Two weeks into the war in Ukraine, Turkey appears to have converted its diplomatic tightrope walk into a minor coup: the combatants have accepted Ankara's long-standing offer to mediate and the Russian and Ukrainian foreign ministers are set to meet for peace talks on Thursday on the sidelines of the Antalya Diplomatic Forum.
Moscow's demands of Kyiv are said to be considerable – swearing off Nato and EU membership and rubber-stamping the handover of Crimea and the occupied regions of eastern Ukraine, for starters – so a peace deal seems unlikely for now.
But it's worth taking a closer look at how Turkey got here: for every embrace of Ukraine and its Nato allies, Ankara has also nodded in the direction of Moscow.
Turkish President Recep Tayyip Erdogan has called the Russian invasion "unacceptable", vowed to stand by Ukraine and urged Nato to take "a more decisive step". Yet, he's also stressed the importance of preserving ties with Moscow and last week approved a trade deal with Belarus, a key Russian ally.
Fence-sitting Turkey remains on an island of its own making
When the Council of Europe voted to suspend Russia's membership, Turkey abstained. Then Ankara turned around and sponsored a UN motion to condemn the aggression against Ukraine.
Turkey's geopolitical two-step extends to the high seas. Under the 1936 Montreux Convention, Turkey controls maritime access to the Black Sea via the Bosporus and Dardanelles straits, and can during wartime halt nearly all traffic. Hours after Russian troops entered Ukraine, Kyiv urged Ankara to do just that.
A few days later, Turkey declared the conflict a war and vowed to block warships. In the days ahead, Ankara is likely to limit the passage of naval vessels, but, as per Montreux, it cannot bar Russian vessels coming from the Mediterranean from entering the Black Sea to return to their home bases.
Turkish-made Bayraktar TB2 drones have played a key role in Ukraine's staunch defence, keeping Russia from controlling the skies and helping slow the nearly 65-kilometre-long Russian convoy inching its way towards Kyiv. Videos of devastating Bayraktar strikes have been widely shared online and the drones are fast attaining legendary status. A lemur born in the Kyiv zoo last week and a puppy born to the Kyiv police canine unit have been named Bayraktar, and Ukraine's ground forces produced a catchy song celebrating the drones' achievements.
Back home, meanwhile, Turkey has sought to minimise their impact. "When we sold Bayraktars, we didn't know they would be used like this," Turkish billionaire Ethem Sancak, a former journalist who shares a hometown with Mr Erdogan's wife and is said to be close to the President, said last week. "We're allies with Russia."
Some pro-government pundits have lately been hewing to the Russian line, that Ukraine is run by neo-Nazis, and ramping up the anti-western rhetoric, blaming Nato for the conflict.
As recently detailed in this column, Ankara's anti-western stance is akin to Kyiv's anti-Russian stance, as these emerging democracies move to assert greater independence. But right now, criticising the West reads much like standing against Ukraine and in support of Russia.
As in 2014, when Russia annexed Crimea, Turkey has again refrained from joining western sanctions against Moscow. Yet, while this may help Ankara avoid direct punishment from Moscow, even Mr Erdogan's supporters concede that Turkey is likely to suffer economically as a result of Russia's sanctions-driven downturn.
Russia supplies one third of Turkey's tourists, 40 per cent of its natural gas and two thirds of its grain imports. It has invested $1.2 billion in Turkey's showcase Akkuyu nuclear plant, to cite just one high-profile project. On a call with Russian President Vladimir Putin on Sunday, Mr Erdogan is thought to have urged him to end the conflict.
Everyday a broader conflagration seems more likely. Several foreign-listed ships – Estonian, Bangladeshi, Panamanian, Moldovan and Turkish – have already been struck by Russian defences along Ukraine's Black Sea coast.
The US has moved the USS Truman aircraft carrier into the northern Aegean, just south of the Dardanelles, and the US and Poland are said to be in talks to deliver F-16 fighter jets to Ukraine, which would require Congressional approval.
On the weekend, Mr Putin said western sanctions on Russia were essentially a declaration of war. If the Russian economy craters and the pressure builds, deeper western involvement may be inevitable. World wars have started over less.
Already the conflict has accomplished the near-impossible and unified Europe. About 20 countries are sending weapons to Ukraine, including stingers from Germany, machine guns from the Czechs, rocket launchers from the Dutch and javelin missiles from Estonia.
But none of those countries recently bought advanced missile systems from Moscow or inaugurated a major pipeline carrying Russian gas. Germany notably cancelled Nord Stream 2, which has since declared bankruptcy, and made the stunning move of allocating an additional $100bn to defence.
Turkey remains on an island of its own making. It has some company – Armenia, India, and Israel have all been similarly non-committal. But none of them is as geographically and economically close to both combatants, or a Nato member. "It isn't possible to abandon Russia or Ukraine," the Turkish leader said last week. "Our challenge is to proceed so that we can resolve this matter without abandoning either of them."
Mr Erdogan, who is set to welcome Israeli President Isaac Herzog on Wednesday and Greek Prime Minister Kyriakos Mitsotakis on Saturday, has always said he wanted an independent foreign policy. Well, he has got his wish. For the moment it seems a good stance domestically, as eight out of 10 Turks prefer that their country remain neutral in this conflict, according to a new survey by Aksoy Research.
But if Thursday's peace talks fail and the war drags on and escalates, drawing in western powers, there will be no room for strategic ambiguity. One can only hope that the Turkish leader chooses wisely – or even better, never needs to choose at all.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
POSSIBLE ENGLAND EURO 2020 SQUAD
Goalkeepers: Jordan Pickford, Nick Pope, Dean Henderson.
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Midfielders: Declan Rice, Harry Winks, Jordan Henderson, Ross Barkley, Mason Mount, Alex Oxlade-Chamberlain.
Forwards: Harry Kane, Raheem Sterling, Marcus Rashford, Jadon Sancho, Tammy Abraham, Callum Hudson-Odoi.
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
MATCH INFO
Liverpool 4 (Salah (pen 4, 33', & pen 88', Van Dijk (20')
Leeds United 3 (Harrison 12', Bamford 30', Klich 66')
Man of the match Mohamed Salah (Liverpool)
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.”
LILO & STITCH
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Captain Marvel
Director: Anna Boden, Ryan Fleck
Starring: Brie Larson, Samuel L Jackson, Jude Law, Ben Mendelsohn
4/5 stars
What are the influencer academy modules?
- Mastery of audio-visual content creation.
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Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.