Presidents Emmanuel Macron, right, and Vladimir Putin pictured during previous talks at the Kremlin in Moscow. EPA
Presidents Emmanuel Macron, right, and Vladimir Putin pictured during previous talks at the Kremlin in Moscow. EPA
Presidents Emmanuel Macron, right, and Vladimir Putin pictured during previous talks at the Kremlin in Moscow. EPA
Presidents Emmanuel Macron, right, and Vladimir Putin pictured during previous talks at the Kremlin in Moscow. EPA

Macron seeks breakthrough on Iran in first talks with Putin since 2022


Sunniva Rose
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French President Emmanuel Macron and his Russian counterpart Vladimir Putin discussed how to re-establish international control over Iran's nuclear programme in their first call in nearly three years.

The two-hour discussion between the leaders, who stopped talking after Russia's 2022 invasion of Ukraine, was dictated by the urgency of the situation in Iran. The Kremlin described the call as "very substantive" and said it was France that asked for it to take place.

Iran's nuclear facilities are believed to have been heavily damaged by US strikes but western powers now fear the country will leave the Treaty on the Non-Proliferation of Nuclear Weapons.

Mr Putin said he was open to discussing Iran's nuclear programme within the framework of the permanent members of the UN Security Council – Russia, China, France, the UK and the US – sources said. The Russian leader also said he could hold talks bilaterally or within a separate format involving Germany, the UK and France.

France views the Iranian nuclear threat as sufficiently serious to justify the involvement of all five countries. Mr Macron is scheduled to speak soon to Chinese President Xi Jinping.

Foreign Minister Jean-Noel Barrot on Wednesday said France was “broadening discussions to other permanent members of the UN Security Council who were also signatories to the 2015 agreement” on Iran's nuclear programme, known as the Joint Comprehensive Plan of Action. “It is in this context that the President spoke to Vladimir Putin yesterday,” Mr Barrot added.

A satellite image shows the Fordow nuclear plant in Iran after the US strike. Maxar Technologies via AP
A satellite image shows the Fordow nuclear plant in Iran after the US strike. Maxar Technologies via AP

France and Russia have diverging views on Iran's nuclear programme. Mr Macron recently sided with US and Israeli demands of zero enrichment, while Mr Putin, an Iranian ally, said during his call with the French President on Tuesday evening that it was necessary to respect Iran's right to the peaceful development of nuclear energy.

The Kremlin said Mr Putin also insisted Iran must continue to comply with its obligations under the nuclear non-proliferation treaty.

Strikes 'won't stop Iran'

The US strikes “certainly damaged and delayed [Iran's nuclear programme] even though it is difficult to have a comprehensive assessment of those military operations”, Mr Barrot said.

However, the strikes “will not stop Iran from rebuilding its nuclear programme tomorrow”, he added. He said a “negotiated solution” was necessary to stop Iran from ending co-operation with the International Atomic Energy Agency or leaving the non-proliferation treaty.

Some politicians hope Iran will be open to negotiations despite taking a hard line against the IAEA. Deputy Foreign Minister Majid Takht-e Ravanchi said his country was open to resuming diplomatic talks with the US as long as more American strikes were ruled out. Mr Takht-e Ravanchi added Iran would “insist” on being able to enrich uranium for what it says are peaceful purposes.

In their phone call, the Russian and French presidents also discussed the war in Ukraine. In a context in which both the US and Ukraine are holding talks with Russia, it was important for France to also open a channel of discussions with Mr Putin, informed sources said.

Mr Macron asked Mr Putin to set aside old grievances against Ukraine and focus on the current situation. But Mr Putin reiterated his position to Mr Macron that the war was “a direct consequence of the West's policy”, which he said had “ignored Russia's security interests”.

Any possible peace agreement between Russia and Ukraine should have a “comprehensive and long-term character” and be based on “new territorial realities”, the Kremlin quoted Mr Putin as saying.

He has previously said Ukraine must accept Russia's annexation of swathes of its territory as part of any peace deal.

Mr Macron, who briefed Ukrainian President Volodymyr Zelenskyy before and after the talks with Mr Putin, has said Ukraine alone should decide whether or not to accept territorial concessions.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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