US Defence Secretary Lloyd Austin said on Wednesday that he had spoken to his Russian counterpart about the downing of a US drone over the Black Sea, as tension continues to run high over Moscow's ongoing invasion of Ukraine.
“I just got off the phone with my Russian counterpart, Minister [Sergey] Shoigu,” Mr Austin said at a Pentagon press briefing.
“As I’ve said repeatedly, it’s important that great powers be models of transparency and communication, and the United States will continue to fly and to operate wherever international law allows.”
It was the first call between the two defence chiefs since October.
Moscow and Washington traded blame for Tuesday's incident, which took place in international airspace near territory Russia has annexed from Ukraine.
The US Air Force said a Russian jet “struck the propeller” of the drone before it was downed into international waters, while Moscow said its jets did not make contact.
Washington said it was working on declassifying surveillance footage from the drone that would detail Tuesday's crash.
Mr Austin and Mr Shoigu's conversation underscored the seriousness of the encounter.
Since Russia's invasion of Ukraine, contact between US and Russian military leaders has been limited, with Russian officials refusing to take US military calls in the early months of the war.
Gen Mark Milley, chairman of the Joint Chiefs of Staff, said he also planned to speak to his Russian counterpart, Gen Valery Gerasimov.
Russia called it proof that the US was directly participating in the war; Washington called it an act of Russian recklessness.
“This hazardous episode is part of a pattern of aggressive, risky and unsafe actions by Russian pilots in international airspace,” Defence Secretary Lloyd Austin said on Wednesday at the 10th meeting of the Ukraine Defence Contact Group.
“It is incumbent upon Russia to operate its military aircraft in a safe and professional manner.”
Moscow said it would try to recover the drone wreckage from the sea.
“I don't know whether we'll be able to retrieve it or not but it has to be done. And we will certainly work on it,” Russian Security Council secretary Nikolai Patrushev said in televised remarks.
Washington said the drone might never be recovered and that steps had been taken to ensure Russia could not gain intelligence from the wreckage.
“It has not been recovered. And I'm not sure that we're going to be able to recover it,” White House National Security Council spokesman John Kirby told CNN.
“Where it fell into the Black Sea — very, very deep water. So we're still assessing whether there can be any kind of recovery effort. There may not be.
“We've taken steps to protect our equities with respect to that particular drone — that particular aircraft.”
The State Department on Tuesday summoned Russia's ambassador to the US, Anatoly Antonov, to express Washington's concerns over the encounter.
“The message was: Don't do this again,” Mr Kirby added later on ABC.
Mr Antonov said the meeting was constructive and the issue of possible consequences for Moscow over the incident was not raised, RIA state news agency reported.
Agencies contributed to this report
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
Penguin
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. Engine: 3.5-litre V6
Transmission: eight-speed automatic
Power: 290hp
Torque: 340Nm
Price: Dh155,800
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Barcelona 2
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Real Madrid 2
Ronaldo (14'), Bale (72')
Jebel Ali Dragons 26 Bahrain 23
Dragons
Tries: Hayes, Richards, Cooper
Cons: Love
Pens: Love 3
Bahrain
Tries: Kenny, Crombie, Tantoh
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The specs
Common to all models unless otherwise stated
Engine: 4-cylinder 2-litre T-GDi
0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)
Power: 276hp
Torque: 392Nm
Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD
Price: TBC
How do Sim card scams work?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
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
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
