The aftermath of a Russian missile strike in Kharkiv. Photo: Reuters
The aftermath of a Russian missile strike in Kharkiv. Photo: Reuters
The aftermath of a Russian missile strike in Kharkiv. Photo: Reuters
The aftermath of a Russian missile strike in Kharkiv. Photo: Reuters

'Fierce battle' under way in Ukraine after Russians launch surprise attack on Kharkiv


Tariq Tahir
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Ukrainian forces were engaged in a “fierce battle” with Russian troops who launched a surprise attack in the Kharkiv region, President Volodymyr Zelenskyy said on Saturday.

About 2,000 civilians were evacuated from the area after Moscow’s forces had advanced by a kilometre, in what Ukraine's military officials think is an attempt to try to create “a buffer zone” to prevent attacks on Russian territory.

The Russian assault began hours after the US announced a new $400 million military aid package for Kyiv.

The Kharkiv region has been under Ukrainian control since September 2022 when they pushed out Russian forces who had occupied the area during the initial invasion.

Ukraine's army rushed in reinforcements to defend the region after Russia launched the attack early on Friday, breaking through Ukrainian lines with the support of armoured vehicles and artillery.

“Russia launched a new wave of counter-offensive actions in this area,” said Mr Zelenskyy.

“Ukraine met them there with our troops, brigades and artillery. Now there is a fierce battle under way.”

A local official said there was “massive shelling” in Vovchansk, a town of about 3,000 people, five kilometres from the Russian border.

Ukraine President Volodymyr Zelenskyy said Russia launched a new wave of counter-offensive actions. Photo: Reuters
Ukraine President Volodymyr Zelenskyy said Russia launched a new wave of counter-offensive actions. Photo: Reuters

Russian shelling killed three people in the Kharkiv region and two others in the eastern region of Donetsk, another hotspot, local officials said.

Russia claimed to have captured at least two villages in the region this week.

President Vladimir Putin said in March he was considering creating a “sanitary zone” in Ukrainian territory adjoining Belgorod, a Russian region that is frequently the target of Ukrainian shelling.

The US-based Institute for the Study of War said on Friday that Russia had made “tactically significant gains”.

But the main aim of the operation was “drawing Ukrainian manpower and materiel from other critical sectors of the front in eastern Ukraine,” it said.

Hundreds of Ukrainian civilians were forced to flee the fighting in the Kharkiv region. Reuters
Hundreds of Ukrainian civilians were forced to flee the fighting in the Kharkiv region. Reuters

National Security Council spokesman John Kirby said the US was “confident” in the Ukrainians and “working around the clock to get them the equipment, the tools, the weapons that they need to defend against these attacks”.

“It is possible that Russia will make further advances in the coming weeks, but we do not anticipate any major breakthroughs, and over time, the influx of US assistance will enable Ukraine to withstand these attacks over the course of 2024,” he said.

“Russia will likely increase the intensity of fire and commit additional troops in an attempt to establish a shallow buffer zone along the Ukrainian border.”

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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