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EU explores new measures against Russia as sanctions impact tightens on the Kremlin

Russian Economy Faces Increasing Strain Amid Sanctions Pressure

The Russian economy shows signs of significant strain under Western sanctions, with experts noting its superficial resilience, reports 24brussels. Maria Shagina, a sanctions expert at the International Institute for Strategic Studies, warns that the economic foundations are crumbling due to various factors such as declining oil prices, stagnation in the military-industrial sector, and escalating military expenditures.

Shagina highlights that the looming banking crisis and military expenses put Russia on a path toward recession. “Lower oil prices, the stagnation in the military-industrial sector, looming banking crisis and ever-growing military expenses put the Russian economy on the course of recession,” she stated. She noted that sanctions targeting Russia’s shadow fleet are just one of many concerns affecting its economic stability.

Furthermore, the potential for secondary sanctions from the U.S. aimed at companies engaging with Russian firms could further compound these economic challenges. These sanctions could severely aggravate the already existing problems plaguing the Russian economy. However, Shagina pointed out that the Kremlin remains skeptical of the Trump administration’s threats, believing it can withstand the pressure for now.

Calls for Stricter Diplomatic Controls on Russia

In addition to economic measures, discussions are ongoing regarding restricting the movement of Russian diplomats across the Schengen area. Proponents argue that unrestricted travel complicates intelligence tracking and could allow operatives planning hostile actions to operate freely. Czech Foreign Minister Jan Lipavský emphasized the need for such restrictions, declaring, “Just like Cato the Elder kept repeating that Carthage must be destroyed, I will keep proposing to end the free movement of Russian diplomats in Schengen. It is an unnecessary advantage we give to the Russian regime, and it is being abused to facilitate sabotage operations.”

This week, foreign ministers from the European Union will convene at an informal summit to discuss enhancing economic sanctions against Russia. Among the key topics will be a dialogue with the EU’s top diplomat, Kaja Kallas, aimed at refining the bloc’s strategic approach to increasingly stringent measures against Russia.

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Korean Air is giving Boeing a $36 billion boost

FILE PHOTO - The logo of Korean Air Lines is seen on a plane at its aviation shed in Incheon, South Korea, February 27, 2017.  REUTERS/Kim Hong-Ji/File Picture
Korean Air is buying 103 Boeing aircraft for $36 billion.

  • Korean Air just ordered $36.2 billion worth of aircraft from Boeing.
  • The airline purchased 103 planes from Boeing, which are set to be delivered by the end of 2030.
  • Boeing said the order would support about 135,000 jobs in the US.

Korean Air is betting big on Boeing with a $36 billion purchase order.

On Tuesday, the South Korean flag carrier announced that it would purchase 103 Boeing aircraft, which will be delivered by the end of 2030.

The order includes 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s, and eight Boeing 777-8F freighters, per Korean Air’s press release. The order was made official in a signing ceremony on Monday in Washington, D.C.

The purchase is valued at $36.2 billion, or about 70 trillion South Korean won.

“Korean Air’s commitment will be the airline’s largest-ever order and Boeing’s largest widebody order from an Asian carrier,” Boeing’s press release on Monday said. It added that the order would support an estimated 135,000 jobs across the US.

Korean Air CEO Walter Cho and Boeing Commercial Airplanes CEO Stephanie Pope attended the signing ceremony in Washington, D.C. Other notable guests included the US Commerce Secretary, Howard Lutnick.

Cho, who is also the CEO of Korean Air’s parent company, Hanjin Group, told Reuters on Monday that the massive order would help Korean Air expand to more destinations in the US, Latin America, and South America.

Besides the $36.2 billion deal with Boeing, Korean Air signed a $690 million deal with engine manufacturers GE Aerospace and CFM International, for 19 spare engines. It also bought a $13 billion, 20-year-long engine maintenance service contract from GE Aerospace.

The order comes as Boeing ramps up its efforts to turn the business around after several quarters of weak performance. In July, it reported sales of $22.7 billion in the second quarter of 2025, a 35% increase from the same period in 2024.

The massive purchase also comes after Korean Air acquired Asiana Airlines, its South Korean competitor, last year.

“This investment is also a critical enabler for our future as a merged airline with Asiana, to ensure that our combined carrier is one of the most competitive airlines in the industry,” Cho said in Boeing’s press release.

Read the original article on Business Insider
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