Russian President Vladimir Putin on Thursday. Sputnik via AP
Russian President Vladimir Putin on Thursday. Sputnik via AP
Russian President Vladimir Putin on Thursday. Sputnik via AP
Russian President Vladimir Putin on Thursday. Sputnik via AP

Diplomatic solution could end Ukraine war, says Vladimir Putin


Soraya Ebrahimi
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Russian President Vladimir Putin said on Thursday that he wants an end to the war in Ukraine and that this would inevitably involve a diplomatic solution.

His comments come a day after US President Joe Biden hosted Ukrainian leader Volodymyr Zelenskyy in the White House and promised him continued and unwavering support.

"Our goal is not to spin the flywheel of military conflict but, on the contrary, to end this war," Mr Putin said.

"We will strive for an end to this, and the sooner the better, of course."

White House spokesman John Kirby said Mr Putin had "shown absolutely zero indication that he's willing to negotiate" an end to the war, which began when Moscow sent troops into Ukraine on February 24.

"Quite the contrary," Mr Kirby said. "Everything he is doing on the ground and in the air bespeaks a man who wants to continue to visit violence upon the Ukrainian people" and "escalate the war".

He repeated that Mr Biden was open to talks with Mr Putin, but only after the Russian leader "showed a seriousness about negotiations" and after consultations with Ukraine and US allies.

Putin's inner circle – in pictures

  • Head of Russia's SVR intelligence service Sergei Naryshkin has seen his status eroded by the strong resistance encountered in Ukraine, which he did not foresee. EPA
    Head of Russia's SVR intelligence service Sergei Naryshkin has seen his status eroded by the strong resistance encountered in Ukraine, which he did not foresee. EPA
  • Head of Russia's Roscosmos space agency Dmitry Rogozin has threatened to abandon a Nasa astronaut on the International Space Station. AFP
    Head of Russia's Roscosmos space agency Dmitry Rogozin has threatened to abandon a Nasa astronaut on the International Space Station. AFP
  • Russian Defence Minister Sergei Shoigu was one of the architects of Moscow's intervention in Syria. AFP
    Russian Defence Minister Sergei Shoigu was one of the architects of Moscow's intervention in Syria. AFP
  • Russian President Vladimir Putin meets with Russia's oil giant Rosneft chief Igor Sechin. He has been described as Mr Putin's right-hand man. AFP
    Russian President Vladimir Putin meets with Russia's oil giant Rosneft chief Igor Sechin. He has been described as Mr Putin's right-hand man. AFP
  • Secretary of Russia's Security Council Nikolai Patrushev attends a meeting in Moscow. He is said to have known Mr Putin for 50 years. AFP
    Secretary of Russia's Security Council Nikolai Patrushev attends a meeting in Moscow. He is said to have known Mr Putin for 50 years. AFP
  • Sergei Ivanov, Russian special representative on questions of ecology and transport, is a close friend of Mr Putin. AFP
    Sergei Ivanov, Russian special representative on questions of ecology and transport, is a close friend of Mr Putin. AFP
  • Federal Security Service director Alexander Bortnikov is responsible for a huge network of agents in Russia. AFP
    Federal Security Service director Alexander Bortnikov is responsible for a huge network of agents in Russia. AFP
  • At 58, president of the Duma Lower House of Parliament Vyacheslav Volodin is one of the younger members of the inner circle. He has been touted as a possible successor to Mr Putin. AFP
    At 58, president of the Duma Lower House of Parliament Vyacheslav Volodin is one of the younger members of the inner circle. He has been touted as a possible successor to Mr Putin. AFP

Russia has persistently said it is open to negotiations, but Ukraine and its allies suspect a ploy to buy time afterRussian defeats and retreats that have swung the momentum of the 10-month war in favour of Kyiv.

"I have said many times: the intensification of hostilities leads to unjustified losses," Mr Putin said.

"All armed conflicts end one way or another, with some kind of negotiations on the diplomatic track.

"Sooner or later, any parties in a state of conflict sit down and make an agreement. The sooner this realisation comes to those who oppose us, the better. We have never given up on this."

Russia says it is Ukraine that is refusing to talk. Kyiv says Russia must first halt its attacks and give up all of the territory it has seized.

Ukraine latest — in pictures

  • A building burned from a strike as Russia's attack on Ukraine continues, in Bakhmut. Reuters
    A building burned from a strike as Russia's attack on Ukraine continues, in Bakhmut. Reuters
  • Antonina, a refugee from Bakhmut in Donetsk region, with dogs she rescued in Izyum, Kharkiv. AFP
    Antonina, a refugee from Bakhmut in Donetsk region, with dogs she rescued in Izyum, Kharkiv. AFP
  • A resident gives her neighbours hot food brought by volunteers in Izyum. AFP
    A resident gives her neighbours hot food brought by volunteers in Izyum. AFP
  • A Ukrainian soldier salutes as he works to build a bunker with sand in Bakhmut. Reuters
    A Ukrainian soldier salutes as he works to build a bunker with sand in Bakhmut. Reuters
  • Volodymyr Kovalov, 77, carries tree branches attached to his bike as he collects wood for heating and cooking in Kherson region. AFP
    Volodymyr Kovalov, 77, carries tree branches attached to his bike as he collects wood for heating and cooking in Kherson region. AFP
  • A local resident takes pictures of a destroyed monastery in Dolyna, eastern Ukraine. AFP
    A local resident takes pictures of a destroyed monastery in Dolyna, eastern Ukraine. AFP
  • A decoy dummy made with the clothes of a Russian soldier at the entrance of a destroyed cinema in Kamyanka, eastern Ukraine. AFP
    A decoy dummy made with the clothes of a Russian soldier at the entrance of a destroyed cinema in Kamyanka, eastern Ukraine. AFP
  • Destroyed houses in the city of Kamyanka. AFP
    Destroyed houses in the city of Kamyanka. AFP
  • Caesar, 50, a Russian who joined the Freedom of Russia Legion to fight on the side of Ukraine, stands in front of a destroyed monastery in Dolyna. AFP
    Caesar, 50, a Russian who joined the Freedom of Russia Legion to fight on the side of Ukraine, stands in front of a destroyed monastery in Dolyna. AFP
  • An employee stands next to a shelter at a stainless pipes plant in Nikopol, Dnipropetrovsk region. AFP
    An employee stands next to a shelter at a stainless pipes plant in Nikopol, Dnipropetrovsk region. AFP
  • Ivan and Iryna Kalinin before the start of the Russian invasion of Ukraine. Iryna, who was pregnant, was killed in a Russian air strike on Mariupol's maternity hospital. Ivan returned to the occupied city to rebury his wife and baby. AP
    Ivan and Iryna Kalinin before the start of the Russian invasion of Ukraine. Iryna, who was pregnant, was killed in a Russian air strike on Mariupol's maternity hospital. Ivan returned to the occupied city to rebury his wife and baby. AP
  • Natalia, 67, sits inside her house that was damaged in a Russian military strike, in Kramatorsk, Ukraine. Reuters
    Natalia, 67, sits inside her house that was damaged in a Russian military strike, in Kramatorsk, Ukraine. Reuters
  • Ukrainian soldiers ride in a military vehicle in Bakhmut, a city in the Donetsk enclave. AP
    Ukrainian soldiers ride in a military vehicle in Bakhmut, a city in the Donetsk enclave. AP
  • Smoke billows from a building on fire after a Russian attack in Bakhmut. AP
    Smoke billows from a building on fire after a Russian attack in Bakhmut. AP
  • Sasha and her grandfather stand outside their home in Bakhmut. AP
    Sasha and her grandfather stand outside their home in Bakhmut. AP
  • Ukrainian soldiers set up a barricade in Bakhmut. AP
    Ukrainian soldiers set up a barricade in Bakhmut. AP
  • Nastya carries her cat as her mother Anna says goodbye to neighbours with whom they lived for months in a basement during Russian attacks in Soledar, a city in the Donetsk enclave of Ukraine. AP
    Nastya carries her cat as her mother Anna says goodbye to neighbours with whom they lived for months in a basement during Russian attacks in Soledar, a city in the Donetsk enclave of Ukraine. AP
  • Anna and Nastya in the basement during a Russian attack nearby. AP
    Anna and Nastya in the basement during a Russian attack nearby. AP
  • A Ukrainian soldier is wheeled on a stretcher at a hospital in the Donetsk enclave. AP
    A Ukrainian soldier is wheeled on a stretcher at a hospital in the Donetsk enclave. AP
  • A woman looks a building damaged by Russian shelling in Kherson. AFP
    A woman looks a building damaged by Russian shelling in Kherson. AFP
  • Oleksandra Koshkina, 85, sits in a car as she returns to her village of Torske, in the Donetsk enclave. Reuters
    Oleksandra Koshkina, 85, sits in a car as she returns to her village of Torske, in the Donetsk enclave. Reuters
  • A resident of Bakhmut walks along an empty street. Reuters
    A resident of Bakhmut walks along an empty street. Reuters
  • A street market in Bakhmut. Reuters
    A street market in Bakhmut. Reuters
  • A Ukrainian soldier poses for a picture in the Donetsk enclave. Reuters
    A Ukrainian soldier poses for a picture in the Donetsk enclave. Reuters
  • Officials tend to a patient on a plane carrying Ukrainian Jewish refugees as they wait to disembark at Israel's Ben Gurion Airport near Tel Aviv. AFP
    Officials tend to a patient on a plane carrying Ukrainian Jewish refugees as they wait to disembark at Israel's Ben Gurion Airport near Tel Aviv. AFP

Mr Putin also played down the significance of the Patriot air-defence system that Mr Biden agreed to supply to Mr Zelenskyy, saying Russia would find a way to counter it.

He said it was "quite old" and did not work like Russia's S-300 system.

"An antidote will always be found," Mr Putin said, adding that Russia would "crack" the Patriots.

"So those who do it are doing it in vain. It's just prolonging the conflict, that's all."

Mr Putin also said a price cap imposed on Russian oil by western countries, designed to limit its ability to fund the war, would not damage the Russian economy.

He said he would sign a decree early next week to set out Russia's response.

Putin sounds out Russian military chiefs on progress of Ukraine war - video

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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. 

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Updated: December 23, 2022, 7:44 AM