in foreign currencies—are to be used as collateral for further loans. Europe is already trapped in a debt spiral and is tapping every remaining source of funding. Even the enemy is no longer off-limits for the London-Brussels tandem.

Observers with a sensitivity for political phraseology and grandiosity understood as early as April 2022 what was unfolding: in a state of euphoric overconfidence, decision-makers catastrophically miscalculated and constructed a scenario in which a defeated Russia would be forced to pay for the entire war. This would have allowed Europe to neatly extract its own banks—deeply entangled in Ukraine’s financing—from the equation.

History offers a familiar pattern: bankers and politicians working hand in hand, this time in Kyiv. Many were already anticipating the day of Putin’s submission, followed by regime change in Moscow and the launch of large-scale extraction of Russia’s immense raw-material wealth. Europe’s banking system would have been recapitalized to the rooftops, and the energy problem solved once and for all.

That calculation has clearly failed. Instead, the taxpayer will bear the losses.

Ukraine as a Systemic Risk

Without credit guarantees, Ukraine would already be insolvent. A disorderly collapse of the state would hit the European banking system like a nuclear detonation. There is no realistic way around the public sector eventually absorbing these massive loan liabilities.

This inevitably brings the debate over expanding Eurobonds—formally prohibited under EU law—back to center stage, potentially reintroduced outright as European war bonds.

With the “NextGenerationEU” program, this supposedly forbidden practice has already become de facto reality. Brussels has raised €800 billion on capital markets through this mechanism. These funds fuel the EU’s bloated subsidy machine and are now structurally embedded in its power architecture, always backstopped by the ECB.

Brussels is already acting as a sovereign bond issuer in its own right, further increasing member states’ liability exposure and debt levels. Europe has maneuvered itself into both a geopolitical and financial dead end—an outcome that has been foreseeable for years.

Euroclear and the Looming Breach of Trust

The chronic reality denial and embedded incompetence of EU and UK political leadership defy rational explanation. All the more notable is the emerging resistance around Euroclear—even as Brussels searches for ways to force the decision through by simple majority if necessary.

There is reason for cautious optimism that countries like Italy understand what expropriating Russian central bank assets at Euroclear would mean for the eurozone’s financial stability. Italian Prime Minister Giorgia Meloni’s initiative to discreetly safeguard Italy’s central-bank gold against potential ECB access underscores that Rome knows exactly what is at stake. Italy would be well positioned for a potential reboot of a sovereign currency.

The damage caused by expropriating Russian assets would be maximal: a financial super-GAU, a total loss of credibility and of the merchant-law principles indispensable to banking and international transactions. The entire global financial system—transaction settlement and custodial asset holding—rests on trust: on the absolute stability of its core pillars.

Institutions like Euroclear are among those pillars. They do not merely safeguard international transaction flows—they make them possible in the first place. Once this foundation is damaged, far more than a political signal is at risk. The stability of the entire system is on the line.

Tyler Durden Wed, 12/17/2025 - 07:20

"Buy Nicotine, Energy Drink, Candy Stocks": Goldman Tells Clients Get Ready For Party In USA 

"Buy Nicotine, Energy Drink, Candy Stocks": Goldman Tells Clients Get Ready For Party In USA 

Bonnie Herzog, managing director and senior consumer analyst at Goldman Sachs, told clients Tuesday that, after consumer staples' underperformance in 2025, it is time to buy nicotine, energy drink, candy, and beauty stocks heading into 2026 as a stronger consumer backdrop emerges.

Herzog wrote:

Our View -- 2025 has been another year of underperformance by Consumer Staples with all but Nicotine stocks lagging the market as concerns around the health of the US consumer (owing to macro uncertainty, geopolitical tensions, tariffs, layoffs, etc.) which weighed on consumption trends and drove value-seeking behavior amongst consumers during the year.

Heading into 2026, we expect a more constructive US consumer backdrop (esp. middle-income cohorts) given a pickup in real income growth (aided by job growth, tax cuts, and fading tariff-related inflation) to support a discretionary over defensive approach, which will likely weigh on Staples' performance again next year. Irrespective of Staples' trajectory, we see an encouraging backdrop for stock picking in 2026. We continue to encourage investors to put new money to work in stocks with exposure to categories with attractive and profitable growth that should outpace broader Staples such as energy drinks, nicotine, candy, and beauty.

Herzog even noted that next year could be considered "the year of beer stocks":

Furthermore, we believe 2026 could be the year of beer stocks as we expect headwinds to abate and see a few tailwinds such as the lapping of easy comps, better weather (we hope), and increased consumption occasions given a trifecta of events next year including the FIFA World Cup, the Olympics, and the 250th anniversary of the US, which we believe should support greater beer consumption in the year.

Amid the growing specter of a "K-shaped" economy, core retail sales growth was strong in October. Whether that strength reflects inflation or real economic growth, the consumer is holding up in aggregate. With tailwinds expected to emerge in the economy early next year, as Treasury Secretary Scott Bessent recently outlined, Herzog's bullish call to buy nicotine, energy drink, candy, and beauty stocks appears to reflect that improving backdrop.

Here is Herzog's bull call (summary):

  • Market share gainers and strong topline performers: Philip Morris International and Monster Beverage

  • Where bearishness appears overdone: PepsiCo, e.l.f. Beauty, Celsius Holdings, Hershey, and Sprouts Farmers Market

  • Beer recovery beneficiaries: Constellation Brands and Molson Coors

  • Growth-advantaged emerging market exposure: Philip Morris International, Mondelez International, and Colgate-Palmolive

  • Easing cost pressure beneficiary: Hershey

  • GLP-1 and better-for-you positioning: Sprouts Farmers Market

Is next year going to be like .... ?

For the full note and a much more granular breakdown of this bull case, ZeroHedge Pro subscribers can read it in the usual place.

Tyler Durden Wed, 12/17/2025 - 06:55

US, Mexico Reach Agreement To Fix Tijuana River Sewage Crisis: EPA

US, Mexico Reach Agreement To Fix Tijuana River Sewage Crisis: EPA

Authored by Melanie Sun via The Epoch Times (emphasis ours),

The Trump administration has signed a new binational agreement with Mexico, advancing efforts to solve a decades-long sewage crisis plaguing residents both north and south of the transnational Tijuana River.

Trash lines the beaches near the Tijuana River mouth outside of San Diego, Calif., on Sept. 19, 2024. John Fredricks/The Epoch Times

The U.S. Environmental Protection Agency (EPA) said on Dec. 15 that the United States and Mexico have signed a “historic new agreement” called Minute 333. The binational agreement saw both nations agree to additional actions that the EPA said will “progress to permanently and urgently end the decades-long Tijuana River sewage crisis.”

The majority of the 120-mile Tijuana River lies south of the U.S.–Mexico border in the Mexican state of Baja California. Only the last five miles are on the U.S. side of the border, flowing to San Diego and emptying into the Pacific Ocean. The San Diego City Council first declared a state of emergency because of the pollution—ranging from raw sewage to industrial runoff—in 1993.

A list of actions outlined in the new agreement includes Mexico developing a water infrastructure plan for Tijuana within six months, creating plans to ensure the proper operation and maintenance of critical systems, and determining the feasibility of a new ocean outfall for the San Antonio de los Buenos Wastewater Treatment Plant, as well as expanding the plant’s capacity by at least 25 million gallons per day (MGD).

The plant is currently operational after being shut down due to long-term disrepair from 2015 until early 2025. It currently has a capacity of 18 MGD, or about 800 liters per second, but receives 40–45 MGD, leading to sewage overflows, according to the EPA.

All plans are to account for future population growth in Tijuana, a key component that was missing from previous agreements made prior to the Trump administration being in office, the EPA said.

Other actions include Mexico’s agreement to construct a sediment basin near the international boundary at Matadero Canyon, also known as Smuggler’s Gulch, before the 2026–2027 rainy season, and a Tecolote-La Gloria Wastewater Treatment Plant in Tijuana, which is 5 miles south of the U.S.–Mexico border, by December 2028. The plant will have a capacity of 3 MGD and treat wastewater that is currently flowing untreated into the Pacific Ocean in Mexico, causing pollution issues on both sides of the border.

Across the region, deterioration of Tijuana’s water treatment infrastructure, compounded by the city’s fast-growing population, has created a health crisis in recent years. In 2015, Mexico’s San Antonio de los Buenos Wastewater Treatment Facility broke down, which led to the daily release of millions of gallons of untreated sewage, trash, and industrial waste into the Tijuana River.

Residents around San Diego have faced major water quality and public health concerns, with the transboundary pollution from Mexico causing the release of noxious gases such as hydrogen sulfide and hydrogen cyanide from the Tijuana River. Residents in affected communities were advised to use air purifiers and filters.

Trash builds up along the Tijuana River outside of San Diego, Calif., on Sept. 19, 2024. John Fredricks/The Epoch Times

San Diego’s beaches have been closed, and even Naval in-water training has been suspended due to dangerously high concentrations of bacteria from the river entering the Pacific Ocean.

“Through this agreement, a set of technical, financial, and governance actions is established to carry out concrete sanitation works in Tijuana, including new treatment infrastructure and sediment control, which will have a positive impact on public health, the environment, and the beaches of Tijuana and San Diego,” Mexico’s Ministry of Foreign Affairs said in a statement.

“It should be noted that the United States will assume shared financial responsibility, through the North American Development Bank (NADB), to ensure the operation and maintenance of the infrastructure on the Mexican side and to prevent its deterioration over time.”

According to the EPA, Minute 333 does not obligate “any additional U.S. taxpayer funding, including for Mexican-side projects.” U.S. funds to the NADB for the Border Water Infrastructure Program are appropriated by Congress every year, and are contingent on confirmation that Mexico’s projects—as outlined in the minutes—are on schedule to complete construction.

Water flows along the Tijuana River outside of San Diego, Calif., on Sept. 19, 2024. John Fredricks/The Epoch Times

EPA Administrator Lee Zeldin said that Minute 333 sets the “framework for tremendous steps to be made” and that his agency looks forward to “very quickly hitting the ground running to implement the mutually agreed upon actions.”

“I saw the frustration of San Diego area residents firsthand when I visited in April,” he said. “I promised them a 100 percent solution to this issue, and the Trump EPA is doing its part to deliver.”

Minute 333 builds on a memorandum of understanding (MOU) signed by Zeldin and Mexican Environment Minister Alicia Bárcena in July, in which Mexico agreed to expedite the expenditure of $93 million worth of improvements to the Tijuana sewage system and commit to several projects to account for future population growth and maintenance.

It codifies all actions listed in Section 4 of the MOU, which were “specifically designed to account for future population growth in Tijuana and the broader region,” the EPA said.

Tyler Durden Wed, 12/17/2025 - 06:30

Iran's Economy Struggles Amid High Inflation

Iran's Economy Struggles Amid High Inflation

Since early December 2025, a wave of protests has swept across Iran, ranging from human rights campaigns in major urban areas to labor strikes in industrial hubs.

As Statista's Tristan Gaudiat reports, part of the growing popular unrest concerns the accelerating use of the death penalty by the Iranian regime (more than 1,000 executions documented so far in 2025), while the country's economic situation has significantly deteriorated.

Iran is currently facing one of its most severe economic and social crises of the decade, as the country grapples with near-zero GDP growth, soaring inflation and escalating social and geopolitical tensions.

According to the IMF's latest projection (October 2025), Iran’s real GDP is expected to grow by just 0.6 percent in 2025, a sharp decline from previous years (+3.7 percent in 2024, +5.3 percent in 2023).

Inflation, meanwhile, is forecast to surge to 43.3 percent, one of the highest rates in the world, as the national currency (rial) continues its dramatic depreciation.

 Iran's Economy Struggles Amid High Inflation | Statista

You will find more infographics at Statista
 

This grim outlook underscores the depth of Iran’s economic issues, driven by a combination of chronic mismanagement, systemic corruption and the impact of international sanctions.

The escalation of the conflict with Israel and the United States this year has further deteriorated the situation.

After a brief but intense war in June 2025, causing billions of dollars in damage in Iran, the United States imposed additional sanctions, targeting Iran’s oil, banking and shipping sectors.

The reimposition of the United Nations' “snapback” sanctions in late 2025 has also added to the pressure.

Tyler Durden Wed, 12/17/2025 - 04:15

The Folly Of Establishing A US Military Base In Damascus

The Folly Of Establishing A US Military Base In Damascus

Authored by José Niño via The Libertarian Institute

Recent reports indicate the United States is preparing to establish a military presence at an airbase in Damascus, allegedly to facilitate a security agreement between Syria and Israel. This development represents yet another misguided expansion of American military overreach in a region where Washington has already caused tremendous damage through decades of failed interventionist policies.

The United States currently operates approximately 750 to 877 military installations across roughly eighty countries worldwide. This staggering number represents about 70 to 85% of all foreign military bases globally. To put this in perspective, the next eighteen countries with foreign bases combined maintain only 370 installations total. Russia has just twenty-nine foreign bases, and China operates merely six. The American empire of bases already dwarfs every other nation combined, and the financial burden is crushing. Washington spends approximately $65 billion annually just to build and maintain these overseas installations, with total spending on foreign bases and personnel reaching over $94 billion per year.

These figures are not abstract accounting entries. They translate directly into American lives placed in volatile environments, as demonstrated by the recent insider attack in the ancient Syrian city of Palmyra, where a purported "ISIS infiltrator" embedded in local government security forces turned his weapon on a joint U.S. Syrian patrol, killing two U.S. soldiers and one U.S. civilian during what was described as a routine field tour. The incident underscores how the sprawling U.S. basing network increasingly exposes American personnel to unpredictable and lethal blowback in unstable theaters far from home.

Syria itself already hosts between 1,500 and 2,000 American troops, primarily concentrated in the northeastern Hasakah province and at the Al Tanf base in the Syrian Desert. The Pentagon recently announced plans to reduce this presence to fewer than 1,000 personnel and consolidated operations from eight installations to just three. Yet now, despite this supposed drawdown, Washington reportedly plans to establish a new presence in Damascus itself, either at Mezzeh Air Base or Al Seen Military Airport. This contradictory expansion reveals the hollow nature of promises to reduce American military commitments abroad.

Since the fall of Bashar al Assad in December 2024, Israel has conducted hundreds of airstrikes on Syrian military and civilian infrastructure while occupying parts of southern Syria including Quneitra and Daraa. Israel has systematically violated the 1974 disengagement agreement and expanded control over buffer zones. These actions align disturbingly well with the Yinon Plan, a 1982 Israeli strategic document by Israeli foreign policy official Oded Yinon that envisions the dissolution of surrounding Arab states into smaller ethnic and religious entities. The plan explicitly calls for fragmenting Syria along its ethnic and religious lines to prevent a strong centralized government that could challenge Israeli interests.

A permanent American military presence in Damascus would effectively serve as a tripwire guaranteeing continued U.S. involvement in securing Israeli strategic objectives in the Levant. Rather than protecting American interests or enhancing national security, such a base would entrench Washington deeper into regional conflicts that have consistently proven disastrous for both American taxpayers and Middle Eastern populations.

The human cost of American intervention in Syria should give any policymaker pause. The Syrian proxy war has resulted in between 617,000 and 656,000 deaths, including civilians, rebels, and government forces. More than 7.4 million people remain internally displaced within Syria, while approximately 6.3 million Syrian refugees live abroad. This catastrophic toll stems partly from Operation Timber Sycamore, the CIA covert program that ran from 2012 to 2017 to train and equip Syrian rebel forces.

Timber Sycamore represented a joint effort involving American intelligence services along with Saudi Arabia, Jordan, Qatar, Turkey, and the United Kingdom. The CIA ran secret training camps in Jordan and Turkey, providing rebels with small arms, ammunition, trucks, and eventually advanced weaponry like BGM 71 TOW anti-tank missiles. Saudi Arabia provided significant funding while the United States supplied training and logistical support.

The program proved to be counterproductive. Jordanian intelligence officers stole and sold millions of dollars worth of weapons intended for rebels on the black market. Even worse, U.S.-supplied weapons regularly fell into the hands of the al Nusra Front, al-Qaeda’s Syrian affiliate, and ISIS itself. The program strengthened the very extremists Washington was ostensibly fighting.

The failure of Timber Sycamore illustrates a fundamental problem with American interventionism in Syria. Washington has pursued regime change in Damascus in various forms for decades, yet these efforts have consistently backfired, creating power vacuums filled by jihadist groups and prolonging devastating conflicts. The current enthusiasm for establishing a military presence in Damascus suggests American policymakers have learned absolutely nothing from these failures.

The figure now leading Syria exemplifies the moral bankruptcy of this entire enterprise. Ahmed al Sharaa, better known by his nom de guerre Abu Mohammad al Julani, currently serves as president of Syria’s interim government. This represents a stunning rehabilitation for a man who founded al Nusra Front in 2012 as an al-Qaeda affiliate and later formed Hayat Tahrir al Sham (HTS) by merging various rebel factions. Under the name Abu Mohammad al Julani, he was designated a Specially Designated Global Terrorist by the United States on July 24, 2013, with a $10 million bounty maintained on his head.

Al Sharaa’s terrorist designation stemmed from his leadership of al Nusra Front, which perpetrated numerous war crimes including suicide bombings, forced conversions, ethnic cleansing, and sectarian massacres against Christian, Alawite, Shia, and Druze minorities. He fought with al-Qaeda in Iraq, spent time imprisoned at Camp Bucca between 2006 and 2010, and was dispatched to Syria by Abu Bakr al Baghdadi in 2011 with $50,000 to establish al Nusra. His close associates have faced accusations from the United States of overseeing torture, kidnappings, trafficking, ransom schemes, and displacing residents to seize property. The New York Times reported that his group was accused of initially operating under al-Qaeda’s umbrella.

Yet in November 2025, the United Nations Security Council adopted resolution 2799, removing al Sharaa and Interior Minister Anas Khattab from the ISIL and al-Qaeda sanctions list. The U.S. Treasury Department followed suit, delisting him from the Specially Designated Global Terrorist registry. This reversal came after the State Department revoked HTS’s Foreign Terrorist Organization designation in July 2025. Washington essentially decided that a former al-Qaeda commander who oversaw sectarian massacres was now a legitimate partner worthy of American military support. This absurd rehabilitation demonstrates how completely untethered American foreign policy has become from any coherent moral framework or strategic logic.

Critics rightly question whether al Sharaa has truly broken from his extremist roots or merely engaged in calculated political rebranding. The speed with which Washington embraced him as a legitimate leader suggests American policymakers care far more about advancing Israeli interests and maintaining regional influence than about genuine counterterrorism or protecting religious minorities.

The United States needs to pursue a fundamentally different approach to foreign policy. Rather than establishing yet another military base to advance Israeli strategic objectives in Syria, Washington should implement a comprehensive drawdown of overseas military commitments. The hundreds of foreign bases it maintains abroad represent an unsustainable burden that diverts resources from genuine national security priorities like border security and stability in the Western Hemisphere. American taxpayers deserve better than footing the bill for an empire that consistently fails to advance their interests while enriching defense contractors and serving foreign powers.

Syria offers a perfect case study in the futility of American interventionism. Decades of attempts at regime change through covert programs like Timber Sycamore and direct military presence have produced nothing but chaos, empowered jihadist groups, created millions of refugees, and cost hundreds of thousands of lives. The rehabilitation of a former al-Qaeda commander into Syria’s president illustrates how divorced American policy has become from any coherent strategy or values.

Rather than doubling down on failed policies, the United States should pursue strategic restraint, scale back its sprawling network of foreign bases, and allow regional powers to sort out their own affairs without American military involvement. That represents the path toward a more sustainable, affordable, and morally defensible foreign policy. The Damascus base proposal deserves to be rejected outright as yet another wasteful expansion of an already overextended military empire.

Tyler Durden Wed, 12/17/2025 - 03:30

Europe Establishes Hague-Based Reparations Commission For Ukraine

Europe Establishes Hague-Based Reparations Commission For Ukraine

Top European officials met on Tuesday in The Hague in order to establish an international commission to oversee eventual reparations to compensate Ukraine for Russia's military invasion. President Volodymyr Zelensky and EU foreign policy chief Kaja Kallas were present for the high level talks in The Netherlands.

The International Claims Commission for Ukraine will assess and decide on claims for reparations, and will determine and discharge any amount to be paid out. This is likely to see hundreds of billions of dollars eventually flow to Ukraine for the sake of rebuilding and keeping the civic services sector afloat after nearly four years of war.

via European Union

The treaty to establish the commission has been signed by 35 countries at Tuesday's conference. It also has the involvement of Strasbourg-based Council of Europe, which is a 46-nation group protecting human rights on the continent. The new commission is going to be based in The Hague.

Zelensky welcomed the newly established mechanism, declaring that Russia "paying for its crimes" was "exactly where the real path to peace begins." He added: "This war and Russia’s responsibility for it must become a clear example so that others learn not to choose aggression," and followed with, "We must make Russia accept that there are rules in the world."

Dutch Foreign Minister David van Weel agreed, explaining that "Without accountability, a conflict cannot be fully resolved. And part of that accountability is also paying damages that have been done."

All this comes as EU leadership is trying to push through a scheme not just to permanently freeze Russian assets held chiefly in Belgium, but to use the funds for Ukraine's long-term defense and reconstruction.

But Russia’s Central Bank has this week filed a lawsuit seeking 18.2 trillion rubles ($229 billion) in damages from Belgium-based Euroclear, which is meant as a loud shot across Brussels' bow.

The EU's Kallas has lately admitted that the issue of using Russian frozen assets had become "increasingly difficult" ahead of a summit of European leaders which is set for Thursday. The EU is seeking to bypass obvious objectors such as Hungary, and is seeking legal loopholes which would allow a plan to pass based on simple majority vote among EU members.

The World Bank has estimated the cost of reconstruction due to the war, only figuring in numbers up to December 2024, at $524 billion.

Tyler Durden Wed, 12/17/2025 - 02:45

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