Russian President Vladimir Putin accused the West of playing a dirty game over Ukraine in his annual address to parliament on Tuesday.
His speech set the tone for a continuing Russian offensive, with a call to strengthen the armed forces and shore up the wartime economy.
Mr Putin also delivered a nuclear warning to the West over Ukraine, announcing that Moscow would suspend its participation in the last remaining arms control treaty between the world's two main nuclear powers, Russia and the US, known as the New Start treaty.
He said that while he would not withdraw Russia from the treaty completely, he would not allow Nato countries to inspect his country's arsenal.
In a speech lasting about an hour and 45 minutes, he claimed the West had started the war in Ukraine, accused it of “cynically cheating its people” and said its goal was “limitless power”.
He claimed Russia wanted to solve the conflict in Ukraine peacefully but that western countries had prepared a “different scenario” behind its back.
He said: “We were doing everything possible to solve this problem peacefully, negotiating a peaceful way out of this difficult conflict, but behind our backs a very different scenario was being prepared.”
Speaking before US President Joe Biden was scheduled to deliver a speech in Poland on Tuesday, Mr Putin accused Nato members of “playing a dirty game” with “repulsive lying and two-faced behaviour”.
Mr Putin vowed to “systematically” continue the Ukraine offensive and said western countries, led by the US, were seeking “unlimited power” in world affairs.
In his speech, he:
- Claimed he was making the address at a difficult time, a “watershed moment” for the country
- Repeated the unfounded assertion that Russia was facing a “Nazi threat”, with “constant threats and hatred” from the Kyiv government
- Said since the 19th century the West had tried to tear the historical lands from our country, “what is now called Ukraine”
- Said the people of Ukraine had become the “hostage of the Kyiv regime” and its “western overlords”
- Claimed Moscow was defying the West's attempts to ruin Russia's economy
- Said Russia had all the resources it needed
Mr Putin made the remarks in an address to members of both houses of parliament, nearly a year to the day since he sent tens of thousands of troops into Ukraine in a move that has triggered the biggest confrontation with the West since the Cold War.
“Step by step, carefully and consistently, we will resolve the tasks facing Russia,” he said.
“Since 2014, the [people of the] Donbas had been fighting, defending their right to live on their own land, to speak their native language.
“They fought and did not give up in the conditions of blockade and constant shelling, undisguised hatred on the part of the Kyiv regime. They believed and expected that Russia would come to their rescue.”
He thanked Russians for their “courage and resolution” in supporting what Moscow calls a “special military operation” in Ukraine.
After accusing the US and Nato of failing to co-operate over New Start, he said: “In this regard, I am forced to announce today that Russia is suspending its participation in the strategic offensive arms treaty.”
Russia and the US have vast arsenals of nuclear weapons left over from the Cold War and remain, by far, the biggest nuclear powers. Between them, they hold 90 per cent of the world's nuclear warheads.
The treaty, signed by president Barack Obama in 2010 when relations were warmer, reduced limits on each country's nuclear warheads by nearly 30 per cent, to 1,550 warheads on deployed intercontinental ballistic missiles, submarine ballistic missiles and heavy bombers. Both sides met the central limits by 2018.
Nato Secretary General Jens Stoltenberg said he regretted Russia's decision to suspend its participation in the treaty and urged Moscow to reconsider.
Speaking alongside Ukraine's Foreign Minister Dmytro Kuleba and EU foreign policy chief Josep Borrell shortly after Mr Putin's speech, Mr Stoltenberg said Russia was the aggressor.
“It is President Putin who started this imperial war of conquest. As Putin made clear today, he's preparing for more war. Putin must not win. It would be dangerous for our own security and the whole world,” he said.
A senior aide to Ukraine's President said Mr Putin's speech showed “he has lost touch with reality”.
“He is in a completely different reality, where there is no opportunity to conduct a dialogue about justice and international law,” political adviser Mykhailo Podolyak said.
Russia's Foreign Ministry said on Tuesday that it had summoned US ambassador Lynne Tracy over what it called Washington's increasingly “aggressive course”, accusing it of widening its involvement in the Ukraine conflict.
“In this regard, the ambassador was told that the current aggressive course of the United States to deepen confrontation with Russia in all areas is counterproductive,” the ministry said.
It also called on the US to give an explanation over blasts that damaged the Nord Stream 1 and Nord Stream 2 gas pipelines last year.
Mr Putin's speech comes a day after Mr Biden paid a surprise visit to Kyiv to pledge “unwavering” support for Ukraine.
Mr Biden is holding talks with Poland's President Andrzej Duda in Warsaw.
During the trip, Mr Biden promised the US would send another $500 million in military aid to Ukraine and said more sanctions would this week be imposed on Russian officials and companies.
Mr Biden and Mr Duda were to discuss plans to reinforce Poland's security and an increased Nato presence in the country, the Polish President's foreign affairs adviser said.
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
WHAT%20ARE%20THE%20PRODUCTS%20WITHIN%20THE%20THREE%20MAJOR%20CATEGORIES%3F
%3Cp%3E%3Cstrong%3EAdvanced%20materials%3A%3C%2Fstrong%3E%20specifically%20engineered%20to%20exhibit%20novel%20or%20enhanced%20properties%2C%20that%20confer%20superior%20performance%20relative%20to%20conventional%20materials%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAdvanced%20components%3A%3C%2Fstrong%3E%20includes%20semiconductor%20components%2C%20such%20as%20microprocessors%20and%20other%20computer%20chips%2C%20and%20computer%20vision%20components%20such%20as%20lenses%20and%20image%20sensors%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAdvanced%20products%3A%3C%2Fstrong%3E%20includes%20personal%20electronics%2C%20smart%20home%20devices%20and%20space%20technologies%2C%20along%20with%20industry-enabling%20products%20such%20as%20robots%2C%203D%20printing%20equipment%20and%20exoskeletons%3C%2Fp%3E%0A%3Cp%3E%3Cem%3ESource%3A%20Strategy%26amp%3B%3C%2Fem%3E%3C%2Fp%3E%0A
SECRET%20INVASION
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Ali%20Selim%20%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Samuel%20L%20Jackson%2C%20Olivia%20Coleman%2C%20Kingsley%20Ben-Adir%2C%20Emilia%20Clarke%20%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%26nbsp%3B%3C%2Fp%3E%0A
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
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.”