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The European Union is proposing a ban on coal imports from Russia, opening the door for the first time to sanctions against Moscow's lucrative energy sector over the war in Ukraine.
Ursula von der Leyen, the president of the European Commission, will propose a coal embargo as part of a fifth package of sanctions which will need to be approved by the bloc's 27 members.
The package also includes a ban on some Russian shipping and on Russia importing certain high-tech items such as quantum computers and advanced semiconductors.
It comes after the grim discovery of corpses in Bucha, a town occupied and then abandoned by Russian forces, intensified pressure on the EU and other western countries to hit the Kremlin harder.
Julianne Smith, the US ambassador to Nato, said the world was "currently seeing the aftermath of war crimes and atrocities" and said Washington was working to collect evidence including first-hand accounts from Ukrainians.
"In the wake of the horrific images coming out of Bucha we feel even more compelled to take a fresh look at additional forms of assistance," she said.
Calls to cut off Europe's imports of Russian coal, oil and gas have previously run into concerns from some European countries, including Germany, that an embargo would make EU consumers pay rather than Russia.
Supporters of an embargo say Europe is essentially financing Russia's offensive in Ukraine by continuing to buy its fossil fuels, a process which the Kremlin says will eventually require payment in roubles.
Ukraine's Foreign Minister Dmytro Kuleba told reluctant nations on Tuesday that an import ban would stop "new Buchas" and said: "A few months of tightening your belts are worth thousands of saved lives."
Ms von der Leyen is proposing a potential compromise in which coal imports, worth about 4 billion euros ($4.4bn) a year, to be banned as a first step while oil and gas deliveries continue.
Although Russia provides about 45 per cent of the EU's hard coal imports, Europe is less reliant on such deliveries than it is on gas and oil shipments because it produces more coal and lignite within its own borders.
Ms von der Leyen said measures to stop oil imports were also being discussed along with further sanctions on individuals.
The energy-rich US has already stopped fossil fuel imports from Russia, while Britain plans to scrap oil imports this year and reduce what it says are already minimal gas deliveries. Coal deliveries are under review.
The EU's proposed shipping ban would stop Russian vessels from docking at the bloc's ports, but not if they are carrying energy, agricultural or food products or other essential goods.
Along with a proposed ban on Russian and Belarusian road haulage, it will add to restrictions in earlier rounds of sanctions which saw Russian planes banned from most of Europe's airspace.
Russia would also be banned from importing certain high-tech goods and from exporting wood, cement and seafood if the package is signed off by EU leaders.
"Clearly, in view of events, we need to increase our pressure further," Ms von der Leyen said. "Today, we are proposing to take our sanctions a step further. We will make them broader and sharper, so that they cut even deeper in the Russian economy."
Earlier rounds of western sanctions hit Russia's financial sector and prominent individuals in the Kremlin's inner circle, but critics say the fact that Moscow has not called off its invasion mean sanctions have not gone far enough.
The G7 countries - Britain, Germany, France, Italy, the US, Canada and Japan - are expected to hold talks this week on co-ordinating further sanctions amid outrage over the apparent massacre in Bucha.
The UK is urging the club of rich democracies to go after Russian gold and agree a timetable for phasing out all fossil fuel imports, Foreign Secretary Liz Truss said on Tuesday.
Nato foreign ministers will also hold talks in Brussels on Wednesday and Thursday to discuss further support for Ukraine, which Secretary General Jens Stoltenberg said might include additional anti-tank weapons.
However, the alliance is unwilling to intervene directly in Ukraine - even to establish a humanitarian zone, said Ms Smith, the US envoy to Nato, in a briefing ahead of that meeting.
She would not be drawn on reports in Czech media that the government in Prague had sent a shipment of T-72 Soviet-era battle tanks to Ukraine, which would go further than the exports of defensive weapons so far.
Mr Stoltenberg said Russia's withdrawal from around Kyiv, which led to the grisly discoveries in Bucha, appeared to herald a renewed attack on the south and east as it tries to secure a land bridge between the Donbas and occupied Crimea.
“This is a crucial phase of the war,” said Mr Stoltenberg, who said the Kremlin had "not given up its ambitions" in Ukraine despite the apparent failure of its assault on the capital.
Nato's 30 countries will be joined at the summit by Ukraine, Finland, Sweden and Georgia, and by Asia-Pacific partners Australia, Japan, New Zealand and South Korea.
Ms Smith said the US would look favourably on any Nato membership bid by Finland or Sweden, a possibility being debated in both countries.
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Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
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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.”
MATCH INFO
Manchester United v Manchester City, Wednesday, 11pm (UAE)
Match is on BeIN Sports
Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix
GP3 qualifying, 10:15am
Formula 2, practice 11:30am
Formula 1, first practice, 1pm
GP3 qualifying session, 3.10pm
Formula 1 second practice, 5pm
Formula 2 qualifying, 7pm
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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25%20Days%20to%20Aden
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Uefa Champions League play-off
First leg: Wednesday, 11pm (UAE)
Ajax v Dynamo Kiev
Second leg: Tuesday, August 28, 11pm (UAE)
Dynamo Kiev v Ajax
MWTC info
Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.
Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000
3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000