The Russian cruiser 'Marshal Ustinov', which is one of at least three warships seen sailing along the southern Irish coast. EPA / Russian Defence Ministry
The Russian cruiser 'Marshal Ustinov', which is one of at least three warships seen sailing along the southern Irish coast. EPA / Russian Defence Ministry
The Russian cruiser 'Marshal Ustinov', which is one of at least three warships seen sailing along the southern Irish coast. EPA / Russian Defence Ministry
The Russian cruiser 'Marshal Ustinov', which is one of at least three warships seen sailing along the southern Irish coast. EPA / Russian Defence Ministry

Russian warships seen acting unusually off Irish coast


Soraya Ebrahimi
  • English
  • Arabic

Russian warships have been seen acting unusually off the south coast of Ireland.

Large cruise missile ship, the Marshal Ustinov, is one of at least three Russian navy ships that have been travelling back from the Mediterranean to their home port in the north of Russia.

It was one of the ships involved in planned live-fire exercises in Irish-controlled waters in February.

The Ustinov has been on operations around the Mediterranean supporting Russia's war efforts in Ukraine since its sister ship the Moskva was sunk in April.

The ships were seen off the south-east coast of Ireland on Tuesday, inside the Irish Exclusive Economic Zone but outside Irish territorial waters.

They were travelling north with the apparent intention of sailing up through the Irish Sea.

Shortly before 8am the ships turned around and sailed back the way they had come, raising questions about their intentions. The ships are being shadowed by the Royal Navy frigate HMS Lancaster.

The Ustinov was one of several ships involved in planned naval exercises off the coast of County Cork in February, which were widely regarded as a provocation to the West before Russia’s invasion of Ukraine.

Initially the exercises, which involved the firing of missiles, were to be held inside the Irish zone and raised concerns because of their closeness to underwater communications cables.

After protests from the Irish government, Russia eventually agreed to move the exercises farther into the Atlantic and out of the Irish zone.

British Royal Navy warship hit by Russian submarine - video

Under international law, Russia is allowed to sail through the Irish Sea as long as it remains outside Irish and UK territorial waters, which extend about 22 kilometres off each country’s coast.

It is a highly unusual route for Russia naval ships and the manoeuvres are likely to cause concern among Irish and British defence officials given the tense international situation.

In the past it has been more usual for Russian naval vessels travelling to their northern ports to take the western route around Ireland or travel east through the English Channel.

The Ustinov is not visible on publicly available resources but its presence is indicated by the fuel ship Vyazma, which accompanies the vessel.

The Vice-Admiral Kulakov, a Russian destroyer, is also believed to be with the ships.

This month, another Russian ship was seen acting unusually off the Irish south coast.

The Akademik Pashin, a naval oil tanker, was seen leaving the English Channel on August 17 and unexpectedly sailing west along Ireland’s south coast, coming within 140 kilometres at times.

Defence sources suggest it was probably supporting other Russian ships in the area.

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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.”

Updated: August 31, 2022, 12:26 AM