Home
/
RELIGION & LIBERTY ONLINE
/
Why do Russian oligarchs hide their money in London?
Why do Russian oligarchs hide their money in London?
Nov 30, 2025 1:20 AM

Former Russian intelligence agent Sergei Skripal and his daughter Yulia are clinging to life after being attacked with nerve gas in Salisbury. British Prime Minister Theresa May and Foreign Secretary Boris Johnson plan to target the finances of Russian oligarchs in retaliation.

Russian elites have spirited their cash to the UK via a dizzying array of British banks, businesses, and luxury properties:

British banks reportedly processed $738 million in funds from an elaborate Russian money-laundering scheme known as “The Laundromat”;Transparency International found at least £4.2 billion ($5.9 billion) worth of property in Londonwas “bought by individuals with suspicious wealth”;Russian funds (not all of it from oligarchs) may account for as much as “10 percent of all land and property worth more than a million pounds in London,” or $1.4 million, according to NPR; andOne-fifth of the sales of“super-prime” homes, worth £10 million or more, go to Russian nationals.

If the oligarchs enjoy Vladimir Putin’s favor, why would they store their wealth on the other side of the continent?

First, mand economy sows the seeds of its own destruction. “The whole Russian economy is dying,” a banker, who (understandably) wished to remain anonymous, told the Guardian. “Bribes are the biggest part of it.” Russia ranked 138 globally in Transparency International’s annual report on corruption perception; the UK came in eighth.

Bribery must lubricate the wheels of any economy which turn only at a politician’s will. Vladimir Putin has nationalized an increasing share of the nation’s GDP, from 50 percent under Boris Yeltsin to an estimated 70 percent of the economy today.

Second, one’s wealth – and, as the Skripal attack demonstrates, one’s existence – depends on the good and often fickle will of the ruler. “Billionaires such asMikhail Khodorkovskyor Vladimir Yevtushenkov saw their fortunes vanish after they fell out of favor with the government of President Vladimir Putin,” CNN reported.

Cronyism makes an attractive livelihood until the recipient no longer wishes to be a crony.

Jittery elites must always protect themselves against a mercurial strongman or his vengeful successor. It is precisely the facets of the crony economy that made the oligarchs wealthy in the first place that also make their nations unreliable and undesirable for storing wealth.

They choose to offshore their funds in London (and elsewhere) for the same reason Latin American jefes bank in Miami: private property rights and the rule of law.

William F. Buckley Jr. called economic liberty “the most precious temporal freedom,” because “it alone gives to each one of us, in ings and goings in plex society, sovereignty.” Economic freedom provides the individual with the resources needed to resist tyrants, or mitigate their fury.

The rule of law creates social equality, stability, and permanence that allow citizens to plan their lives. Societies based on lex rex empower citizens to give their all, knowing they will enjoy the fruits of their own labor. Such nations do not bleed streams of revenue that its most productive citizens have squirreled away overseas out of fear or uncertainty.

In the English liberal tradition, the rule of law is the defining mark of a civilized government. “Between a tyrant and a prince there is this single or chief difference, that the latter obeys the law and rules the people by its dictates, accounting himself as but their servant,” wrote John of Salisbury in his Policraticus a half-century before the Magna Carta.

Imperious and capricious power also violates one of the principles of St. John Chrysostom, perhaps the most revered saint of the Eastern Orthodox Church. He wrote that a ruler must conform himself to Christian standards of temperament and behavior, which preclude partiality and vengeance. “A true king,” the saint wrote, “is he who conquers anger and jealousy and voluptuousness, and subjects everything to the laws of God.”

“He who appears mand people but in fact modates himself to wrath and ambition and pleasure … will not know how to dispose of the power” of the state, he wrote.

That statement is quoted in the “Bases of the Social Concept of the Russian Orthodox Church,” adopted by the Russian Orthodox Church in 2000, near the end of Putin’s first stint as prime minister.

photo has been cropped. CC BY-SA 4.0.)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Christian Giving Begins with the Local Church
In today’s Acton Commentary I argue that “Christian Giving Begins with the Local Church.” I note some statistics that show that American Christians are increasingly looking beyond their local congregations and churches as outlets for their charitable giving, in spite of the fact that giving to religiously affiliated and religiously focused charities is increasing. What es down to, I think, is that in large part Christians don’t trust their local congregations to spend the money in a way that is...
The Morality of GM Food
Steve Connor in The Independent (HT: RealClearReligion) speculates about some happenings at the Vatican with regard to genetically-modified (GM) food. It’s important to note, as is the case in this article, that things that happen in mittees and study groups at the Vatican do not by default have some kind of papal endorsement. To wit: A leaked document from a group of scientists linked to Rome has set a hare running about the possible endorsement of GM technology by the...
Loss of Institutional Faith
In this mentary I say that part of the reason less money is being given to local churches is that it is reflective of a broader trend of distrust towards institutions. Commentary magazine’s blog contentions has some more recent data confirming this overall shift. The post summarizes the December issue of AEI’s “Political Report” (PDF), which focuses especially on trust in the government. It finds that “contemporary criticisms of the federal government are broad and deep” and that, for instance,...
Samuel Gregg: Socialism and Solidarity
On Public Discourse, Acton Research Director Samuel Gregg observes in a new piece that “while moral beliefs have an important impact upon economic life, the manner in which they are given institutional expression also matters. This is illustrated by the different ways in which people’s responsibilities to those in need—what might be called the good of solidarity—are given political and economic form.” Excerpt: … the rather modest welfare and labor-market reforms presently being implemented in Spain, Greece and France have...
Re: The Politics of Hunger
Jordan’s post on hunger raises a timely question, on a day when First Lady Michelle Obama was on hand to watch the president sign the $4.5 billion “Healthy, Hunger-Free Kids Act” at a Washington elementary school. Despite the media coverage and White House spin that points to this in part as a hunger fighting piece of legislation, the measure is really about obesity. Because in America, the real problem with food is superabundance and waste, not scarcity and hunger. As...
In the ‘pressure cooker’
Video: Hundreds of protesters clashed with riot police across central Athens on Wednesday, smashing cars and hurling gasoline bombs during a nationwide labour protest against the government’s latest austerity measures. The former Development Minister Costis Hatzidakis was attacked by protesters outside a luxury hotel. He was escorted, bleeding from the scene as his attackers yelled “thieves” at him. Source: Russia Today In the Greek daily Kathimerini, Alexis Papachelas writes: There are no easy answers and, to make matters worse, we...
‘What May I Expect from My Church?’
Madeleine L’Engle, in a 1986 essay, “What May I Expect from My Church?” And that is what I want my church to speak out about: the Gospel, the Good News. Then I will be given criteria to use in thinking about such issues as abortion, euthanasia, genetic manipulation. It is impossible to listen tot he Gospel week after week and turn my back on the social issues confronting me today. But what I hope for is guidance, not legislation. L’Engle...
The Politics of Hunger
In an otherwise fine piece focusing on innovative techniques used by food banks to increase efficiency, while at the same time improving service and the recognition of the dignity of those they serve, Bread for the World president David Beckmann uses the opportunity to throw a dose of pessimism into the mix. “We can’t food-bank our way to the end of hunger,” said Beckmann, co-recipient of the 2010 World Food Prize. “Christian people need to change the politics of hunger...
Religion & Liberty: Acton 20th Year Issue with John Armstrong
Over the years Religion & Liberty piled a lot of interview gems and first class content for our readers. The new issue, now available online, highlights some of that content, with new material as well. This double issue is an Acton 20th Anniversary tribute with an interview with John Armstrong as well as a collection from some of our best interviews. Regarding piled collection, the responses selected represent a range of timeless truths of the Gospel, the importance of human...
Why the Nativity?
Increasingly the Nativity tends to be associated with the political, as the crèche and other overtly religious symbols are banished from the public square by public pressure or the courts. To some municates a baby savior with so little power he can’t even defeat the secular legal authorities who seek his removal. If God is out there, “He must be pretty weak,” could be mon refrain today. Likewise in some churches the Nativity is seen as an activity for the...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved