In this photo taken from video provided by the Russian Defense Ministry Press Service on Tuesday, Jan. 25, 2022, A Russian soldier fires a mortar as he attends a military exercising at a training ground in Russia. (Russian Defense Ministry Press Service via AP)
In this photo taken from video provided by the Russian Defense Ministry Press Service on Tuesday, Jan. 25, 2022, A Russian soldier fires a mortar as he attends a military exercising at a training ground in Russia. (Russian Defense Ministry Press Service via AP)
In this photo taken from video provided by the Russian Defense Ministry Press Service on Tuesday, Jan. 25, 2022, A Russian soldier fires a mortar as he attends a military exercising at a training ground in Russia. (Russian Defense Ministry Press Service via AP)
In this photo taken from video provided by the Russian Defense Ministry Press Service on Tuesday, Jan. 25, 2022, A Russian soldier fires a mortar as he attends a military exercising at a training grou

What deal would keep Vladimir Putin out of Ukraine?


Damien McElroy
  • English
  • Arabic

Senior diplomatic figures have said a potential deal exists in which Vladimir Putin would de-escalate the troop build-up along the Ukrainian border, which is driving tension with the West.

Russia has sent more than 100,000 troops to it western borders with Ukraine, deployed in as many as 60 military battle groups for exercises. While Russia insists it has no plans to invade, Washington and its allies have said an onslaught is likely.

They are preparing a package of sanctions in an attempt to persuade Mr Putin against his current course.

What does Vladimir Putin want in Ukraine?

Mr Putin has signalled his wider agenda of overhauling the post-Cold War order with the US-led European alliance. Nato members have in return said they are determined not to allow the international borders in the region to be redrawn by force.

Russian Foreign Minister Sergey Lavrov and US Secretary of State Antony Blinken met in Geneva last week for a dialogue on how to resolve the Kremlin's push for changes in the security regime across the continent.

Sergey Ryabkov, the deputy Russian foreign minister, outlined the bottom line: “For us, it’s absolutely mandatory to make sure that Ukraine never — never ever — becomes a member of Nato.”

Another focal point of the talks is the revival of the Nato-Russia Council as part of an overall package.

In a note for the Chatham House think tank, Sir Roderic Lyne, a former British ambassador to Moscow, and Sir David Manning, a former ambassador to Washington, said this strand was a way forward.

“The US could also re-establish a regular security dialogue with Russia, perhaps with an agreement that the two parties would give briefings on it to the Nato-Russia Council,” the note said.

“In the longer term, once the immediate threats to security are resolved, Nato could then express willingness to consider a wider new negotiation on European security architecture.

“The second subject for negotiation — and probably the most difficult — is Russia’s relationship with Ukraine.

“There must be a peaceful settlement of the conflict on Ukraine’s eastern border but Nato must stand rock solid on the sovereign independence of Ukraine.

“It cannot agree to any provision which allows Russia to limit that sovereignty and it cannot negotiate over the heads of the Ukrainians.”

How would Ukraine be affected?

There would be some pain for Ukraine in the process as Russia has pressed its demands for autonomy for areas controlled by separatists in the eastern part of the country since 2014.

A ceasefire deal known as Minsk II was agreed upon in 2015 by the leaders of Ukraine, Russia, France and Germany to work towards ending the conflict in Ukraine’s Donbas region. Officials from those countries are due to take part in consultations organised by French President Emmanuel Macron on Wednesday in Paris.

“The outlines of a settlement already exist but the Minsk II proposals are not acceptable and should be amended,” said the Chatham House note.

“Ukraine and Russia should withdraw forces from the border zone, with credible border monitoring perhaps by UN peacekeepers.

“Donetsk and Lugansk should remain within Ukraine and return to administration by Kiev, with constitutional changes to grant them a greater degree of autonomy but, most importantly, without external involvement.”

Is conflict between Russia and the West inevitable?

Another think tank, the Centre for European Reform, said that poor relations with Moscow should not be regarded as guaranteed even as countries like the UK look to firm up their policies.

“The UK should not shut the door on the possibility of better relations,” it said in its latest bi-monthly bulletin.

“Disagreements between London and Moscow will need to be managed through dialogue; and there are still a few issues, such as non-proliferation and counterterrorism, on which London and Moscow might be able to co-operate.

“And the UK should continue to promote educational, scientific, sporting, tourism and mutually beneficial trade links with Russia, to underline that the UK’s problems are with the current leadership and its policies, not with the Russian people.”

Pavlo Tkachuk, head of the Hetman Petro Sahaydachnyi National Army Academy, holds the next generation light anti-tank weapon, NLAW, supplied by Britain, during training for Ukrainian servicemembers in Lviv, Ukraine. Ukrainian Defence Ministry/Handout via Reuters
Pavlo Tkachuk, head of the Hetman Petro Sahaydachnyi National Army Academy, holds the next generation light anti-tank weapon, NLAW, supplied by Britain, during training for Ukrainian servicemembers in Lviv, Ukraine. Ukrainian Defence Ministry/Handout via Reuters

Can talks between Russia and Nato be successful?

Writing for the forum European Leadership Network, Kevin Ryan, a retired US brigadier general who is now a fellow at Harvard Kennedy School’s Belfer Centre, said two draft treaties handed to the West by Russian diplomats indicated the country had rushed to get the talks going.

He said negotiations and better drafting could produce a positive outcome for both sides.

“If the Russian side is sincerely seeking a diplomatic resolution to its security needs, it could suggest that a well-co-ordinated and coherent counterproposal from the US and Nato might achieve some long-term security guarantees for our own vital interests,” he said.

“Nato and the US are working from a position of strength relative to Russia. They have a unique opportunity to set the conditions for security in Eastern Europe for the long term. To achieve this goal, however, it is necessary to acknowledge that Russia has legitimate security concerns about Nato enlargement.

“The US and Nato should combine the two Russian proposals and counter it with a united proposal that addresses Russia’s concern about Nato expansion, rolls back Russia’s own expansion in its near abroad, and creates stable and successful states in the space between Nato and Russia.

“And the countries at the centre of this negotiation, Ukraine and Georgia, should be parties in signing the agreement.”

Would Putin stop at Ukraine?

Taking a divergent view, Oleksandr Danylyuk, the former head of the Ukraine Foreign Intelligence Service, said Moscow's ambitions stretched far beyond a reform of European security arrangements both within and beyond Nato agreements.

“By demanding an end to further Nato enlargement and a ban on Ukraine's accession to Nato, Russia is not seeking to enhance its own security,” he wrote in a commentary for the Royal United Services Institute.

“Instead, it is seeking recognition of its right to intervene, including militarily, in countries that Moscow believes remain its colonies.”

How can the West respond if Russia invades?

UK Prime Minister Boris Johnson said on Tuesday that Russia would face a fast response from the US and its European allies, including economic penalties.

“We have to calculate and calibrate what we do very carefully and I think building a strong package of economic sanctions, continuing to supply defensive weaponry and all the other things that we’re doing, that’s the right package,” he said.

Diplomats see a move to disconnect Russian financial institutions from the international payments system, the Swift network, as a nuclear option to heavily penalise the country's economy.

Commercial relations between Russian companies and western companies as well as payments transiting through Western banks would be upended.

Instead of exchanging through Swift's automatic channel, Russian banks would be forced to switch back to manual mode, using fax or email, which would involve additional transaction processing times, more risk of errors and disputes, with a sudden brake on international transactions involving Russia.

COMPANY PROFILE

Name: Cofe

Year started: 2018

Based: UAE

Employees: 80-100

Amount raised: $13m

Investors: KISP ventures, Cedar Mundi, Towell Holding International, Takamul Capital, Dividend Gate Capital, Nizar AlNusif Sons Holding, Arab Investment Company and Al Imtiaz Investment Group 

Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
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

The Vile

Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah

Director: Majid Al Ansari

Rating: 4/5

FIXTURES

All games 6pm UAE on Sunday: 
Arsenal v Watford
Burnley v Brighton
Chelsea v Wolves
Crystal Palace v Tottenham
Everton v Bournemouth
Leicester v Man United
Man City v Norwich
Newcastle v Liverpool
Southampton v Sheffield United
West Ham v Aston Villa

RACE CARD

5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m

The years Ramadan fell in May

1987

1954

1921

1888

Results

5pm: Reem Island – Conditions (PA) Dh80,000 (Turf) 1,600m; Winner: Farasah, Antonio Fresu (jockey), Musabah Al Muhairi

5.30pm: Sir Baniyas Island – Maiden (PA) Dh80,000 (T) 1,400m; Winner: SSR Ghazwan, Antonio Fresu, Ibrahim Al Hadhrami

6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,400m; Winner: Astral Del Sol, Sean Kirrane, Ibrahim Al Hadhrami

6.30pm: Al Maryah Island – Maiden (PA) Dh80,000 (T) 2,200m; Winner: Toumadher, Dane O’Neill, Jaber Bittar

7pm: Yas Island – Handicap (PA) Dh80,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel

7.30pm: Saadiyat Island – Handicap (TB) Dh80,000 (T) 2,400m; Winner: Celestial Spheres, Gary Sanchez, Ismail Mohammed

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

How to help

Call the hotline on 0502955999 or send "thenational" to the following numbers:

2289 - Dh10

2252 - Dh50

6025 - Dh20

6027 - Dh100

6026 - Dh200

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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.”

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

%E2%80%98FSO%20Safer%E2%80%99%20-%20a%20ticking%20bomb
%3Cp%3EThe%20%3Cem%3ESafer%3C%2Fem%3E%20has%20been%20moored%20off%20the%20Yemeni%20coast%20of%20Ras%20Issa%20since%201988.%3Cbr%3EThe%20Houthis%20have%20been%20blockading%20UN%20efforts%20to%20inspect%20and%20maintain%20the%20vessel%20since%202015%2C%20when%20the%20war%20between%20the%20group%20and%20the%20Yemen%20government%2C%20backed%20by%20the%20Saudi-led%20coalition%20began.%3Cbr%3ESince%20then%2C%20a%20handful%20of%20people%20acting%20as%20a%20%3Ca%20href%3D%22https%3A%2F%2Fwww.google.ae%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3D%26esrc%3Ds%26source%3Dweb%26cd%3D%26ved%3D2ahUKEwiw2OfUuKr4AhVBuKQKHTTzB7cQFnoECB4QAQ%26url%3Dhttps%253A%252F%252Fwww.thenationalnews.com%252Fworld%252Fmena%252Fyemen-s-floating-bomb-tanker-millions-kept-safe-by-skeleton-crew-1.1104713%26usg%3DAOvVaw0t9FPiRsx7zK7aEYgc65Ad%22%20target%3D%22_self%22%3Eskeleton%20crew%3C%2Fa%3E%2C%20have%20performed%20rudimentary%20maintenance%20work%20to%20keep%20the%20%3Cem%3ESafer%3C%2Fem%3E%20intact.%3Cbr%3EThe%20%3Cem%3ESafer%3C%2Fem%3E%20is%20connected%20to%20a%20pipeline%20from%20the%20oil-rich%20city%20of%20Marib%2C%20and%20was%20once%20a%20hub%20for%20the%20storage%20and%20export%20of%20crude%20oil.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EThe%20%3Cem%3ESafer%3C%2Fem%3E%E2%80%99s%20environmental%20and%20humanitarian%20impact%20may%20extend%20well%20beyond%20Yemen%2C%20experts%20believe%2C%20into%20the%20surrounding%20waters%20of%20Saudi%20Arabia%2C%20Djibouti%20and%20Eritrea%2C%20impacting%20marine-life%20and%20vital%20infrastructure%20like%20desalination%20plans%20and%20fishing%20ports.%C2%A0%3C%2Fp%3E%0A
The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

Best piece of advice to someone looking for a career at Google?

If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

The Land between Two Rivers: Writing in an Age of Refugees
Tom Sleigh, Graywolf Press

Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Bob Honey Who Just Do Stuff
By Sean Penn
Simon & Schuster

Updated: January 25, 2022, 5:51 PM