Both US Secretary of Defence, left, and Chairman of the Joint Chiefs of Staff Gen Mark Milley committed to providing Ukraine with the assistance and training it needs. The Washington Post / Bloomberg
Both US Secretary of Defence, left, and Chairman of the Joint Chiefs of Staff Gen Mark Milley committed to providing Ukraine with the assistance and training it needs. The Washington Post / Bloomberg
Both US Secretary of Defence, left, and Chairman of the Joint Chiefs of Staff Gen Mark Milley committed to providing Ukraine with the assistance and training it needs. The Washington Post / Bloomberg
Both US Secretary of Defence, left, and Chairman of the Joint Chiefs of Staff Gen Mark Milley committed to providing Ukraine with the assistance and training it needs. The Washington Post / Bloomberg

US has ‘learnt a lot about Russian leadership’ from Ukraine conflict, defence chief says


Joyce Karam
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US Secretary of Defence Lloyd Austin told Congress on Tuesday that Washington has acquired useful operational information about Russian military tactics during its invasion of Ukraine.

“We have learnt a lot about Russian leadership at the lower levels,” Mr Austin told the Senate Appropriations Committee.

The US defence chief pointed to a number of mishaps that Russia has experienced during the invasion of Ukraine, which began on February 24, and how it has given insight into Moscow's military organisation.

“We saw them fail to integrate aerial fire with their ground manoeuvres in just a number of missteps … I attribute a lot of that to lack of leadership at the lower level,” he said.

And when the lower-level leadership failed, a high cost was paid by senior Russian officers, he said.

“We saw Russia push its senior officers forward as a result of that and many of those were killed from being forward on a battlefield.”

Asked if these setbacks could be reversed if Russian President Vladimir Putin were to make a formal declaration of war or call for a general mobilisation, Mr Austin said it would be contingent on the battlefield readiness of the new troops.

The US defence chief defined the end goal in Ukraine as one that preserves the country’s sovereignty.

“We hope that at the end of this that Ukraine will be a sovereign state with a functioning government that can protect its territory.”

Mr Austin said when it will end rests with a singular soul.

“This is a war of choice … this is the decision of one man,” he told Congress.

Chairman of the Joint Chiefs of Staff Gen Mark Milley, speaking at same hearing, said Russian troops are taking orders from the highest in command.

“The Russians are practicing a top-down, very, very top-heavy directive in nature, sort of settled orders coming from the top, which is not necessarily the best thing to do in a dynamic battlefield,” Gen Milley said.

He also rejected the idea that the US withdrawal from Afghanistan last August had exposed America's weaknesses and prompted Mr Putin to invade Ukraine.

“I think President Putin made his decision to invade Ukraine long before we pulled out of Afghanistan,” he said.

Both Mr Austin and Gen Milley committed to providing Ukraine with the assistance and training it needs, with the US defence chief saying Ukraine is already using a number of howitzer cannons that Washington has provided in the last few weeks.

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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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UAE's role in anti-extremism recognised

General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.

He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.

"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.

He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.

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2 Adam Yates (GBR) Teamn Ineos Grenadiers - 0:00:43

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Updated: May 04, 2022, 5:40 AM