Republican senators held a news conference to discuss Russia and the situation in Ukraine on Capitol HIll in Washington. EPA
Republican senators held a news conference to discuss Russia and the situation in Ukraine on Capitol HIll in Washington. EPA
Republican senators held a news conference to discuss Russia and the situation in Ukraine on Capitol HIll in Washington. EPA
Republican senators held a news conference to discuss Russia and the situation in Ukraine on Capitol HIll in Washington. EPA

Biden officials brief Congress on Ukraine as Senate prepares sanctions against Russia


Bryant Harris
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Members of US President Joe Biden’s Cabinet briefed the Senate about Ukraine on Thursday as Republicans and Democrats inched closer to a Russia sanctions bill after more than a week of negotiations.

During the briefing, senior US officials discussed recently declassified intelligence indicating that Russian President Vladimir Putin was considering a plan to stage a false attack that would show the Ukrainian military or intelligence assaulting Russian territory, establishing a pretext for military action.

“It’s realistic to believe that he accuses someone else of the aggression,” Republican Rick Scott told The National after the briefing.

“When somebody puts 100,000 troops on the border, I think you have to assume the worst.”

Those briefing included Secretary of State Antony Blinken, Defence Secretary Lloyd Austin, National Intelligence Director Avril Haines and Homeland Security Secretary Alejandor Mayorkas.

“Russia is in the process of producing movies, producing press releases, producing false proof that the Ukrainians are doing something to provoke them,” James Risch, the top Republican on the Senate foreign relations committee, said after the briefing.

“This is a false operation to try to justify them in an invasion.”

Mr Biden has threatened Russia with massive economic consequences should Mr Putin move ahead with an invasion of Ukraine – consequences that reportedly could include imposing personal sanctions on the Russian president and his inner circle.

But Congress has also taken matters into its own hands, as Republicans negotiate with Democrats to include applying some sanctions on Russia before any possible Ukraine invasion.

Mr Risch, who is leading the negotiations on behalf of Republicans, told The National that senators are “close” to finalising a Russia sanctions package that would have the necessary votes needed to pass.

But Democrat Chris Murphy, one of eight senators taking part in the negotiations, said the same sticking points between the two parties remain.

“We’re trading proposals on Nord Stream 2 and pre, versus post, invasion sanctions,” Mr Murphy told The National.

A vote on a bill to sanction the Nord Stream 2 oil pipeline from Russia to Germany failed last month in the Senate with 55 in favour and 44 opposed – falling short of the 60 votes needed to pass the legislation.

Although Ukraine has favoured sanctioning Nord Stream 2, the Biden administration – like its immediate predecessor – has shied away from doing so for fear of alienating Germany.

Nonetheless, US officials have said that they’ve secured commitments from Berlin that Germany will not activate the pipeline should Russia proceed with an invasion of Ukraine.

Ukrainian President Volodymyr Zelenskiy has also called for immediate sanctions on Russia. But the Biden administration has rejected that proposition so far, saying that pre-emptive sanctions would prompt them to lose their deterrent effect.

“We need to start imposing those now so that Putin understands what will happen to his economy with those sanctions,” Republican Joni Ernst said after the briefing.

The Biden administration has also sent another 3,500 troops to Germany, Poland and Romania – a move that senators from both parties have largely welcomed while stressing that their purpose remains to reassure Nato allies.

“We’re not going to go to war on the continent of Europe, that’s not in the cards,” said Republican Mitt Romney. “This is a signal.”

Republican Thom Tillis also noted that the US is not sending the troops with any intent to be in Ukraine.

“They’re not a Nato ally and we don’t have any Article V commitment to a number of countries in and around the region,” Mr Tillis said, referring to the collective defence clause of the Nato alliance.

“A lot of this is reassurance.”

Russia has demanded that Nato rule out further expansion of the alliance into Eastern Europe, including Ukraine. And while there are no plans for Ukraine to join Nato, the US and its allies have rejected this demand.

Mr Risch noted that the newly pledged US troops are “immediately adjacent to countries who are part of that Nato organisation and who are very concerned".

“It is important that we don’t engage US forces against Russia,” he said. “And there is no plan to do that.”

Still, Mr Risch acknowledged that if any fighting in Ukraine spills over into Nato member countries, then “Article V comes into play, period, no question".

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

Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company

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