A serviceman with a Russian flag on his uniform stands guard near the Zaporizhzhia nuclear power plant in Ukraine. Reuters
A serviceman with a Russian flag on his uniform stands guard near the Zaporizhzhia nuclear power plant in Ukraine. Reuters
A serviceman with a Russian flag on his uniform stands guard near the Zaporizhzhia nuclear power plant in Ukraine. Reuters
A serviceman with a Russian flag on his uniform stands guard near the Zaporizhzhia nuclear power plant in Ukraine. Reuters

Zelenskyy warns Europe of looming 'catastrophe' at Zaporizhzhia nuclear plant


Laura O'Callaghan
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Ukraine’s President Volodymyr Zelenskyy has called on the West to impose new sanctions on Russia, saying inaction could backfire if heavy shelling leads to a “catastrophe” at the Zaporizhzhia nuclear plant.

He used his nightly address to issue a stark warning to Europe that it would not be able to escape the consequences of a disaster at the continent’s largest nuclear site. Russian and Ukrainian officials have traded blame for shelling near the plant in southern Ukraine, which has led to fears of a calamity similar to that at Chernobyl in 1986.

Mr Zelenskyy also warned Russian troops that if they attack the site in the now Russian-controlled city of Enerhodar, or use it as a base to shoot from, they risk becoming a “special target”.

“Under the cover of the plant, the occupiers are shelling nearby cities and communities,” he said.

“Any radiation incident at the Zaporizhzhia NPP [nuclear power plant] can affect the countries of the European Union, Turkey, Georgia and countries from more distant regions. Everything depends solely on the direction and speed of the wind.

“If through Russia's actions a catastrophe occurs, the consequences could hit those who for the moment are silent. If now the world does not show strength and decisiveness to defend one nuclear power station, it will mean that the world has lost.”

Meanwhile, a huge explosion was heard in the early hours of Tuesday in the Dzhankoi district of Crimea, which Russia annexed from Ukraine in 2014.

Footage posted on social media showed smoke rising above a building, which caught fire after the blast. Moscow said one of its munitions depots had been hit in an act of “sabotage”.

“As a result of an act of sabotage, a military storage facility near the village of Dzhankoi was damaged,” Russia's Ministry of Defence said in a statement carried by Russian news agencies.

It added that power lines, a power plant, railway tracks as well as a number of residential buildings also suffered damage but that there were no serious injuries.

The incident occurred after several blasts shook a Russian airbase on the peninsula last week. Kyiv has not publicly claimed responsibility for the explosions but senior government sources told western media its troops were behind the operation.

During his address, Mr Zelenskyy urged foreign leaders to adopt “new tough sanctions against Russia” and not to be deterred by “nuclear blackmail” from Moscow.

“All Russian troops must be immediately withdrawn from the plant and neighbouring areas without any conditions,” he added.

Vladimir Rogov, a Russia-installed official in Enerhodar, claimed on Monday that about 25 heavy artillery strikes from US-made M777 howitzers had landed close to the nuclear plant and residential areas over a two-hour period.

Russia's Interfax news agency, quoting the press service of Enerhodar's Russian-appointed administration, said Ukrainian forces had opened fire, with explosions occurring near the power plant.

But the head of the administration of the Nikopol district, which lies across the Dnipro river from Enerhodar and remains under Ukrainian control, said it was Russian forces that had shelled the city to try to make it appear that Ukraine was attacking it.

“The Russians think they can force the world to comply with their conditions by shelling the Zaporizhzhia NPP,” Andriy Yermak, chief of the Ukrainian presidential staff, wrote on Twitter.

A UN spokesman said the global body has the logistics and security capacity to support a visit by International Atomic Energy Agency inspectors to the Zaporizhzhia nuclear power plant, but a Russian diplomat has imposed conditions.

Stephane Dujarric said that “in close contact with the IAEA, the UN Secretariat has assessed that it has in Ukraine the logistics and security capacity to be able to support any IAEA mission to the Zaporizhzhia nuclear power plant from Kyiv”.

He said both Russia and Ukraine would have to agree to the mission.

Russian Defence Minister Sergei Shoigu held a phone call with Antonio Guterres, the UN secretary general, to discuss conditions for the safe functioning of the plant, the ministry said.

But a senior diplomat in Moscow was quoted by a Russian news agency as saying that such a trip could not include passage through Kyiv.

“Imagine what it means to pass through Kyiv — it means they get to the nuclear plant through the front line,” Igor Vishnevetsky, deputy head of the foreign ministry’s nuclear proliferation and arms control department, told RIA.

Russian President Vladimir Putin, meanwhile, hit out at the US, accusing Washington of trying to drag out the conflict in Ukraine and of fuelling wars elsewhere.

He pointed to US House Speaker Nancy Pelosi’s recent visit to Taiwan as a provocative move amid tension between the territory and Beijing.

Ms Pelosi’s trip to Taiwan, which China claims as its own, was “not just a trip by a single irresponsible politician, but part of a purposeful, conscious US strategy to destabilise and sow chaos in the region and the world”, Mr Putin said.

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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.”

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

Updated: August 16, 2022, 3:41 PM