Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: One was killed, another injured in a raid by an Israeli drone on the city of Khiam in South Lebanon
London views possibility of setting fire to tanker in port of friendly country to Russia to damage port infrastructure, initiate an international probe: Moscow
One of London's scenarios involves setting up accident with 'undesirable' tanker in one of the bottlenecks of maritime communications: Russian foreign intelligence agency
London plans to organize major sabotage with tankers to declare transportation of Russian oil to international shipping: Russian foreign intelligence agency
UK intelligence agencies plan to use NATO allies to launch massive raid on 'Shadow Fleet': Russian foreign intelligence agency
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.

Russian billionaires taking funds out of Europe back home: Bloomberg

  • By Al Mayadeen English
  • Source: Bloomberg
  • 14 Sep 2023 19:35
  • 1 Shares
5 Min Read

Russian billionaires are leaving Europe as it becomes more hostile over time, with Russia becoming more friendly and appealing for investments.

  • x
  • Russian President Vladimir Putin, center, and Russian CEO of Rosneft oil company Igor Sechin, right, visit
    Russian President Vladimir Putin, center, and Russian CEO of Rosneft oil company Igor Sechin, right, visit "Zvezda" Shipbuilding Complex in the Bay of Bolshoy Kamen, in the far eastern region of Primorsky Krai, Russia, September 11, 2023 (Sputnik)

In the wake of international sanctions and calls from President Vladimir Putin to repatriate their wealth, Russian billionaires have been relocating their assets from Europe, resulting in a significant shift of capital.

The billionaires in question moved assets valued at tens of billions of dollars out of Europe since the start of the Ukraine war and the imposition of sanctions on Russia, with recent notable instances including the relocation of United Medical Group CY Plc and MD Medical Group Investments Plc from Cyprus to Russia, both controlled by Igor Shilov and Mark Kurtser, Bloomberg reported.

The media conglomerate said data it compiled highlights that this trend has brought the total value of assets moved by the wealthiest Russians to at least $50 billion.

The sanctions imposed by the collective West, namely the United States, the European Union, the United Kingdom, and other allies, forced Russian billionaires few options for gains in Europe, with many instead taking their cash elsewhere that would be more friendly for the funds, such as the United Arab Emirates, Kazakhstan, and even Russia.

The family holdings of fertilizer billionaire Andrey Guryev, steel tycoon Victor Rashnikov, and billionaire Igor Altushkin have notably made it out of Europe to other nations, with Cyprus, Jersey, and Switzerland being the most affected.

The effort to undercut reliance on the West has been pushed for by Moscow as the former became a more and more hostile environment for Russian interests. In August, President Putin directed the government to establish mechanisms to regain control over Russian companies previously held through foreign entities that were lost due to sanctions.

Russia also made efforts to make repatriation more appealing to Russian investors, introducing low-tax domestic "offshore" zones in 2018 as it continues to refine them over time. Moscow also increased the costs associated with maintaining assets in traditional tax havens like Cyprus and Malta, while holdings re-registered in Russia with international assets may qualify for tax benefits.

Notably, it's not only billionaires who are moving their assets back to Russia; other Russian companies have also relocated. First Deputy Economy Minister Ilya Torosov revealed that 115 companies moved to domestic "offshore" zones this year, bringing the total to 254.

Though there are still many Russian companies maintaining their assets in Europe, the trend is very apparent and shows that Europe may soon be void of any and all Russian companies, or at least down the line, if it continues to be such a hostile environment toward Russia and its nationals. 

Related News

Putin open to meeting Zelensky pending expert-level talks: Peskov

Pro-'Israel' Democrats breaking with Netanyahu amid Gaza war

Europe is not only harming its interest by reducing the amount of foreign assets it has, but it is also helping boost the Russian economy by allowing there to be more funds in the country, which puts into question the economic and foreign policies of the West. 

A report issued in August highlighted how the sanctions that were supposed to be a deadly blow to Russia's economy have turned into a nightmare for Germany, Europe's largest economy.

The hysteric sanctions, unprecedented in history in terms of volume and period span in which they were adopted, did not subdue Moscow, rather, they shoved the German industrial complex downhill, leaving one of the EU's most powerful countries vulnerable to rising energy prices and sticky inflation rates.

Germany is on a steady path of economic downfall and de-industrialization as a result of Europe's anti-Russia policies and sanctions, German MP Uwe Schulz, a member of the right-wing AfD party, declared.

Read more: Making sense of a self-induced recession in Europe

Punitive measures against Russia have failed but struck Germany's economy, he said in a statement that was published on his party's website.

Russia was ranked in the top five world's largest economies as of the end of 2022 as per a recent World Economics report, and it outgrew all of its European peers in terms of purchasing power parity (PPP).

The politician pointed out that evidence of the extreme impact of sanctioning Russia on the German economy is the “disappointing economic prospects [for the country] for 2023,” as well as “poor results in the automotive industry, [which] continue to lead to lower manufacturing output.” In this regard, the lawmaker called on the German government to immediately “lift economic sanctions against Russia” in order to “prevent [further] economic damage.” 

In June, the Eurozone officially announced it had entered recession. Among the main factors for this financial crisis was the downturn of the bloc's biggest economies, on top of which was Germany.

Following this event, official data showed that the German industrial output experienced a significant decline in June. Germany's crucial industrial heavyweight, the automobile sector, experienced a significant drop of 3.5%, further exacerbating the overall decline. The situation is exacerbated by fluctuations in significant orders, which have significantly impacted the industrial economy, despite rising demand.

The German Economy Ministry, meanwhile, warned of a pessimistic outlook for the economy attributing the slump to surging energy prices and elevated interest rates that have adversely impacted various sectors of industry.

  • United States
  • Europe
  • Russia
  • Germany
  • United Kingdom
  • Ukraine
  • European Union
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS