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The New Iron Curtain

Events in Ukraine has metastasised at such a pace it can almost feel like we’ve experienced a decade’s worth of geopolitics in the space of less than two weeks. As one UK official told me recently; “9/11 was paradigm shift, this is a paradigm breaking”. When an established order suddenly falls – which could be what the Russian operation into Ukraine eventually could be seen to herald – what happens next is of course hugely uncertain, but a new 'Iron Curtain' is apparently coming down across Europe.
The original ‘Iron Curtain’ was the political boundary dividing Europe into two separate areas from the end of World War II in 1945 until the end of the Cold War in 1991. In its most physical manifestation, it took the form of the Berlin Wall and the other fortifications that divided West from East. The end of the Cold War was to some famously the ‘end of history’. Globalisation and the rise of economic interdependence was theoretically to unite all parts of the planet like never before. Whilst North Korea stood in inglorious isolation the majority of social and economic ties between people grew in the period between 1991-2022.
However, thirty-one years since the Cold War the rapid isolation of Russia triggered by their Ukraine adventure means that we could be looking at a new phase of geopolitics defined by separation, tension and of course the backdrop of the threat of conflict between nuclear armed states. This new Iron Curtain will become will be defined by geographic, economic and sociocultural splits that will reverberate the longer the reinforced divide exists. Already we have seen an unprecedented attempt to disconnect much of the world from the Russian economy. Companies have banned their products being sold there, have surrendered their Russian assets and plans for investment. Back in June of 2008 $1 bought 23 roubles, today that same $1 gets you 200 roubles.
Russia's central bank has doubled interest rates, limited foreigners from moving money, and made other moves in response to Western sanctions. Whilst Russia may be sitting on over $600bn in reserves it surely could not have expected the economic counterattack to its actions to be so severe. Selected Russian banks being removed from SWIFT – the world’s main international payments network – which will also hit Russian trade and make it harder for its companies to do business. Russian companies meanwhile have been insulated by a closure of the Russian Stock Exchange to protect it from predicted catastrophic falls.
Russian airlines are facing an almost complete blockade from flying west over Europe after they were barred from the airspace of nearly 30 countries following the invasion of Ukraine. Microsoft announced it will stop selling its products and services in Russia; Cogent Communications, an internet infrastructure firm that carries about 25 percent of global web traffic, has begun cutting ties with Russian clients; and the Kremlin banned Facebook and is throttling traffic to other U.S. social media platforms. In cultural terms Russia’s participation in international sport – from the football World Cup to the Winter Paralympics – has been devastated. Before they received official bans from the respective organisers of these events their would-be opponents had already refused to play them.
Perhaps the most seismic and yet to be unanswered question is whether European nations will be able to find an alternative to their current reliance on Russian gas. Russia is the world’s third largest producer of oil and supplies about 40% of Europe’s gas. European Commission president Ursula von der Leyen has called on member states to diversify its energy supply. Removing themselves for such dependency quick is a huge challenge that could see European states fundamentally review their approach to shale gas, nuclear power and renewables. Without a change of approach Europe’s attempt to economically isolate Russia will be flawed.
One of the hardest aspects of this new Iron Curtain to predict is the geo-security aspects of how the two blocs will be divided. The crux of this uncertainty of course lies in the events yet to happen in Ukraine and what Russia’s vision for the country is if they are to able to shape events to their will. Will never securitized borders divide East from West inside Ukraine or at its borders with Europe is Russia succeeds in occupying the entire country? This will ultimately be the sharpest point of this new geopolitical tectonic plate.
BY: James Denselow
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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.
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