Ukrainian soldiers fire at Russian positions from a US-supplied M777 howitzer in Ukraine’s Kherson region in January. AP Photo
Ukrainian soldiers fire at Russian positions from a US-supplied M777 howitzer in Ukraine’s Kherson region in January. AP Photo
Ukrainian soldiers fire at Russian positions from a US-supplied M777 howitzer in Ukraine’s Kherson region in January. AP Photo
Ukrainian soldiers fire at Russian positions from a US-supplied M777 howitzer in Ukraine’s Kherson region in January. AP Photo


Neither side in the Ukraine war wants peace as much as a crushing victory


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June 07, 2023

In recent weeks, there have been irresponsible calls made by several experts pressing the Biden administration to supply more advanced US weapons to Ukraine, arguing that the only acceptable outcome to the conflict is a “total Russian defeat”. It is perplexing how often these pundits have wrongly sought to justify the expanded use of force in conflict zones.

Both Russia and Ukraine are now escalating their attacks. Russia continues to find sources to replenish its armaments, and the US is either directly supplying or facilitating its allies’ transfers of new advanced weaponry to Ukraine. As a result, any careful assessment of the war must conclude that there is no foreseeable end to the conflict. Not only is there no end in sight, but also nothing good will come of this horrible war that no one will win.

Russia is at fault for launching this war. It has violated international law by invading a sovereign state, attacking its civilian population, and annexing its territory. But because international law is “honoured more in the breach than the observance”, the Ukrainians can’t turn to the UN or the International Court of Justice for action. Both institutions, which were created precisely to deal with these sorts of actions, are paralysed by lack of capacity and/or recognition or support from one or another of the major powers.

As a result, the world has divided into camps, with the US leading a group of mainly western states backing Ukraine, Russia leading a much smaller coterie of supporters, and China, while not overtly in the Russian camp, playing the “non-aligned” game with the rest.

The Pentagon in Washington last month. AFP
The Pentagon in Washington last month. AFP
The US will need to offer incentives for peacemaking

The Biden administration’s early efforts to isolate and punish Russia through sanctions have had only limited success, with most nations in the Global South opting to remain non-aligned or to pursue what they call “strategic autonomy”.

In some cases, this positioning is due to a lack of trust in the US. Given the hubris and topsy-turvy run of American foreign policy during the past two decades, the US is simply not viewed as a reliable partner. As a result, many countries in Latin America, Asia, Africa and the Arab world are unwilling to put their eggs in the US basket.

At the same time, many nations of the Global South are unwilling to risk the strong trade relations and investment ties with Russia and China that they have developed. And so, they have made the strategic decision not to take sides in this conflict, which they see as a problem for the US, Nato and Russia.

Then there’s the matter of the US’s double standard that weakens its ability to bring other nations to its side. After its invasions and occupations of Afghanistan and Iraq, its regime change assault on Libya, and its drone attacks in countries across Asia and Africa, it is difficult for other nations to see the US as the beacon of righteousness that must be followed.

When it comes to the Arab world, this matter of the double standard is especially troubling. Other nations will agree that it is completely justified to be outraged by the war in Ukraine and all the atrocities and crimes that have allegedly taken place. But what makes the US’s claim to moral leadership unconvincing or even hypocritical to many Arabs is its silence in the face of Israel’s behaviour vis-a-vis Palestinians.

Finally, there is the argument that countries should band together to oppose Russia’s behaviour because it threatens the “liberal rules-based international order”. This is a uniquely American construct, developed to sidestep mention of international law or conventions, which the US and its ally Israel have repeatedly violated, or the International Criminal Court, which the US has not recognised and to which it pays lip service only when it serves US interests. As a result, the appeal to adhere to a “rules-based international order” is just a thinly veiled effort to mask an ad-hoc American attempt to apply the “rules” it wants to create the “order” it seeks.

Russian Foreign Minister Sergey Lavrov and Indian Foreign Minister Subrahmanyam Jaishankar during their bilateral meeting on the sidelines of G20 foreign ministers' meeting, in New Delhi in March. Reuters
Russian Foreign Minister Sergey Lavrov and Indian Foreign Minister Subrahmanyam Jaishankar during their bilateral meeting on the sidelines of G20 foreign ministers' meeting, in New Delhi in March. Reuters

Given this disconnect and growing distrust between the US and so many other nations, it appears that instead of mobilising the world against Russian actions, Washington has ushered in a new Cold War in which some nations are opposed to its leadership while most are ambivalent, with their feet planted in both camps.

The tragic reality that confronts the world is the need to recognise that as one side secures new arms, the other will find ways to do so as well. And as one side escalates, the other will match their escalation. As a result, this war could go on for years, posing untold dangers to the Ukrainian people and the possibility of expanding into a broader regional war.

It’s time, therefore, to put to rest fantasies of a “total humiliating defeat” for one side or the other and to chart a path towards a resolution of this conflict that no one can win. To start, instead of pouring fuel on the fire, the US should put China to the test by inviting Beijing to join it in mobilising a new multinational peace coalition to secure Ukrainian sovereignty and security.

This will require a change of outlook and rhetoric. The US will need to offer incentives for peacemaking. And instead of pressuring others to support what they have come to see as a western war, and forcing them to non-align, Washington should be offering them the alternative to join a campaign for peace and security, and investment and trade, which can benefit all of the nations of Eastern and Central Europe.

This might seem unrealistic, but it is a better path than the fool’s errand of accelerating this conflict for years to come with the unrealistic expectation that total victory can be won.

MATCH INFO

Inter Milan 2 (Vecino 65', Barella 83')

Verona 1 (Verre 19' pen)

Results

1.30pm Handicap (PA) Dh50,000 (Dirt) 1,400m

Winner Al Suhooj, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)

2pm Handicap (TB) 68,000 (D) 1,950m

Winner Miracle Maker, Xavier Ziani, Salem bin Ghadayer

2.30pm Maiden (TB) Dh60,000 (D) 1,600m

Winner Mazagran, Tadhg O’Shea, Satish Seemar

3pm Handicap (TB) Dh84,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer

3.30pm Handicap (TB) Dh76,000 (D) 1,400m

Winner Alla Mahlak, Adrie de Vries, Rashed Bouresly

4pm Maiden (TB) Dh60,000 (D) 1,200m

Winner Hurry Up, Royston Ffrench, Salem bin Ghadayer

4.30pm Handicap (TB) Dh68,000 (D) 1,200m

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

If you go

The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

Sam Smith

Where: du Arena, Abu Dhabi

When: Saturday November 24

Rating: 4/5

Updated: June 07, 2023, 5:00 AM