Russia's wealthiest individuals have transferred billions of dollars abroad this year — Bloomberg
They are being shifted into cryptocurrencies, gold, overseas real estate, and private investment funds, primarily in the UAE and Saudi Arabia
Russian businesspeople have moved tens of billions of dollars out of the country since the beginning of the year / Photo: megaflopp / Shutterstock
Russia’s wealthiest individuals, including those in President Vladimir Putin’s inner circle, have accelerated the transfer of funds abroad this year, Bloomberg reported , citing data obtained from sources who spoke on condition of anonymity—six major business leaders and individuals in billionaire circles.
Although it is difficult to estimate the exact volume of informal capital outflows, including opaque cryptocurrency transactions, the agency’s conservative estimates indicate that tens of billions of dollars have left the country through channels other than official ones since the beginning of the year. This is more than last year, Bloomberg adds.
The agency explains that this was due to concerns about the state of the Russian economy, the balance of the state budget, and instability in the banking sector. An additional trigger was the precedent of asset seizures: major business owners fear forced confiscation or the loss of control over their fortunes, the article states.
Russian business leaders’ concerns intensified in March: according to Bloomberg sources, during a closed-door meeting with the president, billionaire Suleiman Kerimov suggested that his colleagues help the budget by making significant contributions, and he himself offered a “large sum.” Putin supported the initiative at the time, the agency reports. Later, presidential press secretary Dmitry Peskov stated that this was the decision of one of the meeting’s participants.
The Kremlin did not respond to Bloomberg's request for comment.
Where Does the Money Go?
The agency notes that information regarding the accelerating outflow of funds is confirmed by data from corporate financial statements and real estate registries. According to its sources, the portfolio composition of Russia’s largest investors is actively shifting toward cryptocurrencies, gold, foreign assets, and private investment funds.
The Gulf countries have become the main destination for capital flows: sources note a new wave of major real estate deals in Dubai, as well as continued investment in the UAE and Saudi Arabia. In addition, the geography of capital outflows is diversifying to include Europe and alternative jurisdictions. One source confirmed the transfer of funds to Cyprus amid regulatory pressure in Russia; others are investing in Turkey and Monaco; and another major entrepreneur has begun investing in African assets. According to financial experts, the trend among wealthy Russians to withdraw and invest their capital abroad has been steadily growing since 2024, Bloomberg reports.
At the same time, the ways in which capital moves are also changing: investors are looking for ways to circumvent both Western sanctions and Kremlin oversight. In particular, Dubai’s status as a global crypto hub allows the elite to quickly move funds between jurisdictions. Other informal but increasingly popular routes include Armenia, Kazakhstan, and Kyrgyzstan, where the A7A5 stablecoin is based, the agency reports.
This article was AI-translated and verified by a human editor
