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New sanctions are being imposed on Russian generals and business leaders supporting Russia's war in Ukraine, the UK announced on Thursday.
The new sanctions were filed after British intelligence revealed what it called the intentional bombing of critical and civilian infrastructure in the besieged southern city of Mariupol.
“The depravity of Russia’s assault on the people of Ukraine is plain for all to see. They are deliberately targeting hospitals, schools, and transport hubs in Mariupol and beyond — just as they did in Chechnya and Syria,” UK Foreign Secretary Liz Truss said.
“The UK is unyielding in our support for Ukraine and in holding Putin and his regime to account. Today’s new wave of sanctions hits the generals and defence companies that have blood on their hands.”
Mariupol has become a key battleground in the war.
President Vladimir Putin declared on Thursday that Russia had seized the city, even as his Defence Minister Sergei Shoigu said more than 2,000 Ukrainian troops remain holed up in an industrial complex in the strategic port on the Sea of Azov.
Defence Secretary Ben Wallace said countries should “do more” when it comes to providing military support to Ukraine.
“The Ukrainians need, first and foremost, they need long-range artillery and artillery shells,” he said.
“They use currently Russian Soviet stocks and the calibres are different from what the West holds, so not only are we trying to help them source those calibres so that they can immediately be used, but at the same time helping them explore developing new capabilities with what would be called Nato calibres, so that if they choose to shift to that we can all help them with supply.”
The UK government said four senior officers are among those targeted in the new sanctions.
They include the commander of occupying troops in the town of Bucha, north-west of Kyiv. Hundreds of civilians were found dead after Russian forces withdrew from the town.
Sanctions have been imposed on the following key military leaders:
- Lt Col Azatbek Omurbekov, an army commanding officer accused of involvement in the “Bucha massacre”.
- Col Gen Andrey Serdyukov, commander of airborne forces
- Maj Gen Valery Flyustikov, commander of special operation forces
- Col Gen Nikolay Bogdanovsky, first deputy chief of the general staff
Also targeted are people actively supporting the invasion, including:
- Oleg Belozyorov, chief executive and chairman of Russian Railways
- Ilya Kiva, an expelled Ukrainian MP who has publicly supported Russia’s actions
Russian bombers have repeatedly dropped munitions on civilian infrastructure, including civil government buildings, hospitals, schools and transportation nodes, the Foreign Office said.
The UK government concluded it was intentional targeting based on the types of civilian targets struck, frequency of strikes, volume of munitions and the repeated targeting of the same locations on consecutive days.
As part of the new wave of sanctions, the UK is also fast-tracking a further 19 individuals and entities, in alignment with global partners from the G7 and the EU.
They are all linked to Russia’s military and defence capabilities and include:
- Sergei Borisovich Korolyov, first deputy director of Russia Federal Security Service
- Kalashnikov Concern, a Russian developer and weapons manufacturer
- Arzamas Machine-Building Plant, where amphibious armoured personnel carriers are built
- GTLK, which operates special equipment for Russian companies in the transport industry.
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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.”
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