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Welcome to the weekend issue of Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union. Join us on Saturdays for deeper dives from our bureaus across Europe.

As Russia’s war in Ukraine continues just east of NATO’s border, tensions in the Baltic countries remain high. This week a man was sentenced to more than six years in prison for spying for Russia. Pavel Kapustin, a Russian citizen living in Estonia, was found guilty of providing intelligence to Moscow’s FSB security agency between 2022 and 2024.

He’s not the first to be apprehended — Estonia holds the notable record of convicting more Russian spies than any other NATO or EU country. The most high profile cases involved a mole in Estonia’s own intelligence agency; another case involved an official with access to NATO secrets.

The continuing drip of convictions and deportations captures the apprehensive mood in the frontline country where tensions with neighboring Russia have increased following Russia’s full-scale invasion of Ukraine in 2022. Estonia is one of the staunchest supporters of Kyiv and is rearming rapidly to deter future aggression from Moscow.

Estonia, which broke away from the Soviet Union in 1991, has a complex history with its eastern neighbor.

The Old Town of Tallinn, Estonia. Photographer: Peter Kollanyi/Bloomberg

While many of Estonia’s Russian-speaking residents have friends and family in Russia, the authorities in Tallinn discourage travel across the eastern border, citing a risk of recruitment by the Kremlin’s intelligence agencies. That risk was reinforced this week when Estonia’s national security agency said it had learned of recent attempts by Moscow to recruit locals.

Among the charges leveled at Kapustin was that he had ferried information about the political views of Estonia’s substantial Russian-speaking community back to Russia. Estonian authorities say Moscow has sought to manipulate that community over the years.

In a similar vein, fellow Baltic nation Lithuania this week said its large Belarusian community is being targeted by Alexander Lukashenko’s intelligence services through a combination of intimidation and the offer of rewards.

Lithuania is particularly on edge ahead of a major military exercise scheduled in neighboring Belarus this September which will see thousands of Belarusian and Russian troops amass near the border. As the summer season settles in, those living on the EU’s eastern flank find that the war just beyond their border is hard to escape. 

Ott Tammik

Weekend Reads

Can a country be too rich? Norway is finding out

Norway’s oil fields and sovereign wealth fund have turned this tiny nation into one of the world’s richest countries. But worrisome cracks are beginning to show. International investors have not returned to Norway in former numbers after the oil price collapse in 2013, waiting times for health services have worsened and student test scores in OECD’s rankings are mediocre. Norwegians have started to wonder: Can a country have too much money?

She Gave Away Her Inheritance. Now What?

Five years ago, Marlene Engelhorn found out exactly how much money she stood to inherit. A descendant of German industrialist Friedrich Engelhorn, founder of chemicals company BASF, she promptly gave most of it away. She launched a highly publicized initiative to pay 50 ordinary Austrians to decide what to do with €25 million ($29 million). Now the 33-year-old is figuring out what life looks like without deep pockets.

Marlene Engelhorn at the annual meeting of the World Economic Forum in 2024.  Photographer: FABRICE COFFRINI/AFP/Getty Images


Rome’s Next Big Tourist Draw Risks Going Bust Before It Opens

Rome wanted to show the world that it has more to offer than ancient history and old churches. But a decades-old endeavor to build an aquarium in the city is a study in exactly what can go wrong when trying to finance modern construction projects. The 13,000 square-meter (139,930 square foot) project has already cost more than €100 million ($117 million) and is struggling to secure fresh cash.

Where to Stay Near the Best Golf Courses in Scotland and Ireland

As Donald Trump touches down in Scotland to indulge in some golf over the next few days, he’ll have the comfort of his own hotel brands nearby. But while it may be a common assumption that golf and luxury hotels go hand-in-hand, it wasn’t always the case. Now in Scotland and Ireland, locals are trying to adapt their offering to appeal to the market of wealthy Americans traveling abroad.

Donald Trump visits his Turnberry and Aberdeen golf resorts this weekend. Photographer: Matthew Lloyd/Bloomberg

This Week in Europe

Wednesday: Eurostat flash GDP estimate for second quarter

Friday: Deadline for EU deal with US on tariffs

Friday: Eurostat flash inflation estimate for euro area for July

Editor’s Note: Today is the final Brussels Edition before the summer break. We’ll be back in your inbox on Sept. 1.

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