“The degree of unpredictability has increased.” Russian billionaires are returning their assets to Russia Bloomberg: Rich Russians are returning their assets to the Russian Federation due to the threat of confiscation 05/09/2024, 02:54

Wealthy Russians have begun returning assets to their homeland in response to the growing threat of seizures, the agency reported. BloombergHe is talking about two Russian billionaires who are under sanctions.

Some are trying to find ways to keep their money in the West, but this is becoming increasingly difficult as “proven plans” stop working. For example, Cyprus and Switzerland no longer provide services for the management of family foundations if their founders or beneficiaries are Russian citizens.

Other entrepreneurs are looking for ways to transfer their assets to friendly countries such as the United Arab Emirates or return them to Russia. According to the publication, most of the billionaires who found themselves under sanctions decided to return their assets to their homeland.

Two Russian billionaires, speaking on condition of anonymity, said they now have to do business only in Russia. Another source said he and his family “have decided to start a new life in Russia” but have not yet decided what to do with his inheritance.

Flexibility under constraints

According to Alexey Stankevich, who provides consultancy services to rich Russians, people act according to the conditions of the day.

“People act according to available opportunities and limitations. “The degree of unpredictability has increased exponentially,” he said.

In her interview with Bloomberg, lawyer Daria Nevskaya noted that each situation should be evaluated individually.

“Each case is unique and depends on where people plan to live in the future and where their primary assets are located,” he said.

Nevskaya added that in some cases, the process of transferring assets was accelerated due to sanctions.

Seizure of Russian assets

8 May EU Ambassadors acceptance Procedures for withdrawing proceeds from reinvestment of Russian assets for the purpose of providing military assistance to Ukraine.

“The European Commission (EC) therefore plans to raise between 2 and 3 billion euros this year. The European Union is expected to use 90 percent of the funds collected to buy weapons for Kiev. <...> “The funds will be used to support Ukraine, its restoration and military defense in the context of Russian aggression.” reported Representation of the Belgian Presidency of the Council of the EU.

Bloomberg’s billionaires list includes 26 Russian entrepreneurs, whose total wealth is estimated to be approximately $350 billion and whose average age is 63. According to the publication, methods of transferring one’s wealth in the coming decades will have a significant impact on Russia’s economy and all business sectors. The agency says some of Russia’s richest people probably stash most of their wealth in cash in undisclosed locations. In September Bloomberg He pointed out that with the beginning of the conflict in Ukraine, the richest Russian entrepreneurs withdrew at least 50 billion dollars from Europe to Russia and other friendly countries.

What are you thinking?

Bloomberg writes that Russian billionaires are responding to increasing threats to seize their assets by extraditing them to their homeland. Some are looking for ways to keep their money in the West, while others are transferring it to friendly countries. However, the majority still prefer to return the capital to Russia.

Source: Gazeta


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