EU commissioner for crisis management Janez Lenarcic during his interview with 'The National' in Dubai. Pawan Singh / The National
EU commissioner for crisis management Janez Lenarcic during his interview with 'The National' in Dubai. Pawan Singh / The National
EU commissioner for crisis management Janez Lenarcic during his interview with 'The National' in Dubai. Pawan Singh / The National
EU commissioner for crisis management Janez Lenarcic during his interview with 'The National' in Dubai. Pawan Singh / The National

In the crossfire of Russia-Ukraine war, EU countries ditch pacifist policies


Ahmed Maher
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Live updates: follow the latest news on Russia-Ukraine

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.

  • Smoke rising in Kyiv, which mayor Vitali Klitschko says faces a 'difficult and dangerous moment' as Russian forces step up strikes. AFP
    Smoke rising in Kyiv, which mayor Vitali Klitschko says faces a 'difficult and dangerous moment' as Russian forces step up strikes. AFP
  • Pope Francis meets visitors holding the Ukrainian flag during his weekly general audience in the Vatican. AFP
    Pope Francis meets visitors holding the Ukrainian flag during his weekly general audience in the Vatican. AFP
  • An anti-war protester demonstrates against Russia's invasion of Ukraine in front of the Nato headquarters in Brussels. AFP
    An anti-war protester demonstrates against Russia's invasion of Ukraine in front of the Nato headquarters in Brussels. AFP
  • A poster in Saint Petersburg carries the letter Z, a symbol of support for the invasion, and reads: "We are proud of Russia! We are not ashamed!" AFP
    A poster in Saint Petersburg carries the letter Z, a symbol of support for the invasion, and reads: "We are proud of Russia! We are not ashamed!" AFP
  • Amid the Ukraine war, there's time for a seaside stroll in Odesa. Reuters
    Amid the Ukraine war, there's time for a seaside stroll in Odesa. Reuters
  • A child who fled from Ukraine to Belgium waits outside an immigration office in Brussels. EPA
    A child who fled from Ukraine to Belgium waits outside an immigration office in Brussels. EPA
  • Ukrainian President Volodymyr Zelenskyy receives a standing ovation as he appears via videoconference to make an address to Canada's Parliament. AP
    Ukrainian President Volodymyr Zelenskyy receives a standing ovation as he appears via videoconference to make an address to Canada's Parliament. AP
  • A woman walks with a bicycle next to a building damaged during the conflict in the separatist-controlled town of Volnovakha, Donetsk region. Reuters
    A woman walks with a bicycle next to a building damaged during the conflict in the separatist-controlled town of Volnovakha, Donetsk region. Reuters
  • A firefighter outside a destroyed apartment building in a residential area of Kyiv. AP
    A firefighter outside a destroyed apartment building in a residential area of Kyiv. AP
  • Ukrainian soldiers pay tribute to Col Valeriy Gudz, who was killed in battle against Russian troops, at a cemetery in the town of Boryspil. AP
    Ukrainian soldiers pay tribute to Col Valeriy Gudz, who was killed in battle against Russian troops, at a cemetery in the town of Boryspil. AP
  • Firefighters work to extinguish a fire in a housing block hit by shelling in the Sviatoshynsky district, in western Kyiv. AFP
    Firefighters work to extinguish a fire in a housing block hit by shelling in the Sviatoshynsky district, in western Kyiv. AFP
  • Two people were killed as a series of powerful explosions rocked residential districts in Kyiv just hours before talks between Ukraine and Russia were set to resume. AFP
    Two people were killed as a series of powerful explosions rocked residential districts in Kyiv just hours before talks between Ukraine and Russia were set to resume. AFP
  • The Met Opera and Chorus performs during 'A Concert For Ukraine' in New York City. AFP
    The Met Opera and Chorus performs during 'A Concert For Ukraine' in New York City. AFP
  • A worker welds metal at the Interpipe Steel plant in Dnipro, Ukraine. Hundreds of Interpipe’s 10,000 employees have joined the fight against Russia. AP
    A worker welds metal at the Interpipe Steel plant in Dnipro, Ukraine. Hundreds of Interpipe’s 10,000 employees have joined the fight against Russia. AP
  • A woman is rescued by firefighters from her apartment in a burning building that was hit by artillery shells in Kyiv. AP
    A woman is rescued by firefighters from her apartment in a burning building that was hit by artillery shells in Kyiv. AP
  • Rescuers work at a building damaged by an air strike, in central Kharkiv, Ukraine. Reuters
    Rescuers work at a building damaged by an air strike, in central Kharkiv, Ukraine. Reuters
  • A woman who fled Ukraine to Belgium waits outside an immigration office, in Brussels. EPA
    A woman who fled Ukraine to Belgium waits outside an immigration office, in Brussels. EPA
  • Cars stuck at the Irpin River bridge, as Russia unleashes a barrage of air strikes on cities across Ukraine. AFP
    Cars stuck at the Irpin River bridge, as Russia unleashes a barrage of air strikes on cities across Ukraine. AFP
  • A firefighter looks at a section of a Ukrainian Tochka-U missile on a street in the separatist Donetsk region. The Russian military said 20 civilians were killed by a ballistic missile launched by the Ukrainian forces. AP
    A firefighter looks at a section of a Ukrainian Tochka-U missile on a street in the separatist Donetsk region. The Russian military said 20 civilians were killed by a ballistic missile launched by the Ukrainian forces. AP
  • Musician Davide Martello plays a piano near the Ukrainian border in Medyka, Poland. More than 1.76 million people have crossed the Polish-Ukrainian border into Poland, the Polish Border Guard reported on March 14. EPA
    Musician Davide Martello plays a piano near the Ukrainian border in Medyka, Poland. More than 1.76 million people have crossed the Polish-Ukrainian border into Poland, the Polish Border Guard reported on March 14. EPA
  • Ukrainian President Volodymyr Zelenskyy, left, snaps a selfie with a wounded man during a visit at a military hospital after fighting in the Kyiv region.AFP
    Ukrainian President Volodymyr Zelenskyy, left, snaps a selfie with a wounded man during a visit at a military hospital after fighting in the Kyiv region.AFP
  • Ukrainian soldiers carry rocket-propelled grenades and sniper rifles as they walk towards the city of Irpin, north-west of Kyiv. AFP
    Ukrainian soldiers carry rocket-propelled grenades and sniper rifles as they walk towards the city of Irpin, north-west of Kyiv. AFP
  • Troops carry an elderly woman on a stretcher across a makeshift bridge as Ukrainians flee Irpin. AFP
    Troops carry an elderly woman on a stretcher across a makeshift bridge as Ukrainians flee Irpin. AFP
  • Irina Moprezova, 54, stands in front of a house that was damaged by an air strike in Irpin. AFP
    Irina Moprezova, 54, stands in front of a house that was damaged by an air strike in Irpin. AFP
  • The flags of Russia and Ukraine are projected on the walls of Jerusalem's Old City, which a representative from the Jerusalem Municipality said is a show of support for diplomatic dialogue between the countries. Reuters
    The flags of Russia and Ukraine are projected on the walls of Jerusalem's Old City, which a representative from the Jerusalem Municipality said is a show of support for diplomatic dialogue between the countries. Reuters
  • A person holds a Ukrainian flag during an anti-war demonstration at the Brandenburg Gate in Berlin, Germany. Reuters
    A person holds a Ukrainian flag during an anti-war demonstration at the Brandenburg Gate in Berlin, Germany. Reuters
  • A Ukrainian soldier takes cover as people flee Irpin. AFP
    A Ukrainian soldier takes cover as people flee Irpin. AFP
  • Ukrainians shelter in an underground train station during the day in Kyiv. EPA
    Ukrainians shelter in an underground train station during the day in Kyiv. EPA
  • A Ukrainian serviceman walks carefully with his weapon in the city of Irpin, near Kyiv. AFP
    A Ukrainian serviceman walks carefully with his weapon in the city of Irpin, near Kyiv. AFP
  • Ukrainian people flee the city of Irpin, north-west of Kyiv. AFP
    Ukrainian people flee the city of Irpin, north-west of Kyiv. AFP
  • Ukrainian servicemen carry an elderly woman on a stretcher from the city of Irpin. AFP
    Ukrainian servicemen carry an elderly woman on a stretcher from the city of Irpin. AFP
  • A girl plays games on her tablet inside a subway carriage being used as a bomb shelter in Kyiv. AFP
    A girl plays games on her tablet inside a subway carriage being used as a bomb shelter in Kyiv. AFP
  • A Ukrainian firefighter drags a hose inside a large food products storage facility which was destroyed by an air strike on the outskirts of Kyiv. AP
    A Ukrainian firefighter drags a hose inside a large food products storage facility which was destroyed by an air strike on the outskirts of Kyiv. AP
  • Ukrainian troops with a Javelin anti-tank missile on the front line in the northern Kyiv region. Reuters
    Ukrainian troops with a Javelin anti-tank missile on the front line in the northern Kyiv region. Reuters
  • A woman carries her dog during an evacuation in Irpin. Reuters
    A woman carries her dog during an evacuation in Irpin. Reuters
  • A Ukrainian woman takes shelter in a metro station during the day in Kyiv. EPA
    A Ukrainian woman takes shelter in a metro station during the day in Kyiv. EPA
  • A member of the Ukrainian armed forces on patrol in Irpin. Reuters
    A member of the Ukrainian armed forces on patrol in Irpin. Reuters
  • A Ukrainian fighter takes cover behind a car in the city of Irpin. AFP
    A Ukrainian fighter takes cover behind a car in the city of Irpin. AFP
  • Firefighters at work after air strikes hit residential buildings in Chernihiv, northern Ukraine. AFP
    Firefighters at work after air strikes hit residential buildings in Chernihiv, northern Ukraine. AFP
  • A man wounded in an air strike is helped by medical staff in Novoiavorivsk, western Ukraine. Getty
    A man wounded in an air strike is helped by medical staff in Novoiavorivsk, western Ukraine. Getty
  • The ruins of the Ukraine Hotel after recent shelling in Chernihiv. EPA
    The ruins of the Ukraine Hotel after recent shelling in Chernihiv. EPA

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.”

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Monday Celta Vigo v Cadiz (midnight)

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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.

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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.

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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

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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

Updated: March 16, 2022, 11:45 AM