Members of the UN Security Council vote on the United States' Venezuela resolution. AP Photo
Members of the UN Security Council vote on the United States' Venezuela resolution. AP Photo
Members of the UN Security Council vote on the United States' Venezuela resolution. AP Photo
Members of the UN Security Council vote on the United States' Venezuela resolution. AP Photo

Russia and China veto US resolution on Venezuela at UN Security Council


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Russia and China on Thursday vetoed a US resolution at the UN Security Council aimed at addressing the crisis in Venezuela, while a rival draft put forward by Moscow failed to win enough votes.

The failure to take action on the two competing drafts laid bare divisions among world powers over the way forward in Venezuela, which is mired in a political standoff and an economic meltdown.

The US text had called for new presidential elections in Venezuela and unimpeded deliveries of humanitarian aid. It won the required nine votes at the 15-member council, but Russia and China joined forces to block it.

Resolutions at the council, which are legally binding, must gain nine votes to be adopted, with no vetoes from the five permanent members - Britain, China, France, Russia and the United States.

France, Germany and Britain were among those that backed the US proposal. South Africa voted no while Indonesia, Equatorial Guinea and Ivory Coast abstained.

Russia's draft resolution - which urged a settlement "through peaceful means" and insisted that all humanitarian aid be agreed by President Nicolas Maduro's government - won only four votes: Russia, China, South Africa and Equatorial Guinea.

Seven countries including the United States, European countries and Peru opposed the Russian measure and there were four abstentions.

US envoy Elliott Abrams took an implicit swipe at Russia and China, saying some countries "continue to shield Maduro and his cronies and prolong the suffering of the Venezuelan people".

However he expressed satisfaction that "a clear majority of the council" had supported the US stance.

Russian Ambassador to the UN Vassily Nebenzia, however, said the US was staging an "illegal theatre of the absurd" by seeking to install opposition leader Juan Guaido as Venezuela's president.

Battered by economic collapse, Venezuela descended into a major political crisis when Mr Guaido declared himself interim president in January and asserted that Maduro was no longer a legitimate leader.

The US is leading a push for recognition of Mr Guaido, who heads the National Assembly. He is now backed by more than 50 countries.

A rival anti-US effort led by Mr Maduro's foreign minister and diplomats at the UN General Assembly – which has 193 members – has gained around 60 countries

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

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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