US officials have warned China to refrain from helping Russia in its war in Ukraine. AFP
US officials have warned China to refrain from helping Russia in its war in Ukraine. AFP
US officials have warned China to refrain from helping Russia in its war in Ukraine. AFP
US officials have warned China to refrain from helping Russia in its war in Ukraine. AFP


The Nato summit will show China how costly Russian ties could be


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March 20, 2022

US President Joe Biden’s participation in the Nato and EU summits in Brussels on March 24 is set to acquire historic importance. It could become a particularly fateful juncture if Nato leaders issue any sort of red line to Russian President Vladimir Putin regarding the war in Ukraine. Nato leaders could also decide to impose a no-fly zone. Ukraine’s President Volodymyr Zelenskyy has appealed to the US and EU for such a move, and rallied significant public opinion in those places behind him. Of course, this would be very risky because of the potential to draw Nato into direct conflict with Russia.

Should Mr Biden choose to meet Mr Zelenskyy during his time in Europe, he may get an historic moment without having to undertake such risks. The circumstances are ripe for something similar to John F Kennedy’s famous 1963 visit to Berlin, when he gave a rousing speech, defying Russia and declaring “I am a Berliner”. An “I am a Ukrainian” moment would certainly serve Mr Zelenskyy well.

But Mr Biden’s remarks in the past few days indicate he intends to step things up during his European tour, through measures that go beyond eloquent speeches. He went so far as to describe his Russian counterpart as a “war criminal” and a “thug”. These are not labels that normally serve as a prelude to diplomacy. The US still has tools at its disposal that fall short of war, including fully breaking off US-Russian relations and a full economic embargo. The upcoming Nato summit could see the alliance impose new sanctions to isolate Russia in an unprecedented manner – far beyond anything experienced by its other sanctioned ally, Iran.

Iran, for its part, is preparing for the West to lift sanctions against it following the anticipated revival of the nuclear agreement it signed in 2015 with the US, China, Russia, Germany, Britain and France. Despite the tension that emerged when Russia sought to link the new Iranian nuclear deal to the Ukraine crisis, Moscow has now obtained written guarantees from the US to reassure it. Russia still hopes to use the Iranian channel to sell its oil and does not want that channel to be sanctioned again.

The extent to which allies such as Iran and Venezuela have failed to defend Russia’s war vigorously is remarkable. Considering this, it is unsurprising that Moscow would be keen to keep its links with Iran sanctions-free, in the hope that its alliances remain stable, even if, for the moment, its friends are distancing themselves from the Kremlin.

The US still has tools at its disposal that fall short of war

Of course, there is no alliance more important for Russia’s strategic relations than the one with China. In Moscow’s view, China remains committed to its friendship with Russia, regardless of some impressions indicating China has also been pushed away by Putin’s actions in Ukraine.

For the rest of the world, however, China’s true position remains a mystery. Indeed, the sense of mystery is actually very useful to Beijing, which can deliberately avoid being restricted one way or the other for the sake of emotional or otherwise arbitrary considerations. While China’s massive geopolitical projects – things like the Belt and Road Initiative – are planned for decades to come, that does not mean its strategic doctrine is immune to something like the Ukrainian war – a development that has changed the entire norms of international relations.

There would be little doubt that China’s impression of Russia today is fundamentally different from the one it had on February 23, the day before the invasion of Ukraine. And this would surely impact China’s thinking on its future relationship with the US, perhaps in favour of a more stable one.

What Mr Biden wants from his Chinese counterpart Xi Jinping is a promise that the latter will not help Russia, especially militarily. Mr Biden wants Mr Xi to realise the seriousness and sharpness of the consequences if any Chinese banks or firms are used to facilitate Russian trade, consequences that include tough US sanctions on China. He wants to make it very clear that the US knows the biggest loophole Russia could attempt to use to evade western sanctions is the Chinese one. Indeed, Russia has always assumed that its ideological, strategic and economic depth went through China, and Moscow is betting on their shared sense of rivalry with the US.

Antagonising the US and Europe, however, is costly, and defending Russia in Ukraine may not be a worthwhile enough cause. Beijing, as the saying goes, does not stop at a crossroads without consulting a compass and plays the game of national interests just as well as Washington can and does. A phone call between Mr Biden and Mr Xi on Friday left the American side without a clear Chinese answer. It certainly seems that China will not gamble away its vital interests, including the Belt and Road initiative, by getting bogged down in something so divisive as Russia’s Ukraine ambitions. But that is a temporary stance for what many are reading as a temporary situation. Eventually, Russia will be out of the mess it has made for itself, and China is thinking perhaps more than the West about what comes after.

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What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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Director: James Cameron

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Rating: 4.5/5

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Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

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Light Flyweight (48kg): Alua Balkibekova (KAZ) beat Gulasal Sultonalieva (UZB) by points 4-1.

Flyweight (51kg): Nazym Kyzaibay (KAZ) beat Mary Kom (IND) 3-2.

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Light Welterweight (64kg): Milana Safronova (KAZ) beat Lalbuatsaihi (IND) 3-2.

Welterweight (69kg): Valentina Khalzova (KAZ) beat Navbakhor Khamidova (UZB) 5-0

Middleweight (75kg): Pooja Rani (IND) beat Mavluda Movlonova (UZB) 5-0.

Light Heavyweight (81kg): Farida Sholtay (KAZ) beat Ruzmetova Sokhiba (UZB) 5-0.

Heavyweight (81 kg): Lazzat Kungeibayeva (KAZ) beat Anupama (IND) 3-2.

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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.”

Who's who in Yemen conflict

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Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

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Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Updated: March 20, 2022, 3:00 PM