Russian capital Flashcards
How much illicit wealth is thought to leave Russia each year?
Capital Flight escaping from Russia rose to record levels in 2015, with $131 billion leaving the country and $110 billion expected to have left during 2016
How much Russian money is estimated to have come into the UK?
A 2015 study by Deutsche Bank, using figures from the Russian Central Bank and Bank of England, indicates around £100 billion has secretly flowed into the UK since 2006, significant amounts of which was from Russia.
Why is capital from Russia coming to the UK?
This flight is being driven by a multitude of factors, one being widespread corruption which has caused economic instability and political uncertainty (61%GCB thought corruption same or increasing in Russia)
The deoffshorisation process may be having the opposite effect, with wealthy Russians redoubling their efforts to move their assets out of Russia before the Government seizes them
Where (within the UK) are Russians investing their money?
Property is a popular ‘asset class’ for Russian investment, in 2013 Knight Frank placed Russians as the biggest spenders on property worth more than £1 million in London. More recently it appears that Russian investors are looking further afield as Clapham, Islington and Pimlico showed higher levels of Russian investment, rising from two to 11 per cent of market share in those areas between 2014 and 2015.
In addition to this at least £729 million of Russian wealth has been invested into the UK through the Tier 1 (Investor) visa scheme
