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Putin Believes Russia Holds the Advantage Over Ukraine

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Vladimir V. Putin exuded confidence. Sitting back, surrounded by foreign dignitaries, the Russian president explained the futility of Ukrainian resistance. Russia had the advantage on the battlefield, as he saw it, and by rejecting his demands, Ukraine risked even more for peace.

“Keep at it, then, keep at it. It will only get worse,” Mr. Putin said at an economic forum in June, as he taunted the Ukrainian government. “Wherever a Russian soldier sets his foot, it’s ours,” he added, a smirk animating his face.

His self-assurance is born out of the Russian military’s resurgence.

In the depths of 2022, his underequipped forces were disoriented, decimated and struggling to counter Ukraine’s hit-and-run tactics and precision-guided weapons. Instead of abandoning the invasion, Mr. Putin threw the full strength of the Russian state behind the war, re-engineering the military and the economy with a singular goal of crushing Ukraine. In his push, the country revamped recruitment, weapons production and frontline tactics.

This is now a war of attrition favoring Russia, which has mobilized more men and arms than Ukraine and its Western backers. While their casualties are mounting, Russian forces are edging forward across most of the 750-mile front, strengthening Mr. Putin’s resolve to keep fighting until he gets the peace deal he wants.

Source: Institute for the Study of War with American Enterprise Institute’s Critical Threats Project (extent of Russia-controlled areas as of Aug. 13)

Ukraine and its allies hope to hold out long enough to exhaust Mr. Putin’s forces. In World War I, the German Army had made it within about 40 miles of Paris before it collapsed. The German Empire capitulated and disintegrated months later.

There are warning signs for Russia. Its elite infantry units have been wiped out. Its military plants depend on foreign components and dwindling Soviet-era stocks. Its economy shows cracks.

Mr. Putin figures that he can manage the wartime pressures longer than Ukraine and can secure a peace deal that would ensure his legacy. He has repeatedly demanded four regions that Moscow has claimed to have annexed and sought a deal that blocks Ukraine from joining NATO and limits the size of its military.

If talks with President Trump in Alaska this week don’t lead to such a deal, Mr. Putin has signaled that he is willing to fight on, using force to achieve what diplomacy cannot.

“I have stated Russia’s goals,” Mr. Putin told reporters this month when asked if Russia was willing to compromise. “These conditions undoubtedly remain the same.”

Recruitment

Speaking by phone from a hospital, a Russian sergeant named Vladislav rattled off the money he was waiting to receive after he lost his foot storming Ukrainian trenches in January.

The equivalent of $6,400 from the local governor; $28,300 from the state insurance company; $47,000 from the defense ministry.

Then there’s the veteran’s monthly pension of $1,100, enough for him to retire in his hometown in western Russia at age 33. “You don’t even need to work there with this money,” said Vladislav, who like other Russian soldiers interviewed, asked to publish only his first name for security reasons.

Vladislav said his monthly frontline salary had already allowed him to improve his family’s living standards in ways he said would have been impossible in his previous job, at a sunflower oil plant where he earned $300 a month.

He is building a house for his parents and upgrading his and his girlfriend’s cars. He is focused on providing a future for his children. “Whatever they needed, I bought it for them,” Vladislav said in July. “Whatever they required, I gave it to them.”

Hundreds of thousands of well-paid volunteers like Vladislav have transformed the Russian Army.

A recruitment billboard in St. Petersburg.

Photo by Anatoly Maltsev/EPA, via Shutterstock

Russia’s early military disasters in 2022 decimated the ranks of career servicemen at the core of the invasion, and the Ukrainians exploited the weakness. A September counteroffensive of that year broke through Russian lines, nearly thwarting the invasion.

Mr. Putin took drastic steps to avoid defeat. He announced Russia’s first mobilization since World War II, officially drafting 300,000 men. He ramped up presidential pardons and payments to enlisted convicts, bringing an estimated 100,000 men from Russian jails to the front.

These measures stabilized the battlefield but at a political cost. The draft caused the biggest spike of social discontent in Russia in years. Hundreds of thousands of men fled the country.

But the success of the prison campaign gave the Kremlin a blueprint for a less coercive recruitment strategy, one based on money and appeals to manhood.

The government significantly raised soldiers’ salaries, introduced lucrative sign-up bonuses, and rolled out myriad other financial benefits. Kremlin propaganda presented military service as a unique chance for men at the margins of Russian society to show their worth by becoming breadwinners.

Today, Russia recruits about 1,000 soldiers a day. The figure has stayed broadly stable since 2023, and it is about twice as high as Ukraine’s.

Russia has consistently recruited about 1,000 soldiers per day

Source: Analysis of Russian Finance Ministry data by Janis Kluge

Russia’s recruitment strategy has depended on the country’s economic resilience. Even under the most comprehensive sanctions in modern history, Russia continues replenishing its war chest from exports of oil, natural gas, coal and gold.

The reliance on volunteers has benefited Mr. Putin politically. Middle-class Russians have largely tuned out the war as fears of a general draft have receded, removing the biggest threat of protests.

“The larger the payout, the less sympathy fallen or injured soldiers receive from society, and the less likely are the protests against the war,” said Janis Kluge, a Russia expert at the German Institute for International and Security Affairs.

Russia’s ministry of defense did not respond to a request for comment.

The military’s strong recruitment masks underlying problems.

Many of Russia’s best soldiers were killed early in the war. About 230,000 Russian soldiers have died since the invasion, according to estimates based on obituaries collected by the independent Russian news outlet Mediazona and BBC News Russian.

Their replacements are older, with less military experience. The median age of a Russian soldier killed in Ukraine in the first months of the war was about 28. It rose to 38 by August of this year, according to Mediazona.

“It was riffraff: the homeless from train stations, alcoholics, men running from the law,” said another Russian soldier, Vladimir, describing his enlistment at a large Moscow recruitment center in 2024. “The health check was fictional.”

The shrinking recruitment pool means that regional officials have to keep increasing payments to meet enlistment quotas, straining local budgets and destabilizing the broader economy.

The northern region of Mari El has spent more paying bonuses to new recruits this year than it has on health care, according to an analysis of Russian budget data by Mr. Kluge, the Berlin-based analyst.

Production

Far from the battlefield, Russia has been racing to produce more weapons, ammunition and vehicles than Ukraine and its Western allies.

The goal is to outlast the enemy through superior industrial might — and Russia has gone full throttle.

Mr. Putin has drawn on foreign partners, including Iran, North Korea and China, as well as a vast Soviet-era network of arms factories, to turbocharge the supply of everything from drones to missiles to tanks. He has sharply raised military spending, despite economic risks, to more than a third of the federal budget.

Ukraine has received about $70 billion-worth of military equipment from its own allies in Europe and the United States, but the West hasn’t mobilized its industrial base in the same way as Russia. Kyiv has also significantly increased domestic production, just not at the same scale; Russia’s defense budget this year is about $170 billion, more than three times Ukraine’s.

To bolster production, Mr. Putin has showered military factories with subsidized loans. He has changed labor laws to usher in night, weekend and holiday shifts. He has tapped vocational schools, foreign countries and even prisons as sources of labor. And he has moved swiftly, with top-down control, thanks to Russia’s autocratic system and a defense sector still largely owned by the state.

Perhaps no effort has drawn more attention than the drone plant in Yelabuga, a city 620 miles east of Moscow in Tatarstan. There, a regional lawmaker has repurposed an idling “special economic zone” created for Western investors in 2005 to manufacture a Russian version of Iran’s Shahed attack drone, initially with Tehran’s help.

Production of the Geran-2 drones at the Yelabuga plant.

Stills from documentary on state-owned Russian television

Its founder, the lawmaker Timur Shagivaleev, claims that Yelabuga is now the largest military drone production facility in the world. “We’re witnessing a technological revolution,” Mr. Shagivaleev told Russian state television in July. “Warfare is becoming unmanned.”

The plant did not respond to requests for comment.

In the state television program, Mr. Shagivaleev wore a jumpsuit with an arm patch of a Soviet flag as he walked through rows of black drones standing upright along white walls. The scene matched the aesthetics of the early Star Wars films, albeit with reproductions of Stalinist propaganda on display.

One of the posters read: “Kurchatov, Korolev and Stalin are in your DNA,” a reference to the Soviet scientists credited with Moscow’s atomic bomb and rocket programs, and the dictator who raised industrial production through mass terror.

A poster inside the Yelabuga drone production plant.

Still from documentary on state-owned Russian television

To fill its shifts, Yelabuga has looked for workers in local schools and abroad. When Ukraine attacked the plant with its own drones in April 2024, Russian state news reported that citizens of Russia, Kyrgyzstan, Sri Lanka, Zimbabwe, Rwanda, Congo, Kenya, Nigeria and South Sudan were among the injured.

A technical college associated with the facility trains teenagers in specialist tasks. “The pupils are called in after the ninth grade, and after college, they are invited to stay,” said the presenter of the state television documentary.

Yelabuga’s scientists have reengineered the Iranian models to improve them. The Russian version, the Geran-2, flies higher and carries more explosives. It is now Russia’s main weapon in its bombing campaign against Ukrainian cities.

Russia has tripled production of the Geran-2 since 2023 and makes about 80 a day, according to The Royal United Services Institute, a London-based research organization with ties to the British defense ministry, known as RUSI.

Russia has used its increased supply of drones to drastically escalate its bombing campaign, launching an average of 200 drones every night in July and once topping more than 700. Early in the war, Russia’s biggest attacks included 40 drones, according to RUSI.

Russian strike drones fired at Ukraine per week

Source: New York Times analysis of Ukrainian Air Force statements

Data compiled by Kim Barker and Saurabh Datar

Russia has also breathed new life into underused Soviet defense factories to bolster conventional weapon production and modify Communist-era equipment.

Last year, Russian industry produced more than 1.3 million standard artillery rounds, up from 250,000 in 2022, according to RUSI. Production of Iskander short-range ballistic missiles, one of Russia’s main precision bombing weapons, nearly tripled last year from 2023 to reach 700, the group estimates.

Russia has also found a way to upgrade its Soviet-era “dumb bombs” into guided munitions. Production of upgrade kits has grown from a few thousand units in 2023 to a projected 70,000 this year, said the group, which bases its estimates on publicly available data and information obtained from Western and Ukrainian intelligence sources.

Russia still needs imported components for its latest weapons, leaving it vulnerable to sanctions and shifting geopolitical alliances. Satellite imagery also indicates that Russian stocks of Soviet military equipment are running out, forcing the country to rely on the slower and more expensive process of building new tanks and armored vehicles.

“They are triaging just the same way the Ukrainians are,” said Max Bergmann, an analyst at the Center for Strategic and International Studies in Washington. “It’s just that at Russia’s scale, they are much bigger.”

Tactics

By late 2023, the Russian Army had regained its footing but continued to underperform. Endemic corruption and irregular supplies hobbled offensives and bred discontent.

“The supply situation was disgusting — practically nothing was given out,” said Anton, a Russian soldier, describing early fighting. “We had to buy everything.”

In May 2024, Mr. Putin decided to act. He fired the old friend who was his longest-serving minister, Sergei K. Shoigu, from his post atop the defense ministry. Russian prosecutors began jailing Mr. Shoigu’s associates on corruption charges.

Mr. Putin chose an unusual replacement: a stonefaced economist without military expertise named Andrei Belousov.

The new defense chief traded the medal-studded parade uniforms of his predecessor for an austere business suit. He set out his technocratic goals in monotonous readouts. Improve supply chains, introduce new technology, and deepen the army’s ties with businessmen and scientists — all with the aim of giving Russia a decisive advantage.

Russian soldiers said in interviews that they saw a significant improvement in the supply of first-person view drones and other advanced weapons after Mr. Belousov’s appointment, allowing them to experiment with new tactics.

A drone filmed by a Ukrainian soldier.

Obtained by The New York Times

In one of his first public initiatives, in August of last year, Mr. Belousov created Russia’s first specialized drone unit, Rubicon. He lavished the project with money, staffed it with the army’s best drone operators, and connected it with drone inventors and manufacturers.

Armed with more powerful drones in larger numbers, Russian forces began systematically targeting Ukrainian supply lines, making it harder for Ukrainian forces on the front to replenish ammunition, receive reinforcements and evacuate their wounded.

Under Mr. Belousov, the military changed other tactics. It improved communication between units and it tested, with varying success, the use of motorcycles, all-terrain vehicles and electric scooters.

In this summer’s offensive, Russia is experimenting with sending small groups of camouflaged soldiers deep inside enemy lines, where they hide in abandoned buildings or ravines, before mounting coordinated attacks. This played out recently in the battle for the eastern Ukrainian city of Pokrovsk. The head of the Ukrainian Army, Gen. Oleksandr Syrskiy, referred to the tactic this month as “total infiltration.”

Russia’s new approaches proved effective in Vuhledar, a major Ukrainian stronghold in the eastern Donetsk region.

Early in the war, Russia had sent armored columns to the town, with disastrous results, as videos show. Late last year, its forces changed tack, gradually occupying the fields on Vuhledar’s flanks over several months.

The move allowed Russian drone operators to get around the town and target Ukrainian supplies. When Russia then launched a general assault, Vuhledar fell in about a day. The defenders withdrew to avoid being trapped.

Sources: Institute for the Study of War with American Enterprise Institute’s Critical Threats Project (extent of Russia-controlled areas), satellite imagery from Planet Labs

Russia is racing to erase Ukraine’s early advantage in drones, which are now accounting for the majority of deaths in the war.

In February 2025, Rubicon, the elite drone unit, was dispatched to Russia’s Kursk region, where Russian forces and their North Korean allies were struggling to push back a Ukrainian incursion.

The unit introduced a new generation of Russian drones guided by a thin optical cable, which makes them immune to signal jamming and invisible to drone detection systems. Rubicon’s drones would lie on roadsides behind the enemy lines undetected for hours, before ambushing anything that moved.

“They destroyed all the logistics,” recounted a Ukrainian special forces soldier who, like others, for security reasons identified himself by his call-sign, Cap.

When the Russians attacked the Ukrainian positions in Kursk from all sides in early March, the defenses buckled.

“In some sections, I can say that the front had collapsed,” said a commander of a Ukrainian paratrooper platoon with the call sign Beard.

Mr. Belousov is expanding Rubicon, pledging to build an entire new branch of the Russian military, the Drone Forces, by October. After helping reclaim Kursk, Rubicon has been dispatched to Donetsk, the focus of Russia’s current offensive.

“The game changed when they came here,” Rebekah Maciorowski, an American military medic fighting for Ukraine in Donetsk, said in an interview in June, describing the pressure the Ukrainian military faces in the area. “The game changed drastically.”

Methodology

Videos at the beginning of the article were compiled from Telegram channels that regularly post drone footage of frontline combat, often from either Ukrainian or Russian military units, including @strikedronescompany, @combat_ftg, @nm_dnr, @icpbtrubicon, @supernova_plus, @voin_dv and @ratnik2nd. While these videos are often shared for propaganda purposes, they also help illustrate shifting tactics and how new battlefield technologies are reshaping the war. Videos are from 2023 onward, after first-person view drones, which were used to capture most of the footage, became widely used on the battlefield.

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Former world snooker champion Dott to stand trial for sex abuse charges

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Former world snooker champion Graeme Dott faces two charges of sexual abuse against a boy and a girl.

Former world snooker champion Graeme Dott will go on trial next year over allegations that he sexually abused children.

The 48-year-old Dott is facing two charges of sex abuse against a boy and a girl. According to court papers seen by The Associated Press, the alleged abuse took place from 1993-96 and from 2006-10.

A virtual hearing took place on Thursday at the High Court in Glasgow where Dott, who was not present, denied the charges, Britain’s Press Association reported.

“The position of the accused is that the allegations are fabricated and there is no truth in any of them,” said Euan Dow, who is defending Dott.

A trial date was set for August 17 next year at the same court and bail was continued, PA reported.

Dott was suspended by snooker’s governing body in April after being charged.

Dott won the World Snooker Championship in 2006 after beating Peter Ebdon in the final at the Crucible Theatre in Sheffield. The Scottish player also reached the final on two other occasions, losing to Ronnie O’Sullivan in 2004 and Neil Robertson in 2010.

Jamie Jack prepares for 50 Free event in Irvine with training from Cam McEvoy and Tim Lane

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By Coleman Hodges on SwimSwam

Aussie sprinter Jamie Jack made noise at the 2025 US Summer Championships in Irvine last week. On day 1, he took victory in the 50 free over US Olympians Hunter Armstrong, Caeleb Dressel, and Brooks Curry, posting matching 21.63s in prelims and the final. But Jack still thought there was more in the tank.

Taking a day of rest on Day 2, he time trialed the 50 free on Day 3, swimming a 21.43 to make him the 5th fastest Australian man in history and tie for 4th in the world this season.

After returning home, Jack sat down with SwimSwam to discuss his season between Australian Trials, where he was 21.8, and US Champs. The SPW product said he discussed a plan with coach Dean Boxall that focused just on the 50 free (only for the rest of the season). That also included training with Cam McEvoy and his coach, Tim Lane, in the lead-up to Irvine.

In the SwimSwam Podcast dive deeper into the sport you love with insider conversations about swimming. Hosted by Coleman Hodges and Gold Medal Mel Stewart, SwimSwam welcomes both the biggest names in swimming that you already know, and rising stars that you need to get to know, as we break down the past, present, and future of aquatic sports.

Music: Otis McDonald
www.otismacmusic.com

Opinions, beliefs and viewpoints of the interviewed guests do not necessarily reflect the opinions, beliefs, and viewpoints of the hosts, SwimSwam Partners, LLC and/or SwimSwam advertising partners.

Read the full story on SwimSwam: Jamie Jack Trained with Cam McEvoy, Tim Lane in Lead-up to 21.4 50 Free in Irvine

New Metamaterials: Touch-Sensitive Concrete That Produces Energy

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One of the oldest building materials in the world – it was already in use in Roman times – is, at the same time, the subject of countless research projects today. After all, concrete is still the basic element in construction. However, technical advances are driving the development of more sustainable concrete, self-repairing, or capable of sequestering carbon dioxide.

Typically, these qualities are achieved through new ingredients, ranging from adding organic waste, such as beets, to using calcite-generating bacteria. At the University of Pittsburgh in the USA, they have turned to another approach – metamaterials – to develop a touch-sensitive concrete that can store energy.  

What is a metamaterial?

First of all, it is essential to clarify what a metamaterial is. Basically, it is an artificial material endowed with electromagnetic qualities not found in nature, thanks to the creation of nanostructures with a specific geometry.  

The theoretical development of metamaterials dates back to the 1970s, when the Soviet physicist V. G. Veselago published a paper describing their potential properties. In fact, it is such a novel field that the term “metamaterial” itself was not coined until 1999. Metasurfaces apply the principles of metamaterials but in two dimensions, which mean a thickness of a few nanometers.

The most common example is a material with a negative refractive index, i.e., capable of deflecting light in the opposite direction. In nature, all elements have a positive refractive index. For example, water has a refractive index of 1.33, while glass has a refractive index of 1.45. Technically, the ability to control the refraction of light could lead to the creation of so-called invisibility cloaks, i.e., a material worthy of science fiction that makes people and objects covered by them invisible. Or cameras the size of a grain of salt, as explained in this article.

A new metamaterial that works as a sensor and generates energy

The new type of concrete proposed by researchers at the University of Pittsburgh in a paper published in the scientific journal Advanced Materials can monitor variables such as pressure and, at the same time, store energy. These properties were studied in previous research on “self-aware” materials. That is, with structures that transmit information about the loads and stresses to which they are subjected, without the need for additional sensors.

As explained, the properties of a metamaterial can be modified by tuning the geometry of its nanostructures. In the case of concrete, minor adjustments can be made to its strength, durability, or flexibility. At the University of Pittsburgh, they have resorted to reinforced auxetic polymer lattices embedded in a conductive cement matrix with graphite powder.

The cement acts as an electrode and, when subjected to pressure, generates a small electrical charge. This electrical charge can be used to detect fractures in concrete in the event of earthquakes or impacts or to power LED lights or low-power devices.

In the experiments, in addition to these qualities, the scientists found that the material could be compressed by up to 15% without losing its structural integrity. This enables obtaining similar results to current concrete with a smaller amount of material, resulting in lower CO2 emissions in its production. Finally, the production of the new concrete is scalable and cost-competitive, paving the way for industrial-scale manufacturing.

Smart roads built with metamaterials

According to the researchers, these unusual properties could also be used to construct smart roads. The idea is that road managers can check the condition of the road surface in real-time and repair it quickly. On the other hand, while the amount of energy is quite small, it is sufficient to power signaling components such as integrated lights or chips that communicate with self-driving cars. In this way, even in situations of poor GPS signal, the road could signal vehicles to guide them.

The roads of the future will integrate multiple functionalities beyond accommodating road traffic. For example, solar roads, i.e., roads equipped with photovoltaic cells. Another area of research is the development of electrified roads that allow electric car batteries to be charged with inductive technologies. Moreover, roads may even become self-healing. And all this with greater sustainability since they will also integrate recycled materials such as tires.     

 

Source:

Lionheart Holdings Form 13G Filed on August 14th

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Form 13G Lionheart Holdings For: 14 August

Number 10 praises ‘strong feeling of togetherness’ following discussions with Zelensky

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Sir Keir Starmer and Volodymyr Zelensky agreed there was a “powerful sense of unity and a strong resolve” to secure peace in Ukraine, Downing Street said.

The PM held a breakfast meeting with the Ukrainian president ahead of a vital summit in Alaska between US President Donald Trump and Russian President Vladimir Putin on Friday to discuss ending the war in Ukraine.

There is a “viable chance” of a ceasefire between Russia and Ukraine, Sir Keir has said, and stressed Ukraine’s “territorial integrity” must be protected and international borders “must not be changed by force”.

Zelensky and other European leaders, who are not attending the meeting in Alaska, held a joint call with Trump on Wednesday to reiterate their position.

A red carpet was rolled out for Zelensky’s arrival at No 10, and he was pictured strolling through the Downing Street rose garden with the PM in a carefully co-ordinated show of support from the UK, scheduled just 24 hours before the summit in Alaska.

A Downing Street spokesperson said Sir Keir and Zelensky discussed this week’s talks over a private breakfast and “agreed there had been a powerful sense of unity and a strong resolve to achieve a just and lasting peace in Ukraine”.

“They then looked ahead to tomorrow’s talks between President Trump and President Putin in Alaska, which present a viable chance to make progress as long as Putin takes action to prove he is serious about peace,” they said.

Neither leader made any comment themselves to waiting reporters in Downing Street, maintaining a tactical diplomatic silence.

When leaders leave Number 10 they usually walk alone to their car, but today Starmer walked with Zelensky, giving him a hug and a handshake before his departure in an important show of unity.

The prime minister has not said that much to the media over the last few days, leaving commentary on meetings to official scripted handouts, partly in order to avoid saying anything that might appear to be a split with the US.

The main tactic within Downing Street in the past week or so has been to get Trump on board – to make sure the US president has the words of Europe and of Ukraine ringing in his ears when he sits down with Putin on Friday.

Following his departure, Zelensky posted on social media thanking Sir Keir for his support in a “good, productive meeting”.

“We also discussed in considerable detail the security guarantees that can make peace truly durable if the United States succeeds in pressing Russia to stop the killings and engage in genuine, substantive diplomacy,” he wrote.

Zelensky added the two discussed weapons partnerships, including investment in drone production, and the One Hundred Year Partnership Agreement with the UK, which he said is set to be ratified this month.

In Russia, Putin told officials he welcomes Donald Trump’s “energetic and sincere” efforts to end the Ukraine war.

He added that the US was seeking to “stop the crisis and reach agreements that are of interest to all the sides involved in the conflict to create long-term conditions for peace between our countries, in Europe and in the world in general, if we at the subsequent stages arrive at agreements in the area of strategic offensive arms control”.

The Kremlin has announced that Putin and Trump will hold a joint press conference after their meeting on Friday evening.

Last week Trump warned there could be “some swapping of territories, to the betterment of both”, leading to fears Ukraine might have to give up some areas in order to end the bloody conflict.

Moscow wants to maintain control of land it has seized, including Crimea, while Ukraine has insisted that ceding territory would be unacceptable.

Russia also wants assurances that Ukraine will not join the Nato military alliance and a limit on the size of its army.

Addressing a virtual meeting of the European leaders following the call with Trump, Sir Keir said a lasting ceasefire needed security guarantees, adding the coalition had “credible” military plans ready that could be used in the event of a ceasefire.

He said the leaders of the group were also ready to increase economic pressure on Russia if necessary, for example through increasing sanctions, and credited Trump’s efforts for progress on the issue.

Sir Alex Younger, the head of MI6 between 2014 and 2020, told BBC Radio 4’s Today programme: “It’s true that Donald Trump is the only one who can solve this,” but he warned “Putin is playing him”.

“They’re all talking about the wrong thing,” he said, adding that the US strategy of resetting bilateral relations with Russia was “a total fantasy” that failed to recognise Putin’s aim of the “total subjugation” of Ukraine.

Trump’s Nvidia-AMD Deal Redefines Washington’s Export Control Policy in U.S.-China Chip War

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Under both the first Trump and Biden administrations, Washington argued that it needed to limit China’s technological development by barring more and more sensitive products from being exported to its strategic rival. Now, Trump’s decision to allow Nvidia and AMD to sell their advanced AI chips to China in exchange for a 15% cut of their revenue turns the export control regime into something like a bargaining chip.

The Trump administration is already positioning the deal as a playbook for other products and industries. “Now that we have the model and the beta test, why not expand it?” U.S. Treasury Secretary Scott Bessent said on Bloomberg TV on Wednesday. 

Trump’s move reflects Washington’s uneasy position in its tech rivalry with Beijing. The lead the U.S. holds over China in AI and semiconductors is shrinking, with experts estimating a lead of just one to two years at most. Meanwhile, U.S. companies complain of being shut out of the world’s second-largest economy. And now China is adopting the U.S.’s tactic of export controls, using its wealth of rare earth metals—key materials used in an array of electronic goods—to put pressure on Washington and its allies.

Analysts that spoke to Fortune view Trump’s Nvidia deal as a one-off measure stemming from the president’s trade negotiations with China.

Ray Wang, a semiconductor researcher at the Futurum Group, points out that the Trump administration first signaled that it would issue export licenses for Nvidia’s H20 processor—an AI chip designed to comply with U.S. rules—in late July, as part of its trade war truce with Beijing. Wang suggests that the government’s 15% cut, agreed upon over the weekend, is an add-on, an “opportunity to raise government revenue,” in accordance with Trump’s broader goals.

But the damage to the export control regime may have already been done, says Jennifer Lind, an associate professor at Dartmouth University and international relations expert. “This deal suggests that under the Trump administration, what gets banned or permitted is not being driven by careful calculations about the effect on Chinese military power—but rather on political whim and personalist politics,” Lind explains. “This is ruinous for a functioning export control regime.”

How have export controls changed?

On Monday, Trump confirmed media reports that Nvidia and AMD had agreed to give 15% of their China sales to the U.S. government in exchange for export licenses. The chips in question are Nvidia’s H20 and AMD’s MI308, two AI processors designed for the Chinese market and tailored to comply with earlier U.S. export controls. 

In that same press conference, Trump suggested he might even let Nvidia sell a watered-down version of its leading Blackwell processor to China. 

Export controls have changed wildly in the past few months. In April, Nvidia revealed that the U.S. had blocked it from selling the H20 to China, and that it was taking a $5.5 billion charge on the unsold inventory. 

As Washington and Beijing escalated their trade war, the export controls ramped up. By late May, the U.S. had expanded controls to block the sale of chip design software and airplane parts, among other products and chemicals, to China. 

Then, almost as quickly as they were imposed, these export controls disappeared. As part of its trade negotiations with China, the U.S. agreed to scale back controls on chip design software and airplane parts. 

Officials argue that these agreements are needed to get China to loosen its own controls on rare earth magnets, which threaten several U.S. industries like automobiles and defense. 

Some lawmakers worried about the growing tech dominance of China fear that Trump’s deal sets a bad precedent. John Moolenar, a Republican who chairs the House Select Committee on China, argued that “we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities.” 

His Democratic counterpart, Raja Krishnamoorthi, suggested that “by putting a price on our security concerns, we signal to China and our allies that American national security principles are negotiable for the right fee.”

Backlash to the deal might prevent further erosion of the export regime, says Chris Miller, author of Chip War: The Fight for the World’s Most Critical Technology. “We’re going to see some pushback against the H20 decision in the U.S. from Congress, the media, and the bureaucracy, which will likely also discourage a further weakening of controls,” Miller says. 

Did the chip controls work?

The Biden administration framed export controls as a national security measure, designed to maintain and expand the U.S.’s technological edge versus China. 

The Trump administration has used similar reasoning in the past. But now he seems to be treating the chip controls as tools for economic dealmaking, raising questions as to what might come next. 

“There’s no real leadership on this issue with the White House now, as there was in the Biden era,” Paul Triolo, a partner at the DGA-Albright Stonebridge Group, said at the Fortune Brainstorm AI Singapore conference in mid-July, after the first announcement that Trump would allow the H20 to be sold in China again. “We’re in a little bit of a weird moment.”

It’s unclear, however, how effective the export controls have been at throttling tech development in China. The country’s tech sector, in spite of the export controls, seems to have developed satisfactory processors and powerful AI models. Huawei, the Chinese tech giant, is working with chipmaking giant SMIC to make its own AI processors. Huawei’s Ascend chips still lag Nvidia’s most advanced products, yet compare favorably to Nvidia’s chips sold in China. 

This momentum puts the U.S. in a difficult position. It could double down on controls in the hope of restraining Chinese innovation in the short-term—even if, in the long run, China’s domestic industry becomes self-sufficient. Or it can relax its curbs, retaining market access and hope that China never invests in domestic alternatives. 

U.S. officials, it seems, now believe it’s better for Nvidia to keep selling to China. “You want to sell the Chinese enough that their developers get addicted to the American technology stack,” U.S. Commerce Secretary Howard Lutnick said on CNBC in mid-July, soon after reports emerged that Nvidia would be allowed to sell the H20 in China again. (Lutnick also dismissed the H20 as Nvidia’s “fourth-best” chip.)

“What we don’t want is for Huawei to have a digital Belt and Road,” Bessent said Wednesday, referring to China’s strategy to build infrastructure in emerging markets around the world. “We do not want the standard to become Chinese.”

China pushes back

Chinese pressure likely played a role in getting Trump to let Nvidia and AMD chips back into China. 

While China had slowly started to limit exports of rare earths in recent years, Beijing stopped exports entirely as part of its retaliatory measures to Trump’s tariffs earlier this year. Officials demanded that Chinese exporters apply for licenses before they sell to any overseas clients. The suspension froze industries in both the U.S. and Europe.

China is the source of around 90% of the world’s rare earths, thanks to a years-long project to invest in domestic processing. Governments are starting to invest in non-Chinese sources, but it may take years for such projects to come to fruition.

After winning over Washington, Nvidia and CEO Jensen Huang may now need to win over Beijing. Chinese officials have warned companies working in government-related areas against using Nvidia’s chips, Bloomberg reported on Tuesday. 

Chinese state media have also gone after the H20. “When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” a CCTV-affiliated WeChat posted on Sunday.

And after Michael Kratsios, one of the U.S.’s leads on AI policy, suggested that Nvidia chips could contain “location-tracking” to combat chip smuggling, Chinese regulators summoned Nvidia executives to a meeting to explain whether H20 chips contained security risks. 

The furor was enough to push Nvidia to forcefully state that “Nvidia GPUs do not and should not have kill switches and backdoors.”

Wang, the researcher at the Futurum Group, points out that China’s private sector—big tech companies like Alibaba and Tencent and smaller startups like Moonshot—will consume the vast majority of Nvidia’s chips.

“They really need those chips to train and develop their AI,” Wang says. “I don’t believe the guidelines from the government will stop this behavior.”

Zelensky meets with Starmer ahead of U.S.-Russia meeting

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new video loaded: Zelensky Meets Starmer Before U.S.-Russia Meeting

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transcript

Zelensky Meets Starmer Before U.S.-Russia Meeting

In a show of unity, President Volodymyr Zelensky of Ukraine hugged Prime Minister Keir Starmer of Britain a day before President Trump was to meet President Vladimir V. Putin of Russia in Alaska.

Reporter: “What’s your message to President Trump?” “Will the U.K. put boots on the ground to secure a cease-fire?” “Will you call out President Trump if he …” “Confident of a cease-fire?” “Will you back Ukraine fully, Prime Minister?”

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JYP profits surge thanks to successful Stray Kids tour and Kpop Demon Hunters

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MBW’s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stat Of the Week is supported by music data analytics firm Chartmetric.


JYP Entertainment, the K-pop agency behind such acts as Stray Kids, TWICE, and DAY6, reported blockbuster quarterly earnings on Wednesday (August 13) in the wake of several major world tours by its acts.

The Seoul-headquartered company reported a 125.5% YoY increase in revenue – yes, more than double – to 215.8 billion Korean won in the three months to end of June. That’s USD $154 million at the average exchange rate for Q2.

Meanwhile, the company’s reported operating profit of KRW 52.9 billion ($37.7 million) was up by a whopping 466.3% YoY. Q2 net profit stood at KRW 36.3 billion ($25.9 million), up 2,734.4% YoY.

A major part of that growth came in the concert segment, which saw revenue growth of 342% YoY to KRW 62.0 billion ($44.2 million).

As major contributors to that number, JYP singled out Stray Kids’ recently completed world tour, which saw the boy group perform 54 shows in 23 cities across Asia, Oceania, Latin America, North America, and Europe. The tour, which started in August 2024, ended a few weeks ago – nearly a year later – with a performance at Rome’s Stadio Olimpico.

According to Live Nation, Stray Kids’ <dominATE> World Tour is now the highest-grossing and best-selling tour ever by a K-pop act in North America, Latin America, and Europe.

Also contributing to JYP’s concert revenues in Q2 was DAY6’s world tour (45 shows in 23 cities) and performances by girl group TWICE, including its headline performance at Lollapalooza Chicago 2025.

JYP also mentioned the success of the Netflix movie Kpop Demon Hunters in its earnings report.

Three members of TWICE – Jeongyeon, Jihyo, and Chaeyoung – contributed to the soundtrack with the song Takedown, which has become the highest-charting song on the Billboard 100 to have come from a Netflix movie.

Additionally, the TWICE track Strategy featuring Megan Thee Stallion appeared briefly in the movie, and has now entered the Billboard 100.

The tours by JYP artists also boosted the company’s merch sales, which jumped 355.9% YoY to KRW 66.9 billion ($47.7 million).

That was helped along by collaborations between Stray Kids and merch company Tamagotchi, as well as a collab between TWICE and merch company Sanrio.


Source: JYP

Ad revenue increased 22.4% YoY to KRW 11.3 billion ($8.1 million), which JYP attributed to “enhanced collaborations with global brands and increased artist awareness.”

One area of weakness in the earnings report was streaming revenue, which fell 10.2% YoY to KRW 11.5 billion ($8.2 million). JYP attributed this to a distortion in the year-on-year comparison with Q2 2024, which included a one-time recognition of streaming revenue from China. Nonetheless, streaming revenue is still down around 7.8% from the same quarter two years ago.

Offsetting the lower streaming revenue is a 100% YoY jump in physical album sales, to KRW 27.1 billion ($19.3 million). JYP said that was thanks to a solid roster of new releases, including a Stray Kids mini-album in Japan.

Japan, where physical album sales remain stronger than in most other developed music markets, has been steadily growing as a source of revenue for JYP. It accounted for KRW 45.2 billion ($32.2 million) of the company’s revenue in the latest quarter, or 21% of the total, up from 10% five years earlier.

The world outside Korea, Japan and China has also been growing as a share of revenue, amid JYP’s efforts to internationalize its business. Ex-Korea, Japan and China sales were 41% of the total in the latest quarter, up from 31% a year earlier, and 13% five years earlier.

JYP isn’t the only Korean music company to see revenue boosted by live events at a time when record sales and streaming are seeing slowing growth.

HYBE, the largest of the Korean music companies, reported a tripling of concert revenue in the first quarter of 2025, and a 31% YoY increase in Q2.


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