Fears of a Russian attack on Ukraine have prompted a series of high-stakes diplomatic efforts in Europe. AP
Fears of a Russian attack on Ukraine have prompted a series of high-stakes diplomatic efforts in Europe. AP
Fears of a Russian attack on Ukraine have prompted a series of high-stakes diplomatic efforts in Europe. AP
Fears of a Russian attack on Ukraine have prompted a series of high-stakes diplomatic efforts in Europe. AP

Russia impatient as Ukraine peace talks fail to break stalemate


Tim Stickings
  • English
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Russia signalled impatience on Thursday over a lack of progress in sensitive peace talks with the West, after diplomats were told the risk of war was at its highest in three decades.

Moscow's envoys said Russia would take "all necessary measures" - even hinting at military deployments to Cuba or Venezuela - to eliminate "unacceptable threats" if its demands to curb Nato expansion go nowhere.

Those demands were again rejected by the US at Thursday's summit of the Organisation for Security and Co-Operation in Europe, prolonging the stalemate in a week of high-wire diplomacy after US-Russia talks and a separate Nato-Russia meeting ended without a breakthrough.

“The drumbeat of war is sounding loud, and the rhetoric has gotten rather shrill", said Michael Carpenter, the US envoy to the OSCE, with diplomats on guard for a potential Russian invasion of Ukraine.

"We have to prepare for the eventuality that there could be an escalation –  and that is why President [Joe] Biden said that the United States, together with our allies and partners – are prepared to impose massive costs", Mr Carpenter said, alluding to the potential economic sanctions that Washington has been coordinating with its European partners.

The Vienna summit of the 57-member OSCE brought together Nato members and Russia, as well as countries such as Ukraine, Sweden and Finland, which are not part of the US-led alliance.

Russia is seeking a veto on any of these countries joining Nato and limits on the alliance stationing troops in Eastern Europe. The US describes these demands as non-starters and says Russia must pull back its troops from Ukraine's eastern border for any progress to be made.

“For several weeks, we have been faced with the possibility of a major military escalation in Eastern Europe,” said Zbigniew Rau, the Polish foreign minister and chairman of the OSCE. “It seems that the risk of war in the OSCE area is now greater than ever before in the last 30 years."

Moscow's delegate to the talks, Alexander Lukashevich, said Russia's proposals were "not a menu from which to choose convenient items", after the US indicated it was willing to discuss arms control but not a limit on Nato expansion.

He said attempts to "drag out" negotiations would lead to an "inevitable deterioration of the security situation".

"If we do not hear a constructive response to the proposals made within a reasonable time frame, and the aggressive line of behaviour towards Russia continues, we will be forced to draw appropriate conclusions and take all necessary measures", he said.

Speaking separately, Deputy Foreign Minister Sergei Ryabkov told Russian television that he could neither confirm nor exclude the possibility of sending military assets to Cuba or Venezuela.

A refusal by the US and its allies to consider key Russian demands would raise doubts about continuing the talks, he said.

Western powers said it was the Kremlin raising tensions with a build-up of 100,000 troops near Ukraine, although Moscow denies planning to invade. Russia annexed Crimea in 2014 and pro-Kremlin separatists have waged a years-long war in eastern Ukraine.

Mr Carpenter said the US would not back down on keeping Nato’s door open to further members or stationing troops in Moscow’s former sphere of influence.

But he sought to reassure Russia that Nato’s military presence in countries such as Latvia, Lithuania and Estonia was “minimal and defensive in nature”.

Neil Bush, the UK's ambassador to the OSCE, called on Russia to de-escalate, remove its troops from Crimea and respect its international commitments.

"We are determined to support Ukraine’s sovereignty and territorial integrity in the face of Russia’s threatening behaviour," he said.

EU foreign policy chief Josep Borrell said there should be no agreement with Russia over the fate of Ukraine so long as Moscow is massing troops at the country's border.

After previously expressing concern about the US and Russia dominating talks, he said at an EU defence and foreign policy meeting that he was content with Washington's co-operation with Brussels.

"We have developed an extremely advanced co-ordination with the United States," he said. "We are in close co-operation and we are assured that nothing will be decided, nor even negotiated with the Russians without a close co-ordination with Europe and without the participation of the Europeans.”

Mr Rau, who took on the rotating OSCE chairmanship on January 1, told diplomats they should focus on a peaceful resolution of the Ukraine conflict.

“The problem is not related to one or two countries but poses a challenge to the stability and security of a European system that has been developed over the course of more than three decades," he said.

The OSCE was not indifferent to security concerns expressed by members and should be open to dialogue, said Mr Rau.

But he said any resolution of the Ukraine conflict should respect the sovereignty and territorial integrity of the country “within its internationally recognised borders”, which include Crimea.

The OSCE has run a monitoring mission in Ukraine since 2014. Its observers said on Wednesday that there had been hundreds of recent breaches of the ceasefire and that the mission’s freedom of movement was restricted.

The specs

Engine: 3.8-litre, twin-turbo V8

Transmission: eight-speed automatic

Power: 582bhp

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UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Sui Dhaaga: Made in India

Director: Sharat Katariya

Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav

3.5/5

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((Disclaimer))

The Liechtensteinische Landesbank AG (“Bank”) assumes no liability or guarantee for the accuracy, balance, or completeness of the information in this publication. The content may change at any time due to given circumstances, and the Liechtensteinische Landesbank AG is under no obligation to update information once it has been published. This publication is intended for information purposes only and does not constitute an offer, a recommendation or an invitation by, or on behalf of, Liechtensteinische Landesbank (DIFC Branch), Liechtensteinische Landesbank AG, or any of its group affiliates to make any investments or obtain services. This publication has not been reviewed, disapproved or approved by the United Arab Emirates (“UAE”) Central Bank, Dubai Financial Services Authority (“DFSA”) or any other relevant licensing authorities in the UAE. It may not be relied upon by or distributed to retail clients. Liechtensteinische Landesbank (DIFC Branch) is regulated by the DFSA and this advertorial is intended for Professional Clients (as defined by the DFSA) who have sufficient financial experience and understanding of financial markets, products or transactions and any associated risks.

Unresolved crisis

Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.

Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.

The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

First Person
Richard Flanagan
Chatto & Windus 

Various Artists 
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
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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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What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Updated: January 13, 2022, 4:05 PM