In this project it is examined how the interplay between the European Union’s powers affects its actions in conflict management. The project contains an analysis of the EU’s powers, through a focus on hard capabilities and Ian Manners idea on normative power, followed by the interrelation between these powers, through Jospeh Nye’s neoliberal perspective. Furthermore, an analysis of EU’s strategy for acting in conflicts through ‘successful strategies’ theories on the two conflict management tools, coercive diplomacy and economic sanctions. Last, the two analyses will be combined in the example of EU’s actions in the Ukrainian crisis. The project concludes that EU’s actions are affected by its increased focus on smart power. Furthermore, this affects EU’s conflict management strategy because it uses economic threats or incentives as a way of coercing opponent states into diplomatic solutions based on its normative values.