A Russian navy frigate launches a Zircon hypersonic cruise missile during drills in the Mediterranean Sea. AP
A Russian navy frigate launches a Zircon hypersonic cruise missile during drills in the Mediterranean Sea. AP
A Russian navy frigate launches a Zircon hypersonic cruise missile during drills in the Mediterranean Sea. AP
A Russian navy frigate launches a Zircon hypersonic cruise missile during drills in the Mediterranean Sea. AP

Russia fires new generation hypersonic missiles in Mediterranean drills


Gillian Duncan
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Russia fired new generation hypersonic cruise missiles, including one capable of carrying nuclear warheads, during drills in the eastern Mediterranean, the country’s Defence Ministry said.

Crews of navy frigates fired Zircon hypersonic anti-ship missiles, while a submarine launched a Kalibr cruise missile, and an Onyx anti-ship missile was fired from the coat, the ministry said. The Kalibr is capable of carrying a nuclear warhead.

The number of Russian troops stationed in the region had been increased in time for the exercises.

The tests come as Russia air power attacks a Syrian rebel offensive where President Bashar Al Assad's forces have lost the second city of Aleppo. Moscow has been a key ally of Mr Al Assad since the Syrian civil war started in 2011.

Russia has a naval base in Syria at Tartus but the statement did not say where the drills took place.

“On December 3, during an exercise to test the combined activities of Russian navy and air force troop groups, precision sea-based missiles were launched in the eastern part of the Mediterranean Sea,” Russia's Defence Ministry said in a post on Telegram.

“In the course of preparing for the exercise, the Russian armed forces' troops grouping in the eastern Mediterranean was increased,” the ministry added.

Russian Navy frigate Admiral Gorshkov during military drills conducted in the eastern part of the Mediterranean Sea. Reuters
Russian Navy frigate Admiral Gorshkov during military drills conducted in the eastern part of the Mediterranean Sea. Reuters

More than 1,000 troops, 10 vessels and 24 aircraft were taking part in the drills, it said.

The ministry published images showing the launch of several missiles from ships and land and images of a target in open water being hit.

Meanwhile, Kremlin's spokesman Dmitry Peskov said on Wednesday Russia is not yet ready to enter negotiations to bring the war in Ukraine to an end.

“There are no grounds for negotiations yet,” Mr Peskov told the Izvestia newspaper. “Many countries have declared their readiness to provide their territory … And we are grateful to all countries for such goodwill, including Qatar”.

Qatar has mediated several returns of Ukrainian children taken to Russia from the conflict zone since the start of the war. Thousands of civilians, the vast majority of them Ukrainians, have been killed since Russia launched its invasion of the country in February 2022.

Valentina Matviyenko, Speaker of the Federation Council, Russia's upper house of parliament, said on Monday that there could be attempts to begin peace talks with Ukraine in 2025.

In late November, sources told Reuters that Russian President Vladimir Putin was open to discussing a ceasefire deal in Ukraine with president-elect Donald Trump and could agree to freeze the conflict along the front line. Russian troops control about 20 per cent of Ukraine's territory and have been advancing lately at the fastest pace since the early days of the war.

But the Kremlin has said repeatedly it will not negotiate with President Volodymyr Zelenskyy unless Ukraine renounces its plan to join Nato and withdraws troops from territories now controlled by Russian troops.

Kyiv, which on Tuesday declared that it would not settle for anything less than Nato membership to guarantee its security, has also said it will not compromise its territory.

With Mr Trump promising to bring the war to a swift end after taking office in January and naming an envoy to Ukraine who favours freezing battle lines, concerns are growing in Kyiv and among its allies that the terms of any potential ceasefire pact would favour Russia and leave Ukraine vulnerable.

US President Joe Biden's outgoing administration – Ukraine's largest supporter – has sought to bolster Kyiv before leaving office, allowing Ukraine to use its long-range missiles to strike into Russia.

On Monday, in the latest of similar moves, it approved another military aid package to Kyiv, this time worth $725 million.

Secretary of State Antony Blinken said that the latest arms shipments would include Stinger missiles, ammunition for High Mobility Artillery Rocket Systems, and drones and land mines.

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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. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: December 04, 2024, 1:08 PM