The UN and Turkey announced a deal with Russia and Ukraine on Friday to open up Black Sea shipping lanes and carry stockpiles of grain to a world in increasingly desperate need.
After weeks of delicate talks, Russia and Ukraine each signed agreements with Turkey and the UN in Istanbul, raising hope of easing the hunger crisis after the first major diplomatic breakthrough of the five-month war.
Western powers reacting to the deal said they would be watching to ensure promises were turned into action.
International aid agencies and diplomats expect grain to start fully flowing by the middle of August, but even with the delay grain prices fell on Friday.
"Today, there is a beacon on the Black Sea: a beacon of hope, a beacon of possibility, a beacon of relief, in a world that needs it more than ever," said UN Secretary General Antonio Guterres at a signing ceremony on Friday.
Mr Guterres said the deal would clear the way for grain shipments from three Ukrainian ports, Odesa, Chernomorsk and Yuzhny, stabilising runaway prices and restoring one of the world's most important grain routes.
A co-ordination centre will be set up in Istanbul to manage Black Sea traffic, which will be subject to joint controls to check that cargo ships are not carrying weapons. Ukraine said no Russian inspectors would come within its waters.
There was no immediate word on any military escort but Russia said it was up to Ukraine to ensure safe passage through minefields and promised it would "not take advantage of the fact that the ports will be cleared and opened."
The package deal also includes an agreement on getting Russian food and fertilisers to world markets, Mr Guterres said.
Market analysts said questions would remain about how well Ukraine's ports are functioning following bombardment by Russian forces, and about the quality of the grain held at the harbours.
Western diplomats welcomed the deal but said they would be watching Russia's movements closely, and are expecting an implementation period before cargo ships start moving again.
Guy Platten, secretary general of the International Chamber of Shipping, said the deal was a "long-needed breakthrough" but that ensuring crew safety in highly sensitive waters would be crucial to getting exports moving quickly.
The struggle for Ukraine's southern coast, and the laying of naval mines which the two sides blamed on each other, had brought shipping traffic to a standstill and left about 20 million tonnes of grain stranded in Ukrainian silos.
Food and fertiliser prices mounted and the UN said 47 million people could face severe food scarcity because of the obstruction of the vital shipping lane, while alternative land and river routes proved only a partial substitute.
The EU accused Russia of engineering the crisis by bombarding Ukrainian grain warehouses, but Moscow said, in a counter-narrative rejected in western capitals, that sanctions were fuelling the crisis.
"With the text agreed on today, we will contribute together to prevent the danger of famine that awaits billions of people all over the world," said Turkish President Recep Tayyip Erdogan.
After what he called an "intensive and arduous process" to strike a deal, Mr Erdogan urged Russia and Ukraine to remain at the negotiating table because "there will be no winner in this war".
Ukraine described the arrangement as two separate, mirroring deals signed by Russia and Ukraine, meaning no direct deal between the two of them. Representatives of the warring parties went up separately to sign the documents in Istanbul.
The signing ceremony was delayed briefly by disputes about the arrangement of flags around the table and on signboards for the ceremony, and Ukraine's refusal to put its name on the same document as the Russians. The two sides eventually inked separate but identical agreements after the flags were moved and the signboards replaced.
Nonetheless, the deal represents the first major diplomatic success in Russia-Ukraine talks since the war began, after tentative peace talks mediated by Turkey in March failed to bring a stop to the fighting.
Dr Anwar Gargash, the UAE President's diplomatic adviser, hailed it as a positive step that underlined the need for a political solution to the crisis.
"The grain export agreement signed by Moscow and Kiev in Istanbul is a positive step in the protracted war. This is a positive achievement for Turkish diplomacy, and it reaffirms the need to reach a political solution to the crisis. Escalation is not in the interest of the international system and an urgent peaceful solution is necessary," Dr Gargash wrote on Twitter.
"This deal offers hope that a global hunger crisis can be averted," said Colm Markey, a farmer and member of the European Parliament's agriculture committee.
Sarah Champion, a British MP and chair of a parliamentary development committee, told The National she was cautiously optimistic over what "should be a big step forward in helping to tackle the global hunger crisis" — but said the UK should still increase funding for people facing hunger and malnutrition.
"Countries must act quickly to export the backlog of food exports from Ukraine so food can reach the world's poorest communities," she said. "But this deal alone won't solve the problem."
Kremlin spokesman Dmitry Peskov said the looming food crisis meant it was “very important” to unblock the supply of fertilisers, food and grain to the world markets, while playing down the problem as "a relatively small amount of Ukrainian grain".
Ukrainian presidential aide Mykhaylo Podolyak vowed a Ukrainian “military response” to any provocations from Russia and said the Kremlin's representatives would not enter Ukrainian harbours. He said any necessary inspections of cargo ships “will be carried out by joint groups” in Turkish waters.
The five-month war is being fought across one of Europe's most fertile regions by two of the world's biggest producers of grain. Before the wall, almost all of the grain was shipped out of the region across the Black Sea.
Alternative routes were not entirely satisfactory, because river barges to Romania do not have the same capacity as Black Sea cargo ships, and rail wagons need unloading or replacing at the Polish border.
Chicago wheat fell more than 3 per cent on Friday on expectations of higher supplies from the Black Sea region as Russia and Ukraine are due to sign a deal to open ports for grain shipments.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
UAE currency: the story behind the money in your pockets
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Nancy 9 (Hassa Beek)
Nancy Ajram
(In2Musica)
The five pillars of Islam
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
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.”
On racial profiling at airports
Results:
6.30pm: Maiden Dh165,000 2,000m - Winner: Powderhouse, Sam Hitchcott (jockey), Doug Watson (trainer)
7.05pm: Handicap Dh165,000 2,200m - Winner: Heraldic, Richard Mullen, Satish Seemar
7.40pm: Conditions Dh240,000 1,600m - Winner: Walking Thunder, Connor Beasley, Ahmed bin Harmash
8.15pm: Handicap Dh190,000 2,000m - Winner: Key Bid, Fernando Jara, Ali Rashid Al Raihe
8.50pm: The Garhoud Sprint Listed Dh265,000 1,200m - Winner: Drafted, Sam Hitchcott, Doug Watson
9.25pm: Handicap Dh170,000 1,600m - Winner: Cachao, Tadhg O’Shea, Satish Seemar
10pm: Handicap Dh190,000 1,400m - Winner: Rodaini, Connor Beasley, Ahmed bin Harmash
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3Eamana%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2010%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Karim%20Farra%20and%20Ziad%20Aboujeb%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%3Cbr%3E%3Cstrong%3ERegulator%3A%20%3C%2Fstrong%3EDFSA%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinancial%20services%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E85%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESelf-funded%3Cbr%3E%3C%2Fp%3E%0A