Iran’s increasing military support for Russia’s war in Ukraine will be a key topic when EU foreign and defense ministers gather in Brussels starting today. The bloc will adopt sanctions on Iran over its violent crackdown on peaceful protestors, but some ministers want additional punitive measures over Tehran’s drone and missile transfers to Russia. A top Russian security official met with Iranian leaders in Tehran last week to discuss “strategic cooperation.” “We are witnessing the fight for freedom and justice, and we are witnessing how Iranian drones are attacking Ukrainian cities and how they are killing people,” German Chancellor Olaf Scholz said at the weekend. “All of this is completely unacceptable.” The ministers will hear from Ukrainian Foreign Minister Dmytro Kuleba and Defense Minister Oleksii Reznikov just days after Russia withdrew from Kherson, a development the Kremlin has sought to distance from Vladimir Putin.

— Natalia Drozdiak and Kevin Whitelaw

What's Happening

No Deal | Russia and the US failed to agree on language for a joint statement following a multilateral summit in Cambodia, making it unlikely that G-20 nations will reach a consensus in Indonesia this week. Here are eight things to watch for as global leaders met in Bali.

Pricing Oil | US Treasury Secretary Janet Yellen told us that it’s “very likely” European sanctions will force Russia to offer some of its crude oil exports at a price set by the US and its allies, if Moscow wishes to prevent a shut-in of some supplies. Read more of what she said about the oil cap and the need for crypto regulations after the collapse of FTX.

Climate Law | Yellen also said she stands ready to work with a range of countries that have complained about what they see as discriminatory aspects of a landmark US climate law. “We are consulting widely with affected groups, including the Europeans and other countries that have concerns about the act,” Yellen told reporters after meeting with French Finance Minister Bruno Le Maire in Bali.

Musk Watch | Twitter’s frenetic overhaul under new owner Elon Musk is attracting attention from senior politicians and regulators worldwide, who are telling the world’s richest man they’re ready to hold his new acquisition to data protection, content moderation and employment law. The company is set to meet with the Irish Data Protection Commission this week.

Wage Talks | Germany’s biggest labor union is locked in talks with employers over a pay deal for about 3.9 million workers, in one of the most significant domestic showdowns so far of Europe’s energy crisis. The result will serve as an indicator of how pay might develop across the region’s largest economy, and the negotiations will be closely watched by European Central Bank officials worried that significantly higher pay might entrench inflation already at a historic high.

In Case You Missed It

Gas Plan | The EU promised to deliver some sort of outline of a measure  to tackle excessive gas prices as it tries to defuse a threat by member states to block a broader emergency package aimed at containing the energy crisis. A majority of member states demanded a proposal from the EU’s executive arm on a gas price cap before a Nov. 24 gathering of energy ministers, we’re told.

Slowing ESG | The war in Ukraine and inflation have delayed Deutsche Bank clients’ environmental, social and governance projects even as the long-term shift to sustainability is now “irreversible,” according to CEO Christian Sewing. Financing for green initiatives totaled $410 billion so far in 2022, a 16% decrease from the same period last year.

Slovenian Victory | Lawyer and human rights advocate Natasa Pirc Musar won Slovenia’s presidential election, defeating an ally of ousted nationalist leader Janez Jansa to become the EU state’s first female head of state. Pirc Musar, who once served on the legal team of former US First Lady Melania Trump, won 54% in Sunday’s runoff.

Winter Relief | Europeans have a greater probability of experiencing temperatures significantly higher than normal this winter, potentially offering relief to tight heating-fuel markets, according to the EU’s Copernicus Climate Change Service. The degree of certainty of warmer weather rose over the last month.

Funding Push | Spain has requested that the EU make a third disbursement of pandemic recovery funds worth €6 billion, despite delays in the government implementing a system to audit the use of the money. The request comes after increased scrutiny over Spain’s fulfillment of reforms.

Chart of the Day

Germany is stepping up efforts to develop alternative markets in South East Asia as part of a new push to diversify commercial ties in the region and dilute a deep-rooted reliance on China. Chancellor Scholz and his deputy Robert Habeck took separate corporate delegations to Vietnam and Singapore ahead of the G-20 summit. Russia’s invasion of Ukraine has prompted Germany to reevaluate its trade dependencies, but South East Asia has traditionally been a difficult market for it to crack.

Today's Agenda
All times CET

• 10 a.m. EU foreign ministers meet in Brussels with news conference around 5 p.m. by foreign policy chief Josep Borrell
• 10:10 a.m. German Chancellor Scholz news conference with Singapore premier after talks
• 10:30 a.m. Internal market commissioner Thierry Breton speaks on zero-emission aviation at conference 
• 12:05 p.m. NATO chief Jens Stoltenberg, Dutch Foreign Affairs Minister Wopke Hoekstra and Defense Minister Kajsa Ollongren hold news conference in the Netherlands