Ukrainian recruits undergoing training in the Zaporizhzhia region. EPA
Ukrainian recruits undergoing training in the Zaporizhzhia region. EPA
Ukrainian recruits undergoing training in the Zaporizhzhia region. EPA
Ukrainian recruits undergoing training in the Zaporizhzhia region. EPA

Are Russia and Ukraine ready to accept 'frozen conflict' after years of fighting?


Thomas Harding
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After heavy casualties, a huge loss of equipment and major damage to infrastructure, are Russia and Ukraine prepared to move towards an end to the war?

The National has learnt that senior military officials from Ukraine would accept a “frozen-in-place” conflict in return for a halt to the fighting. Russian analysts have argued that Moscow would be content to bring an end to the advances it has made at great cost, to allow its battered forces to rebuild.

Concessions could need to be made by both sides, with an opening round of peace talks to follow Friday’s Alaska summit between Russian President Vladimir Putin and US President Donald Trump, if the meeting takes place without a hiccup.

Former British military intelligence officer Lynette Nusbacher told The National that Russia could be grateful for "rest and recuperation", before fighting flares again in years to come. Meanwhile, intelligence expert Frank Ledwidge has detected indications from Ukraine that it realises the game is up and it needs to protect what is left of the country, before support from countries such as the US ebbs away.

Ukrainian soldiers fire at Russian positions in Ukraine. Getty Images
Ukrainian soldiers fire at Russian positions in Ukraine. Getty Images

Land grabbed

In Ukraine, it is against the constitution to give up sovereign territory, but the reality is that Russia has seized 115,000 square kilometres, about one fifth of the country, since 2014.

Kyiv has tried to reclaim territory. It was highly successful in retaking land in the summer following Russia’s invasion in February 2022. Armed with advanced western hardware, Ukraine hoped to break through the front line the following year, but that push failed.

Since then, Russia has undertaken an immense attritional offensive, at times losing up to 1,570 people a day, according to UK Defence Ministry estimates, while moving the front lines forward incrementally.

Drone army

Its war machine has also kicked in, with industry able to develop a major drone army that could generate 40,000 of the Geran-2 attack models this year.

Waves of drones are causing civilian deaths and infrastructure damage, with a record 6,200 Geran-2 drones, which are based on the Iranian Shahed 136, fired into Ukraine in July. Analysts say Russia has learnt “the hard way” that drones are the primary weapon of modern warfare and in recent months that has seen success.

Although the casualty rate by modern standards is horrific – the UK Ministry of Defence said the average daily toll was 1,070 last month – it is declining gradually, despite Russia taking more territory.

Its military has also adapted by using fewer armoured vehicles, which are easy prey for drones, and instead moving troops to the front lines using motorbikes.

Moscow’s own drone use has expanded to the point that Ukraine’s ground lines of communication, which are used to move troops, ammunition, food and fuel forward, are under intense pressure up to 20km from the front line.

Changing conditions

Russian generals are also aware they have Ukraine’s military under enough pressure to continue its creeping summer offensive until the end of September, when the heavy rain of the so-called autumn rasputitsa makes roads impassable.

Russia is likely to recommend a ceasefire, with the front lines to be frozen in place, after it seizes as much territory as possible Ms Nusbacher said. “Russia would consider it a good three years’ effort if at this point they could step back from the fight for a few years, holding the relevant five chunks of Ukraine,” she added.

“Freezing the conflict for a period of time is optimally a moment when the Russians hold as much of Ukraine as possible, then they can rearm and reconstitute their forces.”

Russia will use the rest well, she said. It would take months or a few years – as it did after the 2014 annexation of Crimea and Donbas – to prepare for its next invasion.

A damaged street in Bucha, Ukraine. The war has caused widespread damage. Getty Images
A damaged street in Bucha, Ukraine. The war has caused widespread damage. Getty Images

Content to cede

To prevent that, much depends on what security guarantees Nato, and especially the US, can give Ukraine and whether a “coalition of the willing” defensive western force is viable to deter another attack.

That will also have a major bearing on whether Ukraine concedes to accept the de facto position – which Mr Trump supports – that Ukraine needs to give up one fifth of its country in return for peace.

But Mr Ledwidge said that senior military officials in Ukraine told him during his visit to the country this week that accepting a frozen conflict was realistic.

“For the first time in three years I've been coming here, they said they understand that realistically Nato membership may not be practicable and they would be prepared to lose land, in a de facto sense rather than legal one, as they understand the reality of situation,” he told The National from Kyiv. “That's what they're prepared to countenance.”

Mr Ledwidge was surprised by the change in position, but said the officials accepted “we'll probably end up with frozen conflict for a long time to come”.

UK Prime Minister Keir Starmer welcomes Ukrainian President Volodymyr Zelenskyy to Downing Street. PA
UK Prime Minister Keir Starmer welcomes Ukrainian President Volodymyr Zelenskyy to Downing Street. PA

Holding on

With diminished military aid, Russian advances and the menace of a massive drone barrage, Ukraine is holding on, but only just. If Mr Trump decides Kyiv must be forced to accept territorial concessions, he could cut off US intelligence assistance. When that happened earlier this year, Ukraine lost a large chunk of territory and had little warning of incoming air raids.

The problem for Moscow is that, over three years of war, Russia has been “unable to convert its territorial gains into a Ukrainian capitulation” and that was unlikely to change in the Alaska talks, Ms Nusbacher said.

There is a suggestion that a deal could be reached in which Russia holds security and economic control over seized territory, in a similar way to how Israel occupies the West Bank. Mr Putin could be lured towards such a prospect with offers of mineral exploitation in seized territory. There is also a danger that rejection of an agreement by Mr Zelenskyy “might remove any further vestiges of US support", Ms Nusbacher said.

That would greatly weaken Ukraine’s position and “would be decisive in causing it a rapid defeat by Russia”, said Brig Ben Barry, of the International Institute for Strategic Studies think tank. He added that he did not see “a sense of urgency that we really need to ramp up our support” from the West.

Russian President Vladimir Putin. Reuters
Russian President Vladimir Putin. Reuters

Diplomatic moves

But Mr Zelenskyy will be hopeful a round of diplomacy this week will help shore up his position, stating that the US was “ready to support us”, after a remote video conference with the American and European leaders.

A ceasefire is still possible, with Mr Trump announcing there would be “very severe consequences” if Mr Putin did not accept a truce. UK Prime Minister Keir Starmer, who welcomed Mr Zelenskyy to Downing Street in a show of support on Thursday, also stated there was a “viable chance as long as Putin takes action to prove he is serious about peace”.

The Ukraine military wants to be able to hold out until the rasputitsa then “see what happens”, with the potential that US sanctions could severely damage Russia’s economy and Moscow loses its extraordinary ability to still recruit 30,000 troops a month.

“The Ukrainians are very concerned about the tactical side, but they’re just holding out on their own, just waiting for what comes next,” Mr Ledwidge said.

Ultimately, Ukraine is fighting for its sovereignty and it was “not going to stop fighting if their current leader has stepped out of the picture", senior Kyiv officers have told Ms Nusbacher.

But if Mr Putin was to leave office, that would be "a significant change in Russia's ability to continue to prosecute this war”, she added. That meant that any deal from Alaska “has ultimately got a fairly short sell-by date”.

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.”

Fireball

Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.

A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.

"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.

Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.

If you go

The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

 


 

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
UAE currency: the story behind the money in your pockets

First Person
Richard Flanagan
Chatto & Windus 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

UNSC Elections 2022-23

Seats open:

  • Two for Africa Group
  • One for Asia-Pacific Group (traditionally Arab state or Tunisia)
  • One for Latin America and Caribbean Group
  • One for Eastern Europe Group

Countries so far running: 

  • UAE
  • Albania 
  • Brazil 
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

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

The specs: 2018 Audi R8 V10 RWS

Price: base / as tested: From Dh632,225

Engine: 5.2-litre V10

Gearbox: Seven-speed automatic

Power: 540hp @ 8,250rpm

Torque: 540Nm @ 6,500rpm

Fuel economy, combined: 12.4L / 100km

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Fifa%20World%20Cup%20Qatar%202022%20
%3Cp%3E%3Cstrong%3EFirst%20match%3A%20%3C%2Fstrong%3ENovember%2020%0D%3Cbr%3E%3Cstrong%3EFinal%2016%20round%3A%20%3C%2Fstrong%3EDecember%203%20to%206%0D%3Cbr%3E%3Cstrong%3EQuarter-finals%3A%20%3C%2Fstrong%3EDecember%209%20and%2010%0D%3Cbr%3E%3Cstrong%3ESemi-finals%3A%20%3C%2Fstrong%3EDecember%2013%20and%2014%0D%3Cbr%3E%3Cstrong%3EFinal%3A%20%3C%2Fstrong%3EDecember%2018%3C%2Fp%3E%0A
Countries recognising Palestine

France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra

 

'Fantastic Beasts: The Secrets of Dumbledore'

Rating: 3/5

Directed by: David Yates

Starring: Mads Mikkelson, Eddie Redmayne, Ezra Miller, Jude Law

Voy!%20Voy!%20Voy!
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Omar%20Hilal%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Muhammad%20Farrag%2C%20Bayoumi%20Fouad%2C%20Nelly%20Karim%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%208
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2041mm%2C%20352%20x%20430%3B%2045mm%2C%20396%20x%20484%3B%20Retina%20LTPO%20OLED%2C%20up%20to%201000%20nits%2C%20always-on%3B%20Ion-X%20glass%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20S8%2C%20W3%20wireless%2C%20U1%20ultra-wideband%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECapacity%3A%3C%2Fstrong%3E%2032GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%201GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20watchOS%209%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EHealth%20metrics%3A%3C%2Fstrong%3E%203rd-gen%20heart%20rate%20sensor%2C%20temperature%20sensing%2C%20ECG%2C%20blood%20oxygen%2C%20workouts%2C%20fall%2Fcrash%20detection%3B%20emergency%20SOS%2C%20international%20emergency%20calling%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20GPS%2FGPS%20%2B%20cellular%3B%20Wi-Fi%2C%20LTE%2C%20Bluetooth%205.3%2C%20NFC%20(Apple%20Pay)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP6X%2C%20water%20resistant%20up%20to%2050m%2C%20dust%20resistant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%20308mAh%20Li-ion%2C%20up%20to%2018h%2C%20wireless%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECards%3A%3C%2Fstrong%3E%20eSIM%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFinishes%3A%3C%2Fstrong%3E%20Aluminium%20%E2%80%93%20midnight%2C%20Product%20Red%2C%20silver%2C%20starlight%3B%20stainless%20steel%20%E2%80%93%20gold%2C%20graphite%2C%20silver%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20Watch%20Series%208%2C%20magnetic-to-USB-C%20charging%20cable%2C%20band%2Floop%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Starts%20at%20Dh1%2C599%20(41mm)%20%2F%20Dh1%2C999%20(45mm)%3C%2Fp%3E%0A
The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Updated: August 15, 2025, 2:00 AM