Avoiding sanctions, rich Russians want to ‘exchange’ London for Dubai

Lists of Russian properties in London have been spread by high-end real estate brokers in Dubai in recent weeks, according to Financial Times. The listing includes a £34 million ($43 million) Knightsbridge mansion and a three-bedroom Eaton Square apartment with an asking price of £8 million ($10 million).

This is the property of Russians who want a new property in Dubai, but do not want bank transfers or financial scrutiny, according to the people involved in the transaction. Potential buyers are being offered deep discounts on other UK properties so the transaction can be completed quickly.

Dubai has become the paradise of Russians as well as their huge wealth. reuters

“Changing houses” is the latest option of wealthy Russians who are facing many risks from the Western financial system after Moscow launched “military campaign” in Ukraine at the end of February. To date, about 1,000 individuals and companies have been punishmentwhile others face additional checks and difficulties transferring money and opening bank accounts.

But many in Dubai cast doubt on how such a “swap-out” arrangement could be organized, and whether any residents of the United Arab Emirates (UAE) would risk such a deal. this or not.

“I very much doubt that this can be done, there are simply too many documents to be provided in London,” said one. business man in Dubai, who was introduced to a list of properties by a real estate agent for exchange. “But it shows what they’re willing to do to get around the financial system.”

A lawyer in Dubai said difficulties would arise because any transaction would need to take into account registration tax and other costs in both the UK and the UAE.

However, some argue that as long as the seller is not penalized, such transactions can be effectively organized if a purchase agreement is entered into on each side. “It’s completely legal,” said another lawyer in Dubai.

Dubai has become heaven of the Russians as well as their huge wealth, as they seek to leave the Western countries because of the war in Ukraine. The UAE remains neutral on the conflict, ensuring that the Gulf state remains open business for both Russians and Ukrainians.