An attempted military coup led by the Wagner group of mercenaries may be under way in Russia, with Moscow rapidly attempting to counter it with troops, analysts have told The National.
An important aspect will be whether Russian military detachments decide to obey Kremlin orders or side with the mercenary leader Yevgeny Prigozhin.
The air force will be a big player if it is asked to attack Wagner’s armoured columns across southern Russia.
Unconfirmed reports from military blogs said that an air force Ilyushin transport plane and an Mi-8 helicopter were shot down, possibly by Wagner forces.
“A successful coup usually takes control of the capital and machinery of government,” said Ben Barry of the International Institute for Strategic Studies, a think tank.
“So it's not one yet but it's rapidly evolving. It’s a question of where does the balance of loyalty lie? Yes, (Russian President) Putin can call on his additional security forces but if they're not prepared to stand against Wagner and put their lives on the line for the regime, then Wagner won't be stopped.”
Gen Sir Richard Barrons, a retired British Army officer, described the situation as a mutiny rather than a coup and the question was whether Russia’s “securocrats” get behind Wagner.
“There is so much here that has a potentially shattering psychological effect on Russian politics,” he told The National. “I suspect Putin aims to get this settled without much bloodshed and quickly.”
He said Mr Putin would be unlikely to “trade-in” Defence Minister Sergey Shoigu, as demanded by Mr Prigozhin.
Putin loyalty
The Rosgvardia, the 340,000 strong national guard who answer directly to Mr Putin, will be crucial in defending the Kremlin.
“The Rosgvardia was built for this scenarios and is numerically significant and likely loyal to Putin,” an intelligence analyst said. “They’re also well-armed and would put up a lot of resistance, that is in theory.”
He added that the Wagner group was also “laced” with intelligence officers from the FSB and GRU security services, who may frustrate any attempts to seize Moscow.
Brig Barry suggested that in Rostov, the Russian military “hadn't been prepared to fight Wagner, and if they had “Wagner would not still be there”.
He said that Russian soldiers might be afraid of the mercenaries who have a reputation for brutality, as proven during the taking of Bakhmut in Ukraine.
“Wagner has a proven ability to fight that a lot of Russian military doesn't have and they may also to have some sympathy in the armed forces,” he said.
Air strikes
With attacks reported on Russian aircraft, an air campaign may be under way.
The air force will be critical if Russia decides attack Wagner forces, hitting road convoys of armour, lorries and air defence systems that appear to be in the Voronezh region.
“What the Russian Air Force do is going to be pretty critical because if they attack the Wagner convoys then they could probably stop it,” said former British tank commander, Hamish de Bretton-Gordon.
If they do not have the stomach to fire on fellow Russians then Wagner’s estimated 25,000 troops could get to Moscow, he said.
Gen Barrons said that if the senior Russian leadership “cleave to Putin because it’s in their best interests” then there would be no reason not to hit Wagner mutineers by air.
This would be mainly led by Russia’s Ka-52 and Mi-25 Hind attack helicopters although combat jets could also be used.
Ukraine’s chance
While Kyiv’s counter-offensive is still probing Russian lines a weak point, it has still not committed the vast majority of its Nato-equipped armoured brigades.
It remains unclear how much of an impact events in Russia will have but there could be an opportunity.
“If those Russian conscripts on the frontline think there's a coup happening, they might be pretty happy as they don't have much stomach for the fight anyway,” said Mr de Bretton-Gordon.
He suggested that Ukraine would drop leaflets on the frontline urging the soldiers to surrender.
Gen Barrons believed that in the immediate days the unrest would not have a significant impact on the battlefield unless the Ukrainians sensed that “the Russian forces holding the front line were so unsettled by this they'd lost their will to fight”.
Nuclear button
If there is a coup, a concern will be the safe transfer of the codes for Russia’s 4,000 warhead nuclear stockpile.
However, analysts do not believe Mr Putin will attempt to use a nuclear strike as a diversion or for any other reason and a hotline is still in place between Moscow and Washington.
“Pressing the nuclear button would be the last thing on Putin’s mind, as survival is first thing and you wouldn't be surprised if you saw a couple of helicopters heading off to Tehran,” said Mr de Bretton-Gordon.
He claimed that the regime in its “death throes” could still cause a nuclear incident at the Zaporizhzhia power station that it controls in Ukraine.
Gen Barrons said while Nato would watch developments with “great interest” the situation had a “long way to go so we should stay calm to a degree”.
He described the events as “the most significant threat Putin’s faced” during his 24 years in power.
“It will all depend on whether Prigozhin is essentially a lone actor who doesn't attract support from the population or the bulk of the Russian military in which case this is just a mutiny,” he added.
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Fuel consumption, combined: 7.6L / 100km
Results
5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Reem Baynounah, Fernando Jara (jockey), Mohamed Daggash (trainer)
5.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (T) 1,600m; Winner: AF Afham, Tadhg O’Shea, Ernst Oertel
6pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Ghallieah, Sebastien Martino, Jean-Claude Pecout
6.30pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Yas Xmnsor, Saif Al Balushi, Khalifa Al Neyadi
7pm: The President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Adrie de Vries, Jean de Roualle
7.30pm: The President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Haqeeqy, Dane O’Neill, John Hyde.
David Haye record
Total fights: 32
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Wins by KO: 26
Losses: 4
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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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March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.
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