Germany's new Defence Minister Boris Pistorius (R) holds a joint press conference with Nato chief Jens Stoltenberg after talks on January 24, 2023 at the Defence Ministry in Berlin. AFP
Germany's new Defence Minister Boris Pistorius (R) holds a joint press conference with Nato chief Jens Stoltenberg after talks on January 24, 2023 at the Defence Ministry in Berlin. AFP
Germany's new Defence Minister Boris Pistorius (R) holds a joint press conference with Nato chief Jens Stoltenberg after talks on January 24, 2023 at the Defence Ministry in Berlin. AFP
Germany's new Defence Minister Boris Pistorius (R) holds a joint press conference with Nato chief Jens Stoltenberg after talks on January 24, 2023 at the Defence Ministry in Berlin. AFP


In the Russia-Nato confrontation, a point of no return may not be too far off


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January 29, 2023

On the global landscape today, there appears to be a lack of international mechanisms to deter reckless political and military decisions, making threats such as nuclear war a possibility. This is down to smaller scales, where certain regional actors engage in rogue behaviour, confident that the hands of justice will never touch them.

The theoretical mechanisms of the UN in New York, International Tribunals in the Hague, or human rights forums in Geneva are paralysed by political and bureaucratic calculations. As a result, there is no international mechanism for accountability left.

The developments of the Ukraine war suggest we are on the verge of entering a war without rules between Russia and the US-led Nato powers. The rules of conventional warfare will be suspended if we cross a point of no-return, now fast approaching.

The compounded military aid package approved this week by the Biden administration, Germany, Britain, Canada, Italy, France, and other Nato powers, plus contributions from non-Nato states, will go beyond the transfer of main battle tanks, though even this alone will mark a qualitative shift in the war.

Infantry soldiers of the Bundeswehr, the German armed forces, in front of a Puma infantry fighting vehicle, during a visit by German Defence Minister Boris Pistorius on January 26, near Moeckern, Germany. Getty
Infantry soldiers of the Bundeswehr, the German armed forces, in front of a Puma infantry fighting vehicle, during a visit by German Defence Minister Boris Pistorius on January 26, near Moeckern, Germany. Getty

Dates in this context have importance, not just for the delivery of missiles, tanks, and ammunition to Ukraine, but also in terms of Russian and Ukrainian preparations for decisive offensives in the next two months.

March is set to be a focal month for the offensive strategies of Russia, Ukraine and Nato. A hot war could then replace the cold war because of the radical difference between a war on Ukraine, and a Nato war with Russia. The issue now goes beyond winning a round or a battle. It will be a war for survival between Russia and Nato, not just a war of victory or defeat between Russia and Ukraine.

Whose offensive will succeed then, come March? This is the heart of the race, amid the impossibility of launching any international initiatives for a political solution, and the de facto collapse of international mechanisms supposed to prevent such dangerous escalations. The UN and its agencies are, for all intents and purposes, ineffective and powerless to act. Even at the level of rhetoric, the UN has failed the tests of conscience and political influence.

Military experts familiar with Russian and western strategies in Ukraine anticipate the fighting will escalate relentlessly beginning in February. As the timeline for the delivery of western tanks and military aid to Ukraine approaches, there is an increased likelihood that the war between Russia and Ukraine becomes a direct war between Russia and Nato.

There are many possible triggers for such a terrifying scenario, including Poland. Poland is playing a crucial role as an indispensable gateway for the delivery of advanced weaponry from Nato to Ukraine. If Russia carries out a strike on Poland, it would effectively risk triggering a new world war. Under Article 5 of its charter, Nato is legally obligated to respond to any aggression against a Nato member state.

Estonia is another example of how the containment of Russia’s military capabilities is expanding. Estonia announced recently that it is considering the establishment of a contiguous zone regime in the Gulf of Finland, giving it the ability to close the waterway to Russia and isolate Saint Petersburg. Estonia is a Nato member and Finland is in the process of joining the alliance. With the help of other Nato states, the two countries would then have the ability to blockade the port in Saint Petersburg, the largest in Russia and the Baltic Sea. Russia expelled Estonia’s envoy this week, to protest the actions of the government of Estonia. Once part of the Soviet Union, Estonia has recently announced a 113 million euro military aid package to Ukraine, the largest in its history, and equivalent to 1 per cent of its GDP, according to an Estonian ambassador.

The Baltic Sea's coast in Tallinn, Estonia, on January 24. AP
The Baltic Sea's coast in Tallinn, Estonia, on January 24. AP

There has been a crucial element in the equation of reducing conflict and building trust between the US and Russia known as the strategic arms reduction treaty or the Start Treaty for nuclear and other strategic arms reduction. But in late last November, Moscow indefinitely postponed a meeting with Washington to discuss the resumption of inspections under the New Start Treaty signed in 2010. Last week, three months after the postponement of that meeting, Russian Deputy Foreign Minister Sergei Ryabkov said that the current state of US-Russian relations did not allow for further talks, accusing the US of “provoking Russia”. At some stage, he added, Russia’s reaction will lead to a kind of collapse. The Russian Foreign Ministry spokeswoman, Maria Zakharova, had previously said that arms control talks cannot be separated from "geopolitical realities”.

The Start treaty was created in order to contain conflict during the Cold War. The collapse of the treaty today risks provoking a nuclear war between Washington and Moscow in a hot war that may not stop at the brink, as happened during the Cuban Missile Crisis in 1962. The expiry date for this agreement is February 2026, but there are nuclear concerns accompanying the Ukrainian war and Moscow's rejection of returning to these talks and of further inspections of its nuclear sites, to which the US is entitled to under the treaty.

US President Joe Biden has agreed to supply Ukraine with 31 Abrams battle tanks, to encourage Germany to donate Leopard 2 tanks to Kyiv. Britain is training Ukrainian forces on using Challenger tanks, and Norway and others have made similar pledges, forming together what Ukraine has described as a grand "tank coalition".

The offensive weapons package includes in addition to tanks around 1100 missiles, drones, and other hardware. Non-Nato states are also chipping in. Italy, for example, has supplied both its own equipment and drones from Israel.

The West seems unconvinced about Russian President Vladimir Putin’s threats about nuclear weapons, given that this would lead to the destruction of Russia before the destruction of western powers

We are today seeing an Iranian-Israeli competition in drone warfare in Ukraine. Russia has come to rely in great measure on Iranian drones, which have overturned western-Iranian relations and adversely affected the Vienna talks that sought to revive the 2015 nuclear agreement with Iran.

The UN has made soft criticism of the entry of heavy tanks into the Ukraine war, while former US President Donald Trump expressed fierce opposition to the move, warning it could lead to nuclear war. But a question here is – why is the US not concerned about this possibility? More urgently, why are the European states not concerned by this either, given their proximity to what would be ground zero?

The West seems unconvinced about Russian President Vladimir Putin’s threats about nuclear weapons, given that this would lead to the destruction of Russia before the destruction of western powers. Russia’s strategic missiles would take 40 minutes to reach the US, according to one nuclear expert, while their US counterparts could hit Russia in 15 minutes. The West thus seems to be betting on Mr Putin’s fear of becoming the cause of Russia’s destruction. Further, the West also seems to be betting that the Russian military understands that the price Russia would pay in the event of nuclear war would be many times more what the West would incur, and thus would blink first.

One of the problems here, however, is that the Russian military and Mr Putin are convinced Russia can win a nuclear war with Nato, in keeping with their belief Russia can win the war in Ukraine. In other words, the political and military compass of the Nato powers and Russia seems to be broken, along with their instruments of self-restraint. Progressive military escalation appears to be unchecked and unfettered, with no international mechanisms to rein things in.

At a regional level, international mechanisms to keep chaos in check seem to be also suspended, either out of impotence or following narrow political calculations overshadowed by intimidation. Lebanon is a prime example. Neither has the UN sought to send a fact-finding mission into the Beirut Port explosion nor have the states with advanced satellite capabilities shared imagery of what happened on that fateful day in August 2020, each for different reasons.

There is also the crime of standing idly by the systematic assault led by Lebanon’s political class, foremost of which the "Shiite Duo" of Hezbollah and Amal, to stop the work of Tarek Bitar, the investigative judge in charge of the case. Ghassan Oweidat, a top prosecutor close to Hezbollah, even retaliated against Judge Bitar’s resumption of the investigation by spitefully releasing all those detained as part of the investigation and issuing counter charges against the investigative judge himself, slapping a travel ban on him and referring him to a judicial disciplinary body.

The supposed top law enforcing official in the land released all suspects in the case, betting on US support because one of the detainees is an American citizen, Mohammad Ziad Al Awf, whose lawyer said the US embassy in Beirut helped with travel arrangements for his client, taking him directly from prison to the airport. It appears the law of the jungle thus took over, amid a local-international farce, and international indifference to the suffering of the families of the victims of the blast.

Moral duty should have required a fact-finding mission at the time. It now requires holding accountable those who let the suspects escape. It is no achievement to smuggle out a citizen, even if he were innocent. The achievement needed is to conclude the investigation and ensure justice. It cannot be to empower the mutiny against it and enable those accused of involvement in the blast to cover up what happened. Such deals that encourage impunity are a disgrace, a stain on the record of everyone involved, be it local or international players, regardless of the justifications.

England ODI squad

Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Jake Ball, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood.

What to watch out for:

Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways

The hulls of three ships will be used for the roof

The hulls will painted to make the largest Italian tricolour in the country’s history

Several pillars more than 20 metres high will support the structure

Roughly 15 tonnes of steel will be used

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UAE currency: the story behind the money in your pockets

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.”

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  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Three ways to get a gratitude glow

By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.

  • During your morning skincare routine, name five things you are thankful for about yourself.
  • As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
  • In the evening, take some deep breaths, notice how your skin feels, and listen for what your skin is grateful for.
UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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Updated: January 29, 2023, 2:30 PM