While there are no guarantees that the current flurry of intense diplomatic activity over Ukraine will avert military conflict, there are nonetheless encouraging indications that they may yet succeed in defusing tensions.
With Russia about to embark on the largest military exercise conducted in the neighbouring state of Belarus since the end of the Cold War, the possibility of a full-scale conflict erupting over Ukraine cannot be discounted.
Moscow continues to deny it has any intention of launching an invasion against Ukraine. But the 10 days of Russian military exercises about to take place in Belarus, conducted against the backdrop of a 100,000-strong battlegroup deployed on Russia’s southern border with Ukraine, mean there is no let up in the pressure on Kiev.
The importance of the Belarus exercises is reflected in the fact that Moscow has sent several of its top military commanders to oversee the 30,000 Russian troops that are taking part. In addition, Russia has moved two battalions of its sophisticated S-400 anti-aircraft missile systems, as well as numerous fighter jets, into the country. The exercises will be overseen by Gen Valery Gerasimov, the chief of the Russian armed forces’ General Staff. Meanwhile, six Russian warships have been deployed to the Black Sea to carry out simultaneous exercises.
The combined presence of so many combat troops so close to the Ukrainian border has led to Nato leaders continuing to express concern about Moscow’s ultimate ambitions, with officials in Washington claiming that an invasion of Ukraine is “imminent”.
US National Security Adviser Jake Sullivan warned in an interview over the weekend that Russia could take military action against Ukraine “any day now”, while US intelligence officials are predicting that Russia would be able to capture Kiev within two days. Such a move, they say, could result in the deaths of up to 50,000 civilians.
The scale of the threat Russia might pose to Ukraine has prompted an equally robust response from Nato, further adding fuel to the fire of potential conflict. Washington has deployed extra forces to Central Europe and the Baltic states to deter possible Russian actions, while other Nato allies such as Britain have deployed troops also.
Against this backdrop of frenzied military activity, there is, though, a growing realisation on both sides that diplomacy still offers the best hope of resolving the crisis, and to this end Nato leaders are engaged in high-stakes diplomatic efforts to achieve a peaceful resolution.
The Kremlin believes that Kiev needs to recognise pro-Moscow separatists in Donetsk and Luhansk
As British Prime Minister Boris Johnson travelled to Brussels to meet with Nato chief Jens Stoltenberg, he called on Russian President Vladimir Putin to show “real diplomacy” over the Ukraine crisis. At the same time, British Foreign Secretary Liz Truss travelled to Moscow for discussions with her Russian counterpart, Sergey Lavrov.
Germany’s newly appointed Chancellor Olaf Scholz has also been heavily engaged in diplomatic efforts to resolve the crisis, flying to Washington for his first meeting with US President Joe Biden earlier this week. The German leader was keen to reassure the White House that Germany was not going soft on the Ukraine issue because of Berlin’s dependency on Moscow for its energy needs.
But the high point of the West’s attempts to defuse tensions was undoubtedly French President Emmanuel Macron’s visit to Moscow earlier this week, where he had a five-hour meeting with Mr Putin to discuss ways to resolve the crisis. Mr Macron certainly provided an upbeat assessment of his meeting, claiming he had secured an assurance from Mr Putin that “there would be no deterioration or escalation”.
Even though the Kremlin later disputed the precise terms of the undertakings Mr Macron had received, Mr Putin confirmed that some of Mr Macron's proposals "could form the basis of further joint steps" – although they were "probably still too early to talk about". Ukrainian officials also made encouraging noises about the summit, with Foreign Minister Dmytro Kuleba remarking that “diplomacy is continuing to lower tensions”.
Nevertheless, it is clear that, at the very least, Mr Macron has established the parameters of a possible diplomatic solution to the crisis – one in which Moscow scales down its aggressive military posture towards Ukraine in return for Kiev agreeing to implement some of the proposals outlined in the Minsk agreement negotiated in 2014 and 2015 to establish a ceasefire in the Ukrainian conflict. Ukraine’s democratically elected government has been engaged in a long-running conflict with Russian-backed separatists, who are opposed to Kiev’s attempts to forge closer ties with the West.
The Kremlin believes that under the terms of the Minsk agreement Kiev needs to recognise pro-Moscow separatists in the eastern territories of Donetsk and Luhansk. Kiev insists the separatists need to disarm before any political solution can be found, and officials believe implementing the agreement could lead to the collapse of the Ukrainian state because, by allowing the Russian-backed territories a role in the constitution, they would be giving Moscow a direct say in the country’s affairs, thereby undermining its sovereignty.
The so-called “Findlandisation” of Ukraine, whereby the country’s destiny is controlled by Moscow (as Finland’s was during the Cold War) and not the Ukrainian people, is not a concept that attracts much support in Ukraine itself. Indeed, it is the reason Ukraine’s president, Volodymyr Zelenskiy, has given only lukewarm support for Mr Macron’s initiative.
"I do not really trust words,” said Mr Zelenskiy. “I believe that every politician can be transparent by taking concrete steps.”
Despite Kiev’s quite understandable reservations about allowing Moscow a say in how it conducts its affairs, it is clear that Mr Macron has identified a possible diplomatic resolution to the crisis, especially if, as he contends, the Kremlin has committed to withdrawing its forces from Belarus once the current round of military exercises have been concluded. Any sign that Moscow was scaling down its military presence so close to the Ukrainian border would undoubtedly constitute a major step towards defusing tensions in the region.
First Person
Richard Flanagan
Chatto & Windus
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
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
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
Mohammed bin Zayed Majlis
More from Neighbourhood Watch:
Dubai World Cup nominations
UAE: Thunder Snow/Saeed bin Suroor (trainer), North America/Satish Seemar, Drafted/Doug Watson, New Trails/Ahmad bin Harmash, Capezzano, Gronkowski, Axelrod, all trained by Salem bin Ghadayer
USA: Seeking The Soul/Dallas Stewart, Imperial Hunt/Luis Carvajal Jr, Audible/Todd Pletcher, Roy H/Peter Miller, Yoshida/William Mott, Promises Fulfilled/Dale Romans, Gunnevera/Antonio Sano, XY Jet/Jorge Navarro, Pavel/Doug O’Neill, Switzerland/Steve Asmussen.
Japan: Matera Sky/Hideyuki Mori, KT Brace/Haruki Sugiyama. Bahrain: Nine Below Zero/Fawzi Nass. Ireland: Tato Key/David Marnane. Hong Kong: Fight Hero/Me Tsui. South Korea: Dolkong/Simon Foster.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.