Canada suspended its arms exports to Turkey on Monday over its reported use of Canadian military technology in the Nagorno-Karabakh conflict between Armenia and Azerbaijan.
The US, France and Russia also denounced the escalating clash in a joint statement.
Canadian Foreign Minister Francois-Philippe Champagne tweeted:
The suspension covers drone technology after reports that some of the weapons bought were used by Azerbaijani forces fighting ethnic Armenians in the breakaway region.
A Canadian arms control group was the first to report on the equipment. Project Ploughshares tweeted on September 22:
Turkey is supporting Baku in its military confrontation with Yerevan over the Nagorno-Karabakh area.
Armenia has reported that Turkey has provided weapons and Syrian mercenaries to Azerbaijan, as it did for the Government of National Accord in Libya to the condemnation of much of the international community.
Wescam was given permission to ship seven systems to Turkish drone maker Baykar in 2020, according to the Globe and Mail.
This is not the first time that Canada has suspended weapons sales to Turkey, a fellow Nato member.
Between October 2019 and May 2020, Ottawa froze military export permits to Ankara after its incursion into Kurdish areas in northern Syria.
Nagorno-Karabakh is an ethnic Armenian province that separated from Azerbaijan in a war in the 1990s after the break-up of the Soviet Union. Fighting broke out again last month.
On Monday the US, France and Russia condemned the escalation of violence.
Particular censure was reserved for targeting civilians outside the conflict zone, which the three described as "an unacceptable threat to the stability of the region".
Message to a Nato member
Nicholas Heras, director and senior analyst at the Institute for the Study of War, saw the suspension as a tactic to pressure Turkey to stop fighting, but one that may not necessarily work.
"This move is a shot across the bow directed at Turkey to stop supporting Azerbaijan in a conflict that the majority of the international community is seeking to stop," Mr Heras told The National.
“This move is important because it is a sign that Turkey's allies in Nato are concerned with the proliferation of Ankara’s military drones in regional conflicts.”
But the move may not be disruptive for Turkey’s support to Azeri troops.
“This is a nuisance but not a threat to Turkey's ability to produce or proliferate its war drones,” Mr Heras said.
“Turkey has been there, done that with other Nato members, including the US and France, over its actions in Syria and the Mediterranean.
"There is every chance [President Recep Tayyip] Erdogan and his team simply shrug at this and move on.”
More than 230 people have been killed in the latest clashes in Nagorno-Karabakh.
First Person
Richard Flanagan
Chatto & Windus
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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
RUGBY CHAMPIONSHIP FIXTURES
September 30
South Africa v Australia
Argentina v New Zealand
October 7
South Africa v New Zealand
Argentina v Australia
MATCH INFO
BRIGHTON 0
MANCHESTER UNITED 3
McTominay 44'
Mata 73'
Pogba 80'
