Russian luxury car smugglers take longer routes to evade sanctions

At the moment’s agenda: Eurozone financial institution shares’ report 12 months; US bank card mortgage defaults soar; Robin Harding on why the robots are not coming; and the 12 months of democracy in charts

Good morning. We begin with an unique story about Russian smugglers, who’re charging tens of hundreds of euros to import luxurious vehicles from Europe, as EU sanctions in response to Moscow’s full-scale invasion of Ukraine hit the nation’s rich.

Right here’s what we all know: The Monetary Instances has recognized 5 Russian firms providing to smuggle vehicles from Europe with engine sizes adequate to come back underneath EU sanctions, which had been imposed in 2022 as a part of a ban on the export of luxurious items to the nation. The FT additionally recognized greater than 50 luxurious vehicles from 25 completely different German automobile dealerships on the Russian web site Auto.ru, which Russian importers had been providing at a mean mark-up of about €19,000.

Why it issues: The availability of European vehicles to Russia comes regardless of the EU boosting sanctions since President Vladimir Putin ordered the full-scale invasion of Ukraine, in an effort to choke Moscow’s conflict machine and provoke dissatisfaction with the federal government. Because the EU tightened restrictions in July on luxurious items getting into Belarus — as soon as a preferred third nation by way of which to import to Russia — smugglers are utilizing more and more lengthy and costly routes to ship the automobiles. Here’s what officials are saying about the smuggling.

Right here’s what else we’re protecting tabs on at present:

• South Korea: The nation begins the second of seven days of nationwide mourning for victims of the Jeju Air crash, one of many worst aviation disasters in years.

• ‘Black moon’: The night time sky might be primed for supreme stargazing circumstances tonight amid the uncommon prevalence of a second new moon in a single calendar month.

With 2025 virtually upon us, try the most recent concern of our Week Forward publication, which lays out the key events of the coming year.

5 extra prime tales

1. Former US president Jimmy Carter has died aged 100, the Carter Heart mentioned. Carter, who later gained the Nobel Peace Prize, died peacefully yesterday at his dwelling in Plains, Georgia, surrounded by his household, the human rights organisation he based mentioned in a press release. Read more about his life and legacy.

• Obituary: Whereas his one-term presidency continues to be extensively dismissed as a disappointment, Carter grew to become an influential moral voice after leaving the White Home.

2. Eurozone financial institution shares are poised for his or her highest finish to the 12 months in additional than a decade after lenders weathered a fall in rates of interest and promised report shareholder returns. The Euro Stoxx Banks index, which tracks the largest lenders within the forex bloc, has jumped by more than a fifth in 2024.

3. Defaults on US bank card loans have hit the best stage because the wake of the 2008 monetary disaster, in an indication that lower-income shoppers’ monetary well being is waning after years of excessive inflation. Bank card lenders wrote off $46bn in significantly delinquent mortgage balances within the first 9 months of 2024, up 50 per cent from the same period in the year prior.

4. Unique: A report variety of senior legal professionals moved jobs in London this 12 months because the arrival of US regulation corporations within the capital continues to disrupt the market and gasoline pay wars for expertise. The UK’s “magic circle”, which incorporates corporations reminiscent of Linklaters and Clifford Probability, have been notably affected. Suzi Ring has more details.

5. Unique: The variety of folks within the UK who admitted not paying tax on their abroad property jumped by 22 per cent in 2023-24, based on authorities information. The federal government has promised to lift billions of kilos by clamping down on tax evasion and avoidance. One professional mentioned: “HMRC’s aggressive pursuit of tax avoiders now leaves very few places to hide.”

Information in-depth

Priceless heritage websites in Lebanon have sustained irreparable injury from Israel’s air marketing campaign throughout its conflict in opposition to Hizbollah, consultants say. One preservation group says a minimum of 9 heritage websites had been completely destroyed and 15 badly or partially broken by Israeli assaults between September — when the nation escalated its year-long conflict with Hizbollah — and a ceasefire in November.

We’re additionally studying…

• 12 months in a phrase: Competitiveness. For Europe, Mario Draghi’s report on the roots of its slowdown was a clarion name for change, writes Brussels bureau chief Henry Foy.

• Personal colleges: A rising quantity within the UK are mentioned to be partaking in an “arms race” for facilities, contributing to an increase in charges as they woo the ultra-rich.

• Trump 2.0: The incoming US president is selecting nominees with vested curiosity to be in command of key regulatory areas, presenting a systemic financial risk, writes Patrick Jenkins.

• AI and androids: The know-how’s rise does not imply the robots are coming — a minimum of not but, writes Robin Harding.

Charts of the 12 months

With multiple and a half billion ballots forged in elections throughout 73 nations, 2024 provided a uncommon alternative to take the social and political temperature of virtually half of the world’s inhabitants. Here’s what the “year of democracy” taught us, in six charts.

The most well-liked tales of 2024

As 2024 attracts to an in depth, right here’s a glance again on the FT’s most-read tales this 12 months. Our protection of November’s US presidential election claimed the highest spots, main with the live results map which confirmed outcomes as they got here in state by state. This was carefully adopted by our interactive story on polling information, which allowed readers to chart possible paths to victory for both candidate.

And out of doors the political realm, Claer Barrett’s piece on how to protect your financial data with the rise of telephone theft was the preferred. Her recommendation is as helpful now because it was when the story was first revealed in Could.