Some of the wealthiest people in Russia, including trusted allies of Vladimir Putin, have moved billions of dollars abroad over the past year. The decision comes against the backdrop of concerns about the country’s economy and budget deficit.
Asset seizures have heightened fears among the Russian elite, writes Agerpres. The wealthy fear the state could confiscate their fortunes or that they could lose their wealth, according to six affluent Russians and other people familiar with the mindset of some of the country’s billionaires, as reported in an article published by Bloomberg.
Several billionaires have recently moved their assets out of Russia, amid growing concerns about the banking sector, according to statements from individuals and corporate documents and real estate acquisitions analyzed.
There has been a shift in the portfolios held by some of the wealthiest individuals in Russia over the past year, and the trend has accelerated in recent months. Billionaires are investing in cryptocurrencies, gold, overseas properties, and private investment funds, particularly in the Gulf.
For decades, Russian billionaires have been well received in the West, enhancing their reputation through major business transactions, costly property acquisitions, and parties. After Putin ordered in February 2022, sanctions targeted several businessmen and forced them to return to Russia.
Putin is looking for ways to increase revenues, against the backdrop of war. The Russian leader wants to protect defense spending, reducing those in other sectors. While much of the country is struggling, billionaires increased their wealth last year, which leads to increasing pressure on them to share the burden.
A businessman has admitted that he is moving his money to countries like Cyprus and the United Arab Emirates (UAE) amid fears of state pressures on oligarchs. Two others say they are investing in the United Arab Emirates, Turkey, or Saudi Arabia, while the fourth claims he is doing business in Africa.
Last year, prosecutors managed to return assets to the state, which they valued at over 4000 billion rubles, being targeted.