DAMASCUS // An arms deal between Syria and Russia that could help reshape the Middle East conflict - and perversely even boost the peace process - is one of the more unusual side effects of the ongoing crisis in Georgia.
For years Russia had refused to sell hi-tech missiles to Damascus in response to a specific request from Israel, which is technically at war with Syria.
However, a weapons sale is now firmly back on the agenda, following revelations that Israel had been helping the Georgian military and, therefore, aided the assault on South Ossetia that provoked such an overwhelming response from Russia.
With previously cordial ties between Israel and Russia now strained, Syria sees an opportunity to bring its old ally heavily back into play in the Middle East, firmly on its side.
Igor Belyaiv, charge d'affaires at Russia's sprawling embassy in Damascus, said Israel had provided "pilotless drones, training for Georgian special forces and up-to-date telecommunications equipment" to Tbilisi, and made it clear his country's relationship with Israel was under review.
"The Russian government's position towards Israel is that these steps affected Russian interests," he told journalists last week. "Therefore, the Russian leadership will be thinking seriously about how to react."
While refusing to confirm specific details about what armaments might be involved, Mr Belyaiv said there had been a "political decision for more co-operation" with Syria.
"Russia is ready to supply Syria with modern weapons," he said, adding he expected a greater naval footprint in the Mediterranean Sea.
The Russian diplomat also requested that Syria recognise South Ossetia and Abkhazia as independent states, something the West has refused to do.
Much of the international reaction has, predictably enough, focused on the potential for further destabilisation of an already volatile region and greater empowerment of Israel's - and America's - enemies: Syria and, by extension, Hizbollah.
An arms deal could threaten ongoing mediated talks between Syria and Israel, designed to prepare the ground for a final settlement over the occupied Golan Heights. Israel fears advanced weaponry, including anti-aircraft missiles and accurate surface-to-surface missiles, sold to Syria would end up in the hands of Hizbollah. In the July 2006 Lebanon war, the militants are believed to have used Russian anti-tank rockets with devastating effect, blocking Israel's ground invasion.
Syrians, however, see their deepening relationship with Russia as a development that could actually strengthen the peace process and finally help bring an end to their decades-long war with Israel.
"If Syria gets the weapons from Russia, it doesn't undermine the peace process," said Tarbit Salem, a Damascus-based political analyst. "If Syria is stronger it might actually make the Israelis more serious about the peace talks, it might actually make the peace talks easier."
Nuclear-armed Israel has a far superior military to Syria, the latter relying on largely outdated Russian material. This superiority has allowed Israel to behave with a large degree of impunity. Last September, Israel unilaterally attacked Syria, bombing a military installation that it, and the United States, claimed was an under-construction nuclear reactor, allegations denied by Damascus. UN inspectors visited the site in June but have yet to publish their report.
Syria has at least partially offset this mismatch in firepower through support for Hizbollah, the only group that can really claim military success against Israel.
With Russia on side, Syria would have an ally less instinctively pro-Israel in its foreign policy than the US, traditionally seen as the region's main power broker, analysts said.
"America is never going to put real pressure on Israel in terms of a peace deal, they are too closely allied," said Taha Abdul Wahid, an independent Syrian analyst on Damascus's ties with Moscow. "Russia can put real pressure on Israel because they have an active relationship with both sides. Russia has leverage over Israel now and will be prepared to use it. It can say, 'come to terms with Syria, otherwise we'll give Syria better weapons'."
Even if new arms are not supplied to Syria, the very prospect has improved Damascus's diplomatic hand, according to Mr Adbul Wahid. "The war in Georgia has empowered Syria, regardless of what does or does not happen with weapons," he said. "Russia is angry with Israel over this and Israel knows it, and must tread more carefully."
Since the Annapolis peace conference in November, Russia has been hoping to host a follow-up summit in Moscow to advance negotiations between the Israelis, Palestinians and Syrians. That has not happened because the moribund peace process meant it would be doomed to fail.
Russia could now push for a deal with Israel: attend the conference and agree terms with Syria in exchange for a block on new weapons sales.
"Russia wants a world that is at least bipolar, not just centred around Washington. For that reason they want to be involved, they want to see a peace in the Middle East and they'd like to see it shaped on their terms, not on American terms," said Mr Abdul Wahid.
Although it is perhaps too much to expect a peace breakthrough, the Moscow conference is, if nothing else, being discussed again after months of being quietly ignored.
Peter Harling, a Damascus-based analyst with the International Crisis Group, said the situation was still developing in the wake of last week's visit to Moscow by Bashar Assad, the Syrian president who met with his Russian counterpart, Dimitry Medvedev. "We will most probably see some realignment of the relationship between Syria, Russia and Israel," he said. "But it's difficult to say exactly how.
Syria's desire for new weapons should not be interpreted as meaning Damascus was not serious about peace, Mr Harling said. "Syria is pragmatic and has a mixed policy of sending both soothing and ominous signals. They have shown they can be constructive, in Lebanon for example, but they also want to show they have some powerful allies like Iran and that they could move closer to Russia.
"Syria is not behaving like a spoiler in the region and is not being arrogant or offensive. They are preparing the ground for 2009 and a new US president."
With no real prospect that Russia would turn its back on Israel entirely in favour of Syria, any adjustments in their relationships are likely to be carefully thought out, Mr Salem, the Syrian analyst, said.
"The Georgia crisis comes as a huge opportunity for Syria but it does complicate the peace process somewhat. That's the dilemma."
@Email:psands@thenational.ae
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if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
Global state-owned investor ranking by size
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United States
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China
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Japan
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Norway
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Canada
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Australia
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Saudi Arabia
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South Korea
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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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Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
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