Last week France hosted the commemorations of the 70th anniversary of D-Day, the allied landing in Normandy that marked the beginning of the end of the Second World War. On the margins of the ceremonies, Vladimir Putin, the Russian president, shook hands with the newly elected Ukrainian leader Petro Poroshenko. After months of bloody fighting in the eastern border regions that took Ukraine and Russia to the brink of an all-out war, this has done more for de-escalating the conflict than the desperate diplomacy of the US and the European Union.
During their 15-minute meeting, Mr Putin and Mr Poroshenko discussed a ceasefire and negotiations for a peaceful settlement of the crisis that has plunged east-west relations to their lowest point since the Cold War. None of this solves the sheer hostility between Moscow and Kiev or the battle that pits Ukraine’s pro-western leadership against pro-Russian separatists who enjoy the Kremlin’s backing.
But the handshake suggests that Russia recognises the legitimacy of the new Ukrainian president, which removes the single greatest obstacle to resuming meaningful bilateral relations. So the risk of an all-out war is rapidly receding.
In reality, however, the next phase of the conflict has already begun, as new threats to regional and global stability are coming to the fore. In the next weeks and months, the focus will shift from territorial quarrels to the energy disputes that have the potential to derail the European and world economic recovery.
Indeed, Russia and Ukraine have been waging gas wars since 2005 when the so-called Orange Revolution brought to power the pro-western leader Victor Yushchenko, who declared Ukraine a market economy. In response, the Kremlin demanded changes to the long-term contracts that included vastly preferential prices for Moscow’s gas deliveries to Kiev – de facto subsidies to the tune of several billions dollars a year.
When Mr Yushchenko refused to accept higher prices, Russia’s state-owned giant Gazprom turned off the tap. But since Ukraine is a transit country for Russian energy supply to the rest of Europe, this quickly turned into a pan-European crisis. Kiev was accused of diverting gas for domestic consumption, which should have gone to other countries. There was a repeat of the gas war in the winter of 2009, which left hundreds of thousands of households across Europe without sufficient energy. Some elderly people died of hypothermia in their own homes.
In the absence of a Russian military incursion into eastern Ukraine, energy is now much more explosive than territory. The euphemism of global interdependence does not begin to capture the depth and breadth of oil and gas ties that bind Europe to Russia. The bulk of Russian energy flows through an intricate network of pipelines, starting with Ukraine. If Mr Putin and Mr Poroshenko can’t strike a deal (including over Kiev’s late payments that Moscow wants to receive in cash), then the Ukrainian economy will collapse and the new leadership will lose legitimacy. Similarly, economic turmoil will weaken popular support for Russia’s ruling regime.
US shale gas has been hailed as a revolution that will decrease dependency on Moscow and reduce global energy prices, thus threatening the economic foundations of Mr Putin’s authoritarian system. However, the costs will by far exceed the price charged by the Kremlin. The US would dearly love to replace Russia as Europe’s main supplier but this is many decades away, if it ever happens.
Much the same goes for Russia’s Asia-Pacific pivot: the recently signed mega-deal with China worth more than US$400 billion (Dh1,469bn) does not start until 2018, with Siberian gas transports building up gradually to 38bn cubic metres a year. Beijing has already struck separate deals with Central Asian countries such as Kazakhstan and Turkmenistan that are Russia’s rivals.
The EU’s desire to diversify energy supply away from Russia is understandable but unrealistic, as the alternatives – from parts of the Middle East and North Africa – are hardly more reliable. A number of European countries want direct ties with Russia that circumvent volatile transit states such as Ukraine. One such example is Nord Stream, a pipeline that has supplied Germany with Russian gas since 2011 while also bypassing countries that are hostile to Moscow like the Baltic States and Poland.
Other European countries are keen on South Stream, an ambitious pipeline project that will connect Russia to the wider European south from 2018 onwards without passing through Ukraine. Beneficiaries include Bulgaria, Serbia, Croatia, Hungary, Slovenia, Austria and Italy.
The current crisis has led the US and some EU allies to call for the suspension of South Stream in order to loosen the Kremlin’s grip on Europe.
But this clashes with the mutual economic interests and the close cultural ties between Russia and countries like Bulgaria or Serbia that are almost entirely dependent on Moscow’s energy supplies. They can’t afford another cut-off. While Mr Putin is less concerned about Russia’s reputation, he needs western money and technology to open up new supply lines in the Arctic.
Even if the threat of military confrontation between Russia, Ukraine and the West is waning, energy and trade wars could hit all sides hard, raising prices and political uncertainty.
The repercussions for global political and economic stability are hard to overstate.
Just when the World Cup is about to kick off in Brazil, old-style Cold War thinking has turned gas into a political football game in which all sides are losers.
Adrian Pabst is senior lecturer in Politics at Britain’s University of Kent and visiting professor at the Institut d’Etudes Politiques de Lille (Sciences Po), France
DUNE: PART TWO
Director: Denis Villeneuve
Starring: Timothee Chamalet, Zendaya, Austin Butler
Rating: 5/5
ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
The specs: Rolls-Royce Cullinan
Price, base: Dh1 million (estimate)
Engine: 6.75-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 563hp @ 5,000rpm
Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
Drishyam 2
Directed by: Jeethu Joseph
Starring: Mohanlal, Meena, Ansiba, Murali Gopy
Rating: 4 stars
Killing of Qassem Suleimani
Company Profile
Name: Takestep
Started: March 2018
Founders: Mohamed Khashaba, Mohamed Abdallah, Mohamed Adel Wafiq and Ayman Taha
Based: Cairo, Egypt
Sector: health technology
Employees: 11 full time and 22 part time
Investment stage: pre-Series A
When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
Fight card
Bantamweight
Siyovush Gulmamadov (TJK) v Rey Nacionales (PHI)
Lightweight
Alexandru Chitoran (ROM) v Hussein Fakhir Abed (SYR)
Catch 74kg
Tohir Zhuraev (TJK) v Omar Hussein (JOR)
Strawweight (Female)
Weronika Zygmunt (POL) v Seo Ye-dam (KOR)
Featherweight
Kaan Ofli (TUR) v Walid Laidi (ALG)
Lightweight
Leandro Martins (BRA) v Abdulla Al Bousheiri (KUW)
Welterweight
Ahmad Labban (LEB) v Sofiane Benchohra (ALG)
Bantamweight
Jaures Dea (CAM) v Nawras Abzakh (JOR)
Lightweight
Mohammed Yahya (UAE) v Glen Ranillo (PHI)
Lightweight
Alan Omer (GER) v Aidan Aguilera (AUS)
Welterweight
Mounir Lazzez (TUN) Sasha Palatnikov (HKG)
Featherweight title bout
Romando Dy (PHI) v Lee Do-gyeom (KOR)
MATCH SCHEDULE
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes. Portland is a 260 km drive from Seattle and Emirates offers codeshare flights to Portland with its partner Alaska Airlines.
The car
Hertz (www.hertz.ae) offers compact car rental from about $300 per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
Parks and accommodation
For information on Crater Lake National Park, visit www.nps.gov/crla/index.htm . Because of the altitude, large parts of the park are closed in winter due to snow. While the park’s summer season is May 22-October 31, typically, the full loop of the Rim Drive is only possible from late July until the end of October. Entry costs $25 per car for a day. For accommodation, see www.travelcraterlake.com. For information on Umpqua Hot Springs, see www.fs.usda.gov and https://soakoregon.com/umpqua-hot-springs/. For Bend, see https://www.visitbend.com/.
Changing visa rules
For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.
Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.
It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.
The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.
The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
UAE currency: the story behind the money in your pockets
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.
PSG's line up
GK: Alphonse Areola (youth academy)
Defence - RB: Dani Alves (free transfer); CB: Marquinhos (€31.4 million); CB: Thiago Silva (€42m); LB: Layvin Kurzawa (€23m)
Midfield - Angel di Maria (€47m); Adrien Rabiot (youth academy); Marco Verratti (€12m)
Forwards - Neymar (€222m); Edinson Cavani (€63m); Kylian Mbappe (initial: loan; to buy: €180m)
Total cost: €440.4m (€620.4m if Mbappe makes permanent move)
More from Armen Sarkissian
Match info
Deccan Gladiators 87-8
Asif Khan 25, Dwayne Bravo 2-16
Maratha Arabians 89-2
Chadwick Walton 51 not out
Arabians won the final by eight wickets
TO ALL THE BOYS: ALWAYS AND FOREVER
Directed by: Michael Fimognari
Starring: Lana Condor and Noah Centineo
Two stars
EA Sports FC 24
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, PC and Xbox One
Rating: 3.5/5
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)