Russia's Foreign Minister Sergei Lavrov and his Emirati counterpart Sheikh Abdullah bin Zayed shake hands during a meeting. Reuters
Russia's Foreign Minister Sergei Lavrov and his Emirati counterpart Sheikh Abdullah bin Zayed shake hands during a meeting. Reuters
Russia's Foreign Minister Sergei Lavrov and his Emirati counterpart Sheikh Abdullah bin Zayed shake hands during a meeting. Reuters
Russia's Foreign Minister Sergei Lavrov and his Emirati counterpart Sheikh Abdullah bin Zayed shake hands during a meeting. Reuters

Russia is a strategic partner for the UAE, says Sheikh Abdullah bin Zayed


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Russia is a strategic partner for the UAE, Minister of Foreign Affairs and International Co-operation Sheikh Abdullah bin Zayed said on Tuesday as he welcomed his Russian counterpart to Abu Dhabi.

Sheikh Abdullah and Russia’s Foreign Minister Sergey Lavrov described their discussions as friendly and built on mutual trust.

“Sergey and I are very good friends who often compare notes not only on politics but on many other things and issues," Sheikh Abdullah said, adding the relationship went beyond diplomat speak.

He cited the strategic partnership agreement between both countries as a case in point as the UAE became the first country at the Gulf Co-operation Council (GCC) to sign such an accord with Russia.

Russian Foreign Minister Sergey Lavrov is in Abu Dhabi for talks. AFP
Russian Foreign Minister Sergey Lavrov is in Abu Dhabi for talks. AFP

The strategic partnership agreement signed in 2018 and the ties resulting from it are thanks to Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, Russian President Vladimir Putin and Mr Lavrov, Sheikh Abdullah said.

"Had it not been for these people, it would have been really difficult to develop such ties,” said Sheikh Abdullah, who has been in office since 2006.

Mr Lavrov told his counterpart it was high time both counties enhanced their co-operation at the economic, high-tech and security levels.

“We share common ground on a wide array of issues and value our strategic partnership,” said Mr Lavrov, who has served as Russia’s foreign minister since 2004.

Iran is holding much of the region’s attention and Mr Lavrov said Russia welcomes the US drive towards rejoining the 2015 nuclear accord with Tehran.

“There are growing voices that say more needs to be discussed, that Iran's missile programme needs to stop, that Iran’s regional activities need to stop. The Iran deal needs to be treated separately, we should not incorporate any other elements or concern no matter how grave they may be,” he said.

“We believe that the parties should tackle the Iranian issue in simultaneous steps.”

As Syria approaches 10 years of civil war, Sheikh Abdullah said it should return to the Arab fold, but the “Syrian regime and the Arab League should exert more efforts.”

He added that the main obstacle to co-ordination with Syria was the US Caesar Act, the latest round of American sanctions imposed on Damascus.

“It’s extremely difficult to co-operate with Syria in some issues because of this Act, not just at the state level but for the private sector as well. We expressed our opinion frankly to the US,” said Sheikh Abdullah.

Syria has already been under US and European Union sanctions that have frozen the assets of the state and hundreds of companies and individuals. Washington already bans export and investment to Syria by Americans, as well as transactions involving oil and hydrocarbon products.

But the new sanctions can freeze the assets of anyone dealing with Syria, regardless of nationality, and cover many more sectors. It also targets those dealing with entities from Russia and Iran, Assad’s main backers.

Syrian authorities blame Western sanctions for widespread hardship among ordinary residents, where the currency’s free fall collapse.

At the news conference, the Russian foreign minister also said that Moscow hoped the UAE would use the Sputnik V Covid-19 vaccines as part of its national campaign.

They also touched on recent space co-operation, the UAE's mission to Mars and bilateral trade.

The two men also discussed regional issues, with Mr Lavrov saying Russia was standing by to work with the UAE to help solve the Palestinian-Israeli conflict.

________________

Gallery: Sergey Lavrov receives Order of the Union from Crown Prince of Abu Dhabi

  • Sergei Lavrov and Sheikh Abdullah bin Zayed pictured in Abu Dhabi on March 9, 2021. Courtesy: Russian Foreign Ministry / EPA
    Sergei Lavrov and Sheikh Abdullah bin Zayed pictured in Abu Dhabi on March 9, 2021. Courtesy: Russian Foreign Ministry / EPA
  • Mr Lavrov led the highest level delegation to Abu Dhabi since Vladimir Putin's visit in 2019. Courtesy: Russian Foreign Ministry
    Mr Lavrov led the highest level delegation to Abu Dhabi since Vladimir Putin's visit in 2019. Courtesy: Russian Foreign Ministry
  • Sheikh Abdullah bin Zayed speaks at a news conference with Mr Lavrov. Russian Foreign Ministry / Reuters
    Sheikh Abdullah bin Zayed speaks at a news conference with Mr Lavrov. Russian Foreign Ministry / Reuters
  • Mr Lavrov took questions on tackling Iran's nuclear missile programme among other areas. Courtesy: Russian Foreign Ministry
    Mr Lavrov took questions on tackling Iran's nuclear missile programme among other areas. Courtesy: Russian Foreign Ministry
  • Sheikh Abdullah said the relationship with Russia had special 'strategic partner' status. Courtesy: Russian Foreign Ministry
    Sheikh Abdullah said the relationship with Russia had special 'strategic partner' status. Courtesy: Russian Foreign Ministry
  • Mr Lavrov later met with Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed, who awarded him the Order of the Union, one of the UAE's highest civilian honours. Mohamed Al Hammadi / Ministry of Presidential Affairs
    Mr Lavrov later met with Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed, who awarded him the Order of the Union, one of the UAE's highest civilian honours. Mohamed Al Hammadi / Ministry of Presidential Affairs
  • Sergey Lavrov with Sheikh Mohamed bin Zayed. Mohamed Al Hammadi / Ministry of Presidential Affairs
    Sergey Lavrov with Sheikh Mohamed bin Zayed. Mohamed Al Hammadi / Ministry of Presidential Affairs
  • (L-R) Sheikh Abdullah bin Zayed, Dr Anwar bin Mohamed Gargash, Diplomatic Advisrr to the President, Sheikh Hamdan bin Mohamed bin Zayed, Mohamed Mubarak Al Mazrouei, Undersecretary of the Crown Prince Court, and Sheikh Mohamed bin Hamad bin Tahnoon at Al Shati Palace. Mohamed Al Hammadi / Ministry of Presidential Affairs
    (L-R) Sheikh Abdullah bin Zayed, Dr Anwar bin Mohamed Gargash, Diplomatic Advisrr to the President, Sheikh Hamdan bin Mohamed bin Zayed, Mohamed Mubarak Al Mazrouei, Undersecretary of the Crown Prince Court, and Sheikh Mohamed bin Hamad bin Tahnoon at Al Shati Palace. Mohamed Al Hammadi / Ministry of Presidential Affairs
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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. 

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