Ukrainian security services obtained emails revealing secret plans by Russian and Chinese corporations to build a tunnel, which would connect occupied Crimea with Russia and be protected from attacks by Ukraine.
Meanwhile, an election in the Netherlands was won by a man who opposes providing aid to Ukraine, the EU leadership is planning measures to boost the Ukrainian defense industry, and the American rich are rallying around Nikki Haley, seeing her as a promising competitor of Donald Trump.
offers a digest of Western mass media at the end of the October 20–24, 2023, business week.
Moscow and Beijing plan to build a tunnel under the Kerch Strait
The Kerch Bridge is 18 km long. In the photo, the Kerch Strait is shown together with the bridge. Map: Radio Free Europe/Radio Liberty
According to communications intercepted by Ukraine’s security services, which were seen by The Washington Post, in late October, Russian and Chinese business executives with government ties have held secret discussions on plans to build an underwater tunnel connecting Russia to Crimea in hopes of establishing a transportation route that would be protected from attacks by Ukraine.
Constructing a tunnel near the existing bridge would face enormous obstacles, according to U.S. officials and engineering experts who said work of such magnitude, probably costing billions of dollars and taking years to complete, has never been attempted in a war zone.
The project would also pose political and financial risks for China, which has never officially recognized Russia’s annexation of Crimea, and whose companies could become ensnared in economic sanctions that the United States and the European Union have imposed on Moscow.
A Chinese company is willing to build a tunnel under the Kerch Strait
Nevertheless, intercepted emails shown to The Washington Post by Ukrainian officials indicate that one of China’s largest construction companies has signaled its willingness to participate.
The Post also obtained corporate registration files showing that a Russian-Chinese consortium involving individuals named in the emails had recently been formed in Crimea.
Thus, the Chinese Railway Construction Corporation, CRCC, declared its readiness "to ensure the construction of railway and road construction projects of any complexity in the Crimean region." The company has established substantial ties to Russia in recent years through projects including an extension of the Moscow subway system. Russian and Chinese businessmen refused to comment on the emails that mentioned them.
Tanks with fuel on the railway bridge and two destroyed sections of the road bridge. October 8, 2022
One email emphasizes that CRCC will participate only under a "strict provision of complete confidentiality" and that the company’s name will be replaced by "another, unaffiliated legal entity" on any contracts. Another email mentions a Chinese bank willing to "convert its dollar funds into rubles for their transfer to Crimea to fund [consortium] projects."
The Washington Post’s experts say that it is unlikely that a Kerch tunnel could be completed in time to aid Russia in its war effort, but that Moscow may see it as a longer-term investment.
For its part, China would probably insist on at least partial ownership of the tunnel. China could also finance the project and extract payment either in tolls or from Russian oil and gas exports.
Geert Wilders' victory: what is known about the new favorite of the Dutch
Geert Wilders, the leader of the Party for Freedom, once said that "he would have expelled the Prophet Muhammad from the country if he lived in our time."
The unexpectedly meaty win for controversial, hard-right politician Geert Wilders in Wednesday's general election in the Netherlands set international headlines on fire, BBC reports.
Geert Wilders links Muslim immigration with terrorism and calls for a ban on mosques and the Quran, which is why he has been under tight police protection since 2004. Wilders was convicted of inciting discrimination, although later acquitted, and he was refused entry to the UK back in 2009.
Wilders attracted Dutch voters by focusing on:
- restricting immigration;
- battling the Dutch housing crisis and improving health services;
- anti-Muslim rhetoric.
The new Dutch favorite is against supporting Ukraine
Meanwhile, Geert Wilders does not have nearly enough seats to form a government alone. Weeks of political horse-trading lie ahead, and at this moment in time, it is not certain that Geert Wilders will be his country's next prime minister.
Should he assume this position, tensions in the EU would rise as he campaigns for taking the Netherlands out of the bloc and sending more military aid to Kyiv. The politician says he wants to put the Netherlands first; to "give the Netherlands back to the Dutch".
Anti-immigration rhetoric brings political points to the far right in other EU countries as well:
- In France, Marine Le Pen's National Rally party performed powerfully in parliamentary elections.
- Germany's far-right AfD is consistently in second and sometimes in first place in opinion polls.
- Austria's Freedom Party is buoyant once more too.
Borrell is preparing a plan to boost Ukraine’s defense capability
The European Union wants to help Ukraine expand its arms production capacity, continue to train its soldiers and set up a "predictable" long-term system to fund Kyiv's military needs, according to a draft proposal seen by POLITICO.
The bloc's top diplomat, Josep Borrell, was asked by capitals to draft a plan of the various security commitments the bloc could make to Ukraine.
Hungary strongly opposes financial aid to Ukraine and consistently vetoes such initiatives, so the EU is developing options for bilateral commitments between EU members and Ukraine
"The EU will ensure a predictable, efficient, sustainable and long-term mechanism for the provision of military equipment to Ukraine," the draft paper reads.
While the EU has been clear it backs Kyiv, member countries have yet to agree on future funding through the off-budget European Peace Facility (EPF) — with a €20 billion four-year plan likely to be reconfigured into an annual €5 billion commitment instead of a lump sum. Meanwhile, Hungary is continuing to hold up the disbursal of €500 million in funds for Ukraine from the EPF.
With Kyiv pressing Western companies to invest in local arms factories, the EU will push to "foster greater cooperation with the Ukrainian defense industry to boost its capacity."
The paper makes no reference to the EU's target to send a million rounds of ammunition to Kyiv by March — a goal the bloc is unlikely to hit — but it does talk about collaboration on demining, intelligence and satellite imagery sharing and countering cyber threats.
Borrell is due to present the plan to leaders at their next summit on December 14 and 15.
Daring to trump Trump: financiers place their bet on Nikki Haley
In recent weeks, according to The New York Times, a number of chief executives, hedge fund investors, and corporate dealmakers from both parties have begun gravitating toward supporting Nikki Haley, the former U.S. ambassador to the United Nations, in the presidential race.
Her ascent in the polls and strong debate performances have raised hopes among Republicans hungering to end the dominance of former President Donald J. Trump.
Nikki Haley debating with two other Republican presidential candidates, Ron DeSantis and Vivek Ramaswamy, on November 17. Unlike her, they both don’t support giving aid to Ukraine. Photo: Getty Images
Leaders of large businesses appreciate her focus on cutting taxes and government spending, as well as her competence in foreign policy. Most say they see her as a welcome alternative to Trump, whom they blame for inciting the violence of January 6, 2021, and for costing Republicans a Senate majority in last year’s midterm elections. They also prefer her to President Joe Biden, whose economic policies and age many cited as a concern.
But even with Haley’s momentum, halting Trump’s seemingly inexorable march to the Republican nomination promises to be a slog. Legions of supporters are prepared to vote solely for him.
Some top-dollar donors have yielded to the likelihood that Trump will probably be the nominee, but others believe that with enough financial resources and a savvy field operation, Haley could unseat him.
In the first 24 hours after the last debate on November 9, where haley distinguished herself for her hawkish positions on Ukraine and Gaza and for her scathing dismissal of Vivek Ramaswamy, a candidate known for his anti-Ukrainian rhetoric, the ex-ambassador received $1 billion from donors.
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