Ukrainian soldiers inspect a grain warehouse damaged in shelling by Russian forces in the Kherson region. Getty
Ukrainian soldiers inspect a grain warehouse damaged in shelling by Russian forces in the Kherson region. Getty
Ukrainian soldiers inspect a grain warehouse damaged in shelling by Russian forces in the Kherson region. Getty
Ukrainian soldiers inspect a grain warehouse damaged in shelling by Russian forces in the Kherson region. Getty

Davos 2022: EU accuses Russia of engineering global food crisis


Tim Stickings
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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.”

European Commission president Ursula von der Leyen spoke to the World Economic Forum in Davos on Tuesday. EPA
European Commission president Ursula von der Leyen spoke to the World Economic Forum in Davos on Tuesday. EPA

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.

  • Service members of pro-Russian troops drive a tank past a destroyed residential building in the town of Popasna in the Luhansk region, Ukraine. Reuters
    Service members of pro-Russian troops drive a tank past a destroyed residential building in the town of Popasna in the Luhansk region, Ukraine. Reuters
  • Smoke and dirt rise from the city of Severodonetsk during shelling in the eastern Ukrainian region of Donbas. AFP
    Smoke and dirt rise from the city of Severodonetsk during shelling in the eastern Ukrainian region of Donbas. AFP
  • Russian soldiers Alexander Alexeevich Ivanov and Alexander Vladimirovich Bobykin, left, attend their trial hearing in Kotelva, northeastern Ukraine. AP Photo
    Russian soldiers Alexander Alexeevich Ivanov and Alexander Vladimirovich Bobykin, left, attend their trial hearing in Kotelva, northeastern Ukraine. AP Photo
  • Ukrainian President Volodymyr Zelenskyy, right, meets with Finnish Prime Minister Sanna Marin in Kyiv, Ukraine. AP
    Ukrainian President Volodymyr Zelenskyy, right, meets with Finnish Prime Minister Sanna Marin in Kyiv, Ukraine. AP
  • A man drives a GAZ-21 Volga car past a damaged building in Kharkiv, eastern Ukraine, on the 92nd day of the Russian invasion of Ukraine. AFP
    A man drives a GAZ-21 Volga car past a damaged building in Kharkiv, eastern Ukraine, on the 92nd day of the Russian invasion of Ukraine. AFP
  • Public transit workers sweep up shrapnel in Kharkiv, Ukraine. Getty Images
    Public transit workers sweep up shrapnel in Kharkiv, Ukraine. Getty Images
  • Pro-Russian troops inspect an AT4 anti-tank launcher outside the town of Svitlodarsk in the Donetsk region, Ukraine. Reuters
    Pro-Russian troops inspect an AT4 anti-tank launcher outside the town of Svitlodarsk in the Donetsk region, Ukraine. Reuters
  • People inspect destroyed Russian tanks and armoured vehicles in Irpin, Ukraine. Getty Images
    People inspect destroyed Russian tanks and armoured vehicles in Irpin, Ukraine. Getty Images
  • A local resident pets a cat next to a destroyed house in Vilkhivka village, near Kharkiv, Ukraine. AFP
    A local resident pets a cat next to a destroyed house in Vilkhivka village, near Kharkiv, Ukraine. AFP
  • The remains of a school in Vilkhivka village, near Kharkiv. AFP
    The remains of a school in Vilkhivka village, near Kharkiv. AFP
  • Widow and daughter of Andriy Vertiev, a Ukrainian serviceman, killed during the Russian invasion of Ukraine, attend his funeral at Lychakiv cemetery, Lviv, Ukraine. AFP
    Widow and daughter of Andriy Vertiev, a Ukrainian serviceman, killed during the Russian invasion of Ukraine, attend his funeral at Lychakiv cemetery, Lviv, Ukraine. AFP
  • Russian serviceman Vadim Shishimarin, centre, leaves a court hearing in Kyiv. EPA
    Russian serviceman Vadim Shishimarin, centre, leaves a court hearing in Kyiv. EPA
  • Kateryna Shelikhova, widow of Oleksandr Shelipov, 62, who was shot dead by a Russian soldier. Reuters
    Kateryna Shelikhova, widow of Oleksandr Shelipov, 62, who was shot dead by a Russian soldier. Reuters
  • A child plays against a backdrop of buildings ruined by shelling in Borodyanka, Ukraine. AP
    A child plays against a backdrop of buildings ruined by shelling in Borodyanka, Ukraine. AP
  • A Ukrainian woman in the basement of a building used as bomb shelter in Soledar, Donetsk region. AP
    A Ukrainian woman in the basement of a building used as bomb shelter in Soledar, Donetsk region. AP
  • Residents live in a subway station used as temporary shelter in Kharkiv. AP
    Residents live in a subway station used as temporary shelter in Kharkiv. AP
  • Men with salvageable material from damaged buildings after Russian bombing in Bakhmut, eastern Ukraine. AP
    Men with salvageable material from damaged buildings after Russian bombing in Bakhmut, eastern Ukraine. AP
  • A cuddly toy adorns a destroyed Russian battle tank near damaged homes in Hostomel, Ukraine. Getty Images
    A cuddly toy adorns a destroyed Russian battle tank near damaged homes in Hostomel, Ukraine. Getty Images
  • A mortar explodes next to a road leading to the city of Lysychansk, in the eastern Ukrainian region of Donbas. AFP
    A mortar explodes next to a road leading to the city of Lysychansk, in the eastern Ukrainian region of Donbas. AFP
  • A Ukrainian army vehicle moves towards the front line at a checkpoint near Lysychansk. AFP
    A Ukrainian army vehicle moves towards the front line at a checkpoint near Lysychansk. AFP
  • A boy looks at flags honouring soldiers killed while fighting Russian troops, in Kyiv city centre. AP
    A boy looks at flags honouring soldiers killed while fighting Russian troops, in Kyiv city centre. AP
  • A mannequin with a fake gun is placed as bait on a roadside in the Nord Saltivka district of Kharkiv. EPA
    A mannequin with a fake gun is placed as bait on a roadside in the Nord Saltivka district of Kharkiv. EPA
  • A man looks at a destroyed Russian tank placed as a symbol of war, in central Kyiv. AP
    A man looks at a destroyed Russian tank placed as a symbol of war, in central Kyiv. AP
  • Ukraine's President Volodymyr Zelenskyy on a screen at the opening ceremony for the World Economic Forum in Davos, Switzerland. Reuters
    Ukraine's President Volodymyr Zelenskyy on a screen at the opening ceremony for the World Economic Forum in Davos, Switzerland. Reuters
  • Smoke billows from an oil refinery after an attack outside the city of Lysychansk, in the eastern Ukrainian region of Donbas. AFP
    Smoke billows from an oil refinery after an attack outside the city of Lysychansk, in the eastern Ukrainian region of Donbas. AFP
  • A woman walks by a destroyed apartment building in Bakhmut, Donbas region. AFP
    A woman walks by a destroyed apartment building in Bakhmut, Donbas region. AFP
  • An elderly woman stands inside her heavily damaged house after it was hit by a missile in Bakhmut. AFP
    An elderly woman stands inside her heavily damaged house after it was hit by a missile in Bakhmut. AFP
  • A mother with her daughter sit inside a bus as they leave Bakhmut. AFP
    A mother with her daughter sit inside a bus as they leave Bakhmut. AFP
  • A Ukrainian soldier prepares coffee as he takes a break near an artillery position in the breakaway enclave of Donetsk, in the Donbas region. Reuters
    A Ukrainian soldier prepares coffee as he takes a break near an artillery position in the breakaway enclave of Donetsk, in the Donbas region. Reuters
  • A Ukrainian soldier exercises near Donetsk. Reuters
    A Ukrainian soldier exercises near Donetsk. Reuters
  • A woman displaced by incessant Russian shelling leaves a metro station where people had been living underground for months in Kharkiv, Ukraine. Getty
    A woman displaced by incessant Russian shelling leaves a metro station where people had been living underground for months in Kharkiv, Ukraine. Getty
  • A heavily damaged home spa near Ruski Tyshky village in Ukraine. Getty
    A heavily damaged home spa near Ruski Tyshky village in Ukraine. Getty
  • The wreckage of a Ukrainian military helicopter is transported in Kharkiv. Getty
    The wreckage of a Ukrainian military helicopter is transported in Kharkiv. Getty
  • Ukrainian President Volodymyr Zelenskyy and Polish President Andrzej Duda in Kyiv. EPA
    Ukrainian President Volodymyr Zelenskyy and Polish President Andrzej Duda in Kyiv. EPA
  • Two Ukrainian national guard soldiers pay their respects at a cemetery in Kharkiv. AP
    Two Ukrainian national guard soldiers pay their respects at a cemetery in Kharkiv. AP
  • A man pushes a wheelbarrow past a heavily damaged apartment building near Azovstal Iron and Steel Works in Mariupol. Reuters
    A man pushes a wheelbarrow past a heavily damaged apartment building near Azovstal Iron and Steel Works in Mariupol. Reuters
  • The burnt out shells of cars in a residential area near Azovstal Iron and Steel Works in Mariupol. Reuters
    The burnt out shells of cars in a residential area near Azovstal Iron and Steel Works in Mariupol. Reuters
  • Pro-Russian troops drive a tank in Ukraine's Donetsk region. Reuters
    Pro-Russian troops drive a tank in Ukraine's Donetsk region. Reuters
  • A Russian soldier takes a break during an operation to demine the territory of Azovstal steel plant in Mariupol. Reuters
    A Russian soldier takes a break during an operation to demine the territory of Azovstal steel plant in Mariupol. Reuters
  • Relatives and friends attend the funeral of a Ukrainian soldier killed in action, in the Odessa region city of Rozdilna. EPA
    Relatives and friends attend the funeral of a Ukrainian soldier killed in action, in the Odessa region city of Rozdilna. EPA
  • Ukrainians wearing traditional clothing listen to their national anthem as they take part in the celebration of 'Vyshyvanka Day', an annual celebration of Ukrainian folk traditions, in Athens. AFP
    Ukrainians wearing traditional clothing listen to their national anthem as they take part in the celebration of 'Vyshyvanka Day', an annual celebration of Ukrainian folk traditions, in Athens. AFP

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

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)

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

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 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 two: how climate change drove the race for an alternative 

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.

Updated: May 24, 2022, 11:56 AM