Ukrainian President Volodymyr Zelenskyy leaves after attending a national flag-raising ceremony in Izyum on Wednesday. AP Photo
Ukrainian President Volodymyr Zelenskyy leaves after attending a national flag-raising ceremony in Izyum on Wednesday. AP Photo
Ukrainian President Volodymyr Zelenskyy leaves after attending a national flag-raising ceremony in Izyum on Wednesday. AP Photo
Ukrainian President Volodymyr Zelenskyy leaves after attending a national flag-raising ceremony in Izyum on Wednesday. AP Photo


Despite Ukraine's tactical gains, the war isn't a done deal


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September 15, 2022

After Ukrainian forces liberated vast swathes of territory around the northern region of Kharkiv in recent days, it is tempting to believe that the tide of the war has finally turned in Kyiv's favour. Indeed, for the first time since Russia launched its so-called "special military operation" against its southern neighbour in February, the Ukraine military now finds itself on the offensive.

Previously, Kyiv's involvement in the conflict had been primarily defensive in nature, with the main objective of its forces to thwart Moscow's attempt to overrun the country and replace the government of President Volodymyr Zelenskyy. The Ukrainian forces' most notable achievement in the conflict to date had been to prevent Russia's assault on the capital in the early stages, which ultimately resulted in the chaotic withdrawal of Russian forces.

Since then, Ukraine's primary objective has been to prevent Russia from making further significant gains in the east and south of the country, a tactic that has succeeded in halting the speed of the Russian advance. In the meantime, the Ukrainian government has been waging a highly effective public relations campaign aimed at persuading major western powers, such as the US and the UK, to provide it with the weaponry it requires to defeat Russia on the battlefield.

It is no surprise, therefore, that the recent revival in its fortunes has coincided with the arrival of sophisticated western weaponry, such as the long-range US Himar missile systems that have enabled it to strike deep into Russian-controlled territory. The new weaponry has been particularly helpful in helping Ukraine to pressure Russian forces occupying the key southern city of Kherson.

Kyiv's involvement in the conflict had been primarily defensive in nature

The belated arrival of the weaponry has now enabled the Ukrainians to launch their most ambitious military operation of the war – a surprise offensive in the north-east in recent days. After breaking through Russian defences at the end of last week, the rapid Ukrainian offensive has resulted in the recapture of almost 5,000 square kilometres of territory, equal in size to the Mediterranean island of Crete.

Some 150,000 Ukrainians have been freed from Russian occupation, which has also resulted in Kyiv retaking some 20 towns and villages around Kharkiv.

Despite Moscow insisting that its forces had withdrawn from the region to "regroup", there is little doubt that it has suffered its biggest defeat in the six-month conflict, with thousands of soldiers being forced to retreat in the face of the swift Ukrainian advance, abandoning large stockpiles of weapons as they did so.

Of particular significance has been the Ukrainians' capture of the towns of Kupyansk and Izyum, which were previously the main supply and transportation hubs for Russian forces operating in the area. Their capture means that thousands of troops now find themselves cut off from their supply lines.

Mr Zelenskyy celebrated Ukraine's success this week by making a personal visit to Izyum, where "he thanked the soldiers for liberating Ukrainian lands", according to the Facebook page of the 25th Separate Airborne Sicheslav Brigade.

The main task for them now is to undertake what Mr Zelenskyy described as "stabilisation measures" across the recaptured territory, including rounding up those who were complicit in the invasion. "Remnants of occupiers and sabotage groups are being detected, collaborators are being detained and full security is being restored," he said in an evening television broadcast.

  • Ukrainian firefighters at a thermal power plant damaged by a Russian missile strike, in Kharkiv. Reuters
    Ukrainian firefighters at a thermal power plant damaged by a Russian missile strike, in Kharkiv. Reuters
  • Rescuers in Kharkiv extinguish a fire after a rocket strike. EPA
    Rescuers in Kharkiv extinguish a fire after a rocket strike. EPA
  • Ukrainian soldiers and local officials are greeted by residents with hugs and handshakes in the village of Kozacha. Reuters
    Ukrainian soldiers and local officials are greeted by residents with hugs and handshakes in the village of Kozacha. Reuters
  • The charred remains of a Russian tank in territory retaken by Ukraine in the Kharkiv region. AP
    The charred remains of a Russian tank in territory retaken by Ukraine in the Kharkiv region. AP
  • Half-submerged Russian tanks amid the Ukrainian counter-offensive in Kharkiv. AFP
    Half-submerged Russian tanks amid the Ukrainian counter-offensive in Kharkiv. AFP
  • A Russian poster is pulled from a billboard to reveal a poem by Ukrainian Taras Shevchenko in Balakliia, Kharkiv. Reuters
    A Russian poster is pulled from a billboard to reveal a poem by Ukrainian Taras Shevchenko in Balakliia, Kharkiv. Reuters
  • Ukrainian troops in the recently retaken settlement of Vasylenkove. Reuters
    Ukrainian troops in the recently retaken settlement of Vasylenkove. Reuters
  • Charred armoured cars litter the road in Balakliia. AFP
    Charred armoured cars litter the road in Balakliia. AFP
  • A burnt-out tank in Kharkiv region. AFP
    A burnt-out tank in Kharkiv region. AFP
  • Ukrainian flags are placed on statues in a square in Balakliia. AFP
    Ukrainian flags are placed on statues in a square in Balakliia. AFP
  • Shell holes pepper the Misto entertainment complex in Kharkiv. EPA
    Shell holes pepper the Misto entertainment complex in Kharkiv. EPA
  • Fixing windows in the damaged Misto complex. EPA
    Fixing windows in the damaged Misto complex. EPA

The scale of the victory will provide an enormous boost to Ukraine's forces, which have been suffering significant casualties in recent weeks. It also demonstrates that, with the right equipment, they are more than capable of holding their own on the battlefield.

Their success owes much to the clever diversionary tactics employed by their commanders to confuse their Russian adversaries. Throughout much of the summer, Kyiv gave the impression that its primary focus was to liberate Kherson, the gateway to the Crimean Peninsula, captured by Russia in the early stages of the conflict.

Indeed, for the past month or so, the Ukrainians have been pounding Russian positions around Kherson to disrupt their ability to resupply their forces based in the city. Moreover, fearing a major Ukrainian assault, the Russians redeployed vital forces from the north and east of the country to the south, thereby weakening their defences. This enabled the Ukrainians to launch their lightning strike against poorly defended positions in the north-east.

But while Ukraine has every right to celebrate this significant victory, even Mr Zelenskyy understands that it is far too early to say whether it will ultimately have any bearing on the war's ultimate outcome.

Moscow has suffered a significant military setback, one that has already seen the Kremlin dismiss a senior Russian officer, Lt Gen Roman Berdnikov, responsible for the defence of the Kharkiv region. The defeat has also increased pressure on the Russian leadership.

Even so, Russia still occupies about one fifth of Ukrainian territory and remains a formidable military force, one that remains committed to fighting on until its objectives have been achieved.

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Essentials

The flights

Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours. 

The package

Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.

The specs: 2019 Infiniti QX50

Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
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Ferrari
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UAE currency: the story behind the money in your pockets

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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Updated: September 19, 2022, 2:02 PM