Russia & Ukraine Meet Again in Istanbul: Agree to Exchange Sick/Wounded Prisoners + Iran Readies a "No" Response to US Talks Proposal + UK to Increase Defense Spending to 2.5% GDP by 2027 + More

For review:

1. Ukrainian negotiators said Russia had again rejected an "unconditional ceasefire - but the two committed to return the bodies of 12,000 Soldiers. The two sides agreed to exchange all sick and heavily wounded prisoners of war, as well those aged under 25.

2. During talks in Istanbul, the Russian delegation handed Ukraine a "peace memorandum" with its proposals for a ceasefire, Russian-state media outlet TASS reported on June 2, publishing the alleged document.

According to the document, among Russia key demands are the official recognition of Russia's annexation of Crimea, as well as the annexation of Ukraine's Kherson, Donetsk, Zaporizhzhia, and Luhansk oblasts. Other demands include that Ukraine sticks to its neutral status, abandons its aspirations to join NATO, and an official end to Western arms supplies and intelligence sharing with Ukraine.

3.  Iran Readies a "No" Response to US Talks Proposal. “Iran is drafting a negative response to the US proposal, which could be interpreted as a rejection of the US offer,” the senior diplomat, who is close to Iran’s negotiating team, told Reuters.

The US  proposal for a new nuclear deal was presented to Iran on Saturday by Oman's Foreign Minister (Sayyid Badr Al-Busaidi).

4. The Israel Defense Forces said Monday it had expanded its ground offensive against Hamas in Gaza over the past day. Palestinian media reported overnight that Israeli ground forces were approaching southern Gaza’s Khan Younis.

5. UK to Increase Defense Spending to 2.5% GDP by 2027. 

The UK Prime Minister (Sir Keir Starmer) said the increases represent “the largest sustained increase in defense spending since the end of the Cold War.” 

6. The United States is urging Australia to raise defense spending to 3.5% of GDP.

Australia already plans to raise its defense budget to 2.4% of GDP by 2033-34, up from the about 2% it spends now.

7.  The Navy awarded a $536 million contract to NorthStar Maritime Dismantlement Service to dismantle, recycle and dispose of the former aircraft carrier Enterprise (CVN-65)- a four-year undertaking.