A woman walks past a building destroyed in Odessa. With the ports of Odesa, Chornomorsk and others cut off from the world by Russian warships, supplies can only be moved on land routes that are much less efficient. AFP
A woman walks past a building destroyed in Odessa. With the ports of Odesa, Chornomorsk and others cut off from the world by Russian warships, supplies can only be moved on land routes that are much less efficient. AFP
A woman walks past a building destroyed in Odessa. With the ports of Odesa, Chornomorsk and others cut off from the world by Russian warships, supplies can only be moved on land routes that are much less efficient. AFP
A woman walks past a building destroyed in Odessa. With the ports of Odesa, Chornomorsk and others cut off from the world by Russian warships, supplies can only be moved on land routes that are much l

Germany blames Russia for global food supply problems


Paul Carey
  • English
  • Arabic

German Chancellor Olaf Scholz told Russian President Vladimir Putin on Friday that Moscow bore a "responsibility" for disruptions in the global food supply after its invasion of Ukraine.

Germany's Agriculture Minister, Cem Oezdemir, also criticised grain theft by Russia in eastern Ukraine, as G7 countries met to discuss the effect of the war on the global food supply.

"The chancellor and the Russian president also spoke about the global food situation, which is particularly strained due to Russia's war of aggression," Mr Scholz's office said after a 75-minute call between the leaders.

"The chancellor reminded him that Russia bears a particular responsibility here."

Before the invasion, Ukraine was seen as the world's bread basket, exporting 4.5 million tonnes of agricultural produce a month. It provided 12 per cent of the world's wheat, 15 per cent of its corn and half of its sunflower oil.

But with the ports of Odesa, Chornomorsk and others cut off from the world by Russian warships, supplies can only be moved on land routes that are much less efficient.

Mr Scholz said the conversation with Mr Putin on Friday morning, after a call with Ukrainian President Volodymyr Zelenskyy on Wednesday, was focused on "the war in Ukraine and efforts to end it".

He urged Mr Putin "given the gravity of the military situation and the consequences of the war in Ukraine, especially in Mariupol", to implement a "ceasefire as soon as possible to improve the humanitarian situation and make progress in the search for a diplomatic solution to the conflict".

Mr Scholz also "firmly rejected" Moscow's accusation "that Nazism is widespread in Ukraine".

Chancellor Olaf Scholz leaves after a special meeting of the parliamentary defense committee in Berlin, Germany. AP Photo
Chancellor Olaf Scholz leaves after a special meeting of the parliamentary defense committee in Berlin, Germany. AP Photo

At the start of a meeting in Stuttgart with colleagues from G7 countries, Ukraine, the EU, the OECD and the UN Food and Agricultural Organisation, Mr Oezdemir said Russia was stealing grain from Ukraine.

"This is an especially repugnant form of war that Russia is leading," he said.

Russia was "stealing, robbing, taking for itself grain from eastern Ukraine," Mr Oezdemir said, describing it as an "economic war".

The Russian occupation in the fertile eastern regions of the country would also have an effect on this year's crops.

"Ukraine is in a very difficult situation with regard to grain exports," Ukrainian Agriculture Minister Mykola Solsky said before the meeting.

"We cannot get away from the fact that the harvest will be smaller than last year."

Discussions had already begun on how to move more grain out of Ukraine "over land, by train and along the Danube", which flows from Germany to Ukraine, to "rescue" the produce stuck in the country, Mr Oezdemir said.

Food security was already on the agenda for the G7 meeting of foreign ministers, which began on Thursday in the northern German resort of Wangels.

Ukraine’s Foreign Minister, Dmytro Kuleba, said on Friday that his country was willing to engage in diplomatic talks with Russia to unblock grain supplies and to achieve a political solution to the war in Ukraine, but will not accept ultimatums from Moscow.

Ukraine’s Foreign Minister Dmytro Kuleba, centre, poses with other ministers at the G7 foreign ministers' summit in Germany. Reuters
Ukraine’s Foreign Minister Dmytro Kuleba, centre, poses with other ministers at the G7 foreign ministers' summit in Germany. Reuters

Mr Kuleba said the Ukrainian government had received “no positive feedback” from Russia, which he claimed “prefers wars to talks.”

“We are ready to talk, but we are ready for a meaningful conversation based on mutual respect, not on the Russian ultimatums thrown on the table,” he said outside the meeting.

At that conference, Ukraine again asked the G7 to increase weapons supply to put pressure on Russia.

Mr Kuleba said his talks with G7 ministers had been “helpful, fruitful, very honest and result-oriented". He praised them for the financial and military support they had so far provided to Ukraine.

But he urged Ukraine’s supporters to supply more weapons, including rocket systems and military planes, and to put more pressure on Russia’s economy by increasing sanctions and following Canada’s lead in seizing Russian sovereign assets to pay for rebuilding Ukraine.

The EU’s foreign affairs chief, Josep Borrell, announced plans to give Ukraine another €500 million ($520m) to buy heavy weapons to fend off the Russian invasion.

“We will provide a new tranche of 500 more millions to support the military of Ukraine,” Mr Borrell said.

The funds would be allocated to buy heavy weapons and take the EU’s total financial support for Ukraine to €2 billion, he said.

  • Russian Navy logistics support ship the 'Vsevolod Bobrov', pictured off Istanbul in January, has reportedly caught fire after a Ukrainian airstrike in the Black Sea. Reuters
    Russian Navy logistics support ship the 'Vsevolod Bobrov', pictured off Istanbul in January, has reportedly caught fire after a Ukrainian airstrike in the Black Sea. Reuters
  • A mother and child who fled Ukraine arrive back in Kyiv from Poland. The daily number returning has exceeded those leaving for the first time since the February invasion. AFP
    A mother and child who fled Ukraine arrive back in Kyiv from Poland. The daily number returning has exceeded those leaving for the first time since the February invasion. AFP
  • A Ukrainian tank - with a soldier in it - is carried by a transporter near Bakhmut. AFP
    A Ukrainian tank - with a soldier in it - is carried by a transporter near Bakhmut. AFP
  • A metro station used as a bomb shelter in Kharkiv, Ukraine. AFP
    A metro station used as a bomb shelter in Kharkiv, Ukraine. AFP
  • Rocket trails in the sky over Pylypchatyne, eastern Ukraine. AFP
    Rocket trails in the sky over Pylypchatyne, eastern Ukraine. AFP
  • A special session of the UN Human Rights Council on Ukraine is held in Geneva, Switzerland. AFP
    A special session of the UN Human Rights Council on Ukraine is held in Geneva, Switzerland. AFP
  • Burnt vehicles and the remains of what appears to be a makeshift bridge across the Siverskyi Donets River in eastern Ukraine. Reuters
    Burnt vehicles and the remains of what appears to be a makeshift bridge across the Siverskyi Donets River in eastern Ukraine. Reuters
  • Protesters outside a special session of the UN Human Rights Council on the war in Ukraine, in Geneva. Inside, Ukrainians lambasted the 'sheer horror' and 'pure evil' being inflicted on their country by Russian forces. AFP
    Protesters outside a special session of the UN Human Rights Council on the war in Ukraine, in Geneva. Inside, Ukrainians lambasted the 'sheer horror' and 'pure evil' being inflicted on their country by Russian forces. AFP
  • Russian President Vladimir Putin chairs a meeting on economic issues via a video link in Moscow. AFP
    Russian President Vladimir Putin chairs a meeting on economic issues via a video link in Moscow. AFP
  • An explosion at the Azovstal steel works in Mariupol, Ukraine. Reuters
    An explosion at the Azovstal steel works in Mariupol, Ukraine. Reuters
  • Players walk onto the pitch before a benefit football match between Borussia Moenchengladbach and the national team of Ukraine at Borussia-Park in Moenchengladbach, Germany. EPA
    Players walk onto the pitch before a benefit football match between Borussia Moenchengladbach and the national team of Ukraine at Borussia-Park in Moenchengladbach, Germany. EPA
  • Russian service members atop an armoured vehicle in Mariupol. Reuters
    Russian service members atop an armoured vehicle in Mariupol. Reuters
  • The Kalush Orchestra from Ukraine perform at the Eurovision Village in Turin, Italy. AP Photo
    The Kalush Orchestra from Ukraine perform at the Eurovision Village in Turin, Italy. AP Photo
  • Borussia Moenchengladbach fans and Ukraine supporters stand united ahead of the benefit football match between Borussia Moenchengladbach and the national team of Ukraine. EPA
    Borussia Moenchengladbach fans and Ukraine supporters stand united ahead of the benefit football match between Borussia Moenchengladbach and the national team of Ukraine. EPA
  • Children gather at a playground in Mariupol. Reuters
    Children gather at a playground in Mariupol. Reuters
  • Three Ukrainian policemen stand at an explosion site in Novomykolaivka, eastern Ukraine. AFP
    Three Ukrainian policemen stand at an explosion site in Novomykolaivka, eastern Ukraine. AFP
  • The Iron Spear 2022 military exercise led by Nato-enhanced Forward Presence battlegroup in Adazi, Latvia, on May 11. Reuters / Ints Kalnins
    The Iron Spear 2022 military exercise led by Nato-enhanced Forward Presence battlegroup in Adazi, Latvia, on May 11. Reuters / Ints Kalnins
  • British Prime Minister Boris Johnson and Finnish President Sauli Niinisto shake hands in Helsinki, Finland, after signing a declaration between the UK and Finland to deepen their defence and security co-operation. Reuters
    British Prime Minister Boris Johnson and Finnish President Sauli Niinisto shake hands in Helsinki, Finland, after signing a declaration between the UK and Finland to deepen their defence and security co-operation. Reuters
  • Russian paratroopers go on the attack in Ukraine's Kharkiv region. EPA
    Russian paratroopers go on the attack in Ukraine's Kharkiv region. EPA

EU diplomats cautioned that any disbursement requires backing from all of the bloc’s 27 members. Some countries are expressing misgivings, and approval is unlikely before next week.

European Council President Charles Michel, who represents the governments of EU members in Brussels, threw his “full support” behind the plan.

“Time is of the essence,” Mr Michel wrote on Twitter.

Mr Borrell expressed hope of soon getting the bloc’s member states to agree to an oil embargo against Russia, despite resistance from Hungary, which is heavily dependent on Moscow's exports.

French Foreign Minister Jean-Yves Le Drian said the G7 was "very strongly united" in their will to "continue in the long term to support Ukraine's fight for its sovereignty until Ukraine's victory".

British Foreign Secretary Liz Truss also called for more support for Ukraine.

"It is very important at this time that we keep up the pressure on Vladimir Putin by supplying more weapons to Ukraine, by increasing the sanctions," Ms Truss said.

Left Bank: Art, Passion and Rebirth of Paris 1940-1950

Agnes Poirer, Bloomsbury

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

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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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Teaching your child to save

Pre-school (three - five years)

You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.

Early childhood (six - eight years)

Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.

Middle childhood (nine - 11 years)

Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.

Young teens (12 - 14 years)

Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.

Teenage (15 - 18 years)

Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.

Young adulthood (19 - 22 years)

Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.

* JP Morgan Private Bank 

The specs

Engine: 3.5-litre twin-turbo V6

Power: 380hp at 5,800rpm

Torque: 530Nm at 1,300-4,500rpm

Transmission: Eight-speed auto

Price: From Dh299,000 ($81,415)

On sale: Now

Updated: May 13, 2022, 1:51 PM