Ceasefires in two Ukrainian cities halted amid reports of shelling


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Russian-declared ceasefires to allow the removal of civilians from two Ukrainian cities quickly fell apart on Saturday as Ukraine officials reported shelling hours after the suspension of hostilities was supposed to begin.

Russia's defence ministry said on Saturday morning that it had agreed with Ukrainian forces on evacuation routes for Mariupol, a strategic port in the south-east, and the eastern city of Volnovakha.

The agreement came days after Russian and Ukrainian delegations agreed on establishing humanitarian corridors to allow civilians to flee violence that has engulfed the country since Russian President Vladimir Putin ordered his forces to enter the neighbouring country on February 24. More than one million civilians have fled Ukraine so far and at least 300 have been killed in the fighting, the UN has said.

The ceasefire announcement did not make clear how long the evacuation routes would remain open. A city official in Mariupol said the removal of people was supposed to start at 11am and the ceasefire was to last until 4pm.

“The Russian side is not holding to the ceasefire and has continued firing on Mariupol itself and its surrounding area,” said Kyrylo Tymoshenko, the deputy head of President Volodymyr Zelenskyy’s office. “Talks with the Russian Federation are ongoing regarding setting up a ceasefire and ensuring a safe humanitarian corridor.”

Deputy Prime Minister Iryna Vereshchuk said Russia breached the deal in Volnovakha as well. “We appeal to the Russian side to stop firing,” she said.

Russia's defence ministry claimed that the firing came from inside both cities against Russian positions, the RIA Novosti agency reported.

The ceasefires were announced as the mayor of Mariupol said the city was under blockade by Russian troops who cut off electricity, water, heating and food supplies.

Russian forces have faced stiff resistance in Ukraine, while President Zelenskyy has been rallying global support for his country.

Mr Zelenskyy on Friday accused Nato of “weakness” after the western military alliance ruled out imposing a no-fly zone.

Ukraine requested the move to halt Russian bombing as Moscow’s forces advance on the capital Kyiv and other major cities.

"Knowing that new strikes and casualties are inevitable, Nato deliberately decided not to close the sky over Ukraine," Mr Zelenskyy said in a video published by the presidency.

"We believe that the Nato countries themselves have created a narrative that the closing of the skies over Ukraine would provoke direct Russian aggression against Nato."

Speaking after an urgent meeting in Brussels on Friday, Nato chief Jens Stoltenberg said the alliance would not intervene in the conflict over fears of a direct clash with Moscow that could spiral into a wider conflict.

"The only way to implement a no-fly zone is to send Nato fighter planes into Ukraine's airspace, and then impose that no-fly zone by shooting down Russian planes," Mr Stoltenberg said. "If we did that, we'll end up with something that could end in a full-fledged war in Europe, involving many more countries and causing much more human suffering."

Mr Zelenskyy said the Nato gathering was a "weak summit, a confused summit".

"All the people who die starting today will also die because of you. Because of your weakness, because of your disconnection," he said.

"Today the leadership of the alliance gave the green light for further bombing of Ukrainian cities and villages, refusing to make a no-fly zone."

Mr Zelenskyy was scheduled to speak to the US Senate on Saturday morning.

Diplomatic efforts continued as US Secretary of State Antony Blinken arrived in Poland to meet the prime minister and foreign minister, a day after attending the Nato meeting in Brussels. He was scheduled to visit a border post to meet refugees later in the day.

Ukraine’s western allies have responded to Moscow's attack with hard-hitting sanctions aimed at Russian financial institutions, businesses and oligarchs considered close to the Kremlin, while also supplying direct military aid. International pressure for the crisis to be resolved through dialogue have yielded two meetings between the two sides, with another round expected this weekend.

Russian forces have so far taken two key cities in 10 days — Berdiansk and Kherson on Ukraine's southern Black Sea coast. They also seized the Zaporizhzhia nuclear plant on Friday, triggering global alarm when a fire broke out at the plant during the attack.

Diplomats at the UN said the Security Council plans to hold an emergency meeting on Monday to discuss the humanitarian crisis in Ukraine.

They told AFP a public session would be followed by a closed-door meeting of the council’s 15 members to discuss a possible draft resolution.

The latter meeting was proposed by Mexico and France, which are pushing a draft that calls for an end to hostilities in Ukraine, unhindered flow of humanitarian aid and protection of civilians.

But it has run into obstacles, namely a warning from the US that it will not support such a draft unless it states explicitly that Russia has caused the humanitarian crisis, a diplomat said.

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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 05, 2022, 2:48 PM