After Crimea was annexed in 2014, the G8 expelled Russia and became the G7. Could the G20 now do the same thing and become the G19 after the invasion of Ukraine?
Christian Lindner, the German finance minister who chaired talks on Ukraine with his G7 counterparts this week, said there was a consensus that international diplomacy with Russia could not return to business as usual.
Asked about the G20, he said it was “hardly imaginable” that Russian representatives could sit next to western diplomats at international summits “as if nothing has happened”.
But any decision on the G20 would, as Mr Lindner said, be above the pay grade of finance ministers and require agreement from world leaders in a club that goes well beyond the western-aligned democracies of the G7.
One of those leaders, Prime Minister Scott Morrison of Australia, signalled he was open to expelling Russian ministers from the G20.
“They have self-selected themselves as a pariah state and that's how they should be known all around the world, and no one should have anything to do with them, frankly,” Mr Morrison said.
Ivo Daalder, a former US ambassador to Nato, wrote in an opinion piece that there was “no place for Russia in the G20” and that other formal talks should be suspended, but some diplomatic channels kept open.
Russia is the world’s 11th-richest country and President Vladimir Putin took part in discussions at last year’s summit on the world economy, the coronavirus pandemic and international development.
Shortly before the invasion of Ukraine, Russia and China watered down a G20 finance leaders’ statement on geopolitical risks by deleting a reference to “current tensions”.
But Russia is now under sanctions by many of those G20 countries, in a punitive package which UK Prime Minister Boris Johnson described as the biggest ever imposed against a member of that club.
European diplomats walked out of a human rights summit in Geneva this week after Russian Foreign Minister Sergey Lavrov, who is now under personal sanctions by western countries, took the microphone.
However, Russia has more potential allies in the G20 than in the G7. That became clear in a similar debate which arose in 2014, when Australia chaired the G20 in the wake of Russia’s annexation of Crimea.
At that time, calls to exclude Russia from the G20 ran into opposition from its allies in the so-called BRICS group of countries, namely Brazil, India, China and South Africa.
Those countries and Russia issued a statement saying the G20 “belongs to all member states equally” and that the host country had no right to take unilateral actions.
Russian President Vladimir Putin did attend the summit in Brisbane but left early after being harangued by world leaders about his country’s behaviour.
The BRICS group could prove an ally again for Mr Putin this year. Brazil’s President Jair Bolsonaro said his country would not take sides over Ukraine, while China and India abstained in a UN Security Council vote on the crisis.
South Africa called on Russia to withdraw its forces from Ukraine but held out hope for a diplomatic solution to address Moscow’s security concerns.
Indonesia, which holds the G20 presidency this year, said the attack on Ukraine was unacceptable but has not moved to impose sanctions on Russia.
The G20 has no permanent staff and some of Indonesia’s workload is shared by previous and subsequent presidents, in this case Italy and India. The main leaders’ summit is scheduled to take place in Bali, Indonesia, in November.
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Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
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 specs: McLaren 600LT
Price, base: Dh914,000
Engine: 3.8-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 600hp @ 7,500rpm
Torque: 620Nm @ 5,500rpm
Fuel economy 12.2.L / 100km
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
Profile of VoucherSkout
Date of launch: November 2016
Founder: David Tobias
Based: Jumeirah Lake Towers
Sector: Technology
Size: 18 employees
Stage: Embarking on a Series A round to raise $5 million in the first quarter of 2019 with a 20 per cent stake
Investors: Seed round was self-funded with “millions of dollars”