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US President Joe Biden on Friday said he is convinced Russia will invade Ukraine and that Moscow plans to push an offensive all the way to the capital Kiev, home to about three million people.
Speaking from the White House, Mr Biden outlined what he saw as the likely start of what could become the gravest confrontation Europe has seen since the Second World War.
“We have reason to believe the Russian forces are planning to intend to attack Ukraine, in the coming week, the coming days,” Mr Biden said. He added that Moscow is likely to “target Ukraine's capital Kiev, a city of 2.8 million innocent people".
He said that, “as of this moment, I'm convinced [Russian President Vladimir Putin has] made the decision” to launch an invasion.
Moscow has already launched an information war to justify an invasion, the president said, noting that Russia is creating “more and more disinformation” that was being sent to the Russian public, including claims that Ukraine is planning to launch an offensive attack in the eastern Donbas region.
“It defies basic logic to believe the Ukrainians would choose this moment, with well over 150,000 troops arrayed on its borders, to escalate,” he said.
Ukraine's foreign ministry pre-emptively denied it had any attack plans.
Mr Biden's remarks came at the end of an extremely tense day in eastern Ukraine, where a series of explosions rocked the Donbas region.
Separatists in the Donbas cities of Luhansk and Donetsk said they were moving civilians to Russia.
The announcement appeared to be part of Moscow’s efforts to counter western warnings of a Russian invasion and to paint Ukraine as the aggressor instead.
To that end, Moscow pointed to a bombing that struck a car outside the main government building in Donetsk. The head of the separatists’ forces, Denis Sinenkov, said the car was his, the Interfax news agency reported. He was unhurt.
While shelling and shooting are common along the line separating Ukrainian forces and the rebels, targeted violence is unusual in rebel-held cities like Donetsk.
However, the explosion and the evacuations were in line with US warnings of false flag attacks.
Compounding the volatility, Russian media reported another explosion in Luhansk and a blast at a nearby gas pipeline.
White House Press Secretary Jen Psaki said the US had long predicted “the Russians would take part in pretext or steps that would lay a predicate for either war or to create confusion or spread misinformation on the ground about what's actually happening".
Mr Putin on Saturday was scheduled to oversee Russian exercises involving its strategic nuclear forces.
He will observe the drills involving practice launches of intercontinental ballistic missiles and cruise missiles in a demonstration showing that Russia remains a nuclear superpower.
Mr Biden said he does not think Mr Putin is “remotely contemplating” using nuclear weapons.
“He is focused on trying to convince the world that he has the ability to change the dynamics in Europe in a way that he cannot,” the US president said.
His remarks came shortly after he spoke with leaders from Canada, Europe and Nato.
A US official said Russia was behind this week's cyber attacks on the Ukrainian defence ministry and major banks.
The announcement from Anne Neuberger, the White House’s chief cyber official, was the most pointed attribution of responsibility for cyber intrusions that have unfolded as tension escalates between Russia and Ukraine.
She said that while the attacks had a limited impact, they “are consistent with what a Russian effort could look like” and there could be more destructive cyber attacks if Russia proceeds with a further invasion of Ukraine.
“We've been preparing for this responsibility,” she said.
The official said the world must be prepared to “shine a light on malicious cyber activity” and hold actors accountable for attacks.
There are no credible or specific cyber threats to the US at this time, Ms Neuberger added.
At least 10 websites for Ukrainian government agencies and banks were hit with cyber attacks on Tuesday amid growing fears that Russia was preparing to invade the country.
Those websites included the Defence Ministry, Foreign Ministry, Culture Ministry and Ukraine’s two largest state banks.
Speaking alongside Ms Neuberger at the White House, Daleep Singh, the deputy US national security adviser for international economics, said an invasion of Ukraine would mean a “strategic defeat for Russia, pure and simple".
“If Russia invades Ukraine, it would become a pariah to the international community,” Mr Singh said.
“It will become isolated from global financial markets and be deprived of the most sophisticated technological inputs.”
He predicted “intense capital outflows, mounting pressure on its currency, surging inflation, higher borrowing costs, economic contraction and the erosion of its productive capacity".
Meanwhile, Vice President Kamala Harris has travelled to Germany for the Munich Security Conference, as she leads the US delegation in crisis talks on Ukraine.
Ms Harris is expected to address the conference on Saturday.
Agencies contributed to this report
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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.”
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