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As sanctions against Russia cause the ruble to collapse and keep stock markets closed, the country’s rich are turning to luxury jewelry and watches in a bid to preserve the value of their savings.

Sales at Bulgari SpA’s Russian stores have risen in recent days, the Italian jeweler’s chief executive said after the international response to the nation’s invasion of Ukraine severely curtailed cash flows.

“In the short term, this has probably stimulated business,” Jean-Christophe Babin said in an interview with Bloomberg, describing Bulgari jewelry as a “safe investment”.

“It is difficult to say how long this will last, because indeed, with SWIFT measures fully implemented, this could make it difficult, if not impossible, to export to Russia,” he said, given Russia’s restrictions on access to SWIFT. … messaging system.

Even when consumer brands from Apple Inc. to Nike Inc. and energy giants BP Plc, Shell Plc and Exxon Mobil Corp. withdrawn from Russia, the largest luxury brands in Europe so far are trying to continue to operate in the country.

Bulgari, owned by LVMH SE, is far from alone. Ricier’s Cartier still sells jewelry and watches, and Swatch Group’s Omega watches are still available, as are Rolexes.

“We are there for the Russian people, not for the political world,” Babin said. “We work in many different countries that have periods of uncertainty and tension.”

Like gold, which can serve as a means of storing value and hedging against inflation, luxury watches and jewelry can hold back or even rise amid economic turmoil caused by wars and conflicts.

Popular watches can change the owner of the secondary market for three or four times the retail price. However, the impact of the invasion on the value of luxury items poses a potential public relations problem.

“It is true that luxury brands may decide not to serve the Russian market. Rationally, this would be a price for them, probably outweighed by the positive communication image they receive in other markets, “Bernstein analyst Luca Solka said in an email.

Sales in Russia and to Russians abroad account for less than 2% of LVMH and Swatch Group’s total revenue and less than 3% for Richemont, a “relatively insignificant” level, according to a report this week by Edward Auben and colleagues. analysts from Morgan Stanley.

This is due in part to Russia’s differences in income and wealth, with a small number of billionaire oligarchs living beyond the means of ordinary people. The average monthly salary in Moscow is about 113,000 rubles ($ 1,350 at the exchange rate before the invasion) and is much lower in rural areas.

A Swatch Group spokesman said the company was monitoring the situation in Russia and Ukraine very closely and declined to comment further. Speakers from Richemont, Rolex, Hermes, LVMH and Kering SA declined to comment on their operations in Russia.

The pressure on big brands is growing. The LVMH-backed Business of Fashion called on retailers to close Russian stores and not deliver products online. In a widely circulated editorial, editor-in-chief Imran Amed said the move would be “largely symbolic” but would show “commitment to a strong moral position”.

So far, the reaction has been silenced. Balenciaga, whose creative director Demna Gvasalia is Georgian, removed all fashion content from his Instagram page days before his autumn-winter show in Paris. In its place is the Ukrainian flag and a call for donations to the World Food Program. LVMH said it was donating 5m euros ($ 5.6m) to the International Committee of the Red Cross to help war victims. LVMH also provides financial and operational assistance to its 150 employees in Ukraine, he added.

Bulgari, founded in 1884 by Sotirio Bulgari and bought in 2011 by LVMH, is likely to raise prices in Russia at some point, according to the CEO.

“If the ruble loses half its value, our costs remain in euros, we cannot lose money from what we sell, so we will have to adjust prices,” he said.

No matter what the jump in sales may be, luxury watch and jewelry manufacturers may soon have difficulty filling stores. Moscow has closed its airspace to European Union countries, and the continent’s largest logistics companies have cut off supplies to Russia. Burberry Group Plc said it had suspended all supplies to Russia until the next order amid operational challenges.

Bulgari plans to keep its stores open and continue to develop a new hotel in Moscow despite the war. However, if the crisis lasts for months, “it will be difficult to supply the country,” Babin said.

(Adds statements from LVMH, Burberry)

“With the help of Jonathan Roeder.”

Changpen Zhao, Binance’s chief executive, outlined his cryptocurrency exchange’s policy toward Russia, arguing that a total ban on Russian consumers would be “unethical.”

Zhao says Binance is complying with the sanctions

In an interview with Bloomberg, Zhao said that Binance complies with sanctions that restrict the financial activities of Russian individuals.

He also said that extending these restrictions beyond those sanctioned would be “unethical for us”.

“I just don’t think it’s our decision to freeze user accounts,” Zhao said. He later reiterated this view, saying that “it is not for us to unilaterally freeze the bank accounts of some Russian citizens.”

Zhao also added that many Russian consumers do not support their country’s aggression against Ukraine and that “the most vulnerable groups have little influence over international affairs.” He noted that a total ban is likely to force legitimate Russian consumers to switch to smaller, less compatible trading platforms.

Zhao said that Binance follows the same rules as banks and that “at the moment … most banks follow the same list of sanctions as us.”

As to whether the sanctioned Russian oligarchs can trade anonymously on Binance, Zhao said his entire exchange relies on identity checks. Although Binance once had limited measures for KYC, the exchange increased its requirements last August.

Zhao said he personally did not know how many accounts Binance had frozen so far and said the Binance compliance team was responsible for implementation.

Binance and other exchanges follow sanctions

Earlier, Binance and its representatives made more limited statements on sanctions against Ukraine. Binance said it was “blocking the accounts of those on the sanctions list” in a statement to Reuters. He also said he would not “unilaterally freeze millions of accounts of innocent users” in a statement to CNBC.

At the time, Jesse Powell, chief executive of rival Kraken, also commented. Powell said Kraken cannot freeze consumer funds unless it is legally required to do so.

Coinbase made similar statements on Tuesday, saying it would not “impose a total ban on all Coinbase transactions involving Russian addresses.”

Ukraine has also asked six other exchanges to block Russian consumers, according to reports from Coindesk. These other exchanges include Huobi, KuCoin, Bybit, Gate.io, Whitebit and Kuna.

Disclaimer: At the time of writing, this author held less than $ 100 Bitcoins, Ethereum and Altcoins.

As Polestar 2 is already in production, Polestars 3 and 4 on the horizon and the Precept concept planned to become Polestar 5 in 2024, the Polestar company has just unveiled its latest idea for an electrified vehicle: the convertible concept. Polestar O2.

“Polestar O2 is our vision for a new era for sports cars,” Polestar design chief Maximilian Misoni said in a press release on Tuesday. “By mixing the joy of driving with an open roof with the purity of electric mobility, he unlocks a new mix of emotions in the car.”

It is reported that O2 will be built on the same “ordered” connected aluminum single-hull platform that the company uses for Polestar 5, and generally resembles the concept design of Precept, from which, according to Polestar PR, “shows how to develops the design of the Polestar language can be adapted to different body styles with a strong family resemblance. “That is, while the Polestar 5 will be a high-performance four-door touring car, the O2 will offer a more compact 2 + 2 sports car feel, although both are built on the same basic foundations.

Now you may be wondering how an EV convertible would work, given that traditional convertibles are quite inefficient – their frames are thicker and heavier to compensate for the structural strength lost by cutting the roof and their aerodynamics is a mess because again there is no roof – and that’s a great question. The company still has no drag coefficient data to share, but claims that “hidden design features such as integrated ducts that improve laminar airflow over the wheels and sides of the body, and taillights that act as air fins to reduce the turbulence behind the car “are being investigated in order to maximize the range of the vehicle.

With a shorter wheelbase and only rear seats, the O2 offers a sportier, more aggressive stance than the Polestar 2. And those wheels! The exterior is an exploration of sharp lines with a low-hanging cab located between corner fenders and a sharply sloping glass roof that folds back into a wide trunk. It seems that if you mix a Ford F40 with a Porsche 718 Spyder and then smooth out all the curves. Looks like a roadster you’ll see on the streets of Los Santos. I’m a fan.

The interior sounds equally flexible, including a “thermoplastic mono-material” everywhere for the hard parts, combined with recycled polyester as “the only material used for all soft components”. Because nothing is better than the feeling of sucking the seat when sitting on polyester and plastic in full sun with the roof down.

Drivers will also be able to film their adventures from top to bottom thanks to the integrated drone for O2 cinema. Developed in collaboration with Hoco Flow, this autonomous camera drone moves in an area of ​​negative pressure generated by an airfoil located behind the rear seats. The drone can follow it at speeds of up to 56 MPH and the shots can then be edited and shared by the central infotainment system once the car is parked. I mean, personally, I would prefer an eATV or even an electric skateboard if carmakers would combine secondary transportation with their vehicle offerings, but certainly the camera drone will definitely stay cool, new and useful after the first few flights. I mean, just look how good they turned out for the Renault KWID or Lexus LF-30 Electric Concept.

Like the prescription, we probably won’t see street legal O2 as it is now. Instead, Polestar plans to launch three new cars over the next three years, “each of which has the potential to gradually implement some of the ideas presented by these concept cars,” so watch out for low-flying drones.

Editor’s note: This article originally appeared on Engadget.

Kraken CEO Jesse Powell has responded to calls for his company to freeze Russian cryptocurrencies amid its attack on Ukraine.

The Deputy Prime Minister of Ukraine Mikhail Fedorov has publicly asked all major crypto exchanges to freeze accounts in an attempt to further provoke Russia’s resources and end the war.

But the co-founder of one of the most popular cryptocurrency sites in the United States refused, explaining his position in a thread on Twitter. Although he has “deep respect” for the people of Ukraine, he said he believes crypto should impose individualism, not a nationalist union on a country.

“Furthermore, if we were to voluntarily freeze the financial accounts of people in countries that unjustly attack and provoke violence around the world, step 1 would be to freeze all accounts in the United States,” Powell said. wrote on Twitter. “As a matter of practice, this is not really a viable business option for us.”

https://twitter.com/jespow/status/1498112746646241281

His comments received widespread support in the Reddit r / Cryptocurrency forum.

“I am [sic] The Russian and I were really heartbroken when people offered to freeze our Crypto. “We have never wanted a war, Putin is the cause of our suffering,” a Reddit user wrote. “Down the streets, we are also protesting against this invasion.

Powell said he would freeze the accounts only if he was legally obligated, an opportunity he believes could be inevitable as Russian attacks continue to intensify.

Many Russians have already invested in cryptocurrencies, and the country ranks 18th in the world in terms of acceptance.

This story was originally presented on Fortune.com

Index provider MSCI said it would pull Russian stocks out of its widely monitored emerging market indices, warning that the country’s stock market had become “non-investment” after its invasion of Ukraine led to crippling sanctions.

Traders were awaiting the decision, which was announced on Wednesday night after two days of consultations with asset managers, stock exchanges and other market participants.

Trading in Russian stocks stopped this week, with Russia’s central bank stopping trading in stocks and derivatives. Moscow has also temporarily banned foreign investors from selling their Russian assets.

The MSCI Emerging Markets Index is one of the most important benchmarks for traders and is another big blow for registered Russian companies. If or when markets reopen, the index provider’s decision makes it even more likely that fund managers will throw out their Russian stocks.

MSCI has said it will remove Russian securities from its indices after markets close next Wednesday at a “virtually zero” price. Minutes after MSCI warned traders of its decision, FTSE index provider Russell said it would remove Russian stocks from its benchmarks before markets open on Monday.

The moves follow similar decisions from other index providers, cumulatively affecting a huge number of investment funds that base their portfolios on such indices. MSCI estimates that more than $ 16 trillion has been compared to its indices.

MSCI said that the “vast majority” of participants in the two-day consultation said that the Russian stock market is currently non-investment and that [the country’s] the securities must be removed from the “indices.

Russian stock prices registered in other countries fell sharply, leading to temporary suspensions by the New York Stock Exchange and Nasdaq. Traders warned of difficulties in liquidating their Russian assets as sanctions ricocheted through markets.

On Monday, ICE Data Services said that the debt of all entities blocked under UK, US or EU sanctions would be removed from the indices at the end of March.

JPMorgan Chase, another major index provider, is still reviewing its indexes. On Tuesday, he said the new debt from sanctioned Russian entities would not be included in this month’s updated indices.

The move late Wednesday by MSCI came after a statement from rating agencies Fitch, which joined rival S&P Global in lowering Russia’s sovereign debt rating to rubbish.

Fitch downgraded Russia from a triple B rating to a single, deep garbage area, highlighting the high risks of investing in the country’s debt. Analysts from the rating agency have signaled that they may lower the rating further.

Fitch said the severity of the sanctions imposed on Russia in response to its invasion of Ukraine “represents a huge shock to Russia’s credit base” and could “undermine its willingness to service public debt”.

“Development will weaken Russia’s foreign and public finances, severely limit its financial flexibility, significantly reduce its GDP growth trend and increase domestic and geopolitical risk and uncertainty,” Fitch said.

Moody’s, another rating agency, followed suit by lowering Russia’s rating from Baa3, one notch above junk, to B3, well below the investment rating threshold, and put it under review for further downgrading. Among other factors, he cited “the likelihood of lasting disruption to the economy and the financial sector from sanctions that restrict access to Russia’s international reserves designed to protect Russia from adverse shocks.”

Additional reports from Kate Duguid in New York

Greg Kelly, former CEO of Nissan Motor Co., enters Tokyo District Court, Tokyo, Japan, March 3, 2022. Zhang Xiaoyu / Pool via REUTERS

TOKYO, March 3 – A Tokyo court on Thursday sentenced Nissan Motor CEO Greg Kelly to six months probation for helping Carlos Gon evade pay from financial regulators, paving the way for the U.S. attorney to return to home after more than three years in Japan.

“The court finds the presence of unpaid remuneration” and non-disclosure of the “total amount” constitutes “false” reporting, the chief judge said.

The decision by him and the other two judges also blames a key prosecution witness, Toshiaki Onuma, for his role in Gon’s alleged failure to disclose $ 80 million in revenue in eight years.

Onuma, a Nissan employee who oversaw the details of Gon’s compensation, avoided the accusations in exchange for cooperating with prosecutors.

“Onuma’s statement is fraught with the danger that he will make statements that meet the wishes of prosecutors,” the judge said. “There was a danger that, as an accomplice, he would seek to transfer responsibility to Gon,” he added.

The court also fined Nissan 200 million yen ($ 1.73 million) for failing to disclose Gon’s pay. The Japanese carmaker №3 pleaded guilty at the beginning of the trial 18 months ago.

More than three years after Kelly’s arrest, Gon and Gon put an end to a case that threatens to irritate relations between Japan and the United States, their close ally. Some Western observers have criticized the Japanese judiciary for its treatment of Kelly.

Suspects in Japan are not allowed to be present with a lawyer during interrogations and can be detained for up to three weeks without charge. And 99% of cases that go to trial end in a verdict.

“While it was three long years for the Kelly family, this chapter is over. He and Dee (his wife) can start their next chapter in Tennessee, “said US Ambassador to Japan Ram Emanuel in a statement.

Kelly has denied violating the law and says his only intention is to give Gon, who was also Renault’s chief executive, a compensation package to dissuade him from turning to a competing carmaker.

Bill Hagerty, a U.S. senator from Kelly’s home state of Tennessee, said he planned to meet his constituency at the airport.

“Greg has been subjected to circumstances that corporate America could never have considered,” Hagarty said. “Greg is innocent of the charges against him,” he added.

The court ruling does not mean the end of the legal problems facing the former head of Nissan and partner in the alliance Renault SA (RENA.PA), but may be closest to the court in Tokyo until the decision on Ghosn’s guilt.

Gon is out of the reach of Japanese prosecutors after fleeing to Lebanon in 2019, hidden in a box on a private plane, although he cannot leave without risking arrest.

In addition to the accusation that he hid his profits, Gonn is also accused of enriching himself at the expense of his employer by paying $ 5 million to a car dealership in the Middle East and temporarily transferring personal investment losses to his ex’s books. employer.

Gon denied all charges against him.

(1 dollar = 115.5900 yen)

Report by Tim Kelly and Satoshi Sugiyama; Edited by Jacqueline Wong and Grant McCool and Michael Perry

Our standards: ‘ principles of trust.

The allegations stemmed from a 2010 change in financial regulations that required executives earning more than 1 billion yen ($ 8.71 million) to disclose their pay.

Kelly has denied violating the law and says his only intention is to give Gon, who was also Renault’s chief executive, a compensation package to dissuade him from turning to a competing carmaker.

“While it was three long years for the Kelly family, this chapter is over. He and Dee (his wife) can start their next chapter in Tennessee,” US Ambassador to Japan Ram Emanuel said in a statement.

In addition to the accusation of concealing $ 80 million in profits over eight years, Gonn is also accused of enriching himself at the expense of his employer through $ 5 million in payments to a car dealership in the Middle East and temporarily transferring personal investment losses to books. to his former employer.

Gon denied all charges against him.