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The EU on Tuesday accused Russia of deliberately engineering the emerging global food crisis by bombing Ukrainian warehouses, confiscating crops and “using hunger and grain to wield power”.
European Commission president Ursula von der Leyen said runaway bread prices in Lebanon and stalled food shipments to Somalia were the result of Russia’s “shameful acts” during its three-month invasion of Ukraine.
The war between two of the world’s top agricultural producers has sent alarm bells ringing among global aid workers, adding potential food shortages to the energy and humanitarian crises unleashed by the conflict.
In addition to blocking food shipments from Ukraine, Russia is hoarding its own supplies “as a form of blackmail” to win political support, Ms von der Leyen said in Davos at a World Economic Forum overshadowed by the war in Europe.
Recalling the Soviet-era famine that devastated Ukraine in the 1930s, she told delegates that Russia’s alleged seizures of grain stocks and machinery had “brought back memories from a dark past”.
“Global wheat prices are skyrocketing, and it’s the fragile countries and vulnerable populations that suffer the most,” she said, after accusing Russia of deliberately bombing warehouses and blockading ships carrying grain and sunflower seeds.
“On top of this, Russia is now hoarding its own food exports as a food of blackmail, holding back supplies to increase global prices or trading wheat in exchange for political support. This is using hunger and grain to wield power.”
Poland’s President Andrzej Duda said food shortages in North Africa as a result of the war would spur more migration across the Mediterranean to Europe, a route which EU leaders have been trying to narrow for years.
The bloc is looking to mitigate the grain crisis by importing Ukrainian food over land, avoiding the mine-laden shipping lanes of the Black Sea, and increasing its own agricultural output.
Ms von der Leyen said she was working with Egypt’s President Abdel Fattah El Sisi to hold an event on food security, with Europe regarding greater African food production as a longer-term guarantee of food security.
But political and business leaders at Davos were urged not to compromise their countries’ security for economic gain, after the war in Ukraine exposed much of Europe’s reliance on oil and gas imported from Russia.
On Tuesday, the US and EU said Russia’s moves to cut off fossil fuel exports, most recently to Finland, had “demonstrated that it is an unreliable supplier of energy”.
Nato Secretary General Jens Stoltenberg said at Davos that gas exports had given Russia a tool to intimidate its neighbours and that western nations should assess their trade with China for similar security risks.
He cited over-reliance on energy imports, exports of sensitive technology such as artificial intelligence and control over infrastructure such as 5G mobile networks as areas where democracies could be found vulnerable.
“We must recognise that our economic choices have consequences for our security,” he said. “Freedom is more important than free trade. The protection of our values is more important than profit.”
Mr Stoltenberg said Russia’s invasion had backfired because Nato is now poised to welcome two new members in Sweden and Finland, an enlargement of the alliance that the Kremlin had sought to avoid.
He said he was confident that Turkey’s threat to stop their accession could be overcome, with diplomats set to discuss President Recep Tayyip Erdogan’s stated concerns about terrorist fighters in the two Nordic countries.
Sweden and Finland will send delegations to Ankara this week hoping to clear up differences with Turkey, Finnish Foreign Minister Pekka Haavisto said on Tuesday.
“I’m confident that we will be able now, as we have done so many, many times before in Nato, to find a way to solve these issues and to agree, and then to welcome Finland and Sweden and fully-fledged members of our alliance,” Mr Stoltenberg said.
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MATCH INFO
Southampton 0
Manchester City 1 (Sterling 16')
Man of the match: Kevin de Bruyne (Manchester City)
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
Zayed Sustainability Prize
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
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.”
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
Mohammed bin Zayed Majlis
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
Zayed Sustainability Prize
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
Secret Nation: The Hidden Armenians of Turkey
Avedis Hadjian, (IB Tauris)
Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.