jill: this week on "defense news," e.u. ambassador david o'sullivan on the implications of the brexit and the deputy defense minister of ukraine talks defense reform the this is a look at the week's top headlines. israel and turkey announce a recollection on silliation greement that will include $it $20 million in compensation from israel inferior the ictims of a ship incident. and coming dangerously close to an american frigate in the mediterranean sea? after reports from the pentagon of a number of recent incidents

in the baltic sea. it's been said the two untries' relations are the tensest since the civil war the now, -- > the issue of whether the united kingdom should stay a mber of the european union was a victory, narrow but a victory for those wanting to leave the union. we regret this but everyone wants to respect the democratic wishes of the british people. formally speaking, for a country to leave they are required to notify the other member states of their intention under article 50 of the treaty, which is the article which

departure of a member state from the union. until that happens, nothing changes, so in the short term, everything remains the same. the united kingdom remains a full member of the union until they notify of their intention to leave through article 50 which then triggers a process of negotiation which may take up to two years, during which the exit of the united kingdom will be negotiated. in a second phase or in parallel we would need to negotiate a new aring rage -- arrangement for the united kingdom and e.u. based on the fact that the u.k. is not not -- is no longer a full member of the union. that's where we're heading. the challenge has been the political situation in the u.k. generated by this referendum has meant for the moment the government doesn't feel in a position at the moment to introduce the request under article 50. so i think the meetings today in brussels, the

the european councils with prime minister cameron and heads of state from the other 27 and the meeting of 927 tomorrow will seek to try to understand how the u.k. sees the situation, what are their intentions, what is the time frame? and then the 27 meeting tomorrow will decide how they want to take this process forward. so ths where we're -- we are. i'm afraid at this point, slitedly more questions than answers. >> when we rirn, more from my interview with the e.u. ambassador. your -- you're watching "defense news". for years i've trained dogs for the marines - like me, some of these dogs have seen many tours of duty. and for the past 15 years i've been a navy federal member. thanks to their fast approval process, when it came time to buy a new car, we got everything we needed to transport my wife's little bundle of joy...

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jill: welcome back to "defense news." now more from my interview with the e.u. ambassador, david o'sullivan. i asked him in the wake of the brexit how trade agreements could shift between the u.k. and e.u. >> well, everything will depend on the, what the u.k. itself proposed -- proposes as the relationship between the u.k. and the union, which it will have left of the there are a number of models the. the european economic area in which participate norway, iceland rnled leicht instein, effectively full members of the single market as u.k. is now but this carries with this con comityant responsibilities to tribute to the

persons within the area. since these were controversial issues in the u.k. referendum we don't know if these would be acceptable to the united kingdom. another model is switzerland erlands, a answer -- series of bi lateral agreements that give them access to certain aspektd of the single market but they also have to contribute to the budget and accept free movement. the final could be a model such as canada ar -- or anyone else, which would require the negotiation of a free trade agreement between the u.k. and e. u. so i think ttd premature at this point to predict what the impact will be the what is clear is that there is a differ between being in the european union and not, and unless the

u.k. were willing to accept that, it is quite possible there will be new trade agreements between the u.k. and-iron union that will have to be developed. >> so there has been some talk that this is a victory for russia, which would benefit in theory from a divided europe. what is your response to this comment? >> well, i'm not sure that anyone benefits from this situation. i think we have to be honest and say we would all roth -- rather we were not in this situation. full membership for the united kingdom would clearly in our view and their view in many instances have been in the best interests. so i'll not going to pretend the outcome is a happy one. we regret this. having -- having said that, i do think it's very important to understand that this was not a vote of

to continue to have the same values and the same general foreign policy stance as the rest of europe. the united kingdom remains a member of nato, the second largest contributor to nato, it remains fully engaged, in my view, on all the foreign policy issues on which we have common positions. so i think it would would be a mistake to imply that this is going to somehow undermine european unit shall unity on these issues. it is true we can do that somewhat more effectively as members of the same union. >> there has long been unity between the u.k. and the united states as very, very strong allies. some have even argued that the u.k. has advocated with the e.u. a strong national defense taking cues in part from the united states. do you see any shifts in the

e.u.'s approach to national defense? and dows -- does this impact the relationship with the united states at all? >> i think the u.k. does have a very strong relationship with the united states, but to be very frank, we have in washington 28 embassies of our member states and i think all of them feel they have a very strong relationship with the united states. germany and france do so. but even the smallest member states, the baltic states, the irish, and even larger member states such as italy. there are huge connections between all of the european countries and 9 -- the united states, so i don't think this situation will change that, and i think we will continue, if we are 27, as the european union to have a very strong trans atlantic relationship. on the specific issue of defense spending, which is more an issue for nato than the union itself, i think there will be discussions, more so on how the alliance finances

there is the commitment toward the 2%. this is not easy for the budgetary situation in many countries but i think people are making an effort to move if that direction. for the european union as such, the high union vice president will be coming out with a global security strategy about europe's position in the world. i haven't seen the text yet, but i understand that one part of that will deal with defense cooperation, including within the e.u. as well as future cooperation between u. -- e.u. and nato. so i'm quite certain all this will continue it and develop as we go forward even if the u.k. is no longer a full member of the union. jill: when we rirn, a member of the ukraine talks about defense.

jill: welcome back to "defense news". the associate editor recently sat down with the vice prims of the ukraine to talk about the ukraine's top reform -- top frorn priorities, including strategic defense the >> i think in this regard i am on board with the government as such. we have just recently developed a very concrete and i think realistic plan of reforms before the end of the year. there are several major priorities, and that would be starting the privatization, and we have already started it, a very open privatization that is of huge importance. also clear

tate-owned enterprises, market stabilization of the country that is very much important for all of us. also we are focusing on public administration reform and that's where part of my direct responsibilities lie. so therefore i'm hoping that we will be able to deliver on this side starting with this reform because it's a huge undertaking that will require a lot of effort from all the agencies and my job is to coordinate interagency efforts. so -- but, but, that's besides the association agreement. but that's a plan. so it's nothing additional. >> part of the reform efforts has a requirement from the minsk agreement to do certain changes. where do you think ukraine has -- is in meeting those

requirements? when do you expect that to be completed? >> i would probably say it's not part of the reform effort. ukraine has been trying to decentralize for basically all the 25 years of its independence and we came very close to decentralization when we initially adopted in the first round the changes to the constitution. and that is the requirement that comes internally. it is part, to an extent it is part of minsk but not in its whole comprehensivity, so to say. therefore we as ukrainians, the government are the president, we are very much determined to deliver on our part of the -- delivering on minsk accords and to fulfill all of the commitments we've undertaken upon ourselves. however, all

discussions and all this political decisions that have to be taken by ukraine, they might be discussed with -- within the ukrainian society only after we have on the ground securitizeation that would provide for that, that would allow us to think further, to -- that would allow us to make sure that people are not dying every single day on the line between ukraine and basically russian forces sending on our territory. when we have also the exchange of all the hostages that are illegally detained and also on the russian territory, such political prisoners. when we have at least humanitarian organizations having access to that territory. the only humanitarian access right now -- organization right now that has access is red cross.

cannot get to those territories to help those people who are in need now. therefore there are so many people that have to happen on the russian side. so a cease-fire as such is not working. we are unfortunately experiences -- experiencing in the latest months, we are experiencing very serious worsening of the situation with expulsions a day from the territories. in may we lost 27 servicemen from ukraine and in all the previous months since august of last year we didn't lose such huge numbers of servicemen. so this is very worrisome and therefore it's very hard to go on talking about any political decisions so far. >> i was going to ask if you have seen any

russia toward minsk but it sounds like it's quite the opposite. >> unfortunately i have to admit that they are not moving forward, notwithstanding all the promises. i think the easiest promises that they've taken, undertaken, for example, the special onitoring mission of the e. -- o.e.c. who -- would have full access to all the occupied territory. this has been agreed in the normandy agreement and the russians said they are totally ready to do that. but if i'm not mistaken it was october of 2015 and we're still in the point where it's not happening. it's not only about the whole occupied territory that they don't have access to but even not everywhere to the touch line. they have access not being provided

russian troops that are there. >> one of the things that the government has proposed is a strategic entry form for ukraine. there has been an argument that this is not the right time to look at changing the military because of the current conflicts. where do you come down on that and what part of the military roger clemens dr. jerry punch rormss are you looking at in? >> i belong to those that believe that specifically with regard to the russian aggression this is the time to reform and we can deliver much faster on those needed reforms in the security sector now when we feel direct agression, when we have to make our armies stronger and have to be capable to defend our land and we have gone already the long way since two years ago where we basically were unarmed, untrained, because the previous regime had

everything to destroy from within the armed forces and the defense capability of the country. so therefore with, you know, engagement of the civil society, with a lot of volunteers and a lot of very positive in.from citizens of ukraine and with the support of our partners from abroad, we have come a long way already. now is the time to take a very systemic action and i'm very glad just recently, a couple weeks ago, a strategic defense bulletin for the first time in ukraine was adopted. it can finish the whole cycle of strategic and political planning and we are very happy that this is now the framework to actually go awade -- ahead with the reform and i'm keeping fingers crossed we will be successful in that. >> on this week's money minute, personal finance

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jill: and now, more from associate editor aaron madea's interview with the vice minister of the ukraine. >> well, first of all, we're hoping that the support are of president u.s. in defense and security -- the u.s. in defense and security field will not

diminish in the next year. obviously the beening process ask taking place right now, so we have very much interest that it not only not diminish but grow because of all the progress that we've been showing, what we are achieving and also because of the needs that our did, are clearly defined right now. our e are not giving up on we have it's not that the green light for that. we are so far definitely concentrating on the defensive weapons and that is something that helps with the defense capabilities. ukraine has never been the nation that every conquered everybody. so even the lethal weapons would be something to protect ourselves and make sure we are capable of protecting our territory and landed people. >> for

defensive weaped -- weapons, what are you hoping to get from the u.s. going forward? >> in terms of offensive or defensive? >> either one, really the >> well, in terms of offensive weapons, these are to make sure we are protecting our soldiers from the attacks, anti-drone weapons rned, anti-artillery, anti-tank. because unfortunately the russian federation is using the occupied territory as a training field for its most modern equipment and the trial field, so to say, for the most modern equipment that we are -- they are producing and we have have the capabilities which are right now not enough of what we have. >> we're coming up on july in the warsaw summit for nato -- obviously ukraine is not part of nato but there are big parts

ukraine going forward. what does a successful summit look like? >> i think it's very important that nato would keep united, strong, capable of depend -- defending itself, capable of deterring the aggressor that is building its capabilities all over the world. i therd actually the deputy secretary of the -- deputy secretary-general of nato adding to that also a dialogue. he added a dialogue from the position of force and that's something i think that i'm looking for, nato remaining strong and very capable, a political-military organization. so building on both of those strengths that it has. for us it's also important that -- i understand that the eastern and southern flank of

but at the same time we're hoping that the special package , the conflicts assistance package that has been approved just recently but our ministers of defense in brussels will also be approved there and nations will continue to take it seriously and continue to deliver on those. >> are you at all concerned that as nato reinforces its eastern border, it leaves a so-called gray zone or sends a signal to russia that these countries are now more available to make moves on? >> i do not read it that way. i think that we ukrainians really need to do our homework right now to get back to the point where we can apply at some point for a membership action plan and i hope that statement of 2008 taken in bucharest on the nato summit is

decision that goes for -- doors for ukraine and georgia remain open for nato once they are ready to commit. right now we are underway of our internal changes that have to bring us closer to this possibility of application and hopefully ackception the -- accession. >> you have called for a military component. what does that look like? >> as you know, we have strategic security kfs defense that has recently been adopted. right now we have to good to eye next step, so to say, in our security audit and the defense audit because it would mean that we would be able to take decisions on much more informed basis. we will be able to also take decisions on the

would give us the understanding what we have in order to account -- counter the challenges we are facing right now and what we need in order to counter those challenges. so that security audit, that's something that is in the interests of the ukraine as such and the results of this will only make us stronger. >> quickly, has the reaction been from nato to that idea? have you gotten support? >> so far i haven't heard any official reaction so far. we'll see how it goes. >> then the last question. looking forward, what's the best way for nato to support ukraine? with materiel? with money? with just political support? >> i think all of these things have to go together. fir, we are really counting on really strong communication from warsaw saying we are standing behind and will not allow territorial integrity and sovereignty of the states, of ukraine, to be

ruined by anybody. that's one thing. and obviously after that we would like to see or along with that we would like to see a very strong and committed engagement for years ahead from nato countries engaged in helping us to reform ourselves and not -- at the same time building a strong defense capability for the country that is right now taking a stance on the whole europe and the whole western civilization i believe. jill: that's all this week. don't miss "defense news" next week when we have more on nato and be sure to check out the latist news and analysis happening in the defense industry at defensenews.com. thanks for joining us.

[music] >> dr. charles stanley: this book is like an anchor. you can take any facet of life and you, listen, you make this book your guide in any facet of life, you will not drift. on the other hand, if you do not read the word of god, you do not talk to god, you do not bring your issues to god, you do not worship him, you're going to drift. >> male announcer: next on "in touch," "a warning against drifting." >> announcer: join us during the program and follow along with the sermon notes. go online to intouch.org/followalong where you can create your own notes and access the integrated bible verses from today's message. [music]