This Week in Foreign Affairs — Brussels (#25, 2026)
Major EU-Armenia and EU-Azerbaijan partnership announcements; EU proposes new joint defence projects; Ukraine Support Loan disbursement; US-EU customs tariffs adjusted; New rules on steel quotas; Further integration with India and EEA partners.
June 28, 2026 to July 04, 2026
Major EU-Armenia and EU-Azerbaijan partnership announcements; EU proposes new joint defence projects; Ukraine Support Loan disbursement; US-EU customs tariffs adjusted; New rules on steel quotas; Further integration with India and EEA partners.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
This Week's Calendar in Brussels
- Committee on International Trade (INTA): On July 06, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Chair’s announcements; Conclusion, on behalf of the European Union, of the Interim Agreement on Trade between the European Union and the United Mexican States; Date of next meetings.
European Commission
Commission proposes five joint defence projects to strengthen Europe's industrial capabilities
On 2 July 2026, the European Commission unveiled five large-scale European Defence Projects of Common Interest (EDPCIs) aimed at enhancing EU industrial cooperation in defence, focusing on drones and counter-drone systems, maritime, seabed, space, air and missile defence, and reinforcing the Eastern Flank. Supported under the European Defence Industry Programme (EDIP, Regulation adopted 16 December 2025), the scheme allocates €325 million with eligibility for future funding via the European Competitiveness Fund. Eighteen Member States participate on average per project, with Ukraine involved in four. The Council will next discuss formal establishment, with milestones to be monitored by the Commission.
Commission disburses €3.9 billion for drones under the €90 billion Ukraine Support Loan
Starting 29 June 2026, the Commission began disbursing €3.9 billion as the first payment from the €6 billion tranche dedicated to drone procurement for Ukraine. This follows the earlier €3.2 billion released on 25 June. The Ukraine Support Loan (Regulation (EU) 2026/467) was adopted in February 2026 and totals up to €90 billion over 2026-2027, split between defence industrial capacities and budgetary support. Contracts are subject to verification by the Commission, with further payments to cover munitions and air defence systems.
EU launches connectivity and community programmes for peace in the South Caucasus
The Commission announced on 30 June a 'Peace through Connectivity Package' with up to €200 million in grants to foster transport, energy, and digital links across the South Caucasus, leveraging up to €2 billion in investment. An additional €20 million will fund peace-fostering programmes in Armenia and Azerbaijan, supporting healthcare, demining, and local businesses. The new EU–Azerbaijan Connectivity Partnership includes a high-level dialogue and a planned ministerial conference in Baku before year-end to mobilise infrastructure investment. Cooperation also extends to renewable energy and trade agreement discussions.
EU and Armenia strengthen partnership: resilience, trade, and connectivity
On 1 July 2026 in Yerevan, Commission President Ursula von der Leyen and the Armenian Prime Minister announced new EU-Armenia support: a €52 million financial package, €200 million for regional connectivity, and €20 million for local peace dividends. The EU also proposed Autonomous Trade Measures to liberalise around 80% of Armenian exports to the EU in response to Russian trade pressure, subject to adoption by Parliament and Council. These measures build on CEPA in force since 2021 and the Strategic Agenda for the EU–Armenia Partnership, adopted in 2025.
Statement by President von der Leyen with Armenian Prime Minister Pashinyan
President Ursula von der Leyen, in a statement with Armenian Prime Minister Nikol Pashinyan on 1 July 2026, welcomed Armenia’s commitment to democratic reforms and peace in the South Caucasus. Von der Leyen detailed EU financial assistance, including €52 million and a proposal to liberalise 80% of Armenian exports to the EU, and outlined deployment of EU expert missions to Yerevan for trade diversification in July. A new €20 million programme supports local border communities, alongside continued work with Armenia on a range of economic and governance reforms.
Statement by President von der Leyen with Azerbaijani President Aliyev
President von der Leyen met on 30 June 2026 with President Ilham Aliyev, announcing up to €200 million in EU grants under the Global Gateway Investment Programme for transport, energy and digital, aiming to mobilise up to €2 billion. Projects such as the Nakhchivan railway and Port of Baku were mentioned. Additional funding of €20 million supports peace dividends in border regions, focusing on healthcare and economic development. Discussions included future cooperation on renewables and deepening trade relations through a potential comprehensive agreement.
Joint Statement on the EU-Türkiye High-Level Economic Dialogue
On 2 July 2026, EU Commissioner Valdis Dombrovskis and Türkiye's Finance Minister Mehmet Şimşek co-chaired an economic dialogue in İstanbul, reaffirming the commitment to economic cooperation and regional stability. Türkiye has formally expressed interest in joining the Single Euro Payments Area (SEPA), and investment from EU-based international financial institutions, including the EIB, continues. Both sides agreed to further engagement in transport, energy, and digital connectivity, and welcomed recent steps in clean energy and resilience projects.
Joint Press Release: Türkiye-EU high-level discussions on enlargement, migration, economic ties
On 30 June 2026 in Ankara, Foreign Minister Hakan Fidan, High Representative Kaja Kallas, and Commissioners Marta Kos and Magnus Brunner reviewed Türkiye's EU accession, trade relations, regional stability, and migration issues. They discussed visa facilitation, Customs Union modernisation, and complementary security and defence cooperation, reiterating the importance of dialogue on Cyprus and continued support for Ukraine. Both sides agreed on continued high-level engagements throughout 2026.
EU Legislation (Official Journal)
Regulation (EU) 2026/1455: Adjustment of customs duties and tariff quotas for US goods
Regulation (EU) 2026/1455, adopted on 25 June 2026, adjusts customs duties and opens new tariff quotas for certain goods originating in the United States, as part of a reciprocal framework agreed in the EU–US Joint Statement of 21 August 2025. The Regulation reduces or eliminates tariffs on a broad range of US industrial and agricultural goods and includes safeguard and suspension clauses. It applies from 1 July 2026 until 31 December 2029.
Regulation (EU) 2026/1461: Non-application of customs duties on certain US goods
Regulation (EU) 2026/1461, dated 25 June 2026, provides for the non-application of customs duties on live, frozen and processed lobster imports from the United States beginning 1 August 2025, following the EU-US Joint Statement of August 2025. The arrangement is linked to US commitments on reciprocal tariff reductions and will be reviewed by 31 January 2030.
Commission Implementing Regulation (EU) 2026/1457: Steel tariff quota distribution
Commission Implementing Regulation (EU) 2026/1457, adopted 29 June 2026, lays out the detailed distribution methodology for tariff quotas on 26 steel product categories under Regulation (EU) 2026/1384 to address negative trade effects of global overcapacity. The measure introduces a 50% out-of-quota duty and allocates quotas between FTA and MFN partners. It applies from 1 July 2026 for six months.
Council Decision (EU) 2026/1511: EEA Joint Committee position on EDIP Regulation
On 25 June 2026, the Council approved Decision (EU) 2026/1511 authorising the EU position within the EEA Joint Committee to amend Protocol 31 of the EEA Agreement, extending cooperation to include Regulation (EU) 2025/2643 (European Defence Industry Programme/EDIP Regulation).
Council Decision (EU) 2026/1527: Opening of negotiations for India’s association to Horizon Europe
Council Decision (EU) 2026/1527, adopted 26 June 2026, authorises the Commission to begin negotiations with India for the country's participation in Union programmes and association to Pillar II of Horizon Europe (2021-2027).
Council Implementing Regulation (EU) 2026/1541: Amendments to chemical weapons sanctions
Council Implementing Regulation (EU) 2026/1541, adopted 3 July 2026, amends Regulation (EU) 2018/1542 by adding six individuals to sanctions lists over involvement in the death of Alexei Navalny with epibatidine, following his previous Novichok poisoning.
EU Council
Upcoming Foreign Affairs Council to address Ukraine, Middle East, Black Sea
On 13 July 2026, the Foreign Affairs Council will discuss developments in Russia’s war against Ukraine, the fallout from the Middle East conflict involving Iran, and the implementation of the EU Black Sea strategy.
General Affairs Council to review Irish Presidency priorities and simplification agenda
The General Affairs Council will meet on 14 July 2026 for a presentation on Irish Presidency priorities for the second half of 2026, focusing on issues relevant to the GAC, and will exchange views on simplification efforts.
EP Committee Work
AFET: Extraordinary meeting on 29 June 2026
The Committee on Foreign Affairs (AFET) held an extraordinary meeting on 29 June 2026 in Brussels. The agenda focused on urgent foreign policy developments but was not published in detail.
SEDE: Meeting on security and defence
The Subcommittee on Security and Defence (SEDE) met on 29 June 2026, with the agenda item dedicated to overall security and defence policy. The committee's discussions included upcoming legislation and recent developments in international security.
