Russian Foreign Minister Sergey Lavrov said Moscow was ready to sever ties with the European Union if the bloc hits it with economic sanctions, according to extracts from an interview posted on the ministry's website on Friday.
Germany described Mr Lavrov's comments as "disconcerting and incomprehensible".
Relations between Russia and the West are under renewed pressure over the arrest and jailing of Kremlin critic Alexei Navalny, which sparked talk of possible new sanctions.
Three European diplomats told Reuters on Thursday that the European Union was likely to impose travel bans and asset freezes on allies of Russian President Vladimir Putin, possibly as soon as this month, after France and Germany signalled their willingness to move ahead.
Pressure for sanctions has grown since Moscow infuriated European nations last week by expelling German, Polish and Swedish diplomats without telling the EU's foreign policy chief, who was in Moscow for a visit. Paris and Berlin say there must be a response.
Mr Lavrov was asked in an interview to be published in full later on Friday whether Moscow would now move towards cutting ties with the EU itself.
"We proceed from the fact that we're ready ... In the event that we again see sanctions imposed in some sectors that create risks for our economy, including in the most sensitive spheres," Mr Lavrov said.
"We don't want to isolate ourselves from global life, but we have to be ready for that. If you want peace then prepare for war."
EU ambassadors discussed the punitive measures at a meeting on Wednesday, with no objections raised by member states, diplomats familiar with the talks told Bloomberg.
The discussion came after EU foreign policy chief Josep Borrell weathered intense criticism over his trip to Moscow, when Mr Lavrov used a joint press conference to disparage the bloc, criticising the EU as an unreliable partner. Russia simultaneously announced that it would expel three diplomats from Poland, Germany and Sweden for their “recorded participation” in protests against the imprisonment of Mr Navalny. The EU countries reciprocated in kind.
After returning from Moscow, Mr Borrell said that "Europe and Russia are drifting apart".
At Wednesday’s meeting, at least 10 ambassadors expressed their disappointment at how Mr Borrell’s visit went, according to a diplomatic note seen by Bloomberg. Most of the same governments welcomed news that the discussion was shifting to tangible action, including sanctions.
The note added that the EU’s foreign ministers could take an initial decision on any restrictive measures when they meet on February 22. The EU’s 27 leaders will also discuss relations with Russia next month. Any decision to apply new sanctions would require unanimity.
A senior Navalny ally urged the EU to show “political will” as it considers punitive measures. “The EU doesn’t need to build a legal case that can be defended in court – sanctions are a political decision,” said Vladimir Ashurkov. “If not now, then when?”
Mr Ashurkov, who is based in London, took part in a video call with representatives of EU nations, the UK and US on Monday. He also sent a sanctions list of 35 Russians including senior officials, state bankers and billionaire oligarchs Roman Abramovich and Alisher Usmanov, to UK Foreign Secretary Dominic Raab.
“If eight are sanctioned, that would be a coup in itself, if 35 are sanctioned that would be huge leap,” Mr Ashurkov said.
A spokesman for Mr Abramovich said there was "no foundation" for the claims Mr Ashurkov made about the tycoons in his list. A representative for Mr Usmanov declined to comment.
Mr Navalny, 44, was detained in mid-January upon his return from Germany, where he was treated for the poisoning that he and western nations blamed on Russia's Federal Security Service. The Kremlin denied any role in the nerve-agent attack.
A Moscow court on February 2 sentenced Mr Navalny to two years and eight months in prison for breaching probation terms of a previous, suspended fraud conviction. His jailing sparked the biggest anti-Putin protests in years and a violent crackdown, with 11,000 arrests and the prosecution of Navalny aides. Russia rejected EU and US calls to free him.
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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Killing of Qassem Suleimani
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PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Translated from the Spanish by Camilo A. Ramirez
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Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
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The biog
Favourite Quote: “Real victories are those that protect human life, not those that result from its destruction emerge from its ashes,” by The late king Hussain of Jordan.
Favourite Hobby: Writing and cooking
Favourite Book: The Prophet by Gibran Khalil Gibran
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Name: Mohammed Bouherrafa (Almeria)
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