• Firefighters in action after a drone fired on buildings in Kyiv, Ukraine. AP
    Firefighters in action after a drone fired on buildings in Kyiv, Ukraine. AP
  • A drone approaches for an attack in the Ukraine capital. AFP
    A drone approaches for an attack in the Ukraine capital. AFP
  • A police officer fires at a drone flying overhead. AFP
    A police officer fires at a drone flying overhead. AFP
  • Smoke rises from a building after a drone attack. AFP
    Smoke rises from a building after a drone attack. AFP
  • A Ukrainian serviceman takes cover as an air-raid siren sounds. Reuters
    A Ukrainian serviceman takes cover as an air-raid siren sounds. Reuters
  • Debris near the site of a drone attack. AFP
    Debris near the site of a drone attack. AFP
  • Police stand guard as smoke rises from buildings. Reuters
    Police stand guard as smoke rises from buildings. Reuters
  • A drone in the sky seconds before it fired on buildings. AP
    A drone in the sky seconds before it fired on buildings. AP
  • Plumes of smoke rise after a Russian drone strike. Reuters
    Plumes of smoke rise after a Russian drone strike. Reuters

Russia would use tactical nuclear weapons if Crimea threatened, Elon Musk claims


Patrick deHahn
  • English
  • Arabic

Tesla co-founder Elon Musk on Monday said Russia would use tactical nuclear weapons if it assesses it is at risk of losing Crimea, or if Moscow is facing “utter defeat” in the war in Ukraine.

“If Russia is faced with the choice of losing Crimea or using battlefield nukes, they will choose the latter,” Mr Musk wrote in a reply to a Twitter account asking if there was a possibility of nuclear war or a third World War.

His comments come as Russian forces escalated their bombardment of Kyiv on Monday. Ukraine’s capital was hit by Iran-supplied kamikaze drones for the second time in a week, sending residents rushing for shelters.

Mr Musk also suggested that Moscow would resort to using nuclear weapons if it faces “utter defeat” in Ukraine, which it invaded on February 24. An ongoing counteroffensive has seen Ukrainian forces push Russian troops out of several parts of eastern Ukraine.

“If Russia faces destruction of their army and utter defeat by Nato, they will use nukes,” he wrote.

“Then Nato will respond with nukes and civilisation is over.”

“At least Russia doesn’t get Crimea in that scenario, so you can be comforted by that thought, while watching the mushroom clouds rise,” he said in another tweet.

US President Joe Biden recently said that Russian President Vladimir Putin's nuclear sabre-rattling is bringing the world closer to Armageddon.

Mr Musk has become increasingly vocal about global affairs, especially since the Russian invasion of Ukraine. His Starlink satellites have been helping Ukrainian forces but he recently found himself in a spat with Ukrainian President Volodymyr Zelenskyy after he suggested a road map to end the war.

Critics of Mr Musk claim he is sharing pro-Russian policies and military aims that Mr Putin wants disseminated in the western media, suggesting he may have a direct line to the Russian leader — something that Mr Musk denies.

Moscow invaded Crimea in 2014 and held a referendum on unification with Russia. Western countries do not acknowledge Russia's claims to Crimea, or its annexations of four other regions in eastern Ukraine.

Mr Musk made a comparison for American followers in defence of his stance.

“Crimea *is* seen as a crucial part of Russia by Russia, much as Hawaii is seen as a crucial part of America,” he wrote on Twitter.

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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.”

Updated: October 17, 2022, 8:10 PM