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The Ukrainian Vacuum

The ‘Ukrainian moment’, or decision by Russian Prime Minister as to whether invade, is almost upon us. Russian forces are now in a state of such readiness and preparedness that reports suggest that they either have to enter Ukraine or they can return back into Russia. The phony war is about to reveal whether there is a bite to all its bark.
Yet the bark is already dominating newspaper headlines, TV news and most importantly the political attention of large parts of the world’s leadership. Into these vacuum other events and geopolitical machination disappear or take on new and far different values. The spectre, as envisaged by some, of the largest conventional conflict since World War Two puts into play the stability of the entire global financial system and the very international order itself that was born from the ashes of the 1940s. This may sound hyperbolic but pursue some of the potential and now apparently ever more likely scenarios and this is not too far aware from that prospect being very real indeed.
Other global priorities have suddenly found themselves marginalised and starved of the attention they would normally receive. Marathon talks to revive the Iran nuclear deal have both stalled and lost the focus they once had. Suddenly the prospect of intensifying US or Israel strikes on Iran seems a lot less scary than events in Eastern Europe. Likewise, the collective energy and momentum that came out of the COP26 Climate Summit could easily dissipate if the Ukraine war goes hot and international cooperation haemorrhages at the expense of sharp-edged nationalism.
Even if the situation in Ukraine does manage to deescalate it will take with it a legacy tactic that others may be quick to replicate. Amidst the tensions on the Korean Peninsula over the last few decades military exercises, missile tests and general sabre rattling has been a standard tactic. Previously to the Ukraine crisis Putin was already using the Russian military to test out adversaries’ air defences. Could the sudden deployments of large-scale military units to sensitive geopolitical hotspots be the new diplomacy by other means? Certainly, Taiwan will be watching on anxiously as to how the current crisis plays out.
Other countries may pivot away from the current political vacuum creating by the Ukraine crisis in unexpected ways. Already the prospect of Russian aggression has prompted soul searching in the UK as to whether appeasement of Russia helps. The Defence Secretary said current negotiations had a ‘whiff of Munich’ about them – in reference to the failed attempts to make peace with Hitler ahead of World War II. Paradoxically if Russia was really concerned with an assertive and strong NATO then Ukraine aside it would have appeared to have strengthened commitment to the alliance.
So much of the current crisis comes down to one man and there can be little doubt that Europe in particular needs to come up with a proactive Russia policy that is based, at least in part, on prioritising collective responses to Russian manoeuvres. To date the biggest success in Putin’s Ukraine policy has been to exposure cracks within the EU and highlight how energy prices carry such a heavy domestic price. Whatever happens to the Nord Stream 2 pipeline decision it would appear inevitable that countries will reassess their energy independent in light of current events highlighting the fragility of relying upon Russia for so much of their supplies. Again, in the UK discussions around investing in ‘fracking’, previously a banned method of energy extraction, are now back in play with the Ukraine crisis changing the paradigm of what is politically possible.
Likewise, defence budgets may go up significantly across Europe with this memory of the Russian threat so embedded in politicians’ minds. Of course, if the conflict goes ‘hot’ we will likely see the move to more defence spending and energy independent happen in an accelerated fashion with a range of unpredictable fallouts for national budgets.
The crisis in Ukraine has created a geopolitical vacuum but whether we see escalation or de-escalation it will now surely have policy effects that will ripple far beyond this moment and into the next decade or so of human affairs.
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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