Live updates: follow the latest news on Russia-Ukraine
A Russian-backed breakaway region of Moldova is fast becoming the new front in the war as Russia steps up its offensive in the southern Ukraine.
The Kremlin is accused of staging "false-flag attacks" in Transnistria, a region in Moldova which it occupies.
The interior ministry of Transnistria said on Wednesday that shots were fired at a village housing a Russian arms depot after drones flew over from Ukraine.
"Last night, several drones were noticed in the sky over the village of Kolbasna," the Transnistrian interior ministry said on its website. "The drones were launched on to the territory of Transnistria from Ukraine."
The developments came as Russia intensified attacks on the Black Sea port city of Odesa, which lies less than 160 kilometres east of Transnistria.
A vital bridge in the Odesa region was hit by missiles on Wednesday, a day after several blasts shook Transnistria.
The bridge near the town of Zatoka, 60 kilometres south of Odesa, was damaged in the attack, said Oleksandr Kamyshin, chief executive of Ukraine’s railway operator.
“Today, at 06.45am, the bridge over the Bilhorod-Dnistrovskyi estuary in Odesa region was again hit with missile strikes,” Mr Kamyshin wrote on the Telegram messaging app. There were no reported casualties among railway workers, he said.
Lesia Vasylenko, a Ukrainian MP, said the destruction of the bridge cut off three districts and passage to the border with Romania.
The same bridge was hit by a missile on Tuesday. The dramatic moment was captured on video and posted online. A huge cloud of smoke can be seen rising in the distance after a loud explosion was heard.
Moldovan officials arranged an emergency meeting on Tuesday, with security forces put on high alert after a series of blasts that destroyed radio antennae.
The explosions stoked fears of a potential spillover from the war in neighbouring Ukraine.
The Institute for the Study of War, a US think tank, said Moscow had used the region to stage “false-flag attacks”.
The region is internationally recognised as part of Moldova but is occupied by Russian forces.
The ISW said Russian battalions stationed in Transnistria were probably “not sufficient” to stage an attack on Odesa by themselves. However, experts noted that troops in the region could support Russian forces in attacking the Ukrainian city.
“Russia is staging false-flag attacks in Transnistria, Moldova ... setting conditions for further actions on that front,” the ISW said.
“The two motorised rifle battalions Russia has illegally maintained in Transnistria since the end of the Cold War are not likely sufficient to mount a credible attack on Odesa by themselves, nor are the Russians likely to be able to reinforce them enough to allow them to do so. They could support more limited attacks to the north-west of Odesa, possibly causing panic and creating psychological effects to benefit Russian operations in the south of Ukraine.”
Tension between the Kremlin and the West was exacerbated on Wednesday with Russia’s announcement that it would cut gas supplies to Nato and EU members Poland and Bulgaria.
Gazprom, the state-owned energy producer, said it would cease deliveries to the two countries because they had refused to pay in Russian roubles, as President Vladimir Putin had demanded.
European gas prices shot up, prompting EU Commission President Ursula von der Leyen to accuse the Kremlin of blackmail.
The move came a day after the US and western allies vowed to speed up and improve military supplies to Kyiv.
Polish Prime Minister Mateusz Morawiecki told the parliament in Warsaw that the country would not be cowed by the gas cut-off.
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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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