Wolfgang Ischinger, one of the most eminent former German diplomats, recalled last week asking a Russian counterpart in the 1990s about Moscow’s relations with its neighbours. Even in the early post-Cold War period – when Russia was relatively weak on the global stage – the response was implacable. "What is wrong with having our neighbours fear us?," came the reply.
The encounter has resonance today as the crisis in Ukraine envelops diplomacy, with some in the West asking if Germany is one of those neighbours that retains an element of fear in its relations with Russia.
The three big European powers – France, Germany and the UK – have all taken distinct policy approaches to the events in Ukraine. It’s worth breaking down the reckoning in each capital and assessing the outsized role that geography is playing in the response.
Germany sees Russian President Vladimir Putin targeting a historic moment, partly because the departure of Angela Merkel as its longtime chancellor in December means the new Berlin leadership under Olaf Scholz is untested. It also sees that Mr Putin has been clear for decades that he regards any western assistance or military presence in countries such as Ukraine as an act of hostility.
Andre Haertel, the Eurasia associate for SWP-Berlin think tank, also points out that Russia desires superior economic relations with its neighbours and the EU association model marks it out as a competitor to Moscow on this front as well. And since Russia cannot compete on economic or cultural grounds with western Europe in this contest for control, it is reaches for its security policy tools to get its way.
The new German government, therefore, is willing to see if it can accommodate some of these security manoeuvres for the overall goal of maintaining economic ties, particularly gas imports from Russian state-owned producers. According to Mr Haertel, Mr Scholz's rhetoric is the same as Mrs Merkel’s but the policy is not.
The German thinking on the scenarios available to Mr Putin rest on three potential moves.
One line sees the build-up on the border with Ukraine, as well as war game exercises in Belarus, as a form of forced diplomacy to gain its demands from Nato and the US. By not giving itself a way out, Russia is, in fact, ensuring that there is a diplomatic process focused on accommodating its agenda. This thinking is obviously open-ended on the question of what the outcome of the crisis is, and it mitigates against a defensive response.
In the second scenario, it is not so much Ukraine that is the target as a permanent presence for Russian troops in Belarus. This would give the Kremlin a potential chokehold on Suwalki Gap, a strategically important land corridor between Poland and Lithuania, severing the Baltic states' connection to the rest of Nato. Since the Minsk regime has asked for Moscow’s assistance, the development could emerge as a fait accompli from the current crisis. The retaliatory measures drawn up for the Ukraine incursion could not be used in this Belarus situation.
Thirdly, that the build-up of battlegroups is designed to complete the annexation of parts of eastern Ukraine – where 600,000 people have already been granted Russian passports – entrenching the polarisation of Russia and the West.
Anything beyond these scenarios, such as a raid on Kiev or a takeover of the Black Sea coast of Ukraine, are seen as moves that would trigger a more serious schism with the West by Berlin.
In contrast, France spends almost no time dissecting scenarios of Russia reaction and counter response. President Emmanuel Macron has moved to capitalise on the crisis at the institutional level.
The French have sought to reinvigorate the 2015 ceasefire deal and Normandy format of talks that involve Russia, Ukraine, France and Germany. The objective of trying to find a route through the crisis is two-fold from the French point of view. First, as a pivot to show that Europe can act and build on its own initiatives. Paris wants to prove that Europe can be capable of dealing with a crisis like this by itself.
Gerald Araud, the former French ambassador to Washington, makes a second point. It's that the Russia-Ukraine confrontation may be a model for future crisis where power politics is unleashed. Mr Macron wants to present a more dynamic and forceful European approach not only now but far into the future.
Lawrence Freedman, the leading British strategist, notes that the UK has been playing a “pretty forward role” that has drawn praise not only from Ukraine but the northern European states as well. By directly transferring weapons to Ukraine, the UK has sought to shore up the concept of defensive alliances. It has prioritised the principle that borders must not be changed by force in the international order.
The government has shown that its Integrated Review of international policy is meaningful and that the Global Britain ambitions of the government can be delivered. After leaving Europe, Mr Freedman said the Ukraine crisis has presented the UK with a “pretty good test” that is coming through well.
Only one of the countries is acting as if their policy won’t work if it’s not aligned with the US. The problem for the other two, France and Germany, is that while the US interests may not be congruent with Europe’s in the future, even Russia recognises that it is the vital decider in this current showdown.
MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports
Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
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GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
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
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Thor: Ragnarok
Dir: Taika Waititi
Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson
Four stars
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The UAE's journey to space
if you go
The flights
Direct flights from the UAE to the Nepalese capital, Kathmandu, are available with Air Arabia, (www.airarabia.com) Fly Dubai (www.flydubai.com) or Etihad (www.etihad.com) from Dh1,200 return including taxes. The trek described here started from Jomson, but there are many other start and end point variations depending on how you tailor your trek. To get to Jomson from Kathmandu you must first fly to the lake-side resort town of Pokhara with either Buddha Air (www.buddhaair.com) or Yeti Airlines (www.yetiairlines.com). Both charge around US$240 (Dh880) return. From Pokhara there are early morning flights to Jomson with Yeti Airlines or Simrik Airlines (www.simrikairlines.com) for around US$220 (Dh800) return.
The trek
Restricted area permits (US$500 per person) are required for trekking in the Upper Mustang area. The challenging Meso Kanto pass between Tilcho Lake and Jomson should not be attempted by those without a lot of mountain experience and a good support team. An excellent trekking company with good knowledge of Upper Mustang, the Annaurpuna Circuit and Tilcho Lake area and who can help organise a version of the trek described here is the Nepal-UK run Snow Cat Travel (www.snowcattravel.com). Prices vary widely depending on accommodation types and the level of assistance required.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
UAE currency: the story behind the money in your pockets
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