-
Arms Race 2022

The shockwaves of Russia’s invasion of Ukraine continue to ripple through the geopolitics of the moment. Over one month into operations all eyes are rightfully focused on events on the ground in Ukraine itself; the defence of Kiev, the destruction of Mariupol, the exodus of over 3.5 million refugees in a matter of weeks. Far beyond the now violated borders of Ukraine the conflict manifests in economies that are suddenly facing the prospect of having to find new sources of energy or are seeing inflation rip through their ability to subsidies bread for their populations.
Another predictable outcome is the return of increasing defence budgets. Almost immediately after Russian tanks had crossed into Ukraine German Chancellor Olaf Scholz announced a plan to beef up the German military and essentially revolutionize the country’s defence policy. He pledged €100 billion ($112.7 billion) of the 2022 budget for the armed forces and repeating his promise to reach the 2% of gross domestic product spending on defense in line with NATO demands.
Germany had all of a sudden become the third largest global military spender. This week the US, seen in Russia’s eyes as a waning superpower, showed that it too would be stepping up its defence spending. President Biden unveiled a massive $813.3 billion defense and national security spending plan as part of his fiscal 2023 budget request. Other NATO countries will surely follow Germany and America’s path.
NATO is moving more troops to the Ukrainian border as Russian missile strikes against Ukrainian targets nearby continue. Arms from NATO countries to Ukraine continue to cross the border with Russia warning that they could be targeted. Tensions continue to escalate.
The emerging arms race will add another dimension to these tensions. Who will buy what from where and what will they do with it? The conflict to date inside Ukraine has shown how drones have developed from reconnaissance tools to assassination tools to essential elements of modern combat. Their ability to loiter and be used effectively against armour has pegged back Russian forces from making a lightening run into Kiev. Yet other more traditional weapons continue to shape the conflict. Russian artillery, for example, has devastated Ukrainian cities that continue to resist. The “Grozny playbook” or attempting either a swift capture or a grinding destruction seems well at play.
The future of urban conflict will be focusing the minds of defence leadership. Can modern conflict be fought in a manner that better protects civilians and their infrastructure. Urban battles have a long history in the last hundred years from Stalingrad to Aleppo, yet more people are living in cities than at any point in human history forcing the question as to whether the rules and norms of warfare are fit for purpose to deal with this challenge.
In Ukraine humanitarian corridors, a last resort in most conflicts, have become the immediate go to tool for evacuating civilians. Yet these are fragile and complex mechanisms that rely on more static frontlines and confidence between the parties that civilians won’t be caught in the open. The death toll from the conflict is increasing exponentially with the UN unable to verify deaths quick enough to do justice to those hidden underneath the blasted rubble of cities and towns that had to be destroyed in order to be won. Thankfully the Soviet infrastructure and Cold War planners blessed Ukraine with a good supply of bomb shelters and more secure basements, without which the death toll would be far, far higher.
More drones and more anti-tank weapons would be on the shopping list for many states watching how Ukraine has managed to slow and then halt the Russian advance. Also, sufficient weapons to prevent urban areas becoming encircled, the death knell when facing an enemy whose willingness to use wide area weaponry is so apparent. Airpower, such a defining characteristic of the wars of America in the Middle East, is conspicuous by its absence. The fact that the Ukrainian air force has managed to keep itself viable and the proliferation of surface to air missiles has seen Russia rely on more standoff weaponry and not dominate the sky. Questions as to hypersonic weaponry, missile defence and of course the evolution of the nuclear deterrent will complete the first round of thinking as to this new Cold War. However, we’re only one month in and the direction of events remains far for clear as countries open their wallets for a splurge on defence spending.
BY: James Denselow
You May Also Like
Popular Posts
Caricature
BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
opinion
Report
ads
Newsletter
Subscribe to our mailing list to get the new updates!