Patriarch Kirill of Moscow (R) is a staunch supporter of Russian President Vladimir Putin. AFP
Patriarch Kirill of Moscow (R) is a staunch supporter of Russian President Vladimir Putin. AFP
Patriarch Kirill of Moscow (R) is a staunch supporter of Russian President Vladimir Putin. AFP
Patriarch Kirill of Moscow (R) is a staunch supporter of Russian President Vladimir Putin. AFP

EU signs off oil sanctions after Hungary wins reprieve for Russian patriarch


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

The European Union signed off a sixth sanctions package against Russia on Thursday that will ban the majority of oil imports, after a late objection from Hungary had threatened to further delay the embargo.

Diplomats approved legislation giving effect to the oil ban agreed on Monday, when a late-night compromise with Hungary exempted a vital pipeline from the embargo.

But the formalities took longer than expected after Hungary said it could not support sanctions against religious leader and Kremlin ally Patriarch Kirill of Moscow, who has defended the invasion of Ukraine.

The EU's 27 countries eventually agreed to drop the patriarch from the list, but there was frustration from neighbours at Hungary's tactics.

Lithuanian delegate Arnoldas Pranckevicius said it was "very disappointing and hardly acceptable" to raise a last-ditch objection after Monday's deal appeared to have ended the impasse over the package.

"Anyone who engages with Orban's methods once will keep on getting extorted," said Norbert Roettgen, the head of the German parliament's defence committee.

Hungarian Prime Minister Viktor Orban's office said his position on sanctioning the patriarch had "long been well known" and that no EU leader had objected to it during the two-day summit in Brussels this week.

France, which holds the EU's rotating presidency, said the final text "significantly extends sanctions against Russia", removing three more banks from payments system Swift and sanctioning military figures, oligarchs and propagandists, as well as banning many oil imports.

But the weeks-long impasse frustrated Ukraine's President Volodymyr Zelenskyy, who wants a total ban on oil and gas imports. EU leaders have said a gas embargo is not on the cards after the struggle to get a deal on oil.

The embargo covers only oil shipments by sea, which account for about two-thirds of Europe's imports from Russia, EU officials say. It is hoped that imports will actually fall by as much as 90 per cent because of assurances by Germany and Poland that they will not make use of the pipeline exemption.

Mr Orban also won guarantees that he could source oil from his neighbours if the Druzhba pipeline that carries Russian crude to Hungary via Ukraine is disrupted. Sanctions require unanimity in the EU, meaning a single country effectively has a veto until its demands are met.

European leaders believed they had eventually won over Viktor Orban at a summit in Brussels this week. Reuters
European leaders believed they had eventually won over Viktor Orban at a summit in Brussels this week. Reuters

Mr Orban, who positions himself as a defender of Christian values in Europe, has previously said Hungary would oppose the inclusion of any church leaders on the sanctions list.

Patriarch Kirill is in the line of fire because of his staunch support for Russian President Vladimir Putin, who ordered the invasion of Ukraine on February 24.

Although some Russian Orthodox clergy members have spoken out against the war, the patriarch has stood by Mr Putin and given what the US has described as "supposed religious justification" for the war.

In an interview in May, the patriarch echoed many of Mr Putin's talking points by complaining about Nato expansion and describing attacks on Russian speakers in Ukraine by supposed neo-Nazis.

After Mr Orban won a Hungarian election in May, the patriarch sent him a message hailing him as "one of the few European politicians" standing up for Christian values.

Mr Orban has long been regarded as the Kremlin's closest ally within the EU and has crossed swords with the bloc's leaders over what they see as the erosion of democratic standards in Hungary.

The EU's foreign policy chief Josep Borrell on Tuesday said he was not sure whether the patriarch's name would make the sanctions list after it had initially been included.

More than 1,000 people have had sanctions imposed by the EU, meaning their assets in Europe are frozen and their travel is restricted because of the conflict in Ukraine.

They include Mr Putin himself, Russian Foreign Minister Sergey Lavrov, other senior politicians and oligarchs including former Chelsea Football Club owner Roman Abramovich.

Squad

Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas) 

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.”

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
The low down

Producers: Uniglobe Entertainment & Vision Films

Director: Namrata Singh Gujral

Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark

Rating: 2/5

How to turn your property into a holiday home
  1. Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
  2. Research equivalent Airbnb homes in your location to ensure competitiveness.
  3. Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
  4. Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
  5. Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
Company%20Profile
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The%20Boy%20and%20the%20Heron
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Dengue%20fever%20symptoms
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The specs

Engine: 3.8-litre V6

Power: 295hp at 6,000rpm

Torque: 355Nm at 5,200rpm

Transmission: 8-speed auto

Fuel consumption: 10.7L/100km

Price: Dh179,999-plus

On sale: now 

Changing visa rules

For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.

Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.

It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.

The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.

The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.

If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

BABYLON
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Sri Lanka v England

First Test, at Galle
England won by 211

Second Test, at Kandy
England won by 57 runs

Third Test, at Colombo
From Nov 23-27

Brief scores:

Toss: India, opted to field

Australia 158-4 (17 ov)

Maxwell 46, Lynn 37; Kuldeep 2-24

India 169-7 (17 ov)

Dhawan 76, Karthik 30; Zampa 2-22

Result: Australia won by 4 runs by D/L method

'The Batman'

Stars:Robert Pattinson

Director:Matt Reeves

Rating: 5/5

Updated: June 02, 2022, 3:26 PM