Following the naval battle, Venedik and Balt-Rhein sign a peace treaty over the wheat, and Venedik release the imperial prisoners. However, the empire's shipment of wheat was attacked by pirates and Admiral Lowe concludes that Venedik has purposely made sure the pirates run free in their territory, realizing Venedik now considers them an enemy.

Mahmut, Erbach, and co. arrive at Chielo and meet the state-city's leader, Carvajal, and his secretary, Cassandra. With the Balt-Rhein army pillaging provisions around the surrounding areas, thousands of refugees come to Chielo (who has a strong welfare-based system) to seek aid and shelter. Despite this taking a toll of their food supply, Carvajal allows the refugees in and agrees to join the Anti-Imperial Alliance to safeguard Chielo.