As oil prices decline, Russia intends to raise taxes to pay for its defense budget.
Russia’s war economy has been fueled by its military spending, despite sanctions from the West. The budget deficit is growing, energy revenues are declining, and growth is stalling after three years of the Ukrainian conflict.
Russia is increasing the value-added tax, among other measures, from 20% to 22%, to help the state’s finances. According to the Ministry of Finance, the funds will primarily be used to pay for defense and security expenses.
The plan was announced a day after Donald Trump claimed Russia was in “big economic trouble” but is it real?
Can the Labour Party of the UK fulfill its economic commitments?
Depending on how you spent or are spending your youth (and maybe large chunks of your adult years) the phrase “EA Sports – it’s in the game” is probably ingrained in your memory.
And with the blockbuster announcement that Electronics Arts is being sold for $55bn (£41bn), well, EA is in the news.
Noted, not as catchy.
But keep in mind the gaming company being sold for such an astronomical amount is not the primary reason the sale is a hot topic of conversation.
That has been reserved for where the money is coming from.
EA’s new owners will be a consortium spearheaded by Saudi Arabia’s Public Investment Fund (PIF), whose portfolio includes Newcastle United, the LIV Golf franchise and a range of boxing events.
The takeover of the Premier League club, the investment in boxing and the creation of the breakaway golf tournament were met with an abundance of scrutiny.
And when you consider that the EA deal is 11 times the PIF’s investment in golf and 180 times the cost of Newcastle, it is perhaps not surprising that PIF’s acquisition of one of the biggest gaming companies in the world has also raised a few eyebrows.
‘An enormous win for Saudi Arabia’s soft power’
“It’s massive news in terms of Saudi Arabia’s soft power strategy. EA is the perfect company for what Saudi Arabia wants to achieve in terms of its influence,” George Osborn, editor of Video Games Industry Memo, told BBC Sport.
“For Saudi Arabia it’s an enormous win. Whether it is for everyone else, that’s a different question.”
The Saudi Arabian government has spent years denying claims of ‘sportswashing’ – sponsoring or hosting sporting events to promote a positive public image and distract attention from human rights issues.
Prominent critics of the country often point to its treatment of women, LGBT rights and use of the death penalty.
Osborn said he believed the state-funded PIF making such a huge step into the gaming industry was the latest step by Saudi Arabian officials to put forward their narrative.
He said: “Let’s say, for example, a mum goes to the supermarket and picks up a copy of EA Sports FC off the shelf.
“They’re not thinking about the geopolitics. They are just thinking of fun. And this is the genius of Saudi Arabia’s strategy – that the country becomes associated with fun.
Saudi Arabia ‘taking control of gaming’
It is worth noting that the deal for PIF to acquire EA is yet to be officially approved by the relevant authorities.
The consortium also includes Silver Lake and the company Affinity Partners, led by Jared Kushner, US President Donald Trump’s son-in-law.
This is not PIF’s first venture in the gaming sector – in fact, it is already heavily involved. As well as previously owning an estimated 9-10% of EA, PIF also purchased companies to secure ownership of the Pokemon Go and Monopoly Go games.
EA has a wide-ranging portfolio of games. It is responsible for creating best-selling titles including Apex Legends, Battlefield, Need for Speed and the Sims.
It is also the makers of EA Sports FC – previously known as Fifa – as well as sports games on the NFL, NBA, UFC and F1.
Its football titles have sold 325 million copies since 1993, while the Sims has sold 200 million and Need for Speed more than 150 million.
“With this deal, it’s not just a seat at the table any more – it’s control,” Osborn said.
“When you’ve got control, you’ve got the ability to really drive the direction of that business towards your goal.
“That’s what the Saudi state is going to be interested in.”
The deal would take EA private, meaning all its public shares will be purchased and it will no longer be traded on a stock exchange.
There have been concerns that the deal would result in $20bn of debt and that the revenues of games would be needed to service this.
‘One of the few countries with esport government policy’
While the motive for PIF’s purchase of EA might be up for debate, the country’s need to diversify its economic income is not.
It is estimated that 40% of Saudi Arabia’s wealth is from the sale of oil and gas. And with the rapidly changing attitudes towards the use of fossil fuels, there is an acceptance that other revenue streams are vital.
“What the rulers of Saudi Arabia have realised is if people don’t see you as being a legitimate and trustworthy member of the sporting and business communities, then they don’t engage with you,” said Prof Simon Chadwick, an expert in sport and geopolitical economy at Skema Business School in Paris.
Saudi Arabia’s lucrative investment in the Saudi Pro League (SPL), which features Cristiano Ronaldo, Sadio Mane and Karim Benzema, is often well publicised. So too is the nation’s hosting of major boxing, mixed martial arts and snooker events.
Yet its venture into esports has gone relatively unnoticed by many.
However, Saudi Arabia has hosted major tournaments, including the Esports World Cup, and it will also host 2027’s planned Olympic Esports Games.
“Saudi Arabia is one of very few countries in the world that has an official government policy aimed at building its esports economy,” Prof Chadwick said.
“Partly that is due to a very youthful population – 70% aged under 35 years old.
“Everybody’s got a mobile phone. Everybody was born and brought up with YouTube and everybody was born and brought up with console gaming and with esports.
EA will be ‘turbo-charged’
As well as control over the EA gaming catalogue, PIF now has a seat at the table in one of the most profitable sectors of the entertainment industry.
There are some who believe such power could ultimately lead to Saudi Arabia having a key say in not only where games are made but where hardware like consoles and accessories are too.
Such power could result in countries and companies who previously refused to engage being faced with tough decisions on whether to change their stance.
Nick Hurley, co-founder of Guildford Games Ltd, said the announcement of the deal is further proof that Saudi Arabia means business and is willing to put its money where its mouth is.
“The EA buyout is the largest buy-back in Wall Street history and ought to really turbo-charge EA for future growth with the capital it will deliver,” he said.
“It really underlines the commitment in the Middle East to a sports/leisure strategy with an eye on the business opportunities that AI is expected to deliver in terms of increased leisure time.
“EA has come a long way since it purchased Bullfrog in Guildford in 1995, and this ought to guarantee its place in the pantheon of interactive games and sports.”
As a pastime, gaming – much like sport – may have been an escape from the moral dilemmas and daily problems people faced.
In their group game against New Zealand at Holkar Stadium in Indore, Ash Gardner scores her second ODI century to increase Australia’s run total to 287-7.
Australia vs. New Zealand at the Women’s Cricket World Cup FOLLOW LIVE
Fans believe that the messy friendship between Blake Lively and Taylor Swift will be included in the forthcoming album The Life Of A Showgirl, which will be released on Friday.
3 images to be seen
Will Blake Lively be the subject of a song on Taylor Swift’s upcoming album?
Taylor Swift is well-known for writing songs about her friends and boyfriends. Following a messy friendship break-up with Blake Lively, fans think they know which song on the singer’s upcoming album will be about her former best friend.
The Life Of A Showgirl is Taylor’s 12th studio album and will be released on October 3. The track list has already dropped, giving fans a glimpse of what the album may be like. Fans have been guessing what these songs may sound like and taken to TikTok to post videos of their predictions.
One of the songs’ names, Ruin The Friendship, is where many fans speculated that Blake may be, with Taylor and she apparently having a falling out, respectively.
Taylor, who is not interested in being dragged into it, was reportedly a part of the actress’ lawsuit against It Ends With Us director Justin Baldoni. According to sources close to Taylor, Blake allegedly used her as a “dragon” over text, and Taylor feels that she was being “used as an intimidation tactic” by using her as one of her “dragons.”
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One fan referred to the lawsuit in a video where the song’s lyrics were suggested: “I’m gonna ruin the friendship, yeah. Blake, I won’t give any names. No, Justin, I never sent those texts. Don’t run toward me. A screenshot from a news article about Taylor’s inclusion in the lawsuit was included above the top by the fan.
Another made a similar video, singing, “You threaten me, yeah, you’ve ruined the friendship” and a third referenced both Blake and her husband, Ryan Reynolds, ultimately calling Blake “poison Lively”.
The fan yelled, “Blake, Blake, you had plenty of opportunity to clear the air,” the fan said. You did, however, include me in place. When you break up our kinship, it seems like you destroyed our friendship. And you know I’ve been trying, given how many calls Ryan and I made. Feels like a poison ivy experiment, but instead, I believe it to be poison Lively.
The singer, who also sang the names of Blake’s children James, Betty, and Inez, who were all featured in songs on the album Folklore, named one of them Betty, because they were once so close. However, if the rumors are true, Blake herself would be the first song to be written.
Taylor has also written a song about a friendship break-ups before, including her 1989 single Bad Blood. The song, which was accompanied by a music video featuring several celebrities Taylor was friendly with, is said to be about her feud with Katy Perry.
Many of Taylor’s songs are about real people, but the majority of them are former lovers and flings, as was The Tortured Poets Department, which had rumored to be about Matty Healy, Joe Alwyn, and the singer’s current fiance Travis Kelce.
When it comes to ending the war and preventing the displacement of Palestinians, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani told Al Jazeera, the US president’s plan for the Gaza ceasefire offers “challenges and opportunities.”