American Abrams tanks at a training location in Poland. Western officials have said heavy tanks are needed to break the deadlock in Ukraine. EPA
American Abrams tanks at a training location in Poland. Western officials have said heavy tanks are needed to break the deadlock in Ukraine. EPA
American Abrams tanks at a training location in Poland. Western officials have said heavy tanks are needed to break the deadlock in Ukraine. EPA
American Abrams tanks at a training location in Poland. Western officials have said heavy tanks are needed to break the deadlock in Ukraine. EPA

Ukraine needs tanks 'to break the deadlock', western official says


Thomas Harding
  • English
  • Arabic

The West must provide Ukraine with heavy tanks to “break the deadlock” against the Russians, a western official has said.

Kyiv’s armed forces will require up to 300 main battle tanks to force a victory, it was suggested. Britain is considering sending a squadron of 12 Challenger IIs and Germany some of its Leopard II tanks.

The Russians are also flying their most advanced Su-57 stealth bomber in the conflict, but only from a stand-off position over fears it could be shot down, it was confirmed in a media briefing.

An official also said that the Wagner Group of Russian mercenaries — many of them former convicts — now made up a quarter of frontline forces and were suffering heavy casualties.

With an apparent stalemate between the two sides, and both running critically short on artillery and missile ammunition, if Ukraine was supplied with modern main battle tanks, it could push the invaders back.

“Someone needs to break the deadlock here,” a senior western official said. “Ukraine won't be able to win back significant amounts of territory without changes to their force posture from last year.”

While both sides have strengths and weakness, the “force ratios” between them were “too finely balanced”, the official added.

A tank fires a round in Soledar, Donetsk region. Reuters
A tank fires a round in Soledar, Donetsk region. Reuters

“So somebody needs to break that deadlock, especially if it's to win territory back and go on the offensive,” the official continued.

“Main battle tanks and APCs [armoured personnel carriers] are part of that mix.

“The Ukrainians will look to all partners who might provide tanks and won't really be particularly worried about where they come from just as long as they come in sufficient volume.”

That “volume” would be 300 tanks and include up to 600 APCs, with Germany and the US already agreeing to send Marder and Bradley infantry fighting vehicles. France has also agreed to send a number of AMX-10 light tanks and also might be considering handing over its Leclerc heavy tanks.

“They need new capabilities, which will help give them an advantage over Russians, a variety of different capabilities which might break a deadlock,” the official said.

“One of which for offensive manoeuvres would be tanks and increased numbers of APCs.”

But training soldiers in the use of tanks would take several weeks, as both Ukraine and Russia race to reconstitute their forces and go on the offensive “in a meaningful way”.

“Both sides have a choice about when to go,” the official said. “The longer you wait, perhaps the more capable your forces will.

“On the other hand, the longer you wait, the more you might lose the advantage and things might become more static and grinding.”

The official added that a new winter offensive now appeared less likely, assessing that there would not be “any significant changes in territory over the coming months”.

The Russian’s cutting edge Su-57 Felon stealth fighter has also been flown for the first time in combat but has remained inside home airspace to prevent it being shot down.

“The Russian air force continues to underperform,” the official said. “It’s using the Su-57 aircraft in small numbers in a stand-off role, which does not fully utilise its supposed capabilities.”

He added that the Wagner mercenaries, who have a ruthless reputation, were taking a central role in the bloody fight for the area around Bakhmut.

However, “casualty rates are substantial”, with infantry assaults “poorly supported”.

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.”

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Updated: January 10, 2023, 6:24 PM