A sign displays foreign currency exchange rates at an exchange bureau in Moscow. The Bank of Russia acted quickly to try and shield the country’s $1.5 trillion economy from sweeping sanctions that hit key banks and pushed the rouble to a record low. Bloomberg
A sign displays foreign currency exchange rates at an exchange bureau in Moscow. The Bank of Russia acted quickly to try and shield the country’s $1.5 trillion economy from sweeping sanctions that hit key banks and pushed the rouble to a record low. Bloomberg
A sign displays foreign currency exchange rates at an exchange bureau in Moscow. The Bank of Russia acted quickly to try and shield the country’s $1.5 trillion economy from sweeping sanctions that hit key banks and pushed the rouble to a record low. Bloomberg
A sign displays foreign currency exchange rates at an exchange bureau in Moscow. The Bank of Russia acted quickly to try and shield the country’s $1.5 trillion economy from sweeping sanctions that hit

Fitch and Moody's downgrade Russia to 'junk' as sanctions bite economy


Massoud A Derhally
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Live updates: follow the latest news on Russia-Ukraine

Fitch and Moody's Investors Service downgraded Russia's sovereign credit rating to "junk" status due to a wave of US and EU sanctions that have been imposed on the country in response to its military offensive in Ukraine.

Moody's cut Russia's long-term issuer and senior unsecured debt ratings six notches to non-investment grade B3 from Baa3 and they remain on review for further downgrade. A B3 rating is given to entities that are undergoing financial instability or may not have adequate cash reserves relative to their business needs and financial obligations, which makes them speculative and considered high credit risk.

Fitch Ratings downgraded Russia's long-term foreign currency default rating to B from BBB. It also placed the country's ratings on a "rating watch negative". On Friday, S&P Global Ratings also lowered Russia’s credit rating to junk, downgrading it to BB+, below investment grade, from BBB-.

While the EU has barred Russia from accessing its capital markets, the cut in ratings will also make it difficult for Russia and Russian companies to raise funding globally.

The downgrade of Russia's ratings is driven by "heightened risk of disruption to sovereign debt repayment given the severe and coordinated sanctions and significant concerns around Russia's willingness to service its obligations," Moody's said.

The rating agency also said the cut is also a result of the "likelihood of a sustained disruption to the economy and financial sector from the sanctions that limit access to Russia's international reserves intended to buffer Russia from adverse shocks. The scope and severity of the sanctions announced to date have gone beyond Moody's initial expectations and will have material credit implications".

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From Apple to BP: major western companies exit Russia amid Ukraine crisis

  • Sony's game division and Nintendo said they have suspended shipments of software and hardware to Russia. Nintendo said it is suspending shipping all products to Russia "for the foreseeable future... due to considerable volatility surrounding the logistics of shipping and distributing physical goods." AFP
    Sony's game division and Nintendo said they have suspended shipments of software and hardware to Russia. Nintendo said it is suspending shipping all products to Russia "for the foreseeable future... due to considerable volatility surrounding the logistics of shipping and distributing physical goods." AFP
  • Rio Tinto said it "is in the process of terminating all commercial relationships it has with any Russian business". It has an alumina joint venture with Moscow-based United Rusal International. Reuters
    Rio Tinto said it "is in the process of terminating all commercial relationships it has with any Russian business". It has an alumina joint venture with Moscow-based United Rusal International. Reuters
  • McDonald's is temporarily closing all 847 of its restaurants in Russia. AFP
    McDonald's is temporarily closing all 847 of its restaurants in Russia. AFP
  • Starbucks is suspending all business activity in Russia, including shipments of its products and cafes run by licencees. AFP
    Starbucks is suspending all business activity in Russia, including shipments of its products and cafes run by licencees. AFP
  • Coca-Cola is suspending sales in Russia. Coca-Cola said its business in Russia and Ukraine contributed about 1 to 2 per cent of the company's net operating revenue in 2021. Reuters
    Coca-Cola is suspending sales in Russia. Coca-Cola said its business in Russia and Ukraine contributed about 1 to 2 per cent of the company's net operating revenue in 2021. Reuters
  • PepsiCo is suspending sales of its sodas in Russia. It said it would continue to sell daily essentials, such as milk and other dairy offerings, baby formula and baby food, in Russia. Getty Images / AFP
    PepsiCo is suspending sales of its sodas in Russia. It said it would continue to sell daily essentials, such as milk and other dairy offerings, baby formula and baby food, in Russia. Getty Images / AFP
  • Yum Brands, behind KFC and Pizza Hut, also said it was suspending investment in Russia. Reuters
    Yum Brands, behind KFC and Pizza Hut, also said it was suspending investment in Russia. Reuters
  • Toyota is halting production at its plant in St Petersburg, and will halt vehicle shipments to Russia. Reuters
    Toyota is halting production at its plant in St Petersburg, and will halt vehicle shipments to Russia. Reuters
  • Ikea said it would suspend its activities in Russia and Belarus, affecting nearly 15,000 employees, 17 stores and three production sites. AFP
    Ikea said it would suspend its activities in Russia and Belarus, affecting nearly 15,000 employees, 17 stores and three production sites. AFP
  • Honda will stop exports of cars and motorcycles to Russia. EPA
    Honda will stop exports of cars and motorcycles to Russia. EPA
  • Jaguar Land Rover has paused the delivery of its cars to Russia due to "trading challenges".
    Jaguar Land Rover has paused the delivery of its cars to Russia due to "trading challenges".
  • Airbus is suspending sale of parts and support services to airline customers in Russia. Reuters
    Airbus is suspending sale of parts and support services to airline customers in Russia. Reuters
  • Boeing has suspended major operations in Moscow and temporarily closed its office in Kyiv. It is also suspending parts, maintenance and technical support services for Russian airlines. Reuters
    Boeing has suspended major operations in Moscow and temporarily closed its office in Kyiv. It is also suspending parts, maintenance and technical support services for Russian airlines. Reuters
  • Nike has made merchandise purchases on its website and app unavailable in Russia as it cannot guarantee delivery of goods to customers in the country, an update on the sportswear maker's website showed. Bloomberg
    Nike has made merchandise purchases on its website and app unavailable in Russia as it cannot guarantee delivery of goods to customers in the country, an update on the sportswear maker's website showed. Bloomberg
  • German sportswear company Puma has stopped deliveries to Russia, but its 100 stores are open. Getty Images
    German sportswear company Puma has stopped deliveries to Russia, but its 100 stores are open. Getty Images
  • Shell is to exit all its Russian operations, including a major liquefied natural gas plant. The company also plans to end its involvement in the Nord Stream II gas pipeline from Russia to Germany. PA
    Shell is to exit all its Russian operations, including a major liquefied natural gas plant. The company also plans to end its involvement in the Nord Stream II gas pipeline from Russia to Germany. PA
  • BP is exiting its 19.75 per cent shareholding in Russian oil giant Rosneft after pressure from the UK government. BP has operated in Russia for more than 30 years. Reuters
    BP is exiting its 19.75 per cent shareholding in Russian oil giant Rosneft after pressure from the UK government. BP has operated in Russia for more than 30 years. Reuters
  • ExxonMobil will cease operations in Russia and refrain from making new investments in the country. It holds a 30 per cent stake, alongside Rosneft, Japan's Sodeco and India's ONGC Videsh, in the Sakhalin Island oil and gas fields in Russia’s far east. Its business in the country is valued at more than $4 billion. AFP
    ExxonMobil will cease operations in Russia and refrain from making new investments in the country. It holds a 30 per cent stake, alongside Rosneft, Japan's Sodeco and India's ONGC Videsh, in the Sakhalin Island oil and gas fields in Russia’s far east. Its business in the country is valued at more than $4 billion. AFP
  • Eni said it would withdraw from the Blue Stream gas pipeline linking Russia to Turkey, in which it has a 50 per cent stake. The company controls the gas pipeline -- which links the two countries via the Black Sea -- equally with Russian energy giant Gazprom. Reuters
    Eni said it would withdraw from the Blue Stream gas pipeline linking Russia to Turkey, in which it has a 50 per cent stake. The company controls the gas pipeline -- which links the two countries via the Black Sea -- equally with Russian energy giant Gazprom. Reuters
  • British Gas owner Centrica has said it will exit gas supply agreements with its Russian counterparts, including Gazprom. Centrica said it currently has a medium-term contract with Gazprom Marketing and Trading, the Russian energy company's UK entity, through which gas can be sourced from the open market. Reuters
    British Gas owner Centrica has said it will exit gas supply agreements with its Russian counterparts, including Gazprom. Centrica said it currently has a medium-term contract with Gazprom Marketing and Trading, the Russian energy company's UK entity, through which gas can be sourced from the open market. Reuters
  • Norwegian energy group Equinor said it will start the process of divesting from its joint ventures in Russia. Reuters
    Norwegian energy group Equinor said it will start the process of divesting from its joint ventures in Russia. Reuters
  • HSBC said it was starting to wind down relations with a host of Russian banks including the second-largest, VTB, one of those targeted by sanctions, a memo seen by Reuters showed. AFP
    HSBC said it was starting to wind down relations with a host of Russian banks including the second-largest, VTB, one of those targeted by sanctions, a memo seen by Reuters showed. AFP
  • Volkswagen suspended deliveries of cars to dealers in Russia. 'Deliveries are to resume as soon as the effects of the sanctions imposed by the European Union and the United States have been clarified', a VW representative said. AP
    Volkswagen suspended deliveries of cars to dealers in Russia. 'Deliveries are to resume as soon as the effects of the sanctions imposed by the European Union and the United States have been clarified', a VW representative said. AP
  • Swedish automaker Volvo Cars said it would suspend car shipments to the Russian market until further notice, becoming the first international car maker to do so. Supplied
    Swedish automaker Volvo Cars said it would suspend car shipments to the Russian market until further notice, becoming the first international car maker to do so. Supplied
  • GM said it would suspend all vehicle exports to Russia until further notice. The Detroit company does not have plants in Russia, only sells about 3,000 vehicles annually in the country and has limited supply-chain exposure. AFP
    GM said it would suspend all vehicle exports to Russia until further notice. The Detroit company does not have plants in Russia, only sells about 3,000 vehicles annually in the country and has limited supply-chain exposure. AFP
  • Danish shipping giant Maersk said that it would stop taking new non-essential orders to and from Russia, owing to sanctions imposed over Moscow's invasion of Ukraine. AFP
    Danish shipping giant Maersk said that it would stop taking new non-essential orders to and from Russia, owing to sanctions imposed over Moscow's invasion of Ukraine. AFP
  • Singapore-headquartered container shipping company Ocean Network Express has suspended bookings to and from Russia. Reuters
    Singapore-headquartered container shipping company Ocean Network Express has suspended bookings to and from Russia. Reuters
  • AerCap Holdings, the world's biggest plane lessor with about 5 per cent of its fleet leased to Russian airlines, said it will stop trading with Russian customers. Reuters
    AerCap Holdings, the world's biggest plane lessor with about 5 per cent of its fleet leased to Russian airlines, said it will stop trading with Russian customers. Reuters
  • US-based United Parcel Service said it is halting delivery services to Russia and Ukraine. Bloomberg
    US-based United Parcel Service said it is halting delivery services to Russia and Ukraine. Bloomberg
  • FedEx also said it is temporarily suspending inbound and outbound services to Ukraine and inbound services to Russia until further notice. AP
    FedEx also said it is temporarily suspending inbound and outbound services to Ukraine and inbound services to Russia until further notice. AP
  • Microsoft said it would remove Russian state-owned media outlet RT's mobile apps from its Windows App store and ban ads on Russian state-sponsored media. Reuters
    Microsoft said it would remove Russian state-owned media outlet RT's mobile apps from its Windows App store and ban ads on Russian state-sponsored media. Reuters
  • Google has barred RT and other Russian channels from receiving money for ads on websites, apps and YouTube videos. Reuters
    Google has barred RT and other Russian channels from receiving money for ads on websites, apps and YouTube videos. Reuters
  • German heavy-goods vehicle group Daimler Truck has said it will cease its co-operation with Russian lorry-maker Kamaz. AFP
    German heavy-goods vehicle group Daimler Truck has said it will cease its co-operation with Russian lorry-maker Kamaz. AFP
  • Motorcycle maker Harley-Davidson has suspended shipments of its bikes to Russia. Pictured, Russian President Vladimir Putin. Reuters
    Motorcycle maker Harley-Davidson has suspended shipments of its bikes to Russia. Pictured, Russian President Vladimir Putin. Reuters
  • Facebook owner Meta Platforms has restricted access to accounts run by Sputnik and RT in the EU. Reuters
    Facebook owner Meta Platforms has restricted access to accounts run by Sputnik and RT in the EU. Reuters
  • Apple has paused all product sales and limited the functionality of other services in Russia. Reuters
    Apple has paused all product sales and limited the functionality of other services in Russia. Reuters

______________________

Russia’s economy has taken a hit after the US and its allies took punitive actions against Moscow following its decision to undertake a military operation in Ukraine. Russian companies and oligarchs in President Vladimir Putin's inner circle face having their assets frozen, while European countries have closed their airspace to Russia's private and commercial aircraft.

Some Russian banks have also been barred from the Swift global financial network, while the US Treasury prohibited Americans from engaging in transactions with the Bank of Russia, the Russian Direct Investment Fund and the country's Ministry of Finance.

Russia’s central bank imposed capital controls on Monday and more than doubled interest rates to 20 per cent, their highest in nearly two decades, to support the currency. The Bank of Russia also restricted the transfer of coupon payments to foreign holders of rouble bonds and kept the Moscow stock exchange closed for a fourth day.

"Severe and coordinated sanctions imposed on Russia together with its retaliatory response in recent days have materially impaired its ability to execute cross-border transactions, including for sovereign debt payments," Moody's said.

"Russia's prohibition on transfers of foreign currency outside of the country in response to the sanctions, which appears at this stage not to apply to repayments of legacy debt, undermines Russia's track record of willingness to service its debt and leaves debt servicing flows highly vulnerable to further intervention."

Customers rushed to Russian Sberbank in the centre of Zagreb in an attempt to retrieve their money following Russia's military offensive in Ukraine. AFP
Customers rushed to Russian Sberbank in the centre of Zagreb in an attempt to retrieve their money following Russia's military offensive in Ukraine. AFP

On Wednesday, Russian lender Sberbank said it is exiting European markets as a result of big cash outflows and threats to its staff and property. On Wednesday, the European Union said it will also ban seven major Russian banks out of the Swift messaging system that facilitates global financial transactions effective March 12.

On Thursday, the London Stock Exchange suspended trading of 28 securities linked to Russia. Global index providers MSCI and FTSE Russell are also excluding Russian equities from their indexes tracked by investors with trillions of dollars of assets under management, stemming the flow of investments into Russia from a large segment of the investment-fund industry.

The majority of market participants deem Russia’s equity market “uninvestable” and its securities will be removed from emerging markets indexes effective March 9, MSCI said. FTSE Russell will be removing Russia equities from its index at a zero value on March 7.

The Russian rouble tanked as much as 28 per cent, falling to a record low of 118 against the US dollar at the start of trading on Monday, well above its 75 mark. The currency's freefall appeared to come to a halt on Tuesday but it fell again on Wednesday to 107.50 against the greenback. On Thursday it was 97.9 to the dollar at 7.11am UAE time.

The imposition of severe and co-ordinated sanctions led to "a significant confidence shock, which will likely result in a prolonged disruption to the economy and financial sector," Moody's said.

"A sustained depreciation of the rouble will have severe economic consequence in the form of higher inflation, a marked deceleration of economic activity and lower living standards. Significant deposits withdrawals that reduce liquidity in the banking system would add to the risks to financial stability and could require the government to step in to support the banking sector."

The review period for a potential further downgrade will allow Moody's to assess the extent of disruptions to forthcoming sovereign debt repayments, the agency said. It will continue to monitor further indications around Russia's willingness to pay, including the possibility of a further tightening of restrictions on foreign-currency transactions.

Russia has eurobond coupon payments of $117 million due on March 16, which if it fails to make or is delayed in paying, may lead to further changes to its ratings.

  • Damage after the shelling of buildings in central Kharkiv, Ukraine. EPA
    Damage after the shelling of buildings in central Kharkiv, Ukraine. EPA
  • Workers from a local construction company weld anti-tank obstacles to be placed on roads around Kyiv as Russia's invasion of Ukraine continues. Reuters
    Workers from a local construction company weld anti-tank obstacles to be placed on roads around Kyiv as Russia's invasion of Ukraine continues. Reuters
  • Anti-war protesters attach sunflowers to barriers in front of the Russian embassy. Reuters
    Anti-war protesters attach sunflowers to barriers in front of the Russian embassy. Reuters
  • Ukrainian volunteers prepare food for displaced people outside Lviv railway station in western Ukraine. AP
    Ukrainian volunteers prepare food for displaced people outside Lviv railway station in western Ukraine. AP
  • A Ukrainian soldier holds an anti-tank launcher north-east of Kyiv. AFP
    A Ukrainian soldier holds an anti-tank launcher north-east of Kyiv. AFP
  • Ukrainian refugees rest at Warsaw East train station in Poland. EPA
    Ukrainian refugees rest at Warsaw East train station in Poland. EPA
  • Children look out from a carriage window as a train prepares to depart from a station in Lviv to the town of Uzhhorod near the border with Slovakia. AFP
    Children look out from a carriage window as a train prepares to depart from a station in Lviv to the town of Uzhhorod near the border with Slovakia. AFP
  • A girl who fled Ukraine is reunited with her father in Medyka, south-eastern Poland. AP Photo
    A girl who fled Ukraine is reunited with her father in Medyka, south-eastern Poland. AP Photo
  • Tears outside a house damaged by a Russian airstrike in Gorenka, on the outskirts of Kyiv. AP Photo
    Tears outside a house damaged by a Russian airstrike in Gorenka, on the outskirts of Kyiv. AP Photo
  • A civil defence member is poised to shoot as a vehicle approaches a checkpoint in Gorenka. AP Photo
    A civil defence member is poised to shoot as a vehicle approaches a checkpoint in Gorenka. AP Photo
  • A Ukrainian civil defence member in the garden of a house damaged by a Russian airstrike. AP Photo
    A Ukrainian civil defence member in the garden of a house damaged by a Russian airstrike. AP Photo
  • Members of the US Army 3rd Infantry Division board a plane bound for Germany in Savannah, Georgia. EPA
    Members of the US Army 3rd Infantry Division board a plane bound for Germany in Savannah, Georgia. EPA
  • Prayers for peace in Ukraine at the Vatican's Saint Peter's Square. AFP
    Prayers for peace in Ukraine at the Vatican's Saint Peter's Square. AFP
  • A woman (right) hugs an arriving passenger from a train carrying refugees at Berlin's central station. EPA
    A woman (right) hugs an arriving passenger from a train carrying refugees at Berlin's central station. EPA
  • Firefighters battle a blaze in a Kharkiv police building hit by shelling. AFP
    Firefighters battle a blaze in a Kharkiv police building hit by shelling. AFP
  • A Ukrainian woman makes a phone call after crossing the Slovakian border. AFP
    A Ukrainian woman makes a phone call after crossing the Slovakian border. AFP
  • A doctor takes shelter in the basement of a Kyiv perinatal centre. Reuters
    A doctor takes shelter in the basement of a Kyiv perinatal centre. Reuters
  • Debris which locals say was caused by shelling in separatist-controlled Horlivka, Donetsk. Reuters
    Debris which locals say was caused by shelling in separatist-controlled Horlivka, Donetsk. Reuters
  • MPs in London give a standing ovation to Ukraine ambassador Vadym Prystaiko, who was in the public gallery. AP
    MPs in London give a standing ovation to Ukraine ambassador Vadym Prystaiko, who was in the public gallery. AP
  • Distraught women and children fleeing Ukraine wait to enter Poland at the Korczowa crossing. Getty
    Distraught women and children fleeing Ukraine wait to enter Poland at the Korczowa crossing. Getty
  • Newborn Ivan lies next to his mother as they shelter in the basement of a Kyiv perinatal centre. Reuters
    Newborn Ivan lies next to his mother as they shelter in the basement of a Kyiv perinatal centre. Reuters
  • Firefighters hand water to people in a Ukrainian train full of refugees in Przemysl, Poland. Reuters
    Firefighters hand water to people in a Ukrainian train full of refugees in Przemysl, Poland. Reuters
  • Ukrainian refugees queue to file for residency permits at Prague's police headquarters. AFP
    Ukrainian refugees queue to file for residency permits at Prague's police headquarters. AFP
  • Firefighters work to contain a blaze in buildings housing the Kharkiv regional police department. AFP
    Firefighters work to contain a blaze in buildings housing the Kharkiv regional police department. AFP
  • A woman and her children sit in a tent in the Kyiv subway, using it as a bomb shelter. AP
    A woman and her children sit in a tent in the Kyiv subway, using it as a bomb shelter. AP
  • Firefighters work to extinguish a blaze at the Kharkiv National University building, which city officials said was damaged by Russian shelling. Reuters
    Firefighters work to extinguish a blaze at the Kharkiv National University building, which city officials said was damaged by Russian shelling. Reuters
  • An elderly woman comforts a child as they take shelter inside an underground station in Kyiv. Reuters
    An elderly woman comforts a child as they take shelter inside an underground station in Kyiv. Reuters
  • People queue at a pharmacy in central Kyiv. Reuters
    People queue at a pharmacy in central Kyiv. Reuters
  • A woman is consoled by a volunteer after fleeing from Russia's invasion of Ukraine, at the border crossing in Siret, Romania. Reuters
    A woman is consoled by a volunteer after fleeing from Russia's invasion of Ukraine, at the border crossing in Siret, Romania. Reuters
  • A Ukrainian civilian in the city of Zhytomyr practises throwing petrol bombs. Reuters
    A Ukrainian civilian in the city of Zhytomyr practises throwing petrol bombs. Reuters
  • Ukrainian President Volodymyr Zelenskyy poses after an interview with Reuters in Kyiv. Reuters
    Ukrainian President Volodymyr Zelenskyy poses after an interview with Reuters in Kyiv. Reuters
  • A blast is seen at Kyiv's TV tower. Reuters
    A blast is seen at Kyiv's TV tower. Reuters
  • A girl in Siret, Romania, covers herself with a blanket after fleeing from Ukraine. Reuters
    A girl in Siret, Romania, covers herself with a blanket after fleeing from Ukraine. Reuters
  • Ukraine's ambassador to the US, Oksana Markarova, acknowledges applause from US first lady Jill Biden as they attend President Joe Biden's first State of the Union address in Washington. AFP
    Ukraine's ambassador to the US, Oksana Markarova, acknowledges applause from US first lady Jill Biden as they attend President Joe Biden's first State of the Union address in Washington. AFP
  • A man walks past the remains of Russian military vehicles in Bucha, close to Kyiv. AFP
    A man walks past the remains of Russian military vehicles in Bucha, close to Kyiv. AFP
  • Civilians cross a river on a blown-up bridge on Kyiv's northern front. Defending the capital is a 'key priority', Ukraine's president has said. AFP
    Civilians cross a river on a blown-up bridge on Kyiv's northern front. Defending the capital is a 'key priority', Ukraine's president has said. AFP
  • Russian aircraft on the ground at Luninets Airbase, Belarus, about 50 kilometres north of the Ukrainian border. AFP
    Russian aircraft on the ground at Luninets Airbase, Belarus, about 50 kilometres north of the Ukrainian border. AFP
  • People look at the gutted remains of Russian military vehicles on a road in the town of Bucha. AP
    People look at the gutted remains of Russian military vehicles on a road in the town of Bucha. AP
  • A woman with a child who fled from the war in Ukraine reunite with their family after crossing the border in Medyka, Poland. AP
    A woman with a child who fled from the war in Ukraine reunite with their family after crossing the border in Medyka, Poland. AP
  • Animal keeper Kirilo Trantin comforts an elephant at Kyiv Zoo. AP
    Animal keeper Kirilo Trantin comforts an elephant at Kyiv Zoo. AP
  • An armed man stands by the remains of a Russian military vehicle in Bucha. AP
    An armed man stands by the remains of a Russian military vehicle in Bucha. AP
  • Ukrainian families say goodbye as they prepare to board a bus to Poland at Lviv, western Ukraine. AP
    Ukrainian families say goodbye as they prepare to board a bus to Poland at Lviv, western Ukraine. AP
  • Paramedics move a man who was wounded by shelling in a residential area of Mariupol, south-eastern Ukraine. AP
    Paramedics move a man who was wounded by shelling in a residential area of Mariupol, south-eastern Ukraine. AP
  • Rescuers work at the site of a Russian strike in Zhytomyr. Reuters
    Rescuers work at the site of a Russian strike in Zhytomyr. Reuters
  • US actor and director Sean Penn attends a press briefing at the Presidential Office in Kyiv. Reuters
    US actor and director Sean Penn attends a press briefing at the Presidential Office in Kyiv. Reuters
  • Demonstrators participate in a protest against Russia’s invasion of Ukraine at Lafayette Square in Washington. AFP
    Demonstrators participate in a protest against Russia’s invasion of Ukraine at Lafayette Square in Washington. AFP
  • Ukrainian soldiers rest while others eat near the front line with Russian troops in northern Kyiv. AP
    Ukrainian soldiers rest while others eat near the front line with Russian troops in northern Kyiv. AP
  • A barricade made of trams, buses and sand bags is seen through the window of car in the northern part of Kyiv. AP
    A barricade made of trams, buses and sand bags is seen through the window of car in the northern part of Kyiv. AP
  • Members of the European Parliament applaud after Ukrainian President Volodymyr Zelenskyy's speech at a special session to debate its response to the Russian invasion of Ukraine. Reuters
    Members of the European Parliament applaud after Ukrainian President Volodymyr Zelenskyy's speech at a special session to debate its response to the Russian invasion of Ukraine. Reuters
  • Ambassadors and diplomats walk out as Russia's Foreign Minister Sergey Lavrov (on screen) speaks during a recorded message at the 49th session of the UN Human Rights Council in Geneva. EPA
    Ambassadors and diplomats walk out as Russia's Foreign Minister Sergey Lavrov (on screen) speaks during a recorded message at the 49th session of the UN Human Rights Council in Geneva. EPA
RESULTS
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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

Kibsons%20Cares
%3Cp%3E%3Cstrong%3ERecycling%3Cbr%3E%3C%2Fstrong%3EAny%20time%20you%20receive%20a%20Kibsons%20order%2C%20you%20can%20return%20your%20cardboard%20box%20to%20the%20drivers.%20They%E2%80%99ll%20be%20happy%20to%20take%20it%20off%20your%20hands%20and%20ensure%20it%20gets%20reused%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKind%20to%20health%20and%20planet%3C%2Fstrong%3E%3Cbr%3ESolar%20%E2%80%93%2025-50%25%20of%20electricity%20saved%3Cbr%3EWater%20%E2%80%93%2075%25%20of%20water%20reused%3Cbr%3EBiofuel%20%E2%80%93%20Kibsons%20fleet%20to%20get%2020%25%20more%20mileage%20per%20litre%20with%20biofuel%20additives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESustainable%20grocery%20shopping%3C%2Fstrong%3E%3Cbr%3ENo%20antibiotics%3Cbr%3ENo%20added%20hormones%3Cbr%3ENo%20GMO%3Cbr%3ENo%20preservatives%3Cbr%3EMSG%20free%3Cbr%3E100%25%20natural%3C%2Fp%3E%0A

Film: In Syria
Dir: Philippe Van Leeuw
Starring: Hiam Abbass, Diamand Bo Abboud, Mohsen Abbas and Juliette Navis
Verdict: Four stars

Pathaan
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Siddharth%20Anand%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Deepika%20Padukone%2C%20John%20Abraham%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
The specs: 2017 Ford F-150 Raptor

Price, base / as tested Dh220,000 / Dh320,000

Engine 3.5L V6

Transmission 10-speed automatic

Power 421hp @ 6,000rpm

Torque 678Nm @ 3,750rpm

Fuel economy, combined 14.1L / 100km

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills

Engine: 5.6-litre V8

Transmission: seven-speed automatic

Power: 400hp

Torque: 560Nm

Price: Dh234,000 - Dh329,000

On sale: now

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

You may remember …

Robbie Keane (Atletico de Kolkata) The Irish striker is, along with his former Spurs teammate Dimitar Berbatov, the headline figure in this season’s ISL, having joined defending champions ATK. His grand entrance after arrival from Major League Soccer in the US will be delayed by three games, though, due to a knee injury.

Dimitar Berbatov (Kerala Blasters) Word has it that Rene Meulensteen, the Kerala manager, plans to deploy his Bulgarian star in central midfield. The idea of Berbatov as an all-action, box-to-box midfielder, might jar with Spurs and Manchester United supporters, who more likely recall an always-languid, often-lazy striker.

Wes Brown (Kerala Blasters) Revived his playing career last season to help out at Blackburn Rovers, where he was also a coach. Since then, the 23-cap England centre back, who is now 38, has been reunited with the former Manchester United assistant coach Meulensteen, after signing for Kerala.

Andre Bikey (Jamshedpur) The Cameroonian defender is onto the 17th club of a career has taken him to Spain, Portugal, Russia, the UK, Greece, and now India. He is still only 32, so there is plenty of time to add to that tally, too. Scored goals against Liverpool and Chelsea during his time with Reading in England.

Emiliano Alfaro (Pune City) The Uruguayan striker has played for Liverpool – the Montevideo one, rather than the better-known side in England – and Lazio in Italy. He was prolific for a season at Al Wasl in the Arabian Gulf League in 2012/13. He returned for one season with Fujairah, whom he left to join Pune.

Results

4pm: Maiden; Dh165,000 (Dirt); 1,400m
Winner: Solar Shower; William Lee (jockey); Helal Al Alawi (trainer)

4.35pm: Handicap; Dh165,000 (D); 2,000m
Winner: Thaaqib; Antonio Fresu; Erwan Charpy.

5.10pm: Maiden; Dh165,000 (Turf); 1,800m
Winner: Bila Shak; Adrie de Vries; Fawzi Nass

5.45pm: Handicap; Dh175,000 (D); 1,200m
Winner: Beachcomber Bay; Richard Mullen; Satish Seemar

6.20pm: Handicap;​​​​​​​ Dh205,000 (T); 1,800m
Winner: Muzdawaj; Jim Crowley;​​​​​​​ Musabah Al Muhairi

6.55pm: Handicap;​​​​​​​ Dh185,000 (D); 1,600m
Winner: Mazeed; Tadhg O’Shea;​​​​​​​ Satish Seemar

7.30pm: Handicap; Dh205,000 (T); 1,200m
Winner: Riflescope; Tadhg O’Shea;​​​​​​​ Satish Seemar.

A cryptocurrency primer for beginners

Cryptocurrency Investing  for Dummies – by Kiana Danial 

There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine. 

Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.

Although cryptocurrencies are a fast evolving world, this  book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.

Begin your cryptocurrency journey here. 

Available at Magrudy’s , Dh104 

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Final results:

Open men
Australia 94 (4) beat New Zealand 48 (0)

Plate men
England 85 (3) beat India 81 (1)

Open women
Australia 121 (4) beat South Africa 52 (0)

Under 22 men
Australia 68 (2) beat New Zealand 66 (2)

Under 22 women
Australia 92 (3) beat New Zealand 54 (1)

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: March 06, 2022, 8:53 AM