Russian soldiers on an APC as a column of armoured vehicles moves toward the town of Alagir.
Russian soldiers on an APC as a column of armoured vehicles moves toward the town of Alagir.

Russia out to avenge Kosovo snub



MOSCOW // When Kosovo declared independence from Serbia in February - and western countries rushed to recognise the new state - Russia declared the entire process illegal, a blatant violation of international norms and complete disregard for Serbia's territorial integrity. Now, following a bloody conflict with neighbouring Georgia, Russian officials said they are prepared to do the same for the breakaway Georgian republics of South Ossetia and Abkhazia, recognising their independence unilaterally if necessary. "These for [South Ossetian and Abkhaz] independence are not empty words," said Sergei Markov, a Kremlin-connected political analyst and an MP with the pro-Kremlin party United Russia. Both houses of Russia's parliament are to convene for emergency sessions today to discuss the situations with South Ossetia and Abkhazia, whose citizens and self-declared governments Moscow has supported economically and morally, much to Georgia's dismay. Russian officials and separatist leaders have said that following Georgia's failed attempt to retake South Ossetia militarily, there is no possibility of the two breakaway regions existing within Georgia's borders. Sergei Mironov, the loyal speaker of Russia's upper house of parliament who ran for president in 2004 but indicated he cast his ballot for Vladimir Putin, the former Russian president and current prime minister, said last week that both houses are prepared to recognise Abkhaz and South Ossetian independence if there is the will in the republics, and "the will in the Kremlin". It is unclear, however, whether the Kremlin would go so far as to recognise their independence, regardless of whether Russian parliamentarians vote for such recognition. The two houses of the Russian parliament can pass resolutions and give recommendations, but the final say in recognising a foreign state's independence rests exclusively in the hands of the Russian president. Mr Markov, however, estimated there is a 70 per cent likelihood that Russia would recognise their independence. "If the West will recognise that [Georgian President Mikheil] Saakashvili committed war crimes and that South Ossetians have a right not to be killed, then Russia will not have to recognise [Abkhaz and South Ossetian] independence," Mr Markov said in an interview. Georgia and Russia have accused one another of ethnic cleansing and war crimes in the conflict. Fyodor Lukyanov, editor of the journal Russia in Global Affairs, said Russian recognition of the two regions is a long way off. "Russia is trying to take the same tack the West took with Kosovo, not at the end of the Kosovo scenario, but rather at the beginning, following the 1999 war," Mr Lukyanov said. Russia is unlikely to recognise unilaterally Abkhaz and South Ossetian independence, Mr Lukyanov said. "This would only be possible if several countries are willing to recognise them," which is currently unlikely, he said. Russia has consistently accused western countries of having a double standard over the fate of separatist regions. At an annual news conference at the Kremlin in February, Mr Putin, then the Russian president, said recognising Kosovo's independence would be "immoral and illegal" and that the West should be "ashamed" of double standards. "We have Abkhazia, South Ossetia ? and they say Kosovo is a special case?" Mr Putin said. "There are no particularities there, and everyone understands this perfectly." Now western officials are accusing the Kremlin of being inconsistent. "The Russian position is to not accept Kosovo's independence while supporting [South Ossetian and Abkhaz] independence," Luc van der Branda, a member of the Parliamentary Assembly of the Council of Europe, told independent Russian radio station Ekho Moskvy last week. "I think this is an inconsistent approach ? Now is not the time to speak of an independent Abkhazia or independent South Ossetia." Masha Lipman, a political analyst with the Carnegie Moscow Centre, said there is a certain irony in Russia's about-face, but that with the recent violence "the situation has changed." "There's no denying it," Ms Lipman said. "There is a much greater likelihood that Russia will recognise their independence, because it really does not have much to lose. It has already seen just how few allies it has after its incursion into Georgia." The Kremlin, however, has little reason to recognise the independence of the two regions immediately and limit its options, Ms Lipman said. "Neither Russia nor the West is interested in seeing Russia isolated from the international community," Ms Lipman said. "This gives hope for a compromise. As long as there is some chance for a resolution of the situation, there is no reason for the president to sign anything now that would be irreversible." @email:cschreck@thenational.ae

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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5

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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'The Lost Daughter'

Director: Maggie Gyllenhaal

Starring: Olivia Colman, Jessie Buckley, Dakota Johnson

Rating: 4/5

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In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
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Engine: Long-range single or dual motor with 200kW or 400kW battery
Power: 268bhp / 536bhp
Torque: 343Nm / 686Nm
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
On sale: Later this year
Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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The Penguin

Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz

Creator: Lauren LeFranc

Rating: 4/5

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.


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