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India’s diplomatic position on the Russia-Ukraine war may upset the West, but the South Asian nation will stick to its independent stance to safeguard its geopolitical interests, political analysts have said.
“India has been trying to do this balancing act," Sanjay Kumar Pandey, a professor at Jawaharlal Nehru University’s Centre for Russian and Central Studies, told The National. "First and foremost, because Russia has been a reliable partner and a dependable ally.”
New Delhi has abstained on all the five West-sponsored resolutions against Russia on Ukraine in the UN that condemned Moscow’s military offensive on the East European neighbour since February 24.
India, despite having strong ties with the US and the EU to counter China in the Asia-Pacific region, has refused to denounce actions by Russia.
Instead, it made customary statements and called for countries to respect “commitment to the principles of the UN Charter, to international law and respect for sovereignty and territorial integrity of all states”.
“Keeping in view the totality of the evolving situation, India decided to abstain,” T S Tirumurti, India's permanent representative to the UN, said last week ahead of the UN General Assembly vote.
Russia and India share historical ties and have been time-tested friends.
New Delhi’s focus has mainly remained on evacuating its nationals – at least 20,000 Indians, mostly medical students – from Ukraine as it tries to sidestep the global pressure.
Over the past two weeks, Prime Minister Narendra Modi spoke with both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin and called for “cessation of violence”, while urging them to use diplomacy and dialogue to resolve the conflict.
But as the US and Europe move beyond the diplomatic bluster, a global alliance is forming to turn Russia into a pariah state, with a slew of crippling sanctions being imposed on Moscow.
India’s continued neutral stand on the conflict has put it and its western allies in a fix.
Its stand on Russian actions has already ruffled feathers in the West, particularly in the US power corridors, as several Congressmen have demanded New Delhi clear its stand on its relationship with Russia.
There were murmurs of India finding itself on the list of countries sanctioned by the US Administration under Countering America’s Adversaries through Sanctions Act, or CAATSA, for buying military equipment from Moscow.
The move could be a jolt to the growing bonhomie between Washington and New Delhi.
Still, experts say New Delhi will continue to follow its independent diplomacy, despite pitfalls to protect its geopolitical interests.
Russia remains a critical source of weapons and military technology for India from where it sources around 85 per cent of the country’s military equipment.
Military hardware ranging from missiles, guns to nuclear submarines, India has major defence deals with Russia.
The two countries recently inked deals on supplying 750,000 AK-203 assault rifles and a $5.43 billion worth deal for S-400 ‘Trimuf’ missile systems.
“We majorly depend on Russia for our military supplies and inputs for sophisticated weapon systems, including technology,” Mr Pandey said.
New Delhi was a close ally of the Soviet Union during the Cold War era and over the years has further strengthened its ties with Moscow to blunt China’s influence in the region.
“So far, India's careful and pragmatic diplomacy has been low key, not condemnatory, but supportive of dialogue,” Jitendra Nath Misra, a former Indian diplomat, told The National.
The concern is that should New Delhi tilt towards the West, it would run the risk of alienating Russia and lead Moscow to move towards Beijing, a strategic nightmare for India.
“India is taking such a stand on Russia because we really can't afford to antagonize Russia, owing to the real and continuing and escalatory threat from China,” Mr Misra said.
China has massively increased its economic and military footprints in the Asian region, particularly with Pakistan. India’s archrival shared a frosty relation with Moscow over its close ties with Washington during the Cold War.
Tensions have remained high between New Delhi and Beijing, particularly since 2020 when a deadly clash erupted between the rival militaries along the disputed Himalayan border region.
Russia tried to play peace-maker and de-escalate tensions between the regional powers and helped facilitate a meeting between the Indian and Chinese foreign ministers in Moscow in 2020.
But hostilities remain.
Last December, China renamed 15 places in remote Arunachal Pradesh in India’s north-east along the Line of Actual Control that it also claims as its territory.
“India needs to protect its important relationship with Russia, primarily because China is continuing to put pressure on India,” Mr Misra said.
India's move to abstain from voting against Moscow is also seen as a payback time for New Delhi.
Russia over the decades has vetoed several resolutions seeking UN interventions in Kashmir—the Himalayan disputed territory claimed by both India and Pakistan.
China also rules a portion of the erstwhile Himalayan Kingdom known as Aksai Chin, which is now part of the Chinese Xinjiang and Tibet region.
New Delhi is engaged in a tense border dispute with both Islamabad and Beijing, with a decades-long armed insurgency raging in the part of Kashmir ruled by India.
New Delhi was duty-bound to side with Russia at global forums, including the UNSC, Mr Pandey said.
“Russia has bailed out India on so many occasions at the UN Security Council, mainly on Kashmir,” he said. "India cannot forget that."
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Sunday's games
All times UAE:
Tottenham Hotspur v Crystal Palace, 4pm
Manchester City v Arsenal, 6.15pm
Everton v Watford, 8.30pm
Chelsea v Manchester United, 8.30pm
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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The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
What's in the deal?
Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024
India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Indian employees in the UK will receive three years exemption from social security payments
India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery
Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
UAE cricketers abroad
Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.
Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.
Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.