The UK believes Russia may escalate its drive to destroy Ukraine’s food exports by targeting ships in the Black Sea. AP
The UK believes Russia may escalate its drive to destroy Ukraine’s food exports by targeting ships in the Black Sea. AP
The UK believes Russia may escalate its drive to destroy Ukraine’s food exports by targeting ships in the Black Sea. AP
The UK believes Russia may escalate its drive to destroy Ukraine’s food exports by targeting ships in the Black Sea. AP

James Cleverly warns Russia may target civilian ships in Black Sea


Laura O'Callaghan
  • English
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Civilian ships may be the next target of Russia’s “unconscionable behaviour”, Britain’s Foreign Secretary has warned after the collapse of the Ukraine grain deal.

James Cleverly said the UK would draw attention to Moscow’s actions at the UN Security Council, following drone strikes on grain warehouses at strategic Ukrainian ports.

The collapse of the Black Sea agreement, brokered by the UN and Turkey last year, has given rise to fears that millions of people in developing countries could face hunger as a result.

Mr Cleverly, who is on a three-day tour of the Middle East, accused the Kremlin of holding essential foods hostage.

“The UK believes that Russia may escalate its campaign to destroy Ukraine’s food exports by targeting civilian ships in the Black Sea,” Mr Cleverly wrote on Twitter.

“We will highlight this unconscionable behaviour at the UNSC.

“Russia should stop holding global food supplies hostage and return to the deal.”

The Foreign Secretary was due to arrive in Qatar on Tuesday before travelling on to Kuwait and Jordan in the coming days on a trip aimed at bolstering British ties with key regional partners.

Russia’s decision this month to discontinue its participation in the crucial grain deal sparked condemnation from international figures.

Ukraine is one of the world’s major food producers, with wheat, corn and barley making up most of its exports.

The UN Secretary-General Antonio Guterres said the termination of the pact “by the Russian Federation will strike a blow to people in need everywhere”. Speaking on Monday, a week after the deal fell through, Mr Guterres said the consequences were already being felt, with global wheat and corn prices on the rise.

The European Union’s agriculture commissioner signalled on Tuesday that the bloc was ready to move almost all of Ukraine's agriculture goods through "solidarity lanes".

Janusz Wojciechowski expressed hope that grain could reach the outside world if rail and road transport connections through EU counties were used.

"It is not the first time Russia uses food as a weapon ... the situation is similar to the beginning of the war," Mr Wojciechowski told reporters.

"We are ready to export almost everything. This is about four million tonnes per month of oil, seeds and grains and we achieved this volume in November last year.”

While the grain accord was in place, 60 per cent of Ukraine's exports were shipped via solidarity lanes and 40 per cent went via the Black Sea, he said.

On Monday, Russia was accused of launching a four-hour attack on Ukraine’s Danube ports of Reni and Izmail, in which grain depots and other infrastructure was obliterated.

Fifteen Iranian-made Shahed-136 drones were used in the attack which left six people injured, Ukrainian officials said.

'Ukraine will retaliate against Russian terrorists'

On Sunday, a Russian missile attack on Ukraine’s southern port city of Odesa killed two people and injured 20. The Transfiguration Cathedral, an Orthodox place of worship and historic Unesco world heritage site, was severely damaged.

Ukraine’s President Volodymyr Zelenskyy vowed: “There will definitely be a retaliation against Russian terrorists for Odesa.”

During a phone call on Tuesday, UK Prime Minister Rishi Sunak told Mr Zelenskyy he was “appalled” by Russia’s targeting of the cathedral and that London was working with Ankara to revive the grain deal.

The pair discussed the “continued progress by Ukrainian forces despite the challenging conditions” on the battlefield, a spokeswoman for Mr Sunak’s office said.

“Discussing the Black Sea grain initiative, the leaders agreed on the importance of ensuring grain was able to be exported from Ukraine to reach international markets,” she added.

“The Prime Minister said the UK was working closely with Turkey on restoring the grain deal and we would continue to use our role as chair of the UN Security Council to further condemn Russia's behaviour.”

Mr Cleverly’s warning about Russia’s ambition to strike civilian ships in the Black Sea was echoed by Mr Sunak in the call.

The Prime Minister told Mr Zelenskyy Russia was “increasingly looking to target merchant vessels in the Black Sea area” and assured him the UK and its allies would closely monitor the situation, according to No 10 Downing Street.

Mr Zelenskyy said he and Mr Sunak “spoke about Russia's daily attempts to destroy Odesa's historic centre and port infrastructure”.

“We must defend Odesa,” the Ukrainian leader said, adding that his country needs to strengthen its air defences to protect historical sites. He also issued a call that the grain deal should be brought back to life.

Meanwhile in Russia, the lower house of parliament voted to raise the upper age limit for conscription to 30.

The State Duma’s approval of a bill to move the age limit for compulsory military draft was the latest sign of the Kremlin’s effort to expand the army and came as the invasion of Ukraine approaches the 18-month mark.

Under the existing rules, all Russian men aged 18-27 are obliged to serve in the military for one year, although many avoid the draft by using deferments granted to students, people with chronic illnesses and others.

The bill still needs to be endorsed by the Federation Council, the upper house of Russia’s parliament, and signed by President Vladimir Putin to become law.

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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. 

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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.

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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.

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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. 

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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

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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Updated: July 25, 2023, 2:59 PM