European Commission President Ursula von der Leyen applauds a speach by Ukraine's President Volodymyr Zelenskyy. EPA
European Commission President Ursula von der Leyen applauds a speach by Ukraine's President Volodymyr Zelenskyy. EPA
European Commission President Ursula von der Leyen applauds a speach by Ukraine's President Volodymyr Zelenskyy. EPA
European Commission President Ursula von der Leyen applauds a speach by Ukraine's President Volodymyr Zelenskyy. EPA

Eastern Europe swings behind Ukraine's EU membership bid


Tim Stickings
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At least 10 members of the European Union are backing Ukraine’s plea to be admitted to the bloc, but senior figures in Brussels and major EU capitals are cool on the prospects for a fast-track admission.

Ukrainian President Volodymyr Zelenskyy, who renewed his appeal for membership on Wednesday, says the country has proved itself a worthy European ally by resisting Russia’s invasion and wants EU leaders to waive the usually protracted application process.

The strongest supporters of his bid are in Eastern Europe, reflecting sympathy in the former Soviet sphere of influence for countries facing domination by Moscow.

A letter from the presidents of eight countries who joined the EU in the 2000s — Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Poland, Slovakia and Slovenia — said Ukraine deserved an “immediate EU accession perspective”.

It called on the EU to immediately grant Ukraine candidate status, which is currently held by five other countries, and then begin negotiations on full membership.

These typically take 10 years or more and require a country to meet the EU’s standards on issues such as corruption, the environment and the rule of law, all areas where Brussels has identified issues in Ukraine.

The last country to join, Croatia, entered in 2013 after applying in 2003, while other applications such as those from Turkey and North Macedonia have taken even longer. Politicians within the EU have spoken of “enlargement fatigue” after a series of crises in the bloc.

  • Damage after the shelling of buildings in central Kharkiv, Ukraine. EPA
    Damage after the shelling of buildings in central Kharkiv, Ukraine. EPA
  • Workers from a local construction company weld anti-tank obstacles to be placed on roads around Kyiv as Russia's invasion of Ukraine continues. Reuters
    Workers from a local construction company weld anti-tank obstacles to be placed on roads around Kyiv as Russia's invasion of Ukraine continues. Reuters
  • Anti-war protesters attach sunflowers to barriers in front of the Russian embassy. Reuters
    Anti-war protesters attach sunflowers to barriers in front of the Russian embassy. Reuters
  • Ukrainian volunteers prepare food for displaced people outside Lviv railway station in western Ukraine. AP
    Ukrainian volunteers prepare food for displaced people outside Lviv railway station in western Ukraine. AP
  • A Ukrainian soldier holds an anti-tank launcher north-east of Kyiv. AFP
    A Ukrainian soldier holds an anti-tank launcher north-east of Kyiv. AFP
  • Ukrainian refugees rest at Warsaw East train station in Poland. EPA
    Ukrainian refugees rest at Warsaw East train station in Poland. EPA
  • Children look out from a carriage window as a train prepares to depart from a station in Lviv to the town of Uzhhorod near the border with Slovakia. AFP
    Children look out from a carriage window as a train prepares to depart from a station in Lviv to the town of Uzhhorod near the border with Slovakia. AFP
  • A girl who fled Ukraine is reunited with her father in Medyka, south-eastern Poland. AP Photo
    A girl who fled Ukraine is reunited with her father in Medyka, south-eastern Poland. AP Photo
  • Tears outside a house damaged by a Russian airstrike in Gorenka, on the outskirts of Kyiv. AP Photo
    Tears outside a house damaged by a Russian airstrike in Gorenka, on the outskirts of Kyiv. AP Photo
  • A civil defence member is poised to shoot as a vehicle approaches a checkpoint in Gorenka. AP Photo
    A civil defence member is poised to shoot as a vehicle approaches a checkpoint in Gorenka. AP Photo
  • A Ukrainian civil defence member in the garden of a house damaged by a Russian airstrike. AP Photo
    A Ukrainian civil defence member in the garden of a house damaged by a Russian airstrike. AP Photo
  • Members of the US Army 3rd Infantry Division board a plane bound for Germany in Savannah, Georgia. EPA
    Members of the US Army 3rd Infantry Division board a plane bound for Germany in Savannah, Georgia. EPA
  • Prayers for peace in Ukraine at the Vatican's Saint Peter's Square. AFP
    Prayers for peace in Ukraine at the Vatican's Saint Peter's Square. AFP
  • A woman (right) hugs an arriving passenger from a train carrying refugees at Berlin's central station. EPA
    A woman (right) hugs an arriving passenger from a train carrying refugees at Berlin's central station. EPA
  • Firefighters battle a blaze in a Kharkiv police building hit by shelling. AFP
    Firefighters battle a blaze in a Kharkiv police building hit by shelling. AFP
  • A Ukrainian woman makes a phone call after crossing the Slovakian border. AFP
    A Ukrainian woman makes a phone call after crossing the Slovakian border. AFP
  • A doctor takes shelter in the basement of a Kyiv perinatal centre. Reuters
    A doctor takes shelter in the basement of a Kyiv perinatal centre. Reuters
  • Debris which locals say was caused by shelling in separatist-controlled Horlivka, Donetsk. Reuters
    Debris which locals say was caused by shelling in separatist-controlled Horlivka, Donetsk. Reuters
  • MPs in London give a standing ovation to Ukraine ambassador Vadym Prystaiko, who was in the public gallery. AP
    MPs in London give a standing ovation to Ukraine ambassador Vadym Prystaiko, who was in the public gallery. AP
  • Distraught women and children fleeing Ukraine wait to enter Poland at the Korczowa crossing. Getty
    Distraught women and children fleeing Ukraine wait to enter Poland at the Korczowa crossing. Getty
  • Newborn Ivan lies next to his mother as they shelter in the basement of a Kyiv perinatal centre. Reuters
    Newborn Ivan lies next to his mother as they shelter in the basement of a Kyiv perinatal centre. Reuters
  • Firefighters hand water to people in a Ukrainian train full of refugees in Przemysl, Poland. Reuters
    Firefighters hand water to people in a Ukrainian train full of refugees in Przemysl, Poland. Reuters
  • Ukrainian refugees queue to file for residency permits at Prague's police headquarters. AFP
    Ukrainian refugees queue to file for residency permits at Prague's police headquarters. AFP
  • Firefighters work to contain a blaze in buildings housing the Kharkiv regional police department. AFP
    Firefighters work to contain a blaze in buildings housing the Kharkiv regional police department. AFP
  • A woman and her children sit in a tent in the Kyiv subway, using it as a bomb shelter. AP
    A woman and her children sit in a tent in the Kyiv subway, using it as a bomb shelter. AP
  • Firefighters work to extinguish a blaze at the Kharkiv National University building, which city officials said was damaged by Russian shelling. Reuters
    Firefighters work to extinguish a blaze at the Kharkiv National University building, which city officials said was damaged by Russian shelling. Reuters
  • An elderly woman comforts a child as they take shelter inside an underground station in Kyiv. Reuters
    An elderly woman comforts a child as they take shelter inside an underground station in Kyiv. Reuters
  • People queue at a pharmacy in central Kyiv. Reuters
    People queue at a pharmacy in central Kyiv. Reuters
  • A woman is consoled by a volunteer after fleeing from Russia's invasion of Ukraine, at the border crossing in Siret, Romania. Reuters
    A woman is consoled by a volunteer after fleeing from Russia's invasion of Ukraine, at the border crossing in Siret, Romania. Reuters
  • A Ukrainian civilian in the city of Zhytomyr practises throwing petrol bombs. Reuters
    A Ukrainian civilian in the city of Zhytomyr practises throwing petrol bombs. Reuters
  • Ukrainian President Volodymyr Zelenskyy poses after an interview with Reuters in Kyiv. Reuters
    Ukrainian President Volodymyr Zelenskyy poses after an interview with Reuters in Kyiv. Reuters
  • A blast is seen at Kyiv's TV tower. Reuters
    A blast is seen at Kyiv's TV tower. Reuters
  • A girl in Siret, Romania, covers herself with a blanket after fleeing from Ukraine. Reuters
    A girl in Siret, Romania, covers herself with a blanket after fleeing from Ukraine. Reuters
  • Ukraine's ambassador to the US, Oksana Markarova, acknowledges applause from US first lady Jill Biden as they attend President Joe Biden's first State of the Union address in Washington. AFP
    Ukraine's ambassador to the US, Oksana Markarova, acknowledges applause from US first lady Jill Biden as they attend President Joe Biden's first State of the Union address in Washington. AFP
  • A man walks past the remains of Russian military vehicles in Bucha, close to Kyiv. AFP
    A man walks past the remains of Russian military vehicles in Bucha, close to Kyiv. AFP
  • Civilians cross a river on a blown-up bridge on Kyiv's northern front. Defending the capital is a 'key priority', Ukraine's president has said. AFP
    Civilians cross a river on a blown-up bridge on Kyiv's northern front. Defending the capital is a 'key priority', Ukraine's president has said. AFP
  • Russian aircraft on the ground at Luninets Airbase, Belarus, about 50 kilometres north of the Ukrainian border. AFP
    Russian aircraft on the ground at Luninets Airbase, Belarus, about 50 kilometres north of the Ukrainian border. AFP
  • People look at the gutted remains of Russian military vehicles on a road in the town of Bucha. AP
    People look at the gutted remains of Russian military vehicles on a road in the town of Bucha. AP
  • A woman with a child who fled from the war in Ukraine reunite with their family after crossing the border in Medyka, Poland. AP
    A woman with a child who fled from the war in Ukraine reunite with their family after crossing the border in Medyka, Poland. AP
  • Animal keeper Kirilo Trantin comforts an elephant at Kyiv Zoo. AP
    Animal keeper Kirilo Trantin comforts an elephant at Kyiv Zoo. AP
  • An armed man stands by the remains of a Russian military vehicle in Bucha. AP
    An armed man stands by the remains of a Russian military vehicle in Bucha. AP
  • Ukrainian families say goodbye as they prepare to board a bus to Poland at Lviv, western Ukraine. AP
    Ukrainian families say goodbye as they prepare to board a bus to Poland at Lviv, western Ukraine. AP
  • Paramedics move a man who was wounded by shelling in a residential area of Mariupol, south-eastern Ukraine. AP
    Paramedics move a man who was wounded by shelling in a residential area of Mariupol, south-eastern Ukraine. AP
  • Rescuers work at the site of a Russian strike in Zhytomyr. Reuters
    Rescuers work at the site of a Russian strike in Zhytomyr. Reuters
  • US actor and director Sean Penn attends a press briefing at the Presidential Office in Kyiv. Reuters
    US actor and director Sean Penn attends a press briefing at the Presidential Office in Kyiv. Reuters
  • Demonstrators participate in a protest against Russia’s invasion of Ukraine at Lafayette Square in Washington. AFP
    Demonstrators participate in a protest against Russia’s invasion of Ukraine at Lafayette Square in Washington. AFP
  • Ukrainian soldiers rest while others eat near the front line with Russian troops in northern Kyiv. AP
    Ukrainian soldiers rest while others eat near the front line with Russian troops in northern Kyiv. AP
  • A barricade made of trams, buses and sand bags is seen through the window of car in the northern part of Kyiv. AP
    A barricade made of trams, buses and sand bags is seen through the window of car in the northern part of Kyiv. AP
  • Members of the European Parliament applaud after Ukrainian President Volodymyr Zelenskyy's speech at a special session to debate its response to the Russian invasion of Ukraine. Reuters
    Members of the European Parliament applaud after Ukrainian President Volodymyr Zelenskyy's speech at a special session to debate its response to the Russian invasion of Ukraine. Reuters
  • Ambassadors and diplomats walk out as Russia's Foreign Minister Sergey Lavrov (on screen) speaks during a recorded message at the 49th session of the UN Human Rights Council in Geneva. EPA
    Ambassadors and diplomats walk out as Russia's Foreign Minister Sergey Lavrov (on screen) speaks during a recorded message at the 49th session of the UN Human Rights Council in Geneva. EPA

Croatian President Zoran Milanovic backed Ukraine’s bid on Tuesday and attached a plea for Kosovo, Albania, North Macedonia and Bosnia and Herzegovina to have their applications accelerated.

“Ukraine is subjected to the aggression of the Russian Federation and we must all provide it with all the necessary assistance, which we would expect if we were in the same situation,” Mr Milanovic said.

Hungary, whose government is normally Russia-friendly but has sided with Ukraine over the invasion, similarly urged EU leaders to put the issue on the agenda.

But any accession would require the consent of the EU institutions and all 27 current members, and although none of these have openly come out against it, some have indicated they are reluctant to tear up the long-standing process.

Mr Zelenskyy directly lobbied German Chancellor Olaf Scholz to get behind the application, while Lithuania made the same appeal to French President Emmanuel Macron.

A vote by members of the European Parliament calling for a push towards candidate status had mainly symbolic value as the leaders of the European Commission and European Council are still equivocal.

Ursula von der Leyen, president of the European Commission, said there was no doubt that Ukraine “belongs in our European family” but said there was “still a long path ahead” to full membership.

She suggested the war with Russia would have to end before any membership bid could go forward, with the fate of Ukraine’s government uncertain in the event of a Russian victory.

Council president Charles Michel said Ukraine’s bid would be taken seriously but said opinion was divided among the member states.

And German Foreign Minister Annalena Baerbock said Ukraine was part of the “European house” but that a membership bid was “not something that can be completed in a couple of months”.

She said any successful bid would require a “deep and comprehensive transformation process” and suggested Ukraine should receive the same treatment as applicants in the Western Balkans.

An EU evaluation in 2020 gave a mixed verdict on Ukraine’s progress in tackling corruption, with police work said to have improved but few cases resulting in convictions.

The Netherlands, meanwhile, said it was the wrong time to discuss EU membership, while Austria similarly said a fast-tracked Ukrainian accession would not solve the current crisis the country is facing.

From outside the bloc, Turkey said it wanted the “same sensitivity” to be shown to its own long-stalled membership bid as to the application by Ukraine. Britain, which was historically a strong supporter of expanding the EU, is no longer a member.

The discussions are running in parallel to debates around Ukraine's possible membership of Nato. That possibility was one of the main grounds on which Russia claimed to be threatened by its ex-Soviet neighbour.

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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.”

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Updated: March 02, 2022, 9:49 AM