# EU envoy flags rigid BEE, Ukraine double standard > New EU ambassador Kristian Schmidt accepts BEE in principle but urges flexibility, criticises South Africa's inconsistency on Ukraine, and outlines deeper trade and security ties. - Title: EU envoy flags rigid BEE, Ukraine double standard | Shortify - Summary: New EU ambassador Kristian Schmidt accepts BEE in principle but urges flexibility, criticises South Africa's inconsistency on Ukraine, and outlines deeper… - Keywords: kristian schmidt, european union, south africa, black economic empowerment, ukraine, gaza, trade and investment, green hydrogen, eu-sadc economic partnership agreement, peace and security dialogue, news, politics - Source: Daily Maverick — https://dailymaverick.co.za/article/2026-10-21-new-eu-envoy-red-flags-rigid-bee-sas-ukraine-double-standard-but-hails-deeper-ties - Author: Peter Fabricius - Published: 2026-10-21T12:34:43+00:00 - Read time: 4 min - Topics: kristian schmidt, european union, south africa, black economic empowerment, ukraine, gaza, trade and investment, green hydrogen, eu-sadc economic partnership agreement, peace and security dialogue, news, politics ## EU takes subtler line on BEE While the US demands South Africa abandon black economic empowerment, the EU accepts the principle but negotiates flexible implementation through its Clean Trade and Investment Partnership platform. ## Schmidt defends BEE principle New EU ambassador Kristian Schmidt says Europe shares responsibility for South Africa's history and will not push for change to BEE legislation, acknowledging historical injustice that needs addressing. > We Europeans, first of all, have a share, if not responsibility, in South Africa's history. ## Flexibility needed for investment Schmidt says South Africa is open to discussing flexible BEE implementation, such as allowing companies to use foreign content or recruits when local options are unavailable, or equity equivalence arrangements. > So, either we agree on some flexibility, pragmatically, or the investment doesn't happen. ## South Africa's Ukraine inconsistency Schmidt says South Africa should apply consistent foreign policy standards across all crises. If it condemns Gaza, it should also condemn Russia's invasion of Ukraine and crimes against humanity there. > If you condemn what is happening in Gaza, you should also condemn what is happening in Ukraine. ## EU closer to Ukraine conflict Schmidt acknowledges Europe expresses objection to Russia's violation of Ukraine's sovereignty with greater urgency because it is closer to the war, and notes South Africa has taken peace initiatives. ## South Africa's peace efforts South Africa launched the African Peace Initiative and called at the Pathways to Peace conference in Toronto for the return of all civilians, especially children abducted and deported from Ukraine. ## EU and South Africa align on Gaza Schmidt says there is little difference of opinion between the EU and South Africa on Gaza, noting EU foreign minister Kaja Kallas recently described what is happening there as apartheid. ## Navi Pillay's Nobel Prize This year's Nobel Peace Prize was awarded to South African human rights defender Judge Navi Pillay, underscoring the importance of protecting the vulnerable everywhere and the universality of human rights. ## EU-SADC trade partnership The two thousand sixteen EU-SADC Economic Partnership Agreement allows duty-free access for about ninety-seven percent of South African exports into the EU and about eighty-six percent of EU goods into South Africa. ## EU is South Africa's largest trade partner About one-third of South Africa's exports to the EU are manufactured goods. In two thousand twenty-five, total trade amounted to about forty-six billion euros, or about fifty billion dollars. ## Trade deficit not a loss Schmidt notes that trade is not a zero-sum game. A trade deficit does not mean one side is being ripped off; it means consumers on both sides are benefiting from the exchange. > It means that consumers on either side are benefiting. ## EU's massive investment in South Africa The EU is the largest foreign investor in South Africa, making cumulative investments of about forty point four billion euros by two thousand twenty-four, with more since then. ## Team Europe pledges for Just Energy Transition Last year, Team Europe, the EU, the European Investment Bank and member states, pledged almost twelve billion euros to South Africa under its Global Gateway programme for energy transition and infrastructure. ## Green hydrogen credit guarantees In September two thousand twenty-six, the EU committed one billion rand in credit guarantees to de-risk EU investment in green hydrogen production and critical minerals and metal chains in South Africa. ## South Africa as hydrogen champion Green hydrogen will help Europe meet decarbonisation targets for transport, especially aviation and shipping. South Africa can be a world champion because it has the land, sun and expertise. ## EU standards challenge for exporters South Africa has faced hurdles meeting strict EU environmental standards. Sasol struggles to get approval for green aviation fuel because it is produced in the same plant as normal fuel. ## Schmidt rejects moving goalposts Schmidt opposes extending EU deadlines for green transition. If companies invest to meet deadlines and then goalposts move, early movers are penalised for doing the right thing, he says. > If you say this is the deadline, go green before, and then companies make investments, and then you move the goalpost, you're penalising the early movers for doing the right thing. ## Chinese EV subsidies create unfair competition Schmidt endorses Minister Kgosientsho Ramokgopa's suggestion that South Africa impose tariffs on Chinese EV imports. Beijing's subsidies create over-capacity and flood the world with cheap products. ## Trump's hostility brings EU and South Africa closer In an increasingly uncertain world, hostility from Donald Trump's America to both South Africa and the EU has brought them closer together, Schmidt says. ## First-ever peace and security dialogue Schmidt arrived with a mandate to deepen the relationship beyond economics. The EU and South Africa held a first-ever peace and security dialogue last week to explore cooperation on cyber security and anti-terrorism. ## Key takeaway EU ambassador Kristian Schmidt accepts black economic empowerment but wants flexible implementation, criticises South Africa for not condemning Russia's Ukraine invasion while condemning Gaza, and proposes deepening EU-South Africa ties beyond trade.