UK ready to provide more troops to Nato if Russia invades Ukraine


Jamie Prentis
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Boris Johnson says the UK would be prepared to send extra troops to any new Nato deployments “to protect our allies in Europe” if Russia were to invade Ukraine.

He reiterated, as have many western nations, that the UK would toughen its sanctions regime against Russia if it were to attack Ukraine.

About 100,000 Russian troops are massed on its border with Ukraine, leading to fears in some western capitals that an invasion is imminent.

“We have to beware of doing things … that would constitute a pretext for [Russian President Vladimir] Putin to invade,” Mr Johnson told parliament.

“We have to calculate and calibrate what we do very carefully and I think building a strong package of economic sanctions, continuing to supply defensive weaponry, and all the other things that we're doing – that's the right package.”

On Monday, Nato member states sent reinforcements to eastern Europe to bolster its forces there. Russia has criticised the West’s response as hysteria and insists it has no invasion plans.

“If the worst happens, and the destructive firepower of the Russian army were to engulf Ukraine’s towns and cities I shudder to contemplate the tragedy that would ensue,” Mr Johnson said.

“Ukrainians have every moral and legal right to defend their country and I believe their resistance would be dogged and tenacious, and the bloodshed comparable to the first war in Chechnya or Bosnia, or any other conflict that Europe has endured since 1945. No one would gain from such a catastrophe.”

High-level diplomatic meetings between Russia and the West have so far failed to make headway.

Moscow has demanded several highly controversial security guarantees from Nato, including a ban on Ukraine joining the military alliance. That has been rejected out of hand by Nato, with Mr Johnson saying the proposals “would divide our continent once again".

“We cannot bargain away the vision of a Europe whole and free that emerged in those amazing years from 1989 to 1991,” Mr Johnson said, referring to the fall of the Iron Curtain, the end of Communist rule in eastern Europe and the collapse of the Soviet Union.

“Healing the division of our continent by the Iron Curtain, we will not reopen that divide by agreeing to overturn the European security order because Russia has placed a gun to Ukraine's head.”

Russia has already invaded Ukraine once, annexing the Crimean Peninsula in 2014. It also backed pro-Russian Ukrainian separatists fighting the Kiev government in the Donbass region.

Referring to when he spoke to Mr Putin in December, Mr Johnson said he had emphasised that Nato has no thought of encircling or threatening Russia.

“I said that any attack on his neighbour would be followed by tougher sanctions against Russia, further steps to help Ukraine defend herself and by an increased Nato presence to protect our allies on Nato’s eastern flank.”

The biog

Age: 23

Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi

Education: Bachelor of science in industrial engineering

Favourite hobby: playing the piano

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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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Updated: January 25, 2022, 3:59 PM