Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
February 19, 2023
A year ago, few could have predicted that a ground war would return to Europe. Fewer still entertained the notion of a possible nuclear conflict on the continent. Today, with Russia’s “special military operation” in Ukraine approaching its one-year anniversary, the thinking on the latter has shifted, yet without the panic that once accompanied the mere mention of nuclear weapons.
This, however, does not mean that fears of a nuclear war are completely dispelled. Decision-makers in western capitals will be listening carefully to Russian President Vladimir Putin’s speech on Tuesday to mark the Ukraine war anniversary and adjusting their nuclear calculus accordingly. But threats and tensions are one thing; mobilising nuclear assets is entirely another. Officially, the US continues to warn against the dangerous consequences of any use of tactical nuclear weapons, as its leaders know full well that Moscow will not hesitate to use them if the equation of the war changes.
Key Nato members are attempting to persuade China to oppose any use of nuclear weapons by Russia. During his visit to Beijing late last year, German Chancellor Olaf Scholz and Chinese President Xi Jinping together announced their opposition to the use of nuclear weapons in the Ukraine war. Following the Munich Security Conference over the weekend, Wang Yi, China’s top diplomat, will head to Moscow to prepare for a summit, possibly in April, between the leaders of the two countries. It is worth recalling that Russia reportedly delayed its Ukraine operation after Mr Putin’s visit to Beijing for the Winter Olympics early last year. A year later, China remains unwilling to support the war.
Worryingly, some assessments state that if the Russian leadership feels it must not be defeated at any cost, including the cost of using nuclear weapons, China might be unable to stop it. Beijing could find itself in a dilemma: on the one hand, it does not want a Russian defeat in the war given Moscow is a partner on the world stage; on the other, the use of nuclear weapons is detrimental to all.
Vladimir Putin attends an event marking the 30th anniversary of the founding of Gazprom, near Moscow. AP
The West has dropped an iron curtain on Russia through sanctions that have adversely affected its economy
Military escalation in the coming weeks is likely to intensify, as Nato powers insist on shifting the war equation in Ukraine’s favour. Russia, too, is likely to launch major offensives to overturn the current stalemate in its favour. And as both sides plan their respective offensives, Mr Putin’s speech could give the rest of the world an idea on what steps could determine the course of the war.
Meanwhile, there have been moves behind the scenes to create a forum to launch talks between Russia and Ukraine and its backers, to secure temporary agreements and security guarantees, but not necessarily to reach the currently impossible goal of a peace agreement. These efforts are being made in preparation for the day after the major battle, namely the offensives of the two sides, which may not conclude with one side winning and another losing.
This week, Belarusian President Alexander Lukashenko said European powers have sent messages to Minsk requesting its mediation, expressing a desire to end the conflict. Some of Mr Lukashenko’s efforts appear to be unserious, such as his invitation to US President Joe Biden to come to Minsk, expressing his willingness to organise a meeting between him and Mr Putin in the Belarusian capital. But Mr Lukashenko has repeatedly denied that his country will join the war alongside Russia, stating he would not order his forces to fight unless his country is attacked first. This is reassuring news, and his mediation could be met with some acceptance while he is keen to improve his relations with the West.
Mr Biden will visit Poland on Monday and Tuesday, where he will meet the leaders of the so-called Bucharest Nine, a group of nine Nato member states in Eastern Europe. His visit carries important political implications that could be translated into military scenarios if Moscow finds them too provocative. Intimidation plays an important role in the psychological warfare being waged by both sides, which poses additional risks.
There is also the element of calculated provocations, such as the US statements suggesting Washington supports Ukrainian strikes on Russian military targets in Crimea. US Undersecretary of State Victoria Nuland said this week, in reference to this issue, that “these are legitimate targets, Ukraine is hitting them and we are supporting that”. For Russia, which annexed Crimea in 2014, the Black Sea peninsula carries significant historical and strategic value.
Joe Biden speaks on security assistance for Ukraine in Troy, Alabama. AP
A year since the war began, the question remains as to what Moscow’s exit strategy is. It is unable to backtrack from the corner it backed itself into, by proceeding with its operation. One could argue that it decided to blow up the international system to reshuffle the deck and negotiate the birth of a new system.
One could also argue that the West lured it into the predicament it finds itself in. After all, the US had verbally pledged to not expand Nato membership – after the late Soviet leader Mikhail Gorbachev agreed to dissolve the Warsaw Pact – then reneged on its pledge. Nato knew well that any attempts to bring Ukraine into its alliance would be provocative to Moscow, especially as it risked altering the balance of power between Russia and the West.
Ultimately, however, it is Moscow that is responsible for falling into the trap. And today, it is paying a heavy price for its mistakes. The West has dropped an iron curtain on Russia through sanctions that have adversely affected its economy, paralysed its banks and corporations’ financial global transactions, and undermined its oil and gas and technology sectors. Western leaders might be betting on a protracted war weakening Russia. Were this to happen, Nato would emerge as the victor. Over the past year, it has become stronger and more coherent along with Ukraine.
All this, however, could be upended by the unexpected, or by decisions – including to use nuclear weapons – being made in Moscow and some western capitals. All eyes will be on Mr Putin’s Tuesday speech and what might materialise on the battlefield thereafter.
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Stars: Samuel L Jackson, Dominique Fishback, Walton Goggins
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The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
11 cabbie-recommended restaurants and dishes to try in Abu Dhabi
Iqbal Restaurant behind Wendy’s on Hamdan Street for the chicken karahi (Dh14)
Pathemari in Navy Gate for prawn biryani (from Dh12 to Dh35)
Abu Al Nasar near Abu Dhabi Mall, for biryani (from Dh12 to Dh20)
Bonna Annee at Navy Gate for Ethiopian food (the Bonna Annee special costs Dh42 and comes with a mix of six house stews – key wet, minchet abesh, kekel, meser be sega, tibs fir fir and shiro).
Al Habasha in Tanker Mai for Ethiopian food (tibs, a hearty stew with meat, is a popular dish; here it costs Dh36.75 for lamb and beef versions)
Himalayan Restaurant in Mussaffa for Nepalese (the momos and chowmein noodles are best-selling items, and go for between Dh14 and Dh20)
Makalu in Mussaffa for Nepalese (get the chicken curry or chicken fry for Dh11)
Al Shaheen Cafeteria near Guardian Towers for a quick morning bite, especially the egg sandwich in paratha (Dh3.50)
Pinky Food Restaurant in Tanker Mai for tilapia
Tasty Zone for Nepalese-style noodles (Dh15)
Ibrahimi for Pakistani food (a quarter chicken tikka with roti costs Dh16)
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.”