Images shows Russian forces have set up sandbag fighting positions on the roofs of reactor buildings at Zaporizhzhia nuclear plant. Photo: UK Ministry of Defence
Images shows Russian forces have set up sandbag fighting positions on the roofs of reactor buildings at Zaporizhzhia nuclear plant. Photo: UK Ministry of Defence
Images shows Russian forces have set up sandbag fighting positions on the roofs of reactor buildings at Zaporizhzhia nuclear plant. Photo: UK Ministry of Defence
Images shows Russian forces have set up sandbag fighting positions on the roofs of reactor buildings at Zaporizhzhia nuclear plant. Photo: UK Ministry of Defence

Russia establishes fighting positions on Zaporizhzhia nuclear reactors


Gillian Duncan
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Russian troops have established “sandbag fighting positions” on buildings housing reactors at the Zaporizhzhia nuclear plant, Britain's Ministry of Defence has warned.

It said satellite imagery shows sandbags on top of “several buildings” at the nuclear power plant — Europe's largest and one of the 10 biggest in the world — where Russian forces have been in control since the early days of the war.

But this is the first indication reactor buildings have been included in defence planning ahead of an anticipated Ukrainian counteroffensive, said the MoD in its daily intelligence briefing on Twitter.

It said: “Imagery shows that by March 2023, Russian forces had established sandbag fighting positions on the roofs of several of the six reactor buildings at Zaporizhzhia Nuclear Power Plant (ZNPP).

“Russia has controlled ZNPP since March 2022. However, this is the first indication of the actual reactor buildings being integrated in tactical defence planning.

“Russia has likely constructed these positions because it is increasingly concerned about the prospects of a major Ukrainian offensive.

“The move highly likely increases the chances of damage to ZNPP safety systems if fighting takes place around ZNPP.

“However, direct catastrophic damage to the reactors is unlikely under most plausible scenarios involving infantry weapons because the structures are very heavily reinforced.”

Other satellite images collected by Reuters show thousands of defensive positions inside both Russia and along Ukrainian front lines, most heavily defended in the southern Zaporizhzhia region and the gateway to the Crimean Peninsula.

Anti-tank ditches near Ukraine's occupied south-eastern town of Polohy stretch for 30km. These are supplemented by rows of concrete “dragon's teeth” barricades. Further back are defensive trenches where Russia's troops will be positioned.

The defences visible in satellite imagery taken by Capella Space are part of a vast network of Russian fortifications sweeping down from western Russia through eastern Ukraine and on to Crimea, built in readiness for a major Ukrainian attack.

Six military experts said the defences, mostly built after Ukraine's rapid autumn advances, could make it harder for Ukraine this time and that progress would hinge on its ability to carry out complex, combined operations effectively.

“It's not the numbers for the Ukrainians. It's can they do this kind of warfare, combined arms operations?” said Neil Melvin, an analyst at the Royal United Services Institute (Rusi). “The Russians have shown they can't do it and they've gone back to their old Soviet method of attrition.”

A satellite image of Rybalche, on January 10.
A satellite image of Rybalche, on January 10.

Ukrainian officials have repeatedly accused the Kremlin's forces of using the nuclear plant as a base for firing on neighbouring Ukrainian-held territory.

On Tuesday, Ukrainian officials reported that heavy Russian artillery fire hit cities on the western bank of the Dnieper River just across from the plant.

Ukraine’s atomic energy provider Energoatom earlier this month accused Moscow of turning the plant into “a military base, mining the perimeter”.

The plant has six reactors, all of which have been shut down over the past year.

“We must do everything to give no chance to the terrorist state to use nuclear power facilities to blackmail Ukraine and the entire world,” President Volodymyr Zelenskyy said in a Telegram post this week.

Meanwhile, the head of Russia's private Wagner militia, Yevgeny Prigozhin, said Ukraine was preparing for an “inevitable” counteroffensive and sending well-prepared units to the devastated eastern city of Bakhmut, for many months the focal point of fighting.

Ukrainian and Russian units have been battling for months over the eastern city, much of which lies in ruins.

In an audio message posted on his Telegram channel, Mr Prigozhin also said his troops were still not receiving much-needed shipments of ammunition from Russia's defence ministry and were suffering five times as many casualties as a result.

The Wagner chief said his troops would use any means possible to continue their attempts to take full control of the ruined city, destroy Ukraine's army and halt Kyiv's offensive.

The longest battle of the Russian invasion has turned Bakhmut, the city of salt and gypsum mines in eastern Ukraine, into a ghost town. AP Photo
The longest battle of the Russian invasion has turned Bakhmut, the city of salt and gypsum mines in eastern Ukraine, into a ghost town. AP Photo

In the video message he said: “Today, well-trained enemy units are already being thrown into Bakhmut … A counteroffensive by the Ukrainians is inevitable.”

Bakhmut, which had a population of about 70,000 before the war, was Russia's main target in a winter offensive that yielded scant gains, despite infantry ground combat of an intensity unseen in Europe since the Second World War.

Russian troops have tried for about nine months to push their way into the largely destroyed city in a conflict now extending into its 15th month, and they have secured some central districts.

Ukraine's military has vowed to defend the city, although Mr Zelenskyy suggested this month it might pull out if in danger of encirclement.

Military analyst Denys Popovych told Ukraine's NV Radio that there was no immediate prospect of turning things around in Bakhmut.

“If Bakhmut falls, Russia will have resources to send elsewhere,” he said.

“Bakhmut offers an opportunity to destroy Russian troops and prevent them from being engaged elsewhere.”

Ukraine's military has made no comment on a new counter-offensive to build on advances undertaken last year to recapture Russian-occupied areas in the north-east and south.

In Washington, the top US general in Europe said Ukraine's military would get the weaponry it needed in time.

Gen Christopher Cavoli, Supreme Allied Commander Europe, noted that more than 98 per cent of the combat vehicles promised to Kyiv had already been delivered.

Nato chief Jens Stoltenberg said allies and partners have provided Ukraine with 1,550 armoured vehicles and 230 tanks to form units and help it retake territory from Russian forces.

"In total we have trained and equipped more than nine new Ukrainian armoured brigades. This will put Ukraine in a strong position to continue to retake occupied territory," he told a news conference on Thursday.

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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

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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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Chatto & Windus 

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MATCH INFO

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THE BIO

Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place

Job Title: Human resources administrator, Expo 2020 Dubai

First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group

Entrepreneur: Started his own graphic design business

Favourite singer: Avril Lavigne

Favourite travel destination: Germany and Saudi Arabia

Family: Six sisters

Updated: April 27, 2023, 9:57 AM