Ukraine sees Indian components used in Russian drones, senior Zelenskyy aide reveals
And in the last few minutes, Andriy Yermak, senior aide to Ukrainian president Volodymyr Zelenskyy, sought to ramp up the pressure on India as he revealed that Ukrainian armed forces have seen Indian components being used in Russian drones involved in strikes against civilian population across Ukraine.
“It is necessary to deprive the Russians of the opportunity to receive components from other countries and stop the killing of Ukrainians. Also, buying Russian energy resources is financing war, which does not contribute to peace,” he added.
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Kremlin decries Trump’s ‘illegal’ threat to raise tariffs on India for Russian oil purchases
Back to Ukraine and Russia, the Kremlin has criticised US president Donald Trump’s threat to raise tariffs on India for its purchases of Russian oil this morning, decrying the move as “illegal” and saying it was unacceptable to force countries to stop trading with Moscow, Reuters and AFP reported.
“Sovereign countries have the right to choose their own trading partners,” spokesperson Dmitry Peskov told reporters.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said in a post to his Truth Social network, also accusing India of selling Russian oil “on the Open Market for big profits”.
In a previous social media tirade last week, he said of Russia and India: “They can take their dead economies down together.”
Separately, Russia also said it no longer had any restrictions on where it places its intermediate-range missiles after Trump’s suggestion the US would move its nuclear submarines in response to former Russian president Dmitry Medvedev’s confrontational rhethoric towards the US.
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Updated at 10.58 BST
EU ‘not celebrating’ new ‘second best’ US tariff regime as details on wines, spirits, cars and pharma emerge
Lisa O’Carroll
Wine made in the EU is unlikely to be duty free in the US at the end of current negotiations between Brussels and Washington, it has emerged.
Italian wine is stocked on shelves for sale at a liquor store in Los Angeles, California, USA. Photograph: Allison Dinner/EPA
The EU is confident it can slash the new 15% import duty imposed on exports from the EU for wine and spirits but said the “relative low” most favoured nation tariff rate that already applies to wine is likely to stay.
Donald Trump alone cannot offer a zero for zero deal on wine because it would require congressional approval, something that is not being sought as part of this negotiation, senior EU officials have revealed.
Therefore wine was not likely to be in the category of goods that will be rated zero on both sides for imports and exports.
Spirits are already sold into the US on zero tariffs so there is scope for the 15% tariff rate that applies after the EU-US deal was struck can be eliminated altogether.
The EU said it was not celebrating the new tariff regime which has been criticised by politicians in France.
“We’re very clearly operating in a second best world,” said one senior official adding the choice the EU had was not “between a good and a great outcome” but a “bad a less bad outcome”.
The deal struck between the EU and the US at Trump’s Scottish golf course on 27 July imposes 15% tariffs on most exports to the US but some sectoral tariffs and a so called list of “zero for zero” products that would not be taxed in either direction has yet to be finalised.
The EU and US are currently in advanced talks on a joint statement which will set out more clearly the areas they hope to negotiate including potential quotas for steel exports.
A senior official said the statement is “90% to 95% there” and should be published soon with negotiations ongoing with commerce secretary Howard Lutnick and trade representative Jamieson Greer.
EU trade commissioner Maroš Šefčovič said: “I am in contact with Secretary Lutnick and Ambassador Greer as we work to turn July’s EU-US agreement – in all its elements – into practice. The work continues in a constructive spirit.”
The joint statement will not be legally binding but has been likened to a “road map” for future negotiations by EU officials.
Ahead of the publication EU officials have clarified a number of issues in relation to sectoral tariffs including cars and pharmaceuticals.
Unlike the UK,they are not expecting a quota limiting the number of cars exported to the US under a 15% tariff rate.
And while the US has decided to scrap the zero tariff rate on pharmaceuticals and apply a 15% import duty, this will not apply until the US has concluded its section 232 investigation. When it does apply, it will not include medical devices.
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EU trade commissioner Maroš Šefčovič told journalists that he remained in contact with his US counterparts, commerce secretary Howard Lutnick and trade representatives Jamieson Greer, as their talks on the implementation of the EU-US deal “continue in a constructive spirit.”
More to come on this.
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Updated at 10.12 BST
Back to the EU-US trade talks for a moment:
The EU is briefing reporters on the latest progress this morning, stressing the 15% tariff that European Union goods face when entering the United States is all-inclusive, incorporating the Most Favoured Nation Rate, unlike some other countries with deals with the US, Reuters reported.
The two sides were still working on a joint statement covering some of the details of the deal and how it is to be implemented, officials said, adding that despite “pretty advanced” talks, they couldn’t advise as to when it will be signed off by both sides.
The officials added that it would take some time “before we fully nail down the list of essential products” that are exempt from US tariffs.
The EU also repeated its previous narrative that a deal is better than no deal, warning that a failure to find an agreement could lead to divisions wthin the bloc and high tariffs on both sides, hitting businesses even more.
We will bring you more on this shortly.
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The Netherlands to buy €500m-worth of US weapons for Ukraine
Meanwhile, the Netherlands is the first country to commit €500m to spend on US weapons for Ukraine under a new framework deal agreed by US president Donald Trump and Nato secretary general Mark Rutte last month.
On Monday night, Dutch prime minister Dick Schoof said the new weapons for Ukraine were “badly needed” as “Ukraine is still fighting every day to defend itself against Russian aggression, such as large-scale drone attacks.”
In doing so, Ukraine is also fighting for freedom and security in Europe.
Posting a clip of his interview for Dutch TV NPO2, the country’s defence minister Ruben Brekelmans said the Netherlands was “taking the lead in supplying military equipment from American stockpiles,” arguing that “by steadfastly supporting Ukraine, we increase the pressure on Russia to negotiate.”
On Monday night, Ukrainian president Volodymyr Zelenskyy confirmed he spoke with Schoof on the phone, and welcomed the contribution by saying “this will definitely help protect the lives of our people.”
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Diageo warns of costly impact of US tariffs
Lisa O’Carroll
Diageo, maker of Guinness, Smirnoff vodka and Johnnie Walker whiskey, has said Donald Trump’s tariffs on wine and spirits will reduce its profits by €173m (£150m).
A signage is seen on the outside of Diageo offices in west London. Photograph: Toby Melville/Reuters
The world’s biggest spirits maker is the latest company in the EU to reveal the high cost of the US president’s new tariff trade wars.
On Tuesday it forecast flat 2026 sales, raised its estimate of the impact from tariffs, and hiked its cost-savings target by about €108m.
The EU had hoped wines and spirits would remain duty free after Trump and European Commission president sealed the tariff deal at Trump’s Scottish golf course eight days ago but negotiations are ongoing.
Sources say talks on spirits are more advanced than for wine.
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Updated at 08.39 BST
Morning opening: Increase the pressure on Russia, says Ukraine
Jakub Krupa
At least one person died, and 12 were injured after another round of Russian attacks on Ukraine overnight, with Ukrainian president Volodymyr Zelenskyy accusing Russia of trying to “intimidate frontline cities and communities” by attacking civilian targets.
View shows a train, damaged during a Russian drone strike in the town of Lozova, Kharkiv region in Ukraine Photograph: State Emergency Service of Ukraine/Reuters
Zelenskyy’s most senior aide, Andriy Yermak, was more blunt:
“Their war is with the civilian railway, trains, residential buildings. Ukraine strikes at military targets, Russia – whatever it can reach.”
But responding to the attacks, Zelenskyy once again called on the US and the EU to turn up the pressure on Russia by fast-tracking much-promised sanctions and secondary sanctions on countries supporting its war.
“The world is now seeing that sanctions against Russia and secondary sanctions against all those who help it profit from oil can work if they are strong enough. So the pressure must be increased, and it will certainly work for peace,” he said.
His comments come a day before US special envoy Steve Witkoff is expected in Moscow for another round of high-level talks with Russia, possibly with President Vladimir Putin.
Elsewhere, I will be looking at the latest from the European Commission on the EU-US tariff deal, and will bring you all other key updates from across Europe here.
It’s Tuesday, 5 August 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
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