Russian luxurious automotive smugglers take longer routes to evade sanctions

In the present day’s agenda: Eurozone financial institution shares’ document 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 1000’s of euros to import luxurious automobiles 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 automobiles from Europe with engine sizes enough to return 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 automobiles from 25 totally different German automotive 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 automobiles 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. For the reason that EU tightened restrictions in July on luxurious items getting into Belarus — as soon as a well-liked third nation by which to import to Russia — smugglers are utilizing more and more lengthy and costly routes to ship the autos. Right here’s what officers are saying in regards to the smuggling.

Right here’s what else we’re conserving tabs on right now:

• 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 ultimate stargazing situations tonight amid the uncommon prevalence of a second new moon in a single calendar month.

With 2025 nearly upon us, try the most recent problem of our Week Forward e-newsletter, which lays out the key occasions of the approaching 12 months.

5 extra high tales

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

• Obituary: Whereas his one-term presidency continues to be broadly dismissed as a disappointment, Carter grew to become an influential ethical 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 document shareholder returns. The Euro Stoxx Banks index, which tracks the most important lenders within the forex bloc, has jumped by greater than a fifth in 2024.

3. Defaults on US bank card loans have hit the best degree 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 critically delinquent mortgage balances within the first 9 months of 2024, up 50 per cent from the identical interval within the 12 months prior.

4. Unique: A document variety of senior attorneys moved jobs in London this 12 months because the arrival of US legislation corporations within the capital continues to disrupt the market and gas pay wars for expertise. The UK’s “magic circle”, which incorporates corporations equivalent to Linklaters and Clifford Likelihood, have been significantly affected. Suzi Ring has extra particulars.

5. Unique: The variety of folks within the UK who admitted not paying tax on their abroad belongings jumped by 22 per cent in 2023-24, in accordance with authorities knowledge. The federal government has promised to lift billions of kilos by clamping down on tax evasion and avoidance. One knowledgeable stated: “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 harm from Israel’s air marketing campaign throughout its conflict in opposition to Hizbollah, consultants say. One preservation group says no less than 9 heritage websites had been utterly 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…

• Yr 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 faculties: A rising quantity within the UK are stated to be partaking in an “arms race” for amenities, contributing to an increase in charges as they woo the ultra-rich.

• Trump 2.0: The incoming US president is choosing nominees with vested curiosity to be answerable for key regulatory areas, presenting a systemic monetary danger, writes Patrick Jenkins.

• AI and androids: The know-how’s rise does not imply the robots are coming — no less than not but, writes Robin Harding.

Charts of the 12 months

With multiple and a half billion ballots solid in elections throughout 73 international locations, 2024 provided a uncommon alternative to take the social and political temperature of just about half of the world’s inhabitants. Right here’s what the “year of democracy” taught us, in six charts.

The preferred 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 reside outcomes map which confirmed outcomes as they got here in state by state. This was carefully adopted by our interactive story on polling knowledge, which allowed readers to chart doable paths to victory for both candidate.

And out of doors the political realm, Claer Barrett’s piece on methods to defend your monetary knowledge with the rise of telephone theft was the most well-liked. Her recommendation is as helpful now because it was when the story was first printed in Might.