Informal meeting of Defence Ministers: Press remarks by High Representative Kaja Kallas upon arrival

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Good morning,

Good to be in Cyprus again. So today we have a busy agenda.

First, we start with Ukraine.

We are talking about what more can we do to help Ukraine. Also, how to really make our defence industries work together. This is something that ministers will discuss. We have different proposals on the table as well, what we can take forward.

Then, of course, Strait of Hormuz.

Over the night, we have seen escalation again. I think the region does not need escalation, but actually that parties sit down to a negotiation table and agree. Of course, we are talking about our Operation ASPIDES, what more can we do with Operation ASPIDES in the region. And by the way, today also it will be the first time where the freedom of navigation sanctions will be applied on Iran.

Then on the freedom of navigation or maritime security, as such, we will also discuss the Shadow Fleet. Our Operation IRINI has changed the rules of engagement and has now started to board the ships as well.

So also, the idea is to change the best practices, what different countries are doing with those ships, because it is really posing a danger, and of course also the idea is to curb Russia from the funding of this war.

Then finally we have the discussion of the European Security Strategy as well, what the ministers want to see there, how we proceed with this. But as it is an informal meeting, so things also take more time than in formal meetings, so sometimes we do not get to all the topics in the end.

I want to say a few words on Armenia. I think the turnout was really good, and of course, the votes are being counted. But it looks like now that Armenia's people, although under heavy Russian pressure, still chose to have a European future, which is a good thing. Of course, we are trying to help them as much as possible, also on their future reforms. Thank you.

One more very important thing that I forgot, because it is a very early morning. On Ukraine, we have now a new Hungarian Minister, which also means that we are moving on with the unblocking of the €6.6 billion in the European Peace Facility. So we are actually discussing today, also, how to make use of those funds. As you know, the initial idea was to have the reimbursement for the contributions, to have the burden sharing. But of course now is also the question whether it should be focused on more giving the aid to Ukraine or actually reimbursements for those contributions that have been already made. So we have put forward a proposal, a compromise that takes into account both sides, but I think the unblocking of the €6.6 billion is a very, very important step that we are working on.

Q&A

Q. High Representative, what do you make of the uncovering of Ireland providing such huge amounts of alumina to Russia? I mean, it is not under sanctions, but do you think this is something you should talk about with Member States? It is really been quite shocking.

Well, always when we have this information coming out that [in] one way or the other, what is helping Russia, then we should also be more creative in finding ways how we can actually stop this war. Because if there is a thought that some of us still benefit from trading with Russia at the same time, when it is actually making it easier for them to fund this war, then this war will never stop. That is why the focus of our sanctions has been to really get the funding of the war to other places, so that they cannot really continue with this. Because wars also end when aggressors run out of money.

Q. But does the Irish government have a moral responsibility to look at stopping the trade?

Well, it is not under sanctions, that is very true. I think it is more what we should look into. Maybe we should put also sanctions if it is helping Russia that much on funding this war.

Q. What is your take on yesterday's E3 meeting with Ukraine? Do you see negotiations anywhere near in the future, and what has Europe to do to support Ukraine?

We have to make everything so that Russia and Ukraine will talk to each other, because eventually they have to agree. At the same time, we have to keep our core European interests also in mind, because there are also some issues that are concerning us when it comes to sanctions relief, when it comes to unfreezing of the assets, and for that we also need to see some European core security interests respected, and in those five points that the E3 was also putting forward, the European core security interests are mentioned. I recall that last week we had the discussion with the Foreign Ministers, on what these core interests are, what our asks for Russia are. So, I hope that these are all taken into account.

Q. Do you see any willingness on the Russian side to go into negotiations?

Not directly, I mean we see the escalation of their attacks. They should first start with a ceasefire to sit down at the negotiation table. But at the same time we also see some movement inside Russia that they are not happy with this war continuing. That is why we need to put more pressure on them, and also increase our support for Ukraine.

Q. Should not the European Union be more involved in these negotiations for potential peace talks, because now more and more there is like the premeeting taking place as yesterday, but should not the EU and more Member States be more involved?

Well, as I said last week, we had a discussion with the 27 Member States, which was on the substance of preparing negotiations. What are our asks? Whoever talks to the Russians, I think this is more substantial. Whoever then goes to talk to them has to also put these concessions and asks on the table. I think this is important. At the same time, I also feel that, as the Russians are not really there yet, so that is why we also need to have more strategic patience that we are not the demandeurs, but actually Russia needs to talk to us, because they also want to end this war. And let us start with a ceasefire.

Q. How much progress are you making on the EU's anti-drone capabilities, we have seen the drone explode in the port [inaudible]?

We are working on this, and of course also hand in hand with NATO to increase these capabilities. And actually today the discussions will also be about the Ukrainian defence industry cooperating with European industry, because they have the knowledge when it comes to the drones, and we should not [re]invent the bicycle. So, we are really trying to push this forward to also use the funding that we have currently on the table.

Q. One more question on the Middle East. After yesterday night a ceasefire seems even more unlikely, at least for the moment. Is the European Union now just like doomed to wait for ceasefire, or are you considering to bring something more in, in terms of support?

The issue is, of course, that eventually when it comes to the Strait of Hormuz, for example, then Iran and United States need to agree. So, of course, we are saying that there has to be a diplomatic solution, and they have to sit around the table. Because eventually they have to agree on this. Of course, we can help after the ceasefire, also the escorting of the shifts, and we will discuss this today. But the first point is really the ceasefire. Of course, we are in touch with both parties to really give them this message that ceasefire is very much weighted. I mean, stopping this war right now, opening the Strait of Hormuz, and then using the time for longer discussions when it comes to the more difficult topics like nuclear, but other critical issues that are there. But there is only so much we can do, so we are trying to put these messages forward.

Q. [inaudibile]

Well, it is a compromise proposal to have both sides covered, not that everybody gets 100% but it is also for the future that Ukraine still gets aid. But to keep also in mind that the actual idea of the EPF was the burden sharing for those countries who are contributing more. So we have been doing the confessionals with the Member States, and we have tabled a proposal that takes into account both sides. So, I hope that we can move with this.

Q. [inaudible]

Well, that is a difficult question. I mean, what we know right now is on the €90 billion loan that they will see and can use this money already in June. On the €6.6 billion, we still have the discussions, because it is very fresh. We have tabled this proposal, Member States need to agree, and then we can move on from there, so I cannot really predict the timeline.

Q. And where do you stand on Ukraine having complete control over how they use that money, or whether there should be restrictions?

Well, this is, of course the question that has been also on the table for quite some time. There are people who say that we should have clear conditions, and we have clear conditions when it comes to purchasing of the capabilities. We also have clear conditions when it comes to the reforms that they have to make. But at the same time, what we are stressing all the time is that the urgent needs of Ukraine need to be the utmost priority, because they need to defend themselves and their air defence system most importantly. Thank you very much.

Links to video:

https://audiovisual.ec.europa.eu/en/media/video/I-290725

https://audiovisual.ec.europa.eu/en/media/video/I-290730