What does Putin's recognition of the Donetsk and Luhansk regions as independent states mean?
February 23, 2022, 10:33 am

What does Putin's recognition of the Donetsk and Luhansk regions as independent states mean?

Zara saleh

Russian President Vladimir Putin has officially recognised the independence of the Ukraine regions of Donetsk and Luhansk as independent states. He also considers the two republics are not more part of Ukraine's territories. Added to that, the Russian President has ordered and sent his troops to control the two republics on a "peacekeeping mission" forces in East Ukraine. The same scenario has been done by Moscow in 2008 when Russia recognised the independence of the two Georgian regions, Abkhazia and South Ossetia which could be a scenario now applied to Ukraine.

Going back to the core of the Russian-Ukraine crisis in 2014, Russian-backed separatists in Donetsk and Luhansk, east Ukraine has announced themselves as two independent republics from the Ukraine government but without any official recognition by the international community except Moscow. Since that, more than 14,000 people have been killed during the conflict between Ukraine and Russian-backed separatists. Then, the ceasefire has been reached with the mediation of France and Germany in 2015 that called the Minsk Agreement.

In other words, Putin's recognition and sending the Russian military to the two Ukraine regions means firstly the end of the Minsk peace agreement between Ukraine and Russia. Secondly, such as step will means that Moscow formally is occupying sovereignty of Ukrainian territory for the second time after the occupation of Crimea in 2014. Finally, Russia's decision demonstrates the ending of the dialogue path and could lead to the invasion of Ukraine by Russia and as a declaration of the war by Putin. On the other hand, Russia's decision will definitely escalate the situation and increase the tension between Nato and Russia. Moscow will face financial and political sanctions, especially after breaking the Minsk peace agreement. For example, the UK government has declared a series of economic sanctions against Moscow today in the house of parliament in London. Boris Johnson, the UK Prime Minister said these sanctions were a "first barrage" against Russia and could be extended. Furthermore, the Europe and Western response to the Russian decision and to the current crisis will consequence further sanctions by the EU and the US of their own. Germany, for instance, has halted the Russian gas pipeline as sanctions against Putin's orders to send Russian troops to Ukraine.

In contrast to Vladimir Putin's actions in Ukraine, the Russian policies and response in Syria were controversial regarding the notions of sovereignty and the federal system of governance. For example, during all Astana-Sochi meetings about the Syrian conflict, Russia has always been calling for the protection of the sovereignty and unity of Syria's territories. Moscow has always been accusing the US of supporting the Kurdish "separatists" of splitting the Syrian territories and threatening the unity of Syria. Whereas, Putin has officially recognised the independence of "its separatists" in Donetsk and Luhansk. Added to that, the Russian foreign secretary Lavrov has accused Kurds and the Syrian Democratic Forces (SDF) of separatism and attempting them to establish a 'Kurdish State' in northeast Syria with the American support. Following its decision in Ukraine, the Russian President Vladimir Putin should recognise the independence of the Kurds in Syria or at least the federalism for Kurdish region and Syria to become a Federal state similarly to the two independent republics of Donetsk and Luhansk.

BY: Zara Saleh

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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.