Kyiv on Monday said it had filed lawsuits at the World Trade Organisation against three neighbours – Poland, Slovakia and Hungary – after they defied EU rules and maintained bans on Ukrainian grain imports, which they claim threaten the livelihoods of local farmers.
“It is crucially important for us to prove that individual member states cannot ban imports of Ukrainian goods,” Ukraine's Economy Minister Yulia Svyrydenko said in a statement.
“That is why we are filing lawsuits against them.
“At the same time, we hope that these countries will lift their restrictions and we will not have to settle the matter in courts for a long time.”
Poland said that it would not change its position despite the legal proceedings, which come after months of diplomatic tension over Ukraine's agricultural exports despite the two countries being strong allies.
“We maintain our position, we think it is correct, it results from an economic analysis and powers derived from EU and international law,” said government spokesman Piotr Mueller on Polsat News.
“A complaint before the WTO doesn't impress us.”
Meanwhile in Bulgaria, which lifted a ban on Ukrainian grains last week, farmers took to the streets demanding it be reintroduced.
Russia's invasion of Ukraine last year and the near closure of Kyiv's export routes via the Black Sea has triggered an increase in land exports, driving down the prices of agricultural products in neighbouring countries.
In May, the European Commission agreed to introduce a temporary ban on Ukrainian wheat, maize, rapeseed and sunflower seed exports to Bulgaria, Hungary, Poland, Romania and Slovakia.
But on Friday, the commission lifted the ban, saying that market distortions no longer apply after the EU increased the capacity of so-called solidarity lanes which enable the export of Ukrainian goods by land via Europe to the rest of the world.
Brussels called on the five countries to refrain from taking unilateral measures.
“What’s important is that all countries work in spirit of compromise, engage constructively and that we find a solution,” said European Commissioner for Trade Valdis Dombrovskis.
Yet in some countries like Poland, politicians fear a backlash in the ballot at an upcoming parliamentary election next month.
Along with Slovakia and Hungary, Warsaw openly defied Brussels and continued enforcing a ban on some Ukrainian agricultural imports, causing anger in Kyiv.
Some European capitals have also expressed frustration with the three countries, with France saying that European solidarity was at stake.
“For solidarity there needs to be unity … We must keep hold of the two elements, otherwise the European project is at risk. The single market is a fundamental element,” France's Agriculture Minister Marc Fesneau said on Monday.
The dispute not only tests European solidarity – it also drives a wedge between Ukraine and two of its staunchest military supporters since the start of the war: Poland and Slovakia.
In March, they became the first Nato countries to send MiG-29 fighter jets to Ukraine. Poland supplied more than 100 T-72 tanks last year and is a key hub for weapon supplies being transferred to Ukraine.
Romania has not acted separately yet but Prime Minister Marcel Ciolacu said on Monday that it would consider the option should imports from Ukraine rise.
Ukraine presented an action plan to avoid a surge in exports during a meeting on Monday in Brussels with representatives from Moldova, Bulgaria, Hungary, Poland, Romania, Slovakia and the European Commission.
A commission representative told The National that such measures would entail Kyiv regularly sharing data and creating an export licensing system that includes a verification and authorisation mechanism for wheat, maize, rapeseed and sunflower seed exports.
Discussions on the action plan are expected to continue.
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
THE%20STRANGERS'%20CASE
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Where to Find Me by Alba Arikha
Alma Books
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Sholto Byrnes on Myanmar politics
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
UAE currency: the story behind the money in your pockets
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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.”
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
