China has called for a ceasefire between Ukraine and Moscow and the opening of peace talks in a 12-point proposal to end the fighting that started one year ago.
“Conflict and war benefit no one. All parties must stay rational and exercise restraint, avoid fanning the flames and aggravating tensions, and prevent the crisis from deteriorating further or even spiralling out of control,” the Chinese government said in a statement on Friday.
Beijing insists it remains neutral on the conflict despite saying it has a “no limits” relationship with Russia and having refused to criticise the invasion of Ukraine or even refer to it as such.
It has accused the West of provoking the conflict and “fanning the flames” by providing Ukraine with defensive arms. The US has also said China may be preparing to provide Russia with military aid, something Beijing says lacks evidence.
The move was cautiously welcomed by Ukraine’s President Volodymyr Zelenskyy.
“I think that, in general, the fact that China started talking about peace in Ukraine, I think that it is not bad. It is important for us that all states are on our side, on the side of justice,” he said at a news conference on Thursday with Spain's prime minister.
Ukraine’s charge d'affaires in Beijing Zhanna Leshchynska also called it a “good sign” and said they expect China to be more active in its support of Ukraine.
“We hope they also urge Russia to stop the war and withdraw its troops,” Ms Leshchynska said.
The 12-point plan issued on Friday morning by China’s Foreign Ministry urges an end of Western sanctions imposed on Russia and includes measures to keep nuclear facilities safe, establish humanitarian corridors for civilians and ensure the export of grain after disruptions inflated global food prices.
It mainly elaborated on long-held Chinese positions, including that all countries' “sovereignty, independence and territorial integrity” be guaranteed.
“Dialogue and negotiation are the only viable way out to resolve Ukraine crisis,” the proposal said.
It offered no details on what form talks should take, any preconditions or which countries should be involved, but said “China is willing to continue to play a constructive role in this regard”.
It also called an end to the “Cold War mentality” — China's standard term for what it regards as US hegemony, interference in other countries' affairs and maintenance of alliances such as Nato.
“A country’s security cannot be at the expense of other countries’ security, and regional security cannot be guaranteed by strengthening or even expanding military blocs,” the proposal said.
“The legitimate security interests and concerns of all countries should be taken seriously and properly addressed.”
China abstained on Thursday when the UN General Assembly approved a non-binding resolution that calls for Russia to end hostilities in Ukraine and withdraw its forces.
It is one of 16 countries that either voted against or abstained on almost all of five previous resolutions on Ukraine.
India, which has sought to balance relations with Russia and the West, also abstained.
State Department spokesman Ned Price said earlier on Thursday that the US would reserve judgment on China’s proposal but that Beijing’s allegiance with Russia meant it was not a neutral mediator.
However, he said China’s relationship with Russia put it in a good position for such proposals.
“[We hope that] all countries that have a relationship with Russia unlike the one that we have will use that leverage, will use that influence to push Russia meaningfully and usefully to end this brutal war of aggression. [China] is in a position to do that in ways that we just aren’t.”
The EU’s ambassador to China, Jorge Toledo, said they were studying the proposal.
“If the position paper is a positive sign for Ukraine then it's a positive sign for the EU, although we are studying the paper closely,” he said.
Russian President Vladimir Putin on Thursday hailed “new frontiers” in ties between Moscow and Beijing and signalled China's leader Xi Jinping would visit. Xi is expected to deliver a “peace speech” on Friday.
Foreign Minister Wang Yi reaffirmed the strength of their bilateral ties when he met with Russian President Vladimir Putin in Moscow this week.
However, China has said that Ukraine conflict is “not something it wishes to see”, and has repeatedly said any use of nuclear weapons would be completely unacceptable, in an implied repudiation of Putin’s statement that Russia would use “all available means” to protect its territory.
The line was reiterated in Beijing’s peace plan proposal.
“There are no winners in conflict wars,” it said.
“All parties should maintain rationality and restraint … support Russia and Ukraine to meet each other, resume direct dialogue as soon as possible, gradually promote the de-escalation and relaxation of the situation, and finally reach a comprehensive ceasefire,” it said.
Shi Yinhong, a professor of international relations at Beijing’s Renmin University, said China's proposal was necessary.
“China’s peace proposal does not change but combines its comprehensive positions on the crisis and war in Ukraine,” Mr Shi told AP.
China's position “always falls far short of Russia's preference but still meet criticism from the West and its allies”, Mr Shi said.
“China feels it necessary to repeat its self-perceived neutrality at this juncture, to save some international inference by not only criticising Nato but also distinguishing itself from Russia’s behaviour.”
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Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
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Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
Uefa Nations League
League A:
Germany, Portugal, Belgium, Spain, France, England, Switzerland, Italy, Poland, Iceland, Croatia, Netherlands
League B:
Austria, Wales, Russia, Slovakia, Sweden, Ukraine, Republic of Ireland, Bosnia-Herzegovina, Northern Ireland, Denmark, Czech Republic, Turkey
League C:
Hungary, Romania, Scotland, Slovenia, Greece, Serbia, Albania, Norway, Montenegro, Israel, Bulgaria, Finland, Cyprus, Estonia, Lithuania
League D:
Azerbaijan, Macedonia, Belarus, Georgia, Armenia, Latvia, Faroe Islands, Luxembourg, Kazakhstan, Moldova, Liechtenstein, Malta, Andorra, Kosovo, San Marino, Gibraltar
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.”