• Russian President Vladimir Putin shakes hands with North Korean leader Kim Jong-un during a meeting at the Vostochny Сosmodrome in Russia's far-eastern Amur region on Wednesday. Reuters
    Russian President Vladimir Putin shakes hands with North Korean leader Kim Jong-un during a meeting at the Vostochny Сosmodrome in Russia's far-eastern Amur region on Wednesday. Reuters
  • Mr Putin and Mr Kim arrived at the Vostochny Cosmodrome ahead of planned talks that could lead to a weapons deal. AFP
    Mr Putin and Mr Kim arrived at the Vostochny Cosmodrome ahead of planned talks that could lead to a weapons deal. AFP
  • Mr Putin and Mr Kim examine an Angara rocket launch pad during their meeting at the Vostochny Cosmodrome. AP
    Mr Putin and Mr Kim examine an Angara rocket launch pad during their meeting at the Vostochny Cosmodrome. AP
  • Mr Putin and Mr Kim during the visit to the Vostochny Cosmodrome. AFP
    Mr Putin and Mr Kim during the visit to the Vostochny Cosmodrome. AFP
  • Mr Putin and Mr Kim were accompanied by head of Russian state space corporation Roscosmos Yuri Borisov, left, during the visit. EPA
    Mr Putin and Mr Kim were accompanied by head of Russian state space corporation Roscosmos Yuri Borisov, left, during the visit. EPA
  • Mr Kim arrives at the Vostochny Сosmodrome. Reuters
    Mr Kim arrives at the Vostochny Сosmodrome. Reuters
  • Kim Yo-jong, sister of Mr Kim, arrives at the Vostochny Cosmodrome. AFP
    Kim Yo-jong, sister of Mr Kim, arrives at the Vostochny Cosmodrome. AFP
  • Mr Kim disembarks from his train after crossing the border to Russia at Khasan on Tuesday. AP
    Mr Kim disembarks from his train after crossing the border to Russia at Khasan on Tuesday. AP

Kim Jong-un tells Putin he backs 'sacred fight' with West


Gillian Duncan
  • English
  • Arabic

Russian President Vladimir Putin hosted North Korean leader Kim Jong-un for talks on Wednesday that could lead to Moscow's satellite technology being exchanged for Pyongyang's weapons.

The North Korean leader told his Russian counterpart they were fighting a sacred fight against western imperialism, while Mr Putin said the leaders would talk about "all the issues".

Mr Putin said he was "very glad" to see Mr Kim, with Kremlin footage showing the pair shaking hands enthusiastically at the Vostochny Cosmodrome spaceport in Russia’s far east.

The meeting came about an hour after North Korea fired two short-range ballistic missiles into the sea off its east coast.

South Korea’s Joint Chiefs of Staff did not immediately say how far the North Korean missiles flew. Japan’s Coast Guard, citing Tokyo’s Defence Ministry, said the missiles have probably already landed but still urged vessels to watch for falling objects.

The two men began their meeting at the Vostochny Cosmodrome, Russia’s most important domestic satellite launch centre, with a tour of a Soyuz-2 space rocket launch facility, at which Mr Kim peppered a Russian space official with questions about the rockets.

Mr Kim and Mr Putin then met together with their delegations and later one on one, according to Kremlin spokesman Dmitry Peskov.

Experts said Russia would probably use the talks to seek artillery shells and anti-tank missiles from North Korea, which wants advanced satellite and nuclear-powered submarine technology in return.

"We'll talk about all the issues, without haste. There is time," Mr Putin said, when asked whether military co-operation would be on the agenda.

"The leader of the DPRK [Democratic People's Republic of Korea] shows great interest in rocket technology, and they are trying to develop [their presence in] space," Mr Putin said, referring to North Korea by its official name.

In turn, Mr Kim praised Russia's "sacred fight to protect its sovereignty and security … against the hegemonic forces”.

"We will always support the decisions of President Putin and the Russian leadership ... and we will be together in the fight against imperialism," Mr Kim told Mr Putin.

He said North Korea’s relations with Russia were “the first priority”, adding that he was sure that the Russian army and people would triumph against "evil".

Later at an official dinner, Mr Putin toasted the "strengthening of future cooperation".

"A toast to the future strengthening of cooperation and friendship between our countries," Mr Putin said, raising his glass in footage aired by Russian state television.

"For the well-being and prosperity of our nations, for the health of the chairman and all of those present."

Ahn Chan-il, a defector-turned-researcher who runs the World Institute for North Korea Studies, said the relationship could have a significant effect on Russia's war in Ukraine.

"If North Korea's multiple rocket launchers and other artillery shells are provided to Russia in large quantities, it could have a significant impact on the war in Ukraine," he said.

The White House warned last week that Pyongyang would "pay a price" if it supplied Moscow with weaponry for the conflict.

Mr Kim, who travelled overland to Russia in his bullet-proof train, was accompanied by an entourage that suggested the summit would have a strong military focus.

Among the top military officials accompanying him were Korean People's Army Marshal Pak Jong-chon and Munitions Industry Department director Jo Chun-ryong, according to the North's state media.

What is the Vostochny Cosmodrome spaceport?

Located about 1,000km from Vladivostok, the site conducted its first launch in 2016, when a Soyuz-2 rocket blasted off.

The most recent launch was a Soyuz rocket carrying the ill-fated Luna-25 spacecraft, which crashed into the Moon.

Mr Putin ordered the construction of the cosmodrome to reduce reliance on the Baikonur Cosmodrome in Kazakhstan, which gained independence after the 1991 collapse of the Soviet Union.

The pair's meeting at Vostochny shines a spotlight on the West's concerns about the development of North Korea's missile capabilities, and sends a signal that Russia might help North Korea with its rocket and satellite programmes, experts said.

Pyongyang failed twice recently in its attempt to put a military spy satellite into orbit.

"The spaceport seems to be the optimal location because it responds to mutual interests, such as providing satellite technology requested by North Korea," Dr Ahn said.

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

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Updated: September 13, 2023, 11:08 AM