Russian President Vladimir Putin shakes hands with Iranian President Ebrahim Raisi during a meeting on the sidelines of the Shanghai Co-operation Organisation summit in Uzbekistan. Reuters
Russian President Vladimir Putin shakes hands with Iranian President Ebrahim Raisi during a meeting on the sidelines of the Shanghai Co-operation Organisation summit in Uzbekistan. Reuters
Russian President Vladimir Putin shakes hands with Iranian President Ebrahim Raisi during a meeting on the sidelines of the Shanghai Co-operation Organisation summit in Uzbekistan. Reuters
Russian President Vladimir Putin shakes hands with Iranian President Ebrahim Raisi during a meeting on the sidelines of the Shanghai Co-operation Organisation summit in Uzbekistan. Reuters

Western sanctions on Russia leave 'huge gap', allowing it to strengthen ties with Iran


Laura O'Callaghan
  • English
  • Arabic

Western sanctions on Russia over its invasion of Ukraine have left a “huge gap”, allowing Moscow to benefit from strengthening ties with Iran, it has been claimed.

Britain, the US and the European Union, among others, have placed tough penalties on individuals and entities closely tied to the Kremlin in a bid to deprive the Russian war machine of vital funds.

But since Russian tanks rolled into Ukraine in February, President Vladimir Putin’s government has cosied up to Iran.

For the past few weeks, Russia has been using drones laden with explosives to attack infrastructure in Ukraine. Western analysts have said these drones were made in Iran, a claim which both Moscow and Tehran have denied.

Paul Radu, co-founder and director of the Organised Crime and Corruption Reporting Project, said if sanctions had been issued in a different manner, they could have prevented Russia and Iran from growing closer.

“We are seeing Russia, Iran, China … working together to some degree,” he said.

“The fact that Iran can operate with Russia right now shows that there are huge gaps in the sanctions regimes.”

As the two nations form closer ties, he said “we are seeing very intense co-operation between Iran and organised crime”.

Firefighters tackle a blaze at energy infrastructure facilities in Ukraine after a Russian drone attack. Reuters
Firefighters tackle a blaze at energy infrastructure facilities in Ukraine after a Russian drone attack. Reuters

Mr Radu was speaking at an online event organised by the International Institute for Strategic Studies about the rise of criminal states and the implications for global security.

Asked by The National how the West could prevent Russia from benefiting from dealing with Iran, Mr Radu pointed to the US Enablers Act. If passed into law, it would expand on the types of institutions required to comply with anti-money laundering requirements under the existing Bank Secrecy Act.

He said the Enablers Act had the potential to bring about a “big change” to the way in which criminal states and organisations benefit from dealings with people and firms overseas. Mr Radu did not mention specific actions that the UK and its European allies could take.

“The minimum we can do, as the international community is to continue with pinpointing sanctions, these type of Magnitsky sanctions, where you target officials rather than large parts of the population,” he said.

“But what really is needed is to understand how … enablers in the West are aiding and abetting these type of activities.”

Mr Radu added that this type of activity has been going on for decades.

“It's not that now these countries are becoming criminal, they have been criminal for a long, long time,” he said.

“It's only that we're seeing more and that's good.”

Once a problem has been identified, he said, it can be addressed.

“I think we're at the stage where we're trying to understand as best as possible how these sanctions are avoided by these countries, how Iran is able to co-operate with Russia, and [for] military [support] right now, it seems to be with Syria, for instance,” Mr Radu continued.

“All these avenues for organised crime and corruption are what Russia and Iran are using to their full extent.”

He recalled how he was confronted by an Iranian official in Rome after speaking at a Nato event about the large role money-laundering systems play in Iran.

“He said, ‘Look, you're actually wrong about your assumptions, about Iran being such an evil state because the people that we asked to help us, they robbed us as well,” he said.

“So criminals have no allegiance, criminals have no respect of countries.”

What are the main cyber security threats?

Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.

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COMPANY%20PROFILE
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

RESULT

Manchester United 2 Burnley 2
Man United:
 Lingard (53', 90' 1)
Burnley: Barnes (3'), Defour (36')

Man of the Match: Jesse Lingard (Manchester United)

Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

England's Ashes squad

Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes. 

PREMIER LEAGUE RESULTS

Bournemouth 1 Manchester City 2
Watford 0 Brighton and Hove Albion 0
Newcastle United 3 West Ham United 0
Huddersfield Town 0 Southampton 0
Crystal Palace 0 Swansea City 2
Manchester United 2 Leicester City 0
West Bromwich Albion 1 Stoke City 1
Chelsea 2 Everton 0
Tottenham Hotspur 1 Burnley 1
Liverpool 4 Arsenal 0

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

NBA FINALS SO FAR

(Toronto lead 3-2 in best-of-seven series)

Game 1 Raptors 118 Warriors 109

Game 2 Raptors 104 Warriors 109

Game 3 Warriors 109 Raptors 123

Game 4 Warriors 92 Raptors 105

Game 5 Raptors 105 Warriors 106

Game 6 Thursday, at Oakland

Game 7 Sunday, at Toronto (if needed)

First Person
Richard Flanagan
Chatto & Windus 

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Coming 2 America

Directed by: Craig Brewer

Starring: Eddie Murphy, Arsenio Hall, Jermaine Fowler, Leslie Jones

3/5 stars

How to donate

Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

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MATCH INFO

Karnatake Tuskers 114-1 (10 ovs)

Charles 57, Amla 47

Bangla Tigers 117-5 (8.5 ovs)

Fletcher 40, Moores 28 no, Lamichhane 2-9

Bangla Tiger win by five wickets

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

Quarter-finals

Saturday (all times UAE)

England v Australia, 11.15am 
New Zealand v Ireland, 2.15pm

Sunday

Wales v France, 11.15am
Japan v South Africa, 2.15pm

Why seagrass matters
  • Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
  • Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
  • Biodiversity: Support species like sea turtles, dugongs, and seabirds
  • Coastal protection: Reduce erosion and improve water quality
MATCH INFO

New Zealand 176-8 (20 ovs)

England 155 (19.5 ovs)

New Zealand win by 21 runs

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Updated: October 27, 2022, 3:44 PM