The shelled ruins of a building from the recent conflict over the breakaway region of Nagorno-Karabakh, in Stepanakert. Reuters
The shelled ruins of a building from the recent conflict over the breakaway region of Nagorno-Karabakh, in Stepanakert. Reuters
The shelled ruins of a building from the recent conflict over the breakaway region of Nagorno-Karabakh, in Stepanakert. Reuters
The shelled ruins of a building from the recent conflict over the breakaway region of Nagorno-Karabakh, in Stepanakert. Reuters

US Congress puts the squeeze on military aid to Azerbaijan


Bryant Harris
  • English
  • Arabic

The US Congress on Thursday advanced legislation that could hinder Azerbaijan’s multimillion-dollar military assistance packages that it has received yearly since 2002.

The powerful Appropriations Committee in the House of Representatives voted 32-25 along party lines to advance its annual foreign aid spending bill, which seeks to increase restrictions on Azerbaijani military aid by placing it within the context of the significantly smaller security assistance packages that Armenia typically receives.

The report accompanying the bill notes that “the committee is concerned by disparity in military assistance provided to Azerbaijan in comparison to Armenia".

The legislation would require Secretary of State Antony Blinken to consider “the military balance between Azerbaijan and Armenia and the diplomatic consequences of such disparity in military assistance” when issuing next year’s waiver to allow Azerbaijan to receive US security assistance.

Data compiled by the Centre for International Policy’s Security Assistance Monitor indicates that Washington provided Azerbaijan with over five times more military aid than Armenia in fiscal year 2019: about $45 million for Baku versus about $8m for Yerevan.

Congress first blocked military aid to Azerbaijan following its first war with Armenia over the disputed Nagorno-Karabakh territory. However, Congress passed legislation in 2001 that allowed the State Department to issue a waiver allowing Baku to receive military aid as tension mounted between Azerbaijan and neighbouring Iran over energy exploration in the Caspian Sea.

But the second conflict over Nagorno-Karabakh last year, which resulted in Azerbaijan once again seizing control of the territory with Turkish support, has drawn renewed scrutiny over US military aid to Baku among Armenia’s numerous allies in Congress.

The Armenian National Committee of America vocally condemned Mr Blinken's decision to issue the waiver for Azerbaijan to receive military aid in April. The waiver stipulates that the military assistance to Azerbaijan will not contribute to conflict in the region.

Lobbying disclosure records reviewed by The National indicate that the Armenian National Committee of America spent $30,000 lobbying Congress on several issues in January through March of this year, including on the foreign aid spending bill that includes the language focused on military aid to Azerbaijan.

“We welcome the US House report language as a first step towards rolling back President Biden’s reckless waiver … and stopping all US arms and aid to the oil-rich, racist and openly anti-Armenian Aliyev regime,” Tereza Yerimyan, the government affairs director for the Armenian National Committee of America, told The National.


  • Retired police officer Genadiy Avanesyan, 73, searches for belongings in the remains of his house, which is said was destroyed by Azeri shelling, in the city of Stepanaker. AFP
    Retired police officer Genadiy Avanesyan, 73, searches for belongings in the remains of his house, which is said was destroyed by Azeri shelling, in the city of Stepanaker. AFP
  • Yasin Budakov, 40, holds a book which his kid forgot to take when they were running out of his damaged flat as residents return to their homes following a ceasefire during a military conflict between Armenia and Azerbaijan. AFP
    Yasin Budakov, 40, holds a book which his kid forgot to take when they were running out of his damaged flat as residents return to their homes following a ceasefire during a military conflict between Armenia and Azerbaijan. AFP
  • Iman Abisiv carries his belongings from his damaged home after a ceasefire begins during the fighting over the breakaway region of Nagorno-Karabakh in the city of Terter, Azerbaijan. Reuters
    Iman Abisiv carries his belongings from his damaged home after a ceasefire begins during the fighting over the breakaway region of Nagorno-Karabakh in the city of Terter, Azerbaijan. Reuters
  • A man looks out from his damaged home after a ceasefire begins during the fighting over the breakaway region of Nagorno-Karabakh in the city of Terter, Azerbaijan. Reuters
    A man looks out from his damaged home after a ceasefire begins during the fighting over the breakaway region of Nagorno-Karabakh in the city of Terter, Azerbaijan. Reuters
  • A man rummages through the remains of a home that was damaged by Azeri artillery in Stepanakert, Nagorno-Karabakh. Getty
    A man rummages through the remains of a home that was damaged by Azeri artillery in Stepanakert, Nagorno-Karabakh. Getty
  • A woman sits in ruins of her house after shelling by Armenian's artillery during fighting over the separatist region of Nagorno-Karabakh, in Terter, Azerbaijan. AP
    A woman sits in ruins of her house after shelling by Armenian's artillery during fighting over the separatist region of Nagorno-Karabakh, in Terter, Azerbaijan. AP
  • Razim Mehmedov, 40, sits in a bedroom of his flat that was damaged and burnt by shelling as residents return to their homes following a ceasefire during a military conflict between Armenia and Azerbaijan over the breakaway region of Nagorno-Karabakh, in the town of Terter, Azerbaijan. AFP
    Razim Mehmedov, 40, sits in a bedroom of his flat that was damaged and burnt by shelling as residents return to their homes following a ceasefire during a military conflict between Armenia and Azerbaijan over the breakaway region of Nagorno-Karabakh, in the town of Terter, Azerbaijan. AFP
  • Xatire Celilova stands inside her destroyed flat following a ceasefire during a military conflict between Armenia and Azerbaijan over the breakaway region of Nagorno-Karabakh. AFP
    Xatire Celilova stands inside her destroyed flat following a ceasefire during a military conflict between Armenia and Azerbaijan over the breakaway region of Nagorno-Karabakh. AFP
  • A man stands with his kid by a car outside a damaged apartment building after the family took their last belongings from their flat during a ceasefire during a military conflict between Armenia and Azerbaijan over the breakaway region of Nagorno-Karabakh. AFP
    A man stands with his kid by a car outside a damaged apartment building after the family took their last belongings from their flat during a ceasefire during a military conflict between Armenia and Azerbaijan over the breakaway region of Nagorno-Karabakh. AFP

“Not a single US tax dollar should ever be shipped to the Azerbaijani military to kill, cripple or capture Armenians.”

But Aykhan Hajizada, a political counselor for the Azerbaijani embassy in Washington, characterised the efforts as "misleading lobbying efforts in Congress to undermine America's partnerships around the world" that do not help Armenia "reach a lasting peace with neighbours and propserity in the South Caucasus."

"Azerbaijan and the United States enjoy a robust bilateral partnership, including in the areas of defence and security," Mr Hajizada told The National. "This partnership benefits both our nations and the wider region and contributes to global peace. Azerbaijan's role as a force contributor to the operation in Afghanistan and its key role as a unique transit route are just some of the examples."

The Armenian National Committee of America in April called on members of Congress to sign on to a letter to the foreign aid panel urging its powerful members to suspend security aid to Azerbaijan. The letter was spearheaded by Democrats Frank Pallone of New Jersey as well as Jackie Speier and Adam Schiff of California — the three co-chairs of the Congressional Armenian Caucus.

Democrat Barbara Lee of California, the chairwoman of the foreign aid spending panel that initially placed the provision on Azerbaijani military aid in the legislation, is also a member of the Congressional Armenian Caucus.

Two other members of the foreign aid panel — Democrat Grace Meng of New York and Republican Jeff Fortenberry of Nebraska — are also members of the caucus.

The Congressional Armenian Caucus exercises considerable clout in Congress. It has more than 120 members in the House of Representatives, reflecting the hundreds of thousands of Armenian Americans residing throughout the US.

Conversely, the Congressional Azerbaijan Caucus has only 10 members, led by Democrat Steve Cohen of Tennessee and Republican Steve Chabot of Ohio.

  • A young French-Armenian woman prays during Easter Sunday mass at Surp Giragos Ermeni Churche in Diyarbakır, Turkey. The church, which had fallen into ruin after the 1915 Armenian Genocide, was recently renovated and Armenians, many of them children and grandchildren of those who had been forced to flee, came from all around the world to celebrate Easter at their ancestors’ church. Scout Tufankjian
    A young French-Armenian woman prays during Easter Sunday mass at Surp Giragos Ermeni Churche in Diyarbakır, Turkey. The church, which had fallen into ruin after the 1915 Armenian Genocide, was recently renovated and Armenians, many of them children and grandchildren of those who had been forced to flee, came from all around the world to celebrate Easter at their ancestors’ church. Scout Tufankjian
  • Turks, Armenians and Kurds dance to the music of Collectif Medz Bazar, a Paris-based musical group made up of Armenians and Turks that was touring Turkey and Armenia. While anti-minority prejudice remains strong in Turkey, a growing population of young Turkish citizens are embracing their multicultural roots and are beginning to celebrate the minority communities. Scout Tufankjian
    Turks, Armenians and Kurds dance to the music of Collectif Medz Bazar, a Paris-based musical group made up of Armenians and Turks that was touring Turkey and Armenia. While anti-minority prejudice remains strong in Turkey, a growing population of young Turkish citizens are embracing their multicultural roots and are beginning to celebrate the minority communities. Scout Tufankjian
  • After being scattered across the globe by the 1915 Armenian Genocide and the pogroms that preceded it, family members attempted to keep in touch with relatives in Syria, France, Lebanon,and the United States through photographs and postcards. Courtesy Scout Tufankjian
    After being scattered across the globe by the 1915 Armenian Genocide and the pogroms that preceded it, family members attempted to keep in touch with relatives in Syria, France, Lebanon,and the United States through photographs and postcards. Courtesy Scout Tufankjian
  • Armenian women pray and light candles during Easter Sunday mass at Surp Giragos Ermeni Kilisei in Diyarbakir, Turkey. The church, which had fallen into ruin after the 1915 Armenian Genocide and the pogroms that followed it, was recently renovated and Armenians, many of whom were the children and grandchildren of those who had been forced to flee Diyarbakir, came from all around the world in order to celebrate Easter at their ancestors' church. Courtesy Scout Tufankjian
    Armenian women pray and light candles during Easter Sunday mass at Surp Giragos Ermeni Kilisei in Diyarbakir, Turkey. The church, which had fallen into ruin after the 1915 Armenian Genocide and the pogroms that followed it, was recently renovated and Armenians, many of whom were the children and grandchildren of those who had been forced to flee Diyarbakir, came from all around the world in order to celebrate Easter at their ancestors' church. Courtesy Scout Tufankjian

As such, Mr Cohen and Mr Chabot faced tough odds when they launched an opposition letter calling on the foreign aid panel to support Azerbaijan in the spending bill and route all US assistance to Nagorno-Karabakh through Baku.

They cited Azerbaijan’s role as a counter-terrorism partner with Israel and as a supply route to US forces in Afghanistan as well as Russia’s support for Armenia in their failed appeal to the foreign aid panel.

Azerbaijan’s lobbyist in Washington, BGR Government Affairs, promoted the letter, but Baku seems to have lost this particular battle.

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.”

What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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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

TOP 5 DRIVERS 2019

1 Lewis Hamilton, Mercedes, 10 wins 387 points

2 Valtteri Bottas, Mercedes, 4 wins, 314 points

3 Max Verstappen, Red Bull, 3 wins, 260 points

4 Charles Leclerc, Ferrari, 2 wins, 249 points

5 Sebastian Vettel, Ferrari, 1 win, 230 points

Abu Dhabi GP weekend schedule

Friday

First practice, 1pm 
Second practice, 5pm

Saturday

Final practice, 2pm
Qualifying, 5pm

Sunday

Etihad Airways Abu Dhabi Grand Prix (55 laps), 5.10pm

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

UAE currency: the story behind the money in your pockets
The specs

Engine: 1.5-litre 4-cyl turbo

Power: 194hp at 5,600rpm

Torque: 275Nm from 2,000-4,000rpm

Transmission: 6-speed auto

Price: from Dh155,000

On sale: now

Dr Afridi's warning signs of digital addiction

Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association
The biog

Name: Abeer Al Shahi

Emirate: Sharjah – Khor Fakkan

Education: Master’s degree in special education, preparing for a PhD in philosophy.

Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

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Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

It

Director: Andres Muschietti

Starring: Bill Skarsgard, Jaeden Lieberher, Sophia Lillis, Chosen Jacobs, Jeremy Ray Taylor

Three stars

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Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

Updated: July 02, 2021, 3:02 PM