A brief VIP welcome and a limousine ride later, and the oligarchs find themselves in a world that has little interest in Moscow’s invasion of Ukraine or Putin’s attempts to punish him, and instead has willingly embraced his aides. Perhaps more than anywhere else in the world, oligarchs and other liquidated Russians are welcome in Dubai, along with their wealth, which floods the UAE in unprecedented amounts – often by discreet means. The UAE has not followed Western governments in using sanctions in retaliation for the invasion of Ukraine. Bankers, real estate agents, car dealerships and marinas report strong demand for homes, sports cars and dock as the influx settles into an oil-rich monarchy that has made its way into Putin’s Russia and is not afraid to reveal US allegations to do it. Transactions, from elite real estate sales to leases, are largely made using cryptocurrencies, but some were direct transfers from Russian financial entities linked to tycoons under sanctions, a regional intelligence source told the Observer. Such moves undermine US and EU sanctions on Russian leaders’ allies and are a powerful lure for the next generation of Russian businessmen who fear the same fate. Real estate agents in Dubai cite one of the biggest upward markets of all time, as Russian investors seize invisible apartments, either by buying them directly or by paying one year ‘s rent in advance. “It was incredible,” said Alan Pinto, a finance consultant at Espace Real Estate in Dubai Marina. “A radical number of Russian investors are buying units. Even tenants; we had a huge number of calls. They transfer their money through encryption. “They have an intermediary who will do it for them and then the cash goes to the owners.” Roman Abramovich is reportedly looking to buy a luxury home in Dubai. Photo: Matt Impey / Shutterstock Rumors are circulating among Dubai brokers that billionaire and former owner of the Chelsea football team, Roman Abramovich, is in the market for a luxury base on the coveted coast of the city. One of his jets was a regular visitor to the air base and a yacht attached to it has anchored in nearby Gulf waters. Abramovich’s property is under scrutiny around the world, including the French territory of St Barts in the Caribbean, where he owns luxury homes in Gouverneur Bay, close to complexes owned by other oligarchs. It is believed to have funded significant upgrades to public facilities, including roads and car parks, earning the favor of local authorities. “The same will happen in Dubai,” said a real estate agent who has sold two luxury properties worth up to $ 20 million to Russian investors over the past three weeks. “They know how to deal with local authorities and become good neighbors. “Many of the new investors are very silent,” Pinto said. “They will never buy directly, they make companies do it on their own.” While the oligarchs’ planes continue to fly between Moscow and Dubai, so do commercial flights. There is no indication that cash flow between the two cities has slowed and there has not been enough local reaction to a move earlier in March by the Global Financial Crimes Task Force to put the UAE on its “gray” list. , which means that the origin of some money in the UAE could be considered opaque. Among bankers, power brokers and global tycoons, the UAE has long been known as a questionable investment environment with few questions. Residence permit and bank account can be obtained within 30 days of registering a company. You can buy a permanent home for the price of a luxury villa – about $ 1.5 million. Top bank employees may sign up soon. Goldman Sachs was one of the first US banks to announce the closure of its Russian operations. It had about 80 employees in Moscow before the conflict, about half of whom are now moving to Dubai. A small number of JP Morgan’s 160-strong workforce in Moscow is also relocating, although many workers are still in Russia and expanding their operations there. It is understandable that the easy availability of Dubai visas played a role in choosing the relocation. The private bank Rothschild, whose asset management unit reportedly decided to stop accepting new Russian customers, is also said to be moving some of its staff based in Russia to the Emirates. The bank did not respond to a request for comment. The UAE government claimed to have taken significant steps to regulate the inflow of money. The ready acceptance of Russian wealth in an era of global control of Putin’s economic tsars may test this claim. But even more controversial is the relationship between the UAE and Washington, as Emirati leaders move closer to China, which as a geopolitical adversary is emerging as a potential hub for an alternative financial system. The Chinese cross-border payment system, Cips, is being touted as a replacement for Swift – a development that could change the nature of global funding and reduce the impact of sanctions on Russia. Although such a move does not seem likely – at least in the short term, Emirati leaders have not hesitated to show resentment for US President Joe Biden, who they believe has avoided a long-term strategic partnership, at a time when Putin is ready. to hug them. It’s hard to know if they want to actively send a message to Washington that they are frustrated with the US position The war in Yemen has widened the rift. In January, Houthi forces claimed responsibility for an apparent drone strike in Abu Dhabi that killed three people and left flames blazing from an oil depot. “They are particularly upset about Yemen and the fact that they did not receive a phone call from Biden after the Abu Dhabi strike by drones and rockets fired by the Houthis,” said a expatriate in Dubai who knew the government’s position. Julien Barnes Dacey, head of the Middle East and North Africa program at the European Council on External Relations, said: what does this Western motive for anti-Russian sanctions really mean? “It’s hard to know how much it fits in with the recent sense of risk in the UAE and whether they want to actively send a message to Washington that they are frustrated with the US position in general and are happy to go their own way.” In Dubai, bling is back. The boulevards that were silent during the peak of the pandemic are pulsating with the roar of sports cars, some driven by locals, others by young Russians. Above them dominates the tallest building in the world, the Burj Khalifa, which shines like a giant Disney castle with all kinds of representations of light. A Russian family photographs the building at sunset. “It will soon be red, blue and white,” one visitor told his Emirates host, referring to the tricolor flag of Russia. “I will arrange it,” the host replies with a laugh.
