But a small group of nations have found economic and geopolitical benefits in the ashes of slaughter, sanctions and economic dislocation. The beneficiaries, in many cases, bear no responsibility for the violence. Their gains are tied to geography, energy exports, or unique diplomatic convergence. For others, Russia’s attack was an opportunity to reassert their political influence and actively reap economic benefits. Energy countries and companies were arguably among the biggest beneficiaries, as the war helped push oil and gas prices to near record highs. “Economies dependent on oil imports will see wider fiscal and trade deficits and more inflationary pressure.” economists of the International Monetary Fund he noted earlier this year, “although some exporters such as those in the Middle East and Africa may benefit from higher prices.” From Dubai’s yacht marinas to diplomatic corridors in Ankara and Saudi Arabia’s oil fields, these are some of the beneficiaries as the war drags on into the winter and the death toll rises. WATCHES | Russian forces have withdrawn from Kherson, Moscow says:
Russian forces have withdrawn from Kherson, Moscow says
As the war in Ukraine continues, the Kremlin says all its equipment and troops have been moved from Kherson. This retreat adds to Ukraine’s criticism of Russian troops with Ukrainian MP Oleksiy Goncharenko saying in part “Russia has lost this war”.
United Arab Emirates
With its luxury hotels, marinas and desert golf courses, the UAE has seen a surge in Russian tourism and investment since the invasion of Ukraine began on February 24. Oligarchs who once moored their yachts on Italy’s Amalfi Coast, partied in UK nightclubs or bought homes worth tens of millions of dollars in what critics called “Londograd” have relocated to the United Arab Emirates in the face of Western sanctions, according to real estate analysts and brokers. Russians have become the top property buyers in Dubai, the best-known of the seven Emirates that make up the UAE, according to a report released last month by real estate consultancy Betterhomes. Nirvana, an 88m superyacht worth around US$300 million, is docked at Port Rashid Terminal in Dubai, UAE in June. The yacht is owned by Vladimir Potanin, a Russian billionaire who heads the world’s largest producer of refined nickel and palladium. He joins a growing list of those moving or traveling their valuable assets to Dubai in the face of Western sanctions. (Kamran Jebreili/The Associated Press) “Global conflicts,” the Betterhomes report said, “put Russians at the top of our ranking as the number one non-resident buyers in Dubai.” With half the city’s apartments changing hands in cash deals, the consultancy found, Dubai offers a perfect cash-flow opportunity for wealthy buyers frozen out of traditional banks by Western sanctions. As European and US airlines suspended flights to Russia, Emirates, one of the UAE’s main carriers, continues to operate 17 weekly flights between Moscow and Dubai. The UAE, a major oil producer, also benefited from the boost in energy prices due to the war. And its financial system, seen by Western critics as a key money-laundering hub, has allowed wealthy Russians to circumvent European and US sanctions. Guests dance during a private party on a boat against the skyline of Marina Waterfront, Dubai in 2015. Dubai’s year-round sunshine gives it a summer vibe during the winter months. On weekends, party boats ferry Russians and Western expats down the canal. (Kamran Jebreili/The Associated Press)
Turkey
Turkish President Recep Tayyip Erdogan has positioned himself as a mediator between Vladimir Putin’s Russia and its former NATO allies in the West, reaping financial benefits in the process. Turkey has refused to join other members of the North Atlantic Treaty Organization in imposing sanctions on Russia. Instead, Ankara helped negotiate deals with Moscow to allow Ukraine to export its grain, potentially easing an ongoing food crisis for the world’s poorest. Long a popular sand and sun destination, four million Russians holidayed in Turkey in the first nine months of this year, according to items listed from the Carnegie Endowment for International Peace — and this trend is expected to intensify as Russian tourists lose access to European destinations. Turkish President Recep Tayyip Erdogan, left, shakes hands with Putin during their meeting on the sidelines of the Conference on Interaction and Confidence Building Measures in Asia, in Astana, Kazakhstan, on October 13. Turkey has refused to join other NATO members in imposing sanctions on Russia over the war and has become a conduit for Russian trade. (Vyacheslav Prokofyev/Kremlin Pool Photo/The Associated Press) Turkey has also become an export and import conduit for Russian trade, as Moscow is cut off from its traditional suppliers in Europe. “Trade turnover between Russia and Turkey doubled in the first nine months of this year compared to the previous year to reach $47 billion,” Alexandra Prokopenko, an analyst with the Carnegie Endowment for International Peace, noted on Nov. 8. “Turkey may well have become one of Russia’s top three trading partners.” With Sweden and Finland keen to join NATO in light of Russia’s aggression, Turkey has vetoed new members joining the security alliance, demanding that Stockholm and Helsinki crack down on Kurdish activists operating from their territory, whom Ankara considers a security threat. The cargo ship Razoni crosses the Bosphorus Straits in Istanbul in August. It was the first cargo ship to leave Ukraine since the Russian invasion in February. (Khalil Hamra/The Associated Press)
Venezuela
The war in Ukraine has helped Venezuelan President Nicolas Maduro rekindle ties with old enemies. Regarded as unelected usurpers by both Ottawa and Washington — who have gone so far as to recognize a rival politician as Venezuela’s legitimate leader — American officials now appear keen to bring Caracas back into the fold. Venezuela controls the world’s largest oil reserves, according to the U.S. Energy Information Administration, and U.S. energy companies and policymakers are eager to rebuild its output to help lower global prices. Caracas and Washington recently negotiated a high-profile prisoner swap, freeing seven Americans and two nephews of Maduro’s wife jailed in the US on drug charges. As US oil companies, particularly Chevron, look to begin tapping more Venezuelan crude, the two sides have discussed easing sanctions and another approach. Venezuelan President Nicolas Maduro, left, and his wife, Cilia Flores, attend a Youth Day march in Caracas in February. Venezuela controls the world’s largest oil reserves, and U.S. energy companies and policymakers are keen to rebuild its production to help lower global prices. (Matias Delacroix/The Associated Press)
Saudi Arabia
On the campaign trail in 2020, Joe Biden vowed to make Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS) a “pariah” after a group of assassins – allegedly on the young royal’s orders – murdered and dismembered journalist Jamal Khashoggi with a bone saw. That tough talk, however, did not stop the US president from flying to Riyadh in July for a first photo shoot to ask MBS to boost oil production ahead of this month’s midterm elections. Flexing its gasoline-powered muscles, Saudi Arabia did the opposite. According to US officials, it led OPEC+, the Organization of the Petroleum Exporting Countries, to cut output in October — leading to higher prices and an accelerated economic windfall for the kingdom. Saudi Crown Prince Mohammed bin Salman, right, greets US President Joe Biden with a fist bump in Jeddah, Saudi Arabia, in July. On the 2020 campaign, Biden promised to make MBS a “pariah,” but high oil prices linked to the war in Ukraine have boosted Saudi Arabia’s political influence. (Saudi Press Agency/The Associated Press) Middle Eastern oil exporters, including Saudi Arabia and the UAE, are expected to see more than $1 trillion in additional oil revenue over the next four years, according to International Monetary Fund data released in August, compared with expectations . if Russia had not invaded Ukraine. “Russia’s war in Ukraine, combined with inflation at home, has contributed to a sharp rise in energy prices, thereby renewing attention on Saudi Arabia as one of the world’s top oil producers and the only one with significant capacity to is rapidly increasing production,” he noted Council on Foreign Relations reporta US-based think tank. Saudi Arabia maintained cordial relations with Russia throughout the war in Ukraine, analysts said. High oil prices since the war have also allowed the kingdom to increase pressure on Washington as a player to be taken seriously, analysts said, despite its poor human rights record and contribution to climate change.
