Belarus is cynically exploiting the hopes of Iraqi migrants by sending them on fruitless journeys to the EU border in an act of aggression against the bloc, European Commissioner Ylva Johansson said on Monday.
Thousands of mainly Iraqi migrants have entered EU member Lithuania from Belarus in recent months, a route which saw only 74 such crossings last year.
Belarus is suspected of orchestrating the wave of arrivals to retaliate against EU sanctions following a disputed election.
Visiting Lithuania on Monday, Ms Johansson said it must be made clear to migrants that “this is not a new route”.
She said Brussels had held constructive talks with Iraq and other countries aimed at informing migrants that travelling to Belarus was a road to nowhere.
While the new arrivals can apply for asylum in Lithuania, many are not thought to be refugees and will be returned home if their claims fail. Some are currently living in camps on the border.
“We need to make sure that people can be sent back to the country of origin, and also to do all that we can do to prevent these flights coming to Minsk with more people,” Ms Johansson said.
“They are being cynically exploited by the Lukashenko regime with false hopes and false routes,” she said, referring to Belarus's President Alexander Lukashenko.
Lithuania’s Prime Minister Ingrida Simonyte expressed hope that the EU’s efforts in Iraq would help to ease the situation. Brussels is also pledging financial support to Vilnius.
“The EU has opportunities to make use of its negotiating capacity with the Iraqi government,” Ms Simonyte said.
Iraq’s Foreign Minister Fuad Hussein said in July that Baghdad would investigate alleged people smuggling to Europe from its territory.
EU border agency Frontex has deployed guards and helicopters to help Lithuania protect its frontier, while Europol works to break up alleged smuggling gangs. About 3,000 people have entered Lithuania.
Lithuania’s northern neighbour, Latvia, has not seen a similar spike in arrivals but has asked Frontex for help as a precaution.
Sanctions dispute
Brussels suspects that the migrants are ferried to Minsk on flights from Baghdad and Istanbul, then transported to the border with Lithuania.
“The institutions of the [Belarusian] regime are taking part, in one way or another, in the organisation of the flow,” said Ms Simonyte.
EU foreign policy chief Josep Borrell condemned what he called the "instrumentalisation" of migrants and refugees by Belarus.
“Using human beings in need to advance political goals violates fundamental European values and principles,” he said.
The EU imposed sanctions on Belarus last year after Mr Lukashenko claimed victory in an election seen by the opposition as rigged.
What we are facing is an aggressive act from the Lukashenko regime
Ylva Johansson
Mr Lukashenko’s main challenger, Sviatlana Tsikhanouskaya, has been living in exile in Lithuania since fleeing Belarus in the election’s violent aftermath.
Lithuania has refused a request to extradite Ms Tsikhanouskaya and last month granted her diplomatic status in a symbolic gesture.
Sanctions on Belarus have been tightened following the arrest of a Belarusian opposition figure who was detained on board a Ryanair jet in May.
Belarus’s military forced the plane to land in Minsk citing a supposed bomb threat, which was widely regarded as a ruse to arrest the journalist.
“What we are facing [at the border] is an aggressive act from the Lukashenko regime, one that is designed to provoke,” said Ms Johansson.
“The EU has a lot of power when we reach out to third countries, and that’s why we need to do that, and Lithuania should not be left alone.”
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UAE currency: the story behind the money in your pockets
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UAE currency: the story behind the money in your pockets
Barings Bank
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What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
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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.”