• German Chancellor Olaf Scholz meets soldiers in Calw. He has called for an investigation into a leaked audio recording of military officials discussing the Ukraine war. EPA
    German Chancellor Olaf Scholz meets soldiers in Calw. He has called for an investigation into a leaked audio recording of military officials discussing the Ukraine war. EPA
  • Soldiers carry out an exercise during Mr Scholz's visit in the southern German town. EPA
    Soldiers carry out an exercise during Mr Scholz's visit in the southern German town. EPA
  • Mr Scholz and Brig Gen Ansgar Meyer at the KSK training site, in Calw. Getty Images
    Mr Scholz and Brig Gen Ansgar Meyer at the KSK training site, in Calw. Getty Images
  • German soldiers at the training site. EPA
    German soldiers at the training site. EPA
  • Bavarian Premier Markus Soeder examines a Taurus cruise missile, a weapon discussed in the leaked recording. Getty Images
    Bavarian Premier Markus Soeder examines a Taurus cruise missile, a weapon discussed in the leaked recording. Getty Images
  • Mr Soeder speaks at the missile manufacturing site, operated by defence company MBDA. AFP
    Mr Soeder speaks at the missile manufacturing site, operated by defence company MBDA. AFP
  • German Defence Minister Boris Pistorius discusses the leaked audio recording at a press conference in Berlin. AFP
    German Defence Minister Boris Pistorius discusses the leaked audio recording at a press conference in Berlin. AFP

Germany on the defensive after Russian spying scandal


Tim Stickings
  • English
  • Arabic

Germany was trying to limit damage to its reputation on Tuesday after a Russian spy scandal sparked frustration within Nato.

German Defence Minister Boris Pistorius played down security fears after Russia leaked a recording of a classified military meeting on the war in Ukraine.

"Of course we are reliable," Mr Pistorius said on a visit to Stockholm.

He found an ally in soon-to-be Nato member Sweden, whose Defence Minister Pal Jonsson agreed on Germany's reliability, but others appear less satisfied.

Mr Pistorius has been calling allies to insist the leak was a one-off security mistake.

Foreign Minister Annalena Baerbock hastily added a trip to Paris to her schedule on Tuesday, while Gewrman Chancellor Olaf Scholz met an elite commando unit to show his support for the armed forces.

German Defence Minister Boris Pistorius, left, was grilled on the spy scandal at a meeting in Sweden. Reuters
German Defence Minister Boris Pistorius, left, was grilled on the spy scandal at a meeting in Sweden. Reuters

Embarrassing leak

The recording leaked by Russia had something to aggravate almost everyone.

The Kremlin seized on chatter about striking a Crimean bridge to suggest Germany was a party to the war, an impression Mr Scholz has been desperate to avoid.

Talk of Britain having “people on the ground” in Ukraine was the second time in days that Germany appeared to have given that away, sparking irritation with Mr Scholz in Westminster.

At home, his argument that providing Taurus missiles would require German troops in Ukraine seemed to be contradicted by the leak, in which it was said Kyiv’s forces could operate them alone.

A further complaint in Berlin is that for all of Mr Scholz’s talk about a shift to a more robust security policy (known as the Zeitenwende, or watershed), the military’s apparent clumsiness tells a different story.

“Instead of following the arguments of his own officers, Olaf Scholz is doing exactly what Putin wants” by not sending the Taurus missiles, said conservative member Norbert Roettgen, a foreign policy specialist.

“That is disastrous as a signal to Moscow, because it shows that Russian pressure works.”

Reinhard Brandl, who sits on a defence committee in parliament, said it was time for ministers to strengthen Germany’s cyber defence after the latest Russian spy scandal.

An alleged Russian spy in Germany’s foreign intelligence service was arrested on suspicion of treason in 2022. The same year, a guard at the British embassy in Berlin admitted passing secrets to Moscow.

“Russia listened to a conversation among military officers about the deployment of Taurus in Ukraine. That shows once more that we’re still waiting for the Zeitenwende in cyber defence,” Mr Brandl said.

Germany has promised a shift to a more robust defence and security policy but sceptics say it has yet to deliver. EPA
Germany has promised a shift to a more robust defence and security policy but sceptics say it has yet to deliver. EPA

German response

German officials have hit back by accusing Russia of spreading propaganda and trying to sow division among Ukraine’s biggest backers.

Mr Pistorius said the leak was a one-off security mistake by a general who dialled into a WebEx call on an unsecured line from Singapore, possibly using hotel WiFi.

The call is believed to have been a “random hit” for Russian wiretappers and German military chiefs do not think they have a mole, according to Mr Pistorius.

The fact that Russia went public with its secret intelligence shows that "Putin is not interested in the information itself that he gathers", Mr Pistorius said.

"He just wanted to embarrass us, and to try to divide our unity and try to undermine our support for Ukraine."

Ms Baerbock will follow her French meeting by hosting the UK's Foreign Secretary David Cameron on Thursday.

While UK ministers have refrained from criticising Mr Scholz, leading security voices have not held back after the chancellor implied British and French troops were helping Ukraine to fire missiles.

Alicia Kearns, the head of the UK Parliament’s foreign affairs committee, last week described Mr Scholz’s comments as “wrong, irresponsible and a slap in the face to allies”.

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Director: Jamal Salem

Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman

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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

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

EA Sports FC 26

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Consoles: PC, PlayStation 4/5, Xbox Series X/S

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Director: Mohammed Saeed Harib

Stars: Shadi Alfons,  Marwan Abdullah, Doaa Mostafa Ragab 

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NYBL PROFILE

Company name: Nybl 

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

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Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: March 06, 2024, 8:14 AM