When the European Council meets later today, its agenda will have been completely rewritten by events of the past 24 hours.
On Sunday afternoon, a Ryanair flight from Athens to Vilnius was diverted to Minsk – officially Belarusian authorities claimed there was a bomb threat, a fighter jet was scrambled to escort the plane – which was closer to four other airports.
Among the passengers was Roman Protasevich, a journalist who by appearances would have been a most unlikely fugitive but is regarded as a terrorist in the eyes of the Belarusian state. It is now obvious the bomb threat was all a ploy, taking advantage of Protasevich transiting Belarusian airspace to bring the flight to the ground and arrest him.
If there is any doubt about the seriousness of the situation, Ryanair chief executive Michael O’Leary called the act a “state-sponsored hijacking”. It is an unprecedented event in European aviation history.
Protasevich was more than a simple journalist. He was one of the brains behind what is perhaps the Belarus opposition’s most potent weapons – a channel on the mobile app Telegram.
Protests gripped the country last summer when an election widely viewed throughout Europe as rigged saw President Alexander Lukashenko returned to power.
What ensued was months of peaceful demonstrations, civil disobedience and a crackdown. Thousands were jailed, and there were tails of torture in regime jails. At least four protesters were killed. The crackdown continues to this day.
Last week, Vitold Ashurok, a 50-year-old man serving a five-year sentence for participating in protests, died at a penal colony in the east. On Tuesday, the country’s main independent news outlet Tut.by had its offices raided and its website was blocked.
Managing and directing the outpouring of anger last summer was Nexta, the Telegram channel Protasevich helped to run. It has immense reach in the small country, with almost 2 million followers in a country of fewer than 10 million people. Any call to demonstrate issued on the app could mobilise hundreds of thousand people at just 24 hours’ notice.
It was also used to publicise the crimes of security forces, and at other times it shared the identities and personal information of figures within the country’s security forces.
Although it is not an EU member, Belarus was already a major foreign policy challenge with which the EU had struggled to grapple. With the diversion of Protasevich's Ryanair flight, the challenge has grown more acute.
A new round of sanctions will almost certainly follow, though existing sanctions, issued in the aftermath of the Belarusian election, so far have proved largely ineffective, as have statements of solidarity with the opposition.
The immediate reaction from EU leaders to Protasevich's arrest indicates there may already be consensus for the bloc to react more strongly. Lithuania’s President, Gaitanas Nauseda, has suggested banning EU flights over Belarusian airspace, and a complete ban on Belavia – the Belarusian state carrier – from flying to the EU. This would isolate Minsk within the continent significantly.
A joint letter signed by lawmakers chairing foreign affairs committees in Germany, Latvia, Poland, Ireland, Estonia, Lithuania, the UK and the US calls for the International Civil Aviation Organisation to issue an even wider ban on any flights over Belarus. Consensus is building in the West for such a move.
But the EU’s design does not lend itself to decisive action. In September, Cyprus blocked a sanctions package on Minsk over an unrelated dispute. In other cases, Hungary has wielded its veto as a favour to authoritatrian states outside the bloc.
A weak response would set a damaging precedent
If the EU cannot act decisively on a major violation of international law and norms by a relatively small country on its immediate eastern border, then it is a struggle to see how it can square up to the wider geopolitical challenges of the day.
A weak response would set a damaging precedent. Belarus may feel emboldened to chase dissidents further into the EU, and other countries that would wish to pursue journalists and others abroad may take inspiration, too.
The bloc's member states, particularly Lithuania, have fared better with unilateral policy. Vilnius, the Lithuanian capital, is barely 200 kilometres from Minsk and is now home to much of the Belarusian opposition. Similarly, Poland has acted robustly in the crisis, hosting to the team behind Nexta, and other independent media outlets. Estonia has used its temporary seat on the UN Security Council to get the issue on the table in New York.
The case of Roman Protasevich requires the EU to come out swinging in defence of international norms and laws; measures must be firm, and their loosening dependent on Protasevich's release. If they aren’t, there surely will be similar cases.
Gareth Browne is a correspondent for The National in Beirut
RESULT
Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’
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.”
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
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Company%20Profile
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COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
MATCH INFO
Jersey 147 (20 overs)
UAE 112 (19.2 overs)
Jersey win by 35 runs
The view from The National
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Pathaan
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GRAN%20TURISMO
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Killing of Qassem Suleimani
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
The Specs:
The Specs:
Engine: 2.9-litre, V6 twin-turbo
Transmission: 8-speed automatic
Power: 444bhp
Torque: 600Nm
Price: AED 356,580 incl VAT
On sale: now.