A man works on a damaged farm in the village of Mala Rohan, near Kharkiv, Ukraine. EPA
A man works on a damaged farm in the village of Mala Rohan, near Kharkiv, Ukraine. EPA
A man works on a damaged farm in the village of Mala Rohan, near Kharkiv, Ukraine. EPA
A man works on a damaged farm in the village of Mala Rohan, near Kharkiv, Ukraine. EPA

G7 vows to tackle food crisis caused by Ukraine war


Tim Stickings
  • English
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Live updates: follow the latest news on Russia-Ukraine

The G7 countries promised on Saturday to use their economic might to tackle global food shortages resulting from Russia’s invasion of Ukraine.

Foreign ministers from the club of rich democracies said Russia was blocking grain exports from Ukrainian ports, turning the war between two major agricultural producers into a potential global food crisis.

In a statement after three days of talks in Germany, they said their countries — Britain, France, Germany, Italy, the US, Canada and Japan — would “reinforce our contributions” to aid providers such as the World Food Programme.

They said the G7 would launch a dedicated global food security alliance at a meeting of the group’s development ministers this month, and work to unblock exports from Ukraine’s war-torn Black Sea ports.

Annalena Baerbock, the German Foreign Minister chairing the G7 talks, accused Russia of deliberately engineering a food crisis to undermine international solidarity over the war in Ukraine.

“We cannot be naive. This is not collateral damage. It is a consciously chosen instrument in a hybrid war,” said Ms Baerbock, who said exports of millions of tonnes of grain could begin tomorrow if Russia permitted it.

She told a post-summit press conference that humanitarian aid would quickly be made available to the most vulnerable countries and regions so that the food crisis could at least be eased.

“This is the Russian president’s war, but we have a global responsibility,” said Ms Baerbock, who accused Moscow of falsely claiming that western sanctions were to blame for food shortages.

The WFP recently said that 47 million people would be thrown into acute hunger if the fallout from the war in Ukraine is not addressed, with Sub-Saharan Africa at particular risk. It said Ukrainian exports typically feed about 400 million people.

Food shortages have also reached western supermarkets, with sunflower oil being rationed because of the supply shortfall from Ukraine.

Ukrainian President Volodymyr Zelenskyy said last week that merchant traffic in the port of Odesa, recently hit by Russian missiles, had ground to a halt for the first time in decades.

The G7 ministers called for the establishment of “solidarity lanes” to allow grain to be exported by other routes, an idea floated this week by the European Union.

Exporting food over land is complicated because Ukrainian railway carriages are not compatible with most of the EU’s rail wagons, and thousands of wagons and lorries are waiting for clearance on the Ukrainian side.

The G7, which met in north Germany with the foreign ministers of Ukraine and Moldova as guests, said food insecurity was being worsened by rising food and fuel prices which have been exacerbated by the war in Ukraine.

  • 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

“This is having devastating consequences for some of the most vulnerable people and rising costs also make it harder for humanitarian and development agencies to deliver assistance to those in greatest need,” their statement said.

“We are determined to contribute additional resources to and support all relevant efforts that aim to ensure availability and accessibility of food.”

In the longer term, they said they would try to avoid such crises arising in future by reducing food waste, increasing their own food production and pushing for more sustainable agriculture around the world.

A broader statement on the war said the G7 powers would “never recognise” any attempt by Russia to redraw international borders by force, and promised to “further increase economic and political pressure on Russia”.

The countries said they would speed up efforts to rid Russian energy from their power grids. The EU, which attends G7 meetings, is currently locked in a political struggle over a proposed ban on Russian oil.

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.”

How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.

The biog

Name: Fareed Lafta

Age: 40

From: Baghdad, Iraq

Mission: Promote world peace

Favourite poet: Al Mutanabbi

Role models: His parents 

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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Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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The%20trailblazers
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The Penguin

Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz

Creator: Lauren LeFranc

Rating: 4/5

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As You Were

Liam Gallagher

(Warner Bros)

The specs

Engine: 3.0-litre six-cylinder MHEV

Power: 360bhp

Torque: 500Nm

Transmission: eight-speed automatic

Price: from Dh282,870

On sale: now

PROVISIONAL FIXTURE LIST

Premier League

Wednesday, June 17 (Kick-offs uae times) Aston Villa v Sheffield United 9pm; Manchester City v Arsenal 11pm 

Friday, June 19 Norwich v Southampton 9pm; Tottenham v Manchester United 11pm  

Saturday, June 20 Watford v Leicester 3.30pm; Brighton v Arsenal 6pm; West Ham v Wolves 8.30pm; Bournemouth v Crystal Palace 10.45pm 

Sunday, June 21 Newcastle v Sheffield United 2pm; Aston Villa v Chelsea 7.30pm; Everton v Liverpool 10pm 

Monday, June 22 Manchester City v Burnley 11pm (Sky)

Tuesday, June 23 Southampton v Arsenal 9pm; Tottenham v West Ham 11.15pm 

Wednesday, June 24 Manchester United v Sheffield United 9pm; Newcastle v Aston Villa 9pm; Norwich v Everton 9pm; Liverpool v Crystal Palace 11.15pm

Thursday, June 25 Burnley v Watford 9pm; Leicester v Brighton 9pm; Chelsea v Manchester City 11.15pm; Wolves v Bournemouth 11.15pm

Sunday June 28 Aston Villa vs Wolves 3pm; Watford vs Southampton 7.30pm 

Monday June 29 Crystal Palace vs Burnley 11pm

Tuesday June 30 Brighton vs Manchester United 9pm; Sheffield United vs Tottenham 11.15pm 

Wednesday July 1 Bournemouth vs Newcastle 9pm; Everton vs Leicester 9pm; West Ham vs Chelsea 11.15pm

Thursday July 2 Arsenal vs Norwich 9pm; Manchester City vs Liverpool 11.15pm

 

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What it means to be a conservationist

Who is Enric Sala?

Enric Sala is an expert on marine conservation and is currently the National Geographic Society's Explorer-in-Residence. His love of the sea started with his childhood in Spain, inspired by the example of the legendary diver Jacques Cousteau. He has been a university professor of Oceanography in the US, as well as working at the Spanish National Council for Scientific Research and is a member of the World Economic Forum’s Global Future Council on Biodiversity and the Bio-Economy. He has dedicated his life to protecting life in the oceans. Enric describes himself as a flexitarian who only eats meat occasionally.

What is biodiversity?

According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Updated: May 14, 2022, 1:22 PM