Biden 'convinced' Russia will invade Ukraine and attack Kiev


Thomas Watkins
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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

  • Russian President Vladimir Putin signs documents recognising two breakaway regions in eastern Ukraine as independent. AFP
    Russian President Vladimir Putin signs documents recognising two breakaway regions in eastern Ukraine as independent. AFP
  • A Ukrainian soldier walks past fragments of a mortar shell amid fighting near the front line in Travneve, Donetsk region. Reuters
    A Ukrainian soldier walks past fragments of a mortar shell amid fighting near the front line in Travneve, Donetsk region. Reuters
  • People wave Russian flags while celebrating Moscow's recognition of the self-proclaimed republic's independence, in Donetsk. AP
    People wave Russian flags while celebrating Moscow's recognition of the self-proclaimed republic's independence, in Donetsk. AP
  • Protesters gather at the Ukrainian Foreign Ministry in Kiev, calling on the EU to impose additional sanctions against Russia. Getty Images
    Protesters gather at the Ukrainian Foreign Ministry in Kiev, calling on the EU to impose additional sanctions against Russia. Getty Images
  • Members of the security forces walk in an underpass at a railway station in Kiev. Getty Images
    Members of the security forces walk in an underpass at a railway station in Kiev. Getty Images
  • A Ukrainian soldier on the front line near the village of Travneve, in Donetsk. Reuters
    A Ukrainian soldier on the front line near the village of Travneve, in Donetsk. Reuters
  • Alisa, 38, a media relations specialist, takes part in a combat skills training for civilians near Kiev. Reuters
    Alisa, 38, a media relations specialist, takes part in a combat skills training for civilians near Kiev. Reuters
  • Alisa poses with a gun at her home near Kiev. Reuters
    Alisa poses with a gun at her home near Kiev. Reuters
  • A young girl takes part in a rally in defence of 'Ukraine, Europe and democratic values', organised by the Association of Ukrainians in Portugal, outside the Russian Consulate in Porto, Portugal. EPA
    A young girl takes part in a rally in defence of 'Ukraine, Europe and democratic values', organised by the Association of Ukrainians in Portugal, outside the Russian Consulate in Porto, Portugal. EPA
  • A Ukrainian soldier takes time out to play with dogs on the front line near the city of Novoluhanske, in Donetsk. Reuters
    A Ukrainian soldier takes time out to play with dogs on the front line near the city of Novoluhanske, in Donetsk. Reuters
  • People gather under the Ukrainian flag for a Day of Solidarity with Ukraine at the Lincoln Memorial in Washington, DC. AFP
    People gather under the Ukrainian flag for a Day of Solidarity with Ukraine at the Lincoln Memorial in Washington, DC. AFP
  • Residents of the self-proclaimed Donetsk People's Republic cross from Ukraine into Russia, after it was announced that women and children would be led to the Rostov region due to rising tension in the area. EPA
    Residents of the self-proclaimed Donetsk People's Republic cross from Ukraine into Russia, after it was announced that women and children would be led to the Rostov region due to rising tension in the area. EPA
  • After the evacuation of separatist-controlled regions of eastern Ukraine, people complete documents in a temporary accommodation centre in Rostov, Russia. Reuters
    After the evacuation of separatist-controlled regions of eastern Ukraine, people complete documents in a temporary accommodation centre in Rostov, Russia. Reuters
  • War veterans and volunteers train civilians in handling weapons on one of Kiev's city beaches. AFP
    War veterans and volunteers train civilians in handling weapons on one of Kiev's city beaches. AFP
  • Russian and Belarusian helicopters taking part in a joint military exercise of the allied countries’ armed forces. EPA
    Russian and Belarusian helicopters taking part in a joint military exercise of the allied countries’ armed forces. EPA
  • Ukrainian National Guard soldiers at a mobile checkpoint together with the Ukrainian Security Service agents and police officers during a joint operation in Kharkiv, Ukraine. AP
    Ukrainian National Guard soldiers at a mobile checkpoint together with the Ukrainian Security Service agents and police officers during a joint operation in Kharkiv, Ukraine. AP
  • US President Joe Biden delivers a national update on the situation at the Russia-Ukraine border at the White House in Washington, DC. AFP
    US President Joe Biden delivers a national update on the situation at the Russia-Ukraine border at the White House in Washington, DC. AFP
  • A Polish soldier uses his phone, as US Defence Secretary Lloyd Austin and Polish Defence Minister Mariusz Blaszczak visit the Air Base in Powidz, Poland. Reuters
    A Polish soldier uses his phone, as US Defence Secretary Lloyd Austin and Polish Defence Minister Mariusz Blaszczak visit the Air Base in Powidz, Poland. Reuters
  • Mr Austin, left, addresses US troops stationed at the Powidz Air Base in Poland. AP Photo
    Mr Austin, left, addresses US troops stationed at the Powidz Air Base in Poland. AP Photo
  • A woman walks to board a bus, arranged to evacuate local residents, in the rebel-controlled city of Donetsk, Ukraine. Reuters
    A woman walks to board a bus, arranged to evacuate local residents, in the rebel-controlled city of Donetsk, Ukraine. Reuters
  • A satellite image shows an overview of helicopter deployments near Lake Donuzlav in Crimea, Ukraine. Reuters
    A satellite image shows an overview of helicopter deployments near Lake Donuzlav in Crimea, Ukraine. Reuters
  • A Ukrainian Military Forces serviceman looks through a spyglass on the front line with Russia-backed separatists not far from Novolugansk in the Donetsk region. AFP
    A Ukrainian Military Forces serviceman looks through a spyglass on the front line with Russia-backed separatists not far from Novolugansk in the Donetsk region. AFP
  • A serviceman keeps position on the front line. AFP
    A serviceman keeps position on the front line. AFP
  • A Ukrainian frontier guard patrols along the border with Russia, some 40km from the city of Kharkiv. AFP
    A Ukrainian frontier guard patrols along the border with Russia, some 40km from the city of Kharkiv. AFP
  • US President Joe Biden speaks to the media about Russia's buildup on the Ukrainian border as he leaves the White House in Washington. EPA
    US President Joe Biden speaks to the media about Russia's buildup on the Ukrainian border as he leaves the White House in Washington. EPA
  • A Ukrainian frontier guard stands at a check point. AFP
    A Ukrainian frontier guard stands at a check point. AFP
  • Russian Foreign Minister Sergey Lavrov and his Italian counterpart Luigi Di Maio enter a hall during a meeting in Moscow. Reuters
    Russian Foreign Minister Sergey Lavrov and his Italian counterpart Luigi Di Maio enter a hall during a meeting in Moscow. Reuters
  • US Secretary of State Antony Blinken addresses the United Nations Security Council. AP Photo
    US Secretary of State Antony Blinken addresses the United Nations Security Council. AP Photo
  • An elderly lady walks by as members of the Joint Centre for Control and Co-ordination survey damage to a house from artillery shell that landed in Vrubivka, eastern Ukraine. AP Photo
    An elderly lady walks by as members of the Joint Centre for Control and Co-ordination survey damage to a house from artillery shell that landed in Vrubivka, eastern Ukraine. AP Photo
  • French President Emmanuel Macron arrives for an extraordinary meeting of EU leaders to discuss Ukraine at the European Council building in Brussels. AP Photo
    French President Emmanuel Macron arrives for an extraordinary meeting of EU leaders to discuss Ukraine at the European Council building in Brussels. AP Photo
  • A local resident boards a train at a suburban area of Kiev. Reuters
    A local resident boards a train at a suburban area of Kiev. Reuters
  • A woman stands among debris after the reported shelling of a nursery in the settlement of Stanytsia Luhanska, Ukraine. AFP
    A woman stands among debris after the reported shelling of a nursery in the settlement of Stanytsia Luhanska, Ukraine. AFP
  • A protester shouts slogans during a demonstration outside the Ukrainian parliament in Kiev against high government taxes. AFP
    A protester shouts slogans during a demonstration outside the Ukrainian parliament in Kiev against high government taxes. AFP
  • A member of the 82nd Airborne Division of the US Army rests ahead of deployment to Poland from Fort Bragg in the US. AP Photo
    A member of the 82nd Airborne Division of the US Army rests ahead of deployment to Poland from Fort Bragg in the US. AP Photo
  • Members of the 82nd Airborne Division of the US Army clean weaponry ahead of deployment to Poland. AP Photo
    Members of the 82nd Airborne Division of the US Army clean weaponry ahead of deployment to Poland. AP Photo
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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

Updated: February 18, 2022, 11:16 PM