Hi Global Recap readers,

Today’s main story is a bit of an unusual one for me. But I had to write about it.

It’s not “politics” per se, but an interesting cash-cleansing drama involving a French billionaire (second richest in the world) and a Russian oligarch.

Such a wild story.

🌐 Here’s what’s up around the world:

• 🇸🇪 Sweden’s PM Calls for Military Help to Fight Gangs.

• 🚨 Putin Sends Wagnerites to Ukraine After Prigozhin’s Death.

• 🕌 Twin Bombs Blast Two Mosques in Pakistan on Prophet’s Birthday.

• 🌊 EU Leaders in Malta to Tackle Migration Crisis.

• 💰 Money Laundering Scandal: Arnault & Russian Oligarch.

Let’s get into today’s news.

📈 Top News

🇸🇪 Sweden’s PM Calls for Military Help to Fight Gangs. Sweden is facing a surge of gang violence that has left 12 people dead in September alone. Prime Minister Ulf Kristersson blames the crisis on “irresponsible immigration policy and a failed integration.”

More Power to Police. He plans to introduce new laws to give police more power, impose harsher sentences, and deport foreign criminals. Meanwhile, he is seeking the help of the armed forces and the police to hunt down and defeat the gangs.

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🚨 Putin Sends Wagnerites to Ukraine After Prigozhin’s Death. The Kremlin is trying to revive its private army, Wagner, after its chief Yevgeny Prigozhin died in a plane crash. Putin has ordered one of Wagner’s top commanders, Andrei Troshev, to lead “volunteer units” in the war zone.

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🕌 Twin Bombs Blast Two Mosques in Pakistan on Prophet’s Birthday. At least 52 people (numbers may vary) were killed and dozens injured in suicide attacks on two mosques in Pakistan’s western provinces. The blasts occurred as worshippers gathered to celebrate the birthday of Prophet Mohammad.

These bombings are in line with the recent surge of militant attacks in Pakistan’s western provinces. No group claimed responsibility for the attacks.

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🌊 EU Leaders in Malta to Tackle Migration Crisis. The heads of nine Mediterranean countries are meeting in Valletta, Malta, to discuss how to deal with the influx of migrants and asylum seekers from North Africa.

Click for more

✍️ In-Depth

France
Money Laundering Scandal: Arnault & Russian Oligarch

👑 The King of Luxury Under Scrutiny. Bernard Arnault, the world's second-richest individual and CEO of LVMH, a luxury conglomerate with brands like Louis Vuitton and Hublot, is under investigation in France for suspected money laundering tied to a Russian oligarch.

This is already starting to sound wild…

🎿 The Ski Resort Scandal. The investigation centers on a complex real estate transaction in Courchevel, a posh ski resort in the French Alps, involving Arnault and Nikolai Sarkisov, a Russian billionaire insurance tycoon.

💰 The Money Trail. Okay, try to follow this complex web of transactions:

• Sarkisov allegedly bought 14 properties in Courchevel in 2018 for 16 million euros ($17 million) through a company called La Fleche. Although believed to be the oligarch’s, it does not bear his name.

• This company then bought three more properties from another company that Sarkisov allegedly also owned.

Are you following? Now, this is where Arnault comes in.

• Arnault is suspected of lending Sarkisov 18.3 million euros ($19.4 million) for the deal.

Why did Arnault lend the Russian oligarch money?

• Arnault then allegedly acquired the company, La Fleche, which bought the properties - making him the ultimate owner of the real estate portfolio.

• Remember the three extra properties the company bought from Sarkisov’s second company? Sarkisov allegedly pocketed a capital gain of 1.2 million euros ($1.3 million) from this deal.

• So at the end of it all, the oligarch essentially sold three of his own properties to Arnault by buying them through La Fleche, then selling La Fleche to Arnault. And… he also purchased 14 properties on behalf of Arnault (allegedly).

Hopefully, you were able to follow this complex money trail.

🕵️ The Hidden Agenda. The French financial intelligence unit Tracfin reportedly found that the ownership change could have been designed to “hide the exact origin of the funds” and the identity of the “ultimate beneficiary.” Investigators are trying to figure out exactly how much Sarkisov paid for the loan and how much he made from the operation in total.

🙅 The Denials. Both Arnault and Sarkisov have denied any wrongdoing.

• A spokesperson for LVMH said that the operation was “carried out with the strictest observance of the law”.

• People close to Sarkisov said that he was not personally involved and that the capital gain was minimal.

🤷‍♂️ The Aftermath. The probe could tarnish Arnault’s reputation as the king of luxury and one of France’s most influential businessmen. It could also raise questions about his ties to Russia and its elite.