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Wednesday, April 27, 2022

8,000 High-End Luxury Vehicles Seized From Russian Buyers!

       I found another great story that "slipped under the radar" for normal media outlets. Some 8,000 high-end luxury cars are stranded at the Belgium port of Zeebrugge. There are indications of a similar collection of unshipped luxury cars at a major Dutch port. Here is an excellent link:

 

https://luxurylaunches.com/transport/luxury-cars-blocked-from-export-to-russia.php

    

     Very affluent Russians paid hard cash to buy these 8,000 or more luxury cars. Now the cars are stuck. Sanctions have stopped their shipment. I'm sure that the buyers have received a legal notice with wording like:

        "We have probable cause to believe that the funds used to purchase your vehicle were the fruit of illegal activity. Before we can release your car, we will require documentary proof that the funds for this purchase were lawfully obtained and properly disclosed to local taxation authorities."

     Corruption and a phenomenon called kleptocracy are a way of life in Russia. Before the Ukraine war, European authorities knew that illegal money was being used by Russians to purchase luxury cars, houses, etc. They turned a blind eye rationalizing that it was not their problem. Now it is their problem.

     Anytime you get a notice like this concerning the seizure of an asset of yours, "you're in for the hassle of your life." The legal fees, accounting fees, etc., can easily run into a cost of hundreds of thousands of dollars. Complicating matters worse is that any car buyer will have to get certified translations of a lot of documents in Russian into English. One’s legal bill would far exceed the value of the asset.

     Most likely, most of these car purchasers used illegal means to obtain the funds for these cars. There could be a few people who worked hard and honestly to get the funds to buy the cars. Their hard-earned money is gone.

     Eventually, these luxury cars will be sold and the money spent on armaments for or rebuilding Ukraine.

 

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