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.
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.
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”.
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
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Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
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
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Rashid & Rajab
Director: Mohammed Saeed Harib
Stars: Shadi Alfons, Marwan Abdullah, Doaa Mostafa Ragab
Two stars out of five
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
The%20specs
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Killing of Qassem Suleimani
Need to know
Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
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