Russian billionaires are moving their capital abroad due to fears of confiscation
Several of Russia’s wealthiest businessmen, including individuals close to Russian President Vladimir Putin, have transferred billions of dollars abroad over the past year. This is according to Bloomberg, citing six wealthy Russians and other sources familiar with the decisions of members of the Russian business elite.
According to the sources, concerns have been fuelled by the slowdown in the Russian economy, the state of the national budget, and an increase in instances of the state seizing assets. High-profile asset confiscations have heightened fears that the authorities may strip big business figures of their wealth.
According to the agency, some billionaires have also recently moved additional assets out of Russia due to concerns about the banking sector. This is evidenced by sources speaking to Bloomberg, as well as corporate documents and property purchase records reviewed by the publication.
According to the sources, over the past year – and particularly in recent months – there has been a reallocation of the investment portfolios of Russia’s wealthiest individuals. Capital is increasingly being channelled into cryptocurrencies, gold, overseas property and private investment funds, primarily in the Gulf states.
Kremlin spokesperson Dmitry Peskov did not respond to a request for comment from Bloomberg.
Following the start of Russia’s full-scale invasion of Ukraine in February 2022, international sanctions forced many Russian businessmen to repatriate some of their assets to the Russian Federation and re-register their companies there. At the same time, a significant portion of their assets abroad was frozen.
In Russia itself, according to the agency, the authorities have stepped up the seizure of assets from a number of major business figures since 2024, particularly those who maintained ties with the West or had previously held government posts. An additional factor was the economic slowdown, which reduced business profits and limited opportunities for investment within the country.
Bloomberg’s sources note that it is difficult to estimate the exact volume of unofficial capital outflows, particularly due to the use of opaque cryptocurrency transactions. At the same time, they estimate that tens of billions of dollars have left Russia this year outside official statistics, exceeding last year’s figures.
According to the agency, Russian President Vladimir Putin is seeking additional sources of revenue for the budget following warnings from financial officials about excessive spending on the war against Ukraine. At the same time, he is seeking to maintain defence funding by cutting other areas of government spending.
Bloomberg sources also reported that, following a closed-door meeting with Putin in March, some business leaders became even more concerned about potential pressure from the state. During the meeting, businessman Suleiman Kerimov proposed that those present make a significant financial contribution to the state, and Putin supported this initiative. Subsequently, Dmitry Peskov denied that the president had demanded such contributions from businesspeople.
One of the business leaders told the agency that he had begun transferring funds to Cyprus and the United Arab Emirates. Other sources reported investments in the UAE, Turkey, Saudi Arabia and African countries.
According to Bloomberg, there is also growing interest among Russian investors in purchasing high-end property in Dubai, Turkey and Monaco.
New mechanisms are being used to move funds abroad. One of these is said to be Dubai as a hub for cryptocurrency transactions. Informal financial routes via Armenia, Kazakhstan and Kyrgyzstan, where the A7A5 stablecoin is used, are also being utilised with increasing frequency.
The article also notes that concerns about the stability of the Russian banking system have intensified following warnings from banking officials last year about high levels of debt. In May, the pro-Kremlin Centre for Macroeconomic Analysis and Short-Term Forecasting reported signs of a possible systemic banking crisis.
