US and Russia Talk Arctic Energy Deals While US Cuts Ukraine Intelligence Support

The United States has halted intelligence sharing with Ukraine while simultaneously opening diesel supply talks and Arctic energy discussions with Russia, a pair of moves that has alarmed European allies and left Kyiv feeling betrayed.

Russia is holding talks with the United States on diesel supply contracts, a deputy prime minister said, according to a news report. The official gave no details on the volume or timing of any potential deliveries [3]. Washington has also begun diesel exports to Moscow [1]. The developments signal possible energy trade between the two countries despite wider tensions [3].

At the same time, the two countries are discussing joint projects in the Arctic covering energy resources, liquefied natural gas (LNG), and nuclear-powered data centers [1]. The European Council on Foreign Relations (ECFR) is watching closely, saying the two countries may be moving toward an Arctic arrangement that leaves out Europe and Canada [1].

The US decision to stop sharing intelligence with Ukraine has drawn sharp reactions. Ukrainian President Volodymyr Zelenskyy said he feels betrayed by US President Donald Trump, following Trump's deal with Russia on diesel fuel exports [8]. Zelenskyy announced that Ukraine is restarting its bombings of Russian oil refineries [10]. According to Elon Musk, the US government — and ultimately Trump himself — decided to reduce Ukraine's Starlink connection, making it harder for Ukraine to respond to Russian attacks [10].

In Brussels, a new US agreement to buy Russian diesel angered European Union leaders, who say it undermines sanctions against Moscow. "This is incredibly concerning, and we deeply regret it," said Swedish Prime Minister Ulf Kristersson as he arrived at an EU meeting [4]. The deal shifts the playing field, according to EU officials, even as several EU countries continue to import Russian oil and gas [4].

The diesel agreement and the suspension of intelligence sharing have revived a major debate in Europe over what should be done with €210 billion in Russian Central Bank assets frozen in Europe. Brussels could redirect these funds to help finance Ukraine's resistance [2]. European officials also rejected a proposal by Donald Trump's negotiators to unfreeze some Russian assets in an effort to restart peace talks on Ukraine; the proposal was made during a meeting in Miami, and European officials pushed back, according to people familiar with the discussion [7].

Trump has paused a major new sanctions package targeting the Russian economy, telling Congress the decision was in the national interest. In an executive order on Friday, the president waived many sanctions, restrictions and duties on Russia — legislation that had been passed by both chambers of Congress [9]. The move comes as Trump has publicly criticized Zelenskyy and suggested that Ukraine needs a new leader [9].

Meanwhile, Germany and Ukraine have agreed to hold a meeting of national security advisers in the E3 format — bringing together France, Germany, and the United Kingdom — as Russia continues strikes on Ukraine's energy sector. The meeting is part of Germany's effort to organize a "Coalition of the Willing," a group of nations ready to provide direct support to Ukraine. No date or location for the talks has been announced [6].

In Germany, two political parties are working together to demand talks with Moscow. In the state of Saxony-Anhalt, the far-right AfD and the left-wing BSW have formed an alliance with the shared goal of pushing for negotiations with Russia. Both parties want Germany to seek direct talks with Moscow, showing how Russia policy is reshaping German politics [5].

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