A British Challenger 2 tank. The first Challenger is reported to have been lost to Russian fire during Ukraine's growing counter offensive. Ministry of Defence of Ukraine
A British Challenger 2 tank. The first Challenger is reported to have been lost to Russian fire during Ukraine's growing counter offensive. Ministry of Defence of Ukraine
A British Challenger 2 tank. The first Challenger is reported to have been lost to Russian fire during Ukraine's growing counter offensive. Ministry of Defence of Ukraine
A British Challenger 2 tank. The first Challenger is reported to have been lost to Russian fire during Ukraine's growing counter offensive. Ministry of Defence of Ukraine

Ukraine loses first Challenger 2 tank in counter offensive


Thomas Harding
  • English
  • Arabic

Ukraine has lost its first Challenger 2 apparently to enemy fire as its troops battle to widen the growing breach in Russia’s lines.

Social media footage showed the tank on fire with thick smoke pouring out of the hull. It is unclear if any crew were lost in the incident close to the settlement of Robotyne.

The Challenger 2 is considered among the most formidable tanks in the world with high protection offered by its secret Dorchester armour and its ability for long-range sniping with its special sighting system.

That unique thermal gunnery sighting box above the gun barrel is what immediately identified the tank as a Challenger 2, most likely from Ukraine’s 82nd Air Assault Brigade that has been leading the attack on Russian lines.

An indication of the tank’s resilience was demonstrated by the imagery showing its turret still intact indicating it had not “brewed up” or been blown off by internal explosions, as frequently happens with Russian tanks.

This is mainly down to the explosive shell charges in the turret being stored inside armour protected compartments that are also stored underneath the hull, the tank’s most protected area.

It is also highly likely that the crew survived the attack, which was either caused by artillery, kamikaze drone or mine-strike, said former Challenger tank commander Col Hamish de Bretton Gordon.

A British Challenger 2 tank. Photo: Ministry of Defense of Ukraine
A British Challenger 2 tank. Photo: Ministry of Defense of Ukraine

“The images shows that it's on fire but there doesn't seem to be a lot of damage to the tank and no doubt the fire suppression system inside will prevent it getting too badly damaged,” he told The National. “There's no reason why it can't be towed back, repaired, then returned to the thick of the fight.”

He also urged Britain to immediately replace that Challenger 2 and send many more that are “sitting in sheds on Salisbury Plain”.

If the tank is not recoverable it will be the first ever loss of a Challenger to enemy fire. One was near-destroyed after being hit in the rear by another Challenger in a friendly fire incident during the 2003 Iraq invasion.

Another was severely damaged by Iraqi militias using rocket-propelled grenades in the town of Al-Amarah in 2007. A second was damaged earlier that year by a roadside bomb.

But more worrying for the Russians is that the Ukrainians are now pushing more heavy equipment and troops into tactical rear areas of the Robotyne breach, with the Challenger unique among tanks in that it can fire a High Explosive Squash Head (HESH) shell 17 kilometres.

The advance means that positions in the key occupied town of Tokmak could come into artillery range and more importantly the M14 motorway, that links mainland Russia to annexed Crimea, would come within the HIMARS rocket trajectory.

It was also reported that Ukrainian light infantry have advanced beyond the Surovikin defensive line of anti-tank ditches and dragon’s teeth obstacles, further widening the breach around Robotyne and the village of Verbove.

It is also possible that the Ukrainians have finally got past Russia 500 metre wide minefields that have caused numerous casualties and proved a formidable obstacle.

Having already rushed in its VDV airborne troops from other parts of the front line, it is understood that Moscow has few capable reserves to prevent further Ukraine advances.

That Challenger 2 tanks are now deploying close to the front line would suggest that Russia might soon face an armoured onslaught.

Russian Defence Minister Sergei Shoigu described Ukraine's counteroffensive on Tuesday as completely unsuccessful.

"Ukraine's armed forces have not achieved their goals on any front," the defence ministry quoted Mr Shoigu as saying.

Russia on Tuesday said it downed Ukrainian drones over regions close to Moscow and over the Kremlin-controlled Crimean peninsula.

Moscow Mayor Sergei Sobyanin said air defence systems had "destroyed drones which were trying to carry out an attack on Moscow."

There had been "no casualties", Mr Sobyanin said on social media.

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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

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Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.” 

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”

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Secret Nation: The Hidden Armenians of Turkey
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Updated: September 05, 2023, 11:42 AM