Dear readers, how damaging they are

western sanctions

Russia?

Our Moscow correspondent Friedrich Schmidt took a closer look at the mood in the country, shopping scenes and the more or less meaningful figures.

In the spring of 2022, it was temporarily assumed that

Russia's gross domestic product (GDP)

would fall by 10 percent.

According to various estimates, it is now said to have shrunk by 2.5 to 3.5 percent.

But according to forecasts from before the raid, Russia's GDP was expected to grow by 3 percent in 2022.

And it keeps going down.

A decline of 0.8 to 2.7 percent is expected for this year, with growth only starting in 2024.

Economists point out that wartime GDP

has little to do with the true state of the economy

states: tanks, assault rifles and rockets do not end up on the open market.

The fact that Russia is buying drones in Iran is a testament to the lack of high technology in this area as a result of the sanctions.

The prospects for Gazprom, Russia's gas export monopoly, are bleak.

Moscow had banked on "General Frost", a cold winter with high gas consumption, to persuade the EU to back down on the sanctions.

The mood is bad, so is the location, and it's not just the fish in the mall that are suffering.

Carsten Knop

Editor.

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Real estate can be fun when you make a lifelong dream come true or when it increases in value significantly, as it has over the past ten years.

But they can also cause trouble.

For example, if they are inherited or in the event of a divorce.

Then

the beautiful house quickly becomes an object of dispute

.

Everyone wants it, and those who don't get it feel like a loser.

Dyrk Scherff, editor in the "Value" department of the Frankfurter Allgemeine Sunday newspaper, has researched what you need to know about such cases.

Because disputes can be avoided or at least steered in a reasonable direction.

There are different recommendations for inheritance and divorce.

Gerhart Flothow has a lot of experience with this.

He is a mediator for real estate disputes in Mainz and tries to mediate between heirs and spouses in divorce in order to avoid court proceedings.

When it comes to inheritance, Flothow finds one of the most important things that the parents

discuss the distribution of the

inheritance with the children while they are still alive.

And: the house is sometimes only supposed to be a jewel.

Because it is often forgotten that the parental home requires high maintenance expenses in old age.

Then a new roof and a new heating system are due.

Such costs must be taken into account when calculating compensation for the other children.

When it comes to divorce, it is important to keep a cool head, even if it is difficult: a hasty sale is often the worst solution, at least financially.

Let's stay on the topic of real estate, because this week our finance expert Volker Looman dealt with the question of what needs to be considered when

founding a

corporation in order to be a

real estate owner

to save taxes.

More precisely: He describes why this is not a good idea and can even be dangerous.

His calculations are revealing: the difference in tax benefits vanishes into thin air when the annual surplus is distributed.

If they are accumulated because the money is not needed, the limited liability company's advantage is so small that it is not worth establishing the company.

The GmbH becomes dangerous if individual objects are sold during the rental period, and things really get down to business when the GmbH is dissolved at a given time because the landlord is pursuing new goals.

Then significant parts of the assets flow into the state treasury.

Thank you for your kind interest in our digital offerings. If you have an F+ subscription and have any questions, please write to me: c.knop@faz.de.

Have a nice weekend and best regards

Yours sincerely, Carsten Knop


Publisher


Frankfurter Allgemeine Zeitung