Home
/
RELIGION & LIBERTY ONLINE
/
Why do Russian oligarchs hide their money in London?
Why do Russian oligarchs hide their money in London?
Dec 20, 2025 11:45 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
Lime green trickle down machine
At the the UN net summit in Tunis, MIT’s Nicholas Negroponte has showcased his hundred puter. The small, durable, lime colored, rubber-encased laptop is powered by a hand crank, and is designed to make technology more accessible to poor children in countries around the world. If I may speak of ‘trickle-down’ technology, this is the perfect example. This announcement–an announcement of a tool to help poor countries–may not be the best time to note the virtues of richer ones; and...
A revival of Christian democracy in Europe?
Well, maybe not exactly. But apparently not every European nation has decided to turn its back on Christianity. The EUObserver reports that Slovaks are voting this week on their national euro coin design – and some notably Christian images are leading. (Click here to see the images.) It’s quite noteworthy that the Christian images are popular rather than dictated by the government. Not surprisingly, many Poles are pushing for the image of Pope John Paul II on their euro. Now...
Physician, whom dost thou serve?
An interesting piece in the new New Atlantis, The Moral Education of Doctors. …the transformation of doctoring in the image of science may also obscure, in important ways, the real character of the medical vocation. If we educate doctors solely or largely as mechanics of the body, we may leave them unprepared for the human encounter with the sick and desperate, the brave and dying, the healed and grateful. The point in a nutshell (with apologies to the author): there...
It’s called tithing
The church thought of this first, but better late than never, I suppose: 10 over 100 is an effort to encourage people who make over $100,000 per year to donate 10% to charity. Here’s the pledge: I, [type your name here] , hereby make a personal promise to give 10% of whatever I make over $100,000 each year to charity. I will donate money directly to organizations of MY choosing, including charities, relief funds, schools, churches, etc. I understand that...
Why not fair-trade beer and cakes?
Economist John Larrivee looks at the logic underlying the fair trade coffee movement and applies it to beer and baked goods. It doesn’t quite make sense. Larrivee points out that “the question is not the difference between what different parties to the production get paid, but rather who adds value, how much, and where.” Read the mentary here. ...
The priestly voice of science
Thomas Lessl, Associate Professor in the Department of Speech Communication at the University of Georgia, talks about the “priestly voice” of science. He argues that “scientific culture has responded to the pressures of patronage by trying to construct a priestly ethos — by suggesting that it is the singular mediator of knowledge, or at least of whatever knowledge has real value, and should therefore enjoy mensurate authority. If it could get the public to believe this, its power would vastly...
‘Call on Charles Darwin’
By now most everyone has heard about Pat Robertson’s warning to a Pennsylvania town that voted out their school board. The move seemed to be in response to the board’s attempt to introduce curriculum including “intelligent design” theory. In an announcement to the people of Dover, PA, Robertson said: “if there is a disaster in your area, don’t turn to God — you just rejected Him from your city.” Robertson advised the city’s residents to seek assistance from someone other...
To counter social ills…
The separation of church and state–that slippery topic–was dealt with recently with simplicity by the Holy Father. In speaking to the US Ambassador to the Vatican regarding ethics in politics, he said: “The disturbing spread of social disorder, war, injustice and violence in our world can ultimately be countered only by renewed appreciation and respect for the universal moral law whose principles derive from the Creator himself.” For the state to counter social ills, it must understand that societal problems...
Yes, ICANN (no, you can’t)
The AP reports that a deal has been struck to continue primary management of the Internet by the United States, following weeks and months of controversy. The EU had been pushing for control of the web to be turned over to a supra-national body, such as the UN. The accord was plished at The World Summit on the Information Society, an international gathering to examine the “digital divide” between developed and developing nations. While “the summit was originally conceived to...
‘I could not do in Europe what I did in America.’
Those were the words of a German-born businessman in New York, quoted in today’s Wall Street Journal op-ed by Daniel Henninger. This lucky German continues: “A European at the age of 25, with little money but a lot of ambition and ideas, could not expect to move outside his own country–move to say the center of France, or the center of Italy, Belgium or any other country–and have much prospect of succeeding. He would remain an outsider.” In the wake...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved