Russia is launching the most radical reform of its armed forces since the collapse of the Soviet Union, designed to turn a lumbering Cold War-era army into a modern fighting force.
The plans follow a mixed performance by the Russian army in its five-day war against tiny Georgia in August. Russian analysts have highlighted basic weaknesses - lack of night-vision equipment, non-working radios and poor air cover - despite massively increased defence budgets in recent years.
The London-based International Institute for Strategic Studies (IISS) has concluded that Russia's quick victory was the result of the US-trained Georgian army collapsing, not any tactical excellence. Had the Russian army faced a "more resolute enemy", it would have suffered heavy losses, the IISS said in a briefing paper.
These conclusions have strengthened the hand of Anatoly Serdyukov, the reforming defence minister, who this week revealed plans for a dramatic cull of the 335,000-strong officer corps that makes up no less than one-third of the army's total manpower.
By 2012, officer numbers will be cut to 150,000, with the focus on younger ones in charge of combat units in place of the military bureaucrats who occupy prime real estate in the heart of Moscow.
More than 200 generals will be retired, but that will still leave Russia with 900 generals for its million-strong armed forces. In the United States, by contrast, an army of half that size has only 306 generals.
Not surprisingly, the officer corps has put up resistance to Mr Serdyukov, a civilian who formerly headed the Federal Tax Service, an agency that inspires the same respect as the old KGB in the past.
"The old school is well entrenched in the defence ministry and Serdyukov will have to go head-to-head with them," said Col Christopher Langton, a senior fellow at the IISS. "But the signs are that he can succeed where his predecessor failed. He is a good manager and a tough one."
In June, the minister won a battle against the old guard when he forced out Gen Yuri Baluyevsky, the chief of general staff. The general had opposed his plans to civilianise military jobs, sell off office space in Moscow and move the navy headquarters to St Petersburg. The port city is the home of the defence minister and his patron, Vladimir Putin, the prime minister.
Col Langton said the influence of the old guard was clear, not just in the determination of old officers to hang on to their posts and perks but also in the old thinking still dominant in the defence ministry. This had led to "tactical deficiencies" in the Georgia campaign.
Mr Serdyukov made clear his vision for the future when he praised the role in the Georgia campaign of the Russian airborne division, a professional - not conscript - unit that is part of the strategic reserve.
The 58th Army, based across the border from Georgia whose main task has been fighting Chechen rebels, was first into battle. But it was not up to the task of taking on the Georgians, who were better equipped to fight at night. Gen Anatoly Khrulyov, its commander, was wounded in an ambush.
The army's technical weakness was apparent when some soldiers lost contact with their units once on Georgian soil and begged to use foreign reporters' mobile phones. The army rushed to install Russian mobile phone masts to make up for the failure of the military radios.
Poor equipment almost led to a battle on the outskirts of the Georgian capital, Tbilisi, which would have raised the conflict to a full-blown international crisis. In a muscle-flexing gesture, the Russians sent a column of 80 tanks and armoured vehicles towards Tbilisi, with instructions to turn away just before reaching the Georgian defences. But some of the vehicles broke down, and lost contact with the rest of the column. When the stragglers set off again, they lost their way and were about to blunder into the Georgian army. Journalists on the road pointed them in the right direction.
Most surprisingly, the Russian forces had no reconnaissance drones - even though Russia sells such equipment for export. This led to the Georgians - equipped with Israeli-made drones - shooting down seven Russian aircraft, though only four of these have been acknowledged.
The size of the army has fallen drastically since the collapse of the Soviet Union in 1991, when it numbered about three million. But reform of its structure has always been resisted, even while recruitment has collapsed. This has left it packed with officers, who often carry out menial tasks that in a western army could be done by a private.
The officer cull is going ahead at a time when Dmitri Medvedev, the Russian president, is promising a dramatic boost to military power. The nuclear arsenal is to be renewed by 2020.
A unified air and space defence system will be set up. Russia plans to become the world's second naval power, building six carrier battle groups over the next 20 years. The army will be mobile, and in "permanent readiness", he has promised.
All these promises might suggest that Russia is preparing for a new Cold War. Russian media have even suggested that recent military exercises were a simulation of war with the United States.
The independent Russian defence analyst Pavel Felgenhauer, who takes a sceptical view of the military establishment, dismisses these promises of global military reach as "nonsense" designed to win over the opponents of military reform.
The government's plans were "contradictory" and probably way beyond any conceivable defence budget, he wrote in the independent Moscow newspaper Novaya Gazeta this week.
A unified air and space defence system was beyond Russia's capability, while air superiority over US and Nato forces would "require more than 100 years". Mr Felgenhauer questioned how the defence ministry could provide pay-offs, pensions and houses for 45,000 retiring officers a year while grappling with such a drastic rearmament programme. But Col Langton, of the IISS, believes Russia is determined to project force abroad again.
"There cannot be a new Cold War because there is no ideological struggle," he said. "But we will see increased competition between the Russians and the Americans. The Russians are intent on exerting influence where they see fit." In the Kremlin view, the August war showed the limits of US power on Russia's borders. In Kremlin jargon, the "unipolar world" - in which the United States was the unchallenged superpower - has ended, making way for a "multipolar" arrangement where Washington is one of several powers.
If the Russians are right, then Georgia will never join Nato, while the US Navy will think twice in future before holding exercises in the Black Sea.
The next area of competition, according to Col Langton, will be the Mediterranean and North African regions. Plans for a permanent Russian naval base at Tartous in Syria clearly show Moscow's plans to project sea power once again around the Middle East.
aphilps@thenational.ae
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
If you go
- The nearest international airport to the start of the Chuysky Trakt is in Novosibirsk. Emirates (www.emirates.com) offer codeshare flights with S7 Airlines (www.s7.ru) via Moscow for US$5,300 (Dh19,467) return including taxes. Cheaper flights are available on Flydubai and Air Astana or Aeroflot combination, flying via Astana in Kazakhstan or Moscow. Economy class tickets are available for US$650 (Dh2,400).
- The Double Tree by Hilton in Novosibirsk ( 7 383 2230100,) has double rooms from US$60 (Dh220). You can rent cabins at camp grounds or rooms in guesthouses in the towns for around US$25 (Dh90).
- The transport Minibuses run along the Chuysky Trakt but if you want to stop for sightseeing, hire a taxi from Gorno-Altaisk for about US$100 (Dh360) a day. Take a Russian phrasebook or download a translation app. Tour companies such as Altair-Tour ( 7 383 2125115 ) offer hiking and adventure packages.
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
QUARTER-FINAL
Wales 20-19 France
Wales: T: Wainwright, Moriarty. Cons: Biggar (2) Pens: Biggar 2
France: T: Vahaamahina, Ollivon, Vakatawa Cons: Ntamack (2)
Mohammed bin Zayed Majlis
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
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.”
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
QUALIFYING RESULTS
1. Max Verstappen, Netherlands, Red Bull Racing Honda, 1 minute, 35.246 seconds.
2. Valtteri Bottas, Finland, Mercedes, 1:35.271.
3. Lewis Hamilton, Great Britain, Mercedes, 1:35.332.
4. Lando Norris, Great Britain, McLaren Renault, 1:35.497.
5. Alexander Albon, Thailand, Red Bull Racing Honda, 1:35.571.
6. Carlos Sainz Jr, Spain, McLaren Renault, 1:35.815.
7. Daniil Kvyat, Russia, Scuderia Toro Rosso Honda, 1:35.963.
8. Lance Stroll, Canada, Racing Point BWT Mercedes, 1:36.046.
9. Charles Leclerc, Monaco, Ferrari, 1:36.065.
10. Pierre Gasly, France, Scuderia Toro Rosso Honda, 1:36.242.
Eliminated after second session
11. Esteban Ocon, France, Renault, 1:36.359.
12. Daniel Ricciardo, Australia, Renault, 1:36.406.
13. Sebastian Vettel, Germany, Ferrari, 1:36.631.
14. Antonio Giovinazzi, Italy, Alfa Romeo Racing Ferrari, 1:38.248.
Eliminated after first session
15. Antonio Giovinazzi, Italy, Alfa Romeo Racing Ferrari, 1:37.075.
16. Kimi Raikkonen, Finland, Alfa Romeo Racing Ferrari, 1:37.555.
17. Kevin Magnussen, Denmark, Haas Ferrari, 1:37.863.
18. George Russell, Great Britain, Williams Mercedes, 1:38.045.
19. Pietro Fittipaldi, Brazil, Haas Ferrari, 1:38.173.
20. Nicholas Latifi, Canada, Williams Mercedes, 1:38.443.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition