The US is watching for signs that Russia may be using energy as a political tool in Europe's energy crunch, US Secretary of State Antony Blinken said on Wednesday, and he added that Washington was committed to taking appropriate action if Moscow were to take that path.
Mr Blinken and Ukrainian Foreign Minister Dmytro Kuleba met at the State Department on Wednesday and signed a charter for a strategic partnership. Discussions focused on Ukraine's neighbour, Russia, which Mr Kuleba said was already using gas supplies as a weapon.
The US secretary of state said Washington was also concerned by reports of “unusual Russian military activity” near the border with Ukraine. He added that escalatory or aggressive action would be of concern to the US.
“Should Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine, we are committed, and Germany is committed, to taking appropriate action,” Mr Blinken said.
He also said that Washington was “watching very carefully for signs” that Russia was using energy as a weapon as it has in the past.
Russia has been accused of holding back energy supplies amid record-high gas prices, but President Vladimir Putin has blamed the EU's energy policy, saying Russia will be able to boost supplies to Europe once the Nord Stream 2 gas pipeline is approved.
“Russia could and should take steps to alleviate the energy crunch by increasing gas supplies,” said Mr Blinken.
Washington opposes the $11 billion pipeline, currently nearing completion, which runs under the Baltic Sea and will carry gas from Russia's Arctic region to Germany.
President Joe Biden's administration has waived sanctions on the pipeline's operator and reached an agreement with Germany in July on the pipeline.
Berlin has agreed to take action if Russia uses energy as a weapon in its relations with Ukraine, but the pact did not provide specific criteria for how that would be judged.
The US was looking to Germany to “make good on” its promise to make sure that Nord Stream 2 is not a substitute for transit deliveries of gas though Ukraine, Mr Blinken said.
“What we see is that Russia is already using gas as a weapon,” Mr Kuleba said, and he added that Ukraine wants Germany to use its “leverage” on Moscow.
“Russia should receive a very strong message not only from the United States and from other capitals, but also from Berlin, that this is not the game that will benefit Russia.”
In the charter signed on Wednesday, the US vowed to support Ukraine's efforts to counter armed aggression, economic and energy disruptions, and malicious cyber activity by Russia, including by maintaining sanctions on Russia and applying other relevant measures.
Washington remained committed to assisting Ukraine through continuing training exercises and reiterated its support for Kiev's efforts to maximise its status as a Nato Enhanced Opportunities Partner.
Mr Kuleba underscored the importance of support from the US and added that Ukraine would benefit from any potential defence co-operation that would strengthen its capabilities, including intelligence-sharing or air defence systems.
“We are in a situation where we cannot allow losing or wasting any time and we are looking forward to working with the United States in this field,” he said.
On racial profiling at airports
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
NEW ARRIVALS
Benjamin Mendy (Monaco) - £51.75m (Dh247.94m)
Kyle Walker (Tottenham Hotspur) - £45.9m
Bernardo Silva (Monaco) - £45m
Ederson Moraes (Benfica) - £36m
Danilo (Real Madrid) - £27m
Douglas Luiz (Vasco de Gama) - £10.8m
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
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