Topline
Thousands of Russian millionaires may be preparing to leave their country as the war with Ukraine continues, the U.K. Defense Ministry said on Friday in its daily intelligence update, signaling possible opposition or concerns among Russia’s elite about the economic costs of foreign sanctions.
Some 15,000 Russian millionaires are reportedly planning to leave Russia, fearing the economic costs … [+]
Key Facts
Some 15,000 Russian millionaires have filed migration applications and may currently be preparing to leave the country, the intelligence update said.
The ministry notes that the potential exodus may be motivated either by people’s “personal opposition to the invasion” or fears about the economic impact of western sanctions against Russia.
The exit of a large number of wealthy Russians from the country may only serve to worsen its long-term economic prospects, the update noted.
Despite the Kremlin’s efforts to crack down on all opposition to the war, several Russians have joined the so-called “Freedom for Russia Legion” which is now fighting alongside Ukrainian forces, the report adds.
Key Background
As its progress in Ukraine has slowed to a grind, Moscow has moved to pass laws to silence any opposition to the war within Russia, including a 15-year jail sentence for sharing what is deemed as false information about the military. Most of Russia’s elite have either expressed support for the war or remained silent about it. Those who have been vocal against the invasion, like banking tycoon and former billionaire Oleg Tinkov, have reportedly faced backlash from the state. Last month, Tinkov said he was forced by the Kremlin to sell his stake in Russia’s second-largest bank without any opportunity to negotiate. Tinkov, who now lives in Italy, has been vocal in his opposition to what he has labeled as a “crazy war.” The former billionaire suggested several members of Russia’s business and government elite agreed with him in private but were too scared to speak out.
Tangent
Multiple Russian oligarchs and their foreign-owned assets have been targeted by Western sanctions since the start of Russia’s invasion. This has led to the seizure of multimillion-dollar yachts and villas owned by oligarchs with close ties to Russian President Vladimir Putin. Earlier this month, U.S. officials formally seized a superyacht linked to Russian gold magnate and billionaire Suleiman Kerimov. Yachts owned by other Russian billionaires like Igor Sechin and mining magnate Alisher Usmanov have also been seized by European authorities. The most high profile of these seizures took place last month when Italian authorities seized a super yacht believed to be owned by Putin himself.
Further Reading
Meet The Russian Billionaire Who’s The Proxy Owner Of Putin’s $500 Million Yacht (Forbes)
The Forbes Ultimate Guide To Russian Oligarchs (Forbes)
A Guide To The Private Jets And Helicopters Owned By Sanctioned Russian Billionaires (Forbes)
Evading Sanctions: A How-To Guide For Russian Billionaires (Forbes)
Source: https://www.forbes.com/sites/siladityaray/2022/06/17/15000-russian-millionaires-are-trying-to-exit-the-country-amid-war-in-ukraine-uk-says/