Russian money in London is the flow of capital from Russia to the United Kingdom since thedissolution of the Soviet Union which has had a noticeable impact on the London economy. Colloquially the impact of the capital flow is referred to as "Londongrad" and "Moscow-on-Thames".[1]
Russian money has been prevalent inLondon since thedissolution of the Soviet Union in 1991,[1] following which manyRussian oligarchs sought to invest their wealth in other countries.[2] British Government policy encouraged the flow of foreign capital into the United Kingdom, for example through theforeign investor visa routes, introduced duringJohn Major'spremiership in 1994, one-fifth of whose recipients since 2008 are Russian citizens.[1] Additional funds flow to British overseas territories, commonly used as tax havens, such as theCayman Islands andBritish Virgin Islands.[3] The concept[which?] is commonly associated with the terms "Londongrad" and "Moscow-on-Thames".[1]
Over £27bn is invested by Russian citizens in the United Kingdom.[3] Amongst the investments arePremier League football clubs, Scottish country estates, and theEvening Standard.[4]Tate art institution was supported byViktor Vekselberg andPeter Aven.[5]Alexander Mamut invested £100m toWaterstones bookstore chain after acquiring it in 2011 for £53m. According to its managing directorJames Daunt, the intervention saved Waterstones, which managed to make its first annual profit since 2008 in 2016.[6] He later remarked that continued Russian ownership would've been "catastrophic" for the chain in 2022.[7]
According toTransparency International, at least £1.5bn is invested into UK property by Russians "accused of financial crime or with links to the Kremlin".[8] In 2018, following thepoisoning of Sergei and Yulia Skripal, a report titled "Moscow's Gold: Russian Corruption in the UK" was published by theForeign Affairs Committee.[9] In 2020, theIntelligence and Security Committee said that the influence of Russian business was so deeply embedded in the British financial system that it "cannot be untangled".[3][10]
Following the2022 Russian invasion of Ukraine there was a political desire to take action against UK-based oligarchs.Unexplained wealth orders are expected to be better enforced and foreign investor routes[which?] scrapped. TheEconomic Crime Bill was also revived and it includes a register to improve transparency of ultimate land ownership, currently obscured through the use of shell companies.[11] Reuters reported that some Russian citizens have been making ownership changes and consulting lawyers to shield their assets.[3]
A substantial portion of Russian capital inLondon has been channelled into residential real estate via shell companies and offshore vehicles, making it difficult to trace the beneficial ownership of assets. Research suggests that tens of thousands of properties in London are owned by offshore entities, many of them with unknown or opaque owners. For example, a study estimated that over 42,000 London properties, collectively worth over £56 billion, are held by offshore entities, often in low-use or nearly empty states.[12]
In addition,British banks have been revealed to have processed hundreds of millions of dollars potentially originating from illicit Russian flows. In 2017, TheGuardian reported that British and foreign banks in London handled around $738.1 million in transactions linked to criminal money fromMoscow, through a network of anonymously owned companies registered in London.[13]
These mechanisms underscore how real estate investment, shell companies, and financial intermediaries have enabled the concealment and integration of Russian wealth into London’s property and financial markets.