A US B-1 Lancer bomber squadron has been sent to Norway as competition with Russia grows in the Arctic. Reuters
A US B-1 Lancer bomber squadron has been sent to Norway as competition with Russia grows in the Arctic. Reuters
A US B-1 Lancer bomber squadron has been sent to Norway as competition with Russia grows in the Arctic. Reuters
A US B-1 Lancer bomber squadron has been sent to Norway as competition with Russia grows in the Arctic. Reuters

With bombers and boats, US-Russian competition heats up in the frozen Arctic


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The recent arrival of US and Russian heavy and nuclear-capable bombers over the Norwegian Sea renewed fears of a Cold War-style arms race in the Arctic.

US and British officials told The National that this month's deployment of B1 bombers to Norway was about improving operational readiness and to protect the Arctic waters amid growing global competition, especially from Russia.

Defence and regional experts said an increasingly complicated dynamic in the High North and the Arctic Circle would bring an increased risk of conflict unless it was mitigated.

The US sent 200 US Air Force personnel to Norway with an expeditionary B-1 Lancer bomber squadron this week, which is a concern for Moscow.

Two weeks ago, Russia flew Tu-160 nuclear-capable bombers over the Barents, Greenland and Norwegian seas.

Russia has been flying Tu-160 bombers over waters in the Arctic region. Getty
Russia has been flying Tu-160 bombers over waters in the Arctic region. Getty

Russia has about 24,000 kilometres of Arctic coastline and has been mobilising since 2014, when it created an Arctic Command to expand its military presence in the area.

The Arctic region is deemed essential to Russia’s economic vitality.

For the US, Canada and Europe, the region's abundance of rare minerals, oil and gas, and shipping routes makes it important.

With more ice melting because of climate change, there is potential for the Arctic to open up to both rich mineral exploration and tourism.

However, Russia regards the territory as its own economic zone of interest.

US and UK shared concerns about Russia

The US forces focused on the Arctic region usually operate from the UK, meaning the B1 squadron's mission to Norway irked Russia.

The Russian Air Force is preparing its own warplanes and will bring the "Polar powers" competition to centre stage once again.

Without mentioning Russia by name, the US military said it was committed to protecting the Arctic waters as part of its global operations.

A defence official from US Air Forces in Europe and Air Forces Africa command that oversees those deployments said the latest mission was unusual.

"This specific bomber task force deployment is the first-ever forward operation out of Norway," the official told The National.

"By persistently operating with a variety of aircraft and units in Europe, the US Air Force maintains ready and postured forces prepared to respond to and support global operations."

The official said that, faced with a more aggressive Russia and a rising China, a "unified, deliberate and forward-looking approach" was necessary in the region.

“The Arctic’s capacity as a strategic buffer is eroding with advancements by great power competitors, increasing human activity and a changing physical environment,” he said.

The US is developing an “Arctic brigade” to further its footprint in the region, he said.

Russia's Belgorod nuclear-powered submarine carries mini-subs that can be used to damage undersea cables. Getty
Russia's Belgorod nuclear-powered submarine carries mini-subs that can be used to damage undersea cables. Getty

Russia's growing presence in the Arctic is a concern shared by the US and the UK.

"The Russians have been ramping it up for a period of time," a senior British Royal Navy officer told The National when asked about the Kremlin's expansion in the Arctic Circle.

“They recognised that they were unable to compete across the warship piece and therefore invested heavily in things like the underwater domain and hypersonic cruise missiles – things that deny us an operational advantage.”

He said that Russia's current activity was approaching Cold War levels.

“It’s not unparalleled but it is unusual," he said.

The US and Russia are facing off in the area known as the High North, covering Norway and Russia, with growing numbers of warships and military hardware in the region.

Mike Sfraga, founding director of the Polar Institute at the Woodrow Wilson Centre, said the arrival of US bombers in Norway showed Washington was aware the Arctic landscape had changed.

"This deployment is a clear signal to the Russian Federation that the Arctic is of strategic importance to the United States and is willing and able to deploy advanced defence systems to the region," Mr Sfraga told The National.

"It is yet another step in the US' efforts to be aware of, and active, in a new, globalised Arctic."

He said Russian-US posturing in the Arctic and an escalation of military activities were happening in a more open environment.

“It’s a new ocean opening before our eyes – with all of the likely issues coming to the fore; access to and from the Arctic Ocean, access within the Arctic Ocean, control and management of shipping lanes, access to natural resources,” Mr Sfraga said.

“Communication among and between all eight Arctic nations is imperative.”

The eight Arctic states are Canada, Denmark, Finland, Iceland, Norway, Sweden, Russia and the US.

"The Russian Federation has reinvigorated Soviet-era military bases, created a string of modern bases stretching from the Kola Peninsula north to Franz Josef Land, and east to Wrangel Island – a virtual stone's throw to Alaska," said Mr Sfraga.

In its first month, the Biden administration has shown increased willingness to counter Russia on the global stage. But in doing so, it should be vigilant, Mr Sfraga said.

"At the moment, an armed conflict in the Arctic could occur as a result of miscommunication, miscalculation, or an accident," he said.

Clear and open lines of communication are key to preventing conflict.

But Mr Sfraga said the Biden administration should reinforce agreements and commitments already in place to adapt to the changing landscape.

Those include US commitments to the Arctic Council, Arctic Coast Guard Forum, the Central Arctic Ocean Fisheries Agreement "and other binding agreements that reinforce the rule of law, leverage shared equities in governance, research and climate change", he said.

Another policy area the Biden administration could pursue is "reaffirming Alaska's unique and important geographic location and providing applicable military assets there, as well as reinforce US commitments to Norad and Nato", he said.

Russian submarines advantage

Despite the US deployments, Russia holds an advantage.

Their advanced submarines are able to silently pass through waters largely undetected and have caused disquiet among British and US commanders.

"The Russian submarine threat is certainly causing concern because qualitatively they are a very good and very quiet new generation of boats," said Richard Scott, consultant editor at Janes Defence Weekly.

Another threat to Nato fleets are Russia’s hypersonic cruise missiles – such as the Oniks and soon the Zircon that can be launched either from land, a submarine or ship and travel up to speeds of Mach 5 (6,174 kph).

"In terms of reaction time for a fleet, if a hostile missile is flying something above Mach 5, your speed of reaction or your window to defend yourself is going to be very, very limited," said Scott.

With its land mass and need for maritime access, Russia is anxious not to be hemmed in by Nato or other powers, defence analyst Lee Willett said.

“Russia sees the Arctic as its backyard and an area of influence that it would not want to feel squeezed in, so it might well react fairly robustly if it felt threatened," he said.

Although intended to support Nato and other interests, an increased western presence in the area could be interpreted differently by Moscow.

“If Russia perceived a squeeze on its interests in the Black Sea, for example, one way for Russia to reduce the pressure there would be to lash out elsewhere such as the Arctic and that presents a security risk," he said.

"I think there has to be a very careful balance between Nato maintaining a presence in the High North and elsewhere and not risking Russia feeling pressured to the point that it feels forced to react.”

US B-1B bombers fly with Norwegian F-35A jets while training in the Norwegian air space. AFP
US B-1B bombers fly with Norwegian F-35A jets while training in the Norwegian air space. AFP

An area that deeply concerns the US and Britain is Russia's Belgorod submarines, which have mini-subs that can be used to tamper with undersea cables that carry important communications.

"The deep-dive capability and ability to tamper with undersea cables are important in both sub-threshold competition and the actual war-fighting scenarios," said Sidharth Kaushal, research fellow at the Royal United Services Institute think tank in London.

As tensions increase between Russia and the West in the Arctic waters, more co-ordination within Nato is being recommended to provide deterrence.

"From a threat perspective this is going to require a fairly robust response, for Nato to invest considerably and come up with good means of defeating that threat," said Scott.

“If the Russians are delivering what they claim to be delivering in terms of capability in the Arctic these are certainly things that the alliance has to worry about.”

China’s growing presence

Besides Russia, China's growing interest in the Arctic and its adaption to its changing environment is not going unnoticed in the US.

Last week, a Russian icebreaker made it from China to the Yamal Peninsula in Russia in the first such transit of the Northern Sea Route in winter. Climate change made the passage possible.

“China’s relationship with Russia is, at the moment, largely transactional … but the Chinese have gained operational expertise and domain awareness by working with the Russians,” Mr Sfraga said.

“Globally, [China] plays the long game, so the United States will continue to monitor this relationship as well as other Chinese activities in the Arctic.”

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Name: Carzaty

Founders: Marwan Chaar and Hassan Jaffar

Launched: 2017

Employees: 22

Based: Dubai and Muscat

Sector: Automobile retail

Funding to date: $5.5 million

Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Rating: 4/5
The BIO:

He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal

He ascended Mount Everest the next year from the more treacherous north Tibetan side

By 2015, he had completed the Explorers Grand Slam

Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border

He carries dried camel meat, dried dates and a wheat mixture for the final summit push

His new goal is to climb 14 peaks that are more than 8,000 metres above sea level

Cultural fiesta

What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421,  Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day. 

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.”

While you're here
Other IPL batting records

Most sixes: 292 – Chris Gayle

Most fours: 491 – Gautam Gambhir

Highest individual score: 175 not out – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Highest strike-rate: 177.29 – Andre Russell

Highest strike-rate in an innings: 422.22 – Chris Morris (for Delhi Daredevils against Rising Pune Supergiant in 2017)

Highest average: 52.16 – Vijay Shankar

Most centuries: 6 – Chris Gayle

Most fifties: 36 – Gautam Gambhir

Fastest hundred (balls faced): 30 – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Fastest fifty (balls faced): 14 – Lokesh Rahul (for Kings XI Punjab against Delhi Daredevils in 2018)

 

Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

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What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

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Engine: 5.0-litre V8

Power: 480hp at 7,250rpm

Torque: 566Nm at 4,600rpm

Transmission: 10-speed auto

Fuel consumption: L/100km

Price: Dh306,495

On sale: now