DONETSK, Ukraine // Ukraine’s new president-elect on Monday promised to negotiate an end to a pro-Russia insurgency in the east, saying he was willing to begin talks with Moscow, while the Kiev government launched an air raid on militants who occupied a major airport.
Russia quickly welcomed Petro Poroshenko’s offer for talks, raising hopes that his election will indeed ease the protracted crisis that has fuelled tensions unseen since the end of the Cold War.
But Ukraine’s military launched air strikes on Monday against separatists who had taken over the airport in the eastern capital of Donetsk in what appeared to be the most visible operation of the Ukrainian troops since they started a crackdown on insurgents last month.
In Donetsk, a city of one million, sustained artillery and gunfire was heard from the airport. Fighter jets and military helicopters were seen flying overhead, and dense black smoke rose in the air.
Vladislav Seleznyov, a spokesman for Kiev’s anti-terrorist operation, wrote on his Facebook account that the military had given an ultimatum to the armed men who had occupied the airport to lay down their arms. He said the gunmen didn’t comply and the military launched an air raid.
Denis Pushilin, a leader of the separatists, said they had sent their men to the airport after some of their supporters were detained.
Many flights to or from Donetsk were delayed or cancelled on Monday, including a flight from the UAE operated by flydubai. Access to the airport was blocked by police.
In Kiev, international observers hailed Ukraine’s presidential vote as a “genuine election,” saying it was held freely and fairly.
Candy magnate Mr Poroshenko, known for his pragmatism, supports building strong ties with Europe but also has stressed the importance of mending relations with Moscow. Upon claiming victory in Sunday’s vote, he said his first step as president would be to visit the Donbass eastern industrial region, where pro-Russia separatists have seized government buildings, declared independence and battled government troops in weeks of fighting.
“Peace in the country and peace in the east is my main priority,” Mr Poroshenko said on Monday, signalling that he would bring to an end the Ukrainian army’s much-criticised campaign to drive out the armed pro-Russia separatists.
The tycoon looked decidedly cool and composed Sunday night when the exit poll results were announced. On Monday, he got emotional when he was asked about the crisis in the east.
“The anti-terrorist operation cannot and should not last two or three months,” he said. “It should and will last hours.”
The military operation has caused civilian deaths and destroyed property — angering many eastern residents — while still failing to crush the rebellion.
The president-elect also had harsh words for the pro-Russia gunmen, comparing them to Somalian pirates.
“Their goal is to turn Donbass into a Somalia where they would rule with the power of machine guns. l will never allow that to happen on the territory of Ukraine,” Mr Poroshenko said, adding that he hoped Russia would support his efforts to stabilise the east.
Mr Poroshenko’s spokesman Andriy Zhigulin said that the date for his inauguration has not been set yet.
In Moscow, Foreign Minister Sergey Lavrov said Russia appreciated Mr Poroshenko’s statements about the importance of Ukraine’s ties with Russia and his pledge to negotiate an end to fighting in the east.
“We are ready for dialogue with representatives of Kiev, with Petro Poroshenko,” Mr Lavrov said at a briefing, adding it was a chance that “cannot be wasted.” He emphasised that Moscow saw no need for any involvement by the United States or the European Union in those talks.
“We don’t need any mediators,” he said pointedly.
Mr Lavrov also noted Russia’s long-standing call for the Kiev government to end its military operation in eastern Ukraine.
The rebels had vowed to block Sunday’s voting in the east. Less than 20 per cent of the polling stations were open there after gunmen intimidated residents by smashing ballot boxes, shutting down polling centres and issuing threats.
* Associated Press
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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.”
Company%20profile
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Company%20Profile
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Profile of Tamatem
Date started: March 2013
Founder: Hussam Hammo
Based: Amman, Jordan
Employees: 55
Funding: $6m
Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia