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Russia's invasion of Ukraine is a watershed moment for the EU, the bloc's commissioner for crisis management Janez Lenarcic has told The National.
The EU will not remain an economic giant with a pacifist approach, as several countries are starting to shore up their military defences, Mr Lenarcic said in an exclusive interview during a visit to Dubai.
He said Russia's assault on its neighbour has shown the unity of the EU, as all member states speak with one voice on the future security strategy.
“The Russian aggression on Ukraine has triggered or accelerated the discussion within the European Union to strengthen the common European defence,” Mr Lenarcic said.
“The war has reminded us the world is a dangerous place where we have undemocratic, authoritarian regimes that don’t observe the international law.”
Mr Lenarcic was in the UAE this week to attend the 18th Dubai International Humanitarian Aid and Development conference and exhibition, from March 14 to March 16. This brought together key decision-makers from national government authorities, UN agencies, international organisations and leading NGOs.
During his visit, Mr Lenarcic met with Minister of State for International Co-operation Reem Al Hashimy.
Last week, the UAE sent, via Poland, an aircraft carrying 30 tonnes of emergency health aid and medical supplies to Ukraine, as part of its emergency relief efforts to assist civilians.
This came in response to the international humanitarian appeal to support displaced Ukrainians and refugees in neighbouring countries.
More than three million people have fled their homes in Ukraine since Russian President Vladimir Putin ordered the Russian invasion nearly three weeks ago.
Mr Putin has cited Ukraine’s ambitions to join Nato and the western defence alliance stationing troops in eastern Europe as his main justification for the war.
Russia has demanded Ukraine drops its bid to join Nato, adopts a neutral status and demilitarises.
Preventing another war
Mr Lenarcic, a former director of the Office for Democratic Institutions and Human Rights within the Organisation for Security and Co-operation in Europe intergovernmental organisation, said the invasion of Ukraine has given Europe a sense of direction in its future policies to prevent another war in the region.
“Both the economic and defence policies are so important. The EU also focuses on green and digital transition, but it’s also important to have defence capabilities as the Russian aggression serves as the biggest reminder that one has to possess suitable deterrent capabilities,” the Slovenian diplomat said.
Several European countries, especially those bordering Ukraine, Russia or Moscow's ally Belarus, have sought to expand their military capabilities.
They increased mandatory military services and put their armed forces on high alert during the long Russian build-up to the war with the deployment of more than 100,000 Russian troops to the borders with Ukraine.
Officials in Poland, Lithuania, Hungary and Latvia have said repeatedly that they want to ensure their defences are enough to deter a Russian invasion.
They are hoping to secure sophisticated US defence equipment that includes anti-tank weapons and the Patriot air defence missile system.
Meanwhile, German Chancellor Olaf Scholz has set up a fund of €100bn ($109.6) to strengthen the country’s armed forces.
He told the Bundestag, that the urgency of the Ukraine crisis had forced Germany's decision to invest in the military.
“Germany was one of the most reluctant countries to go into this direction, but it did decide to increase dramatically its military expenditure and to abandon its pacifist policy [adopted after the Second World War], because as long as you have aggressive autocratic regimes in the world, like we do in Europe, you need to invest in defence,” he said.
EU sanctions on Russia 'will have an impact'
Mr Lenarcic said EU sanctions on Russia are effective in the mid and long term.
“They will have an impact. The Russian currency has fallen dramatically, investments stopped with the withdrawal of hundreds of European companies from Russia and more will come as long as this aggression continues,” he said.
In recent days, Russia has escalated its bombardment of the Ukrainian capital Kyiv and launched new assaults on the southern port city of Mariupol.
On Tuesday, the leaders of three EU countries — Poland, the Czech Republic and Slovenia — visited Kyiv in a bold show of support, despite the danger.
Slovenian Prime Minister Janez Jansa described the visit as sending the message that Ukraine is a European country that deserves to be accepted into the EU one day.
In its assessment of the military advances by Russia, the Pentagon says that the Russians depend on long-range fire to hit civilian targets inside Kyiv with increasing frequency but that their ground forces were making little to no progress around the country.
“This is not just bilateral issue between Russia and Ukraine,” said Mr Lenarcic. “It's not only a European issue either. This is a global issue because what's at stake is whether the world will be based on some fundamental rules or it will be a jungle.”
LA LIGA FIXTURES
Friday Valladolid v Osasuna (Kick-off midnight UAE)
Saturday Valencia v Athletic Bilbao (5pm), Getafe v Sevilla (7.15pm), Huesca v Alaves (9.30pm), Real Madrid v Atletico Madrid (midnight)
Sunday Real Sociedad v Eibar (5pm), Real Betis v Villarreal (7.15pm), Elche v Granada (9.30pm), Barcelona v Levante (midnight)
Monday Celta Vigo v Cadiz (midnight)
RUGBY CHAMPIONSHIP FIXTURES
September 30
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October 7
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US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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UAE currency: the story behind the money in your pockets
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Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
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Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
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