Russian money in London

Russian money has been prevalent in London since the dissolution of the Soviet Union in 1991, following which many Russian oligarchs sought to invest their wealth in other countries.[1] British Government policy encouraged the flow of foreign capital into the United Kingdom, for example through the foreign investor visa routes, introduced during John Major's premiership, one-fifth of whose recipients are Russian citizens.[1][2] Additional funds flow to British overseas territories, commonly used as tax havens, such as the Cayman Islands and British Virgin Islands.[3] The concept is commonly associated with the terms "Londongrad" and "Moscow-on-Thames".[1]

Over £27bn is invested by Russian citizens in the United Kingdom,[3] commonly in real estate.[2] Various investigations by the British Parliament have taken place.[2] In 2018, following the poisoning of Sergei and Yulia Skripal, a report titled "Moscow's Gold: Russian Corruption in the UK" was published by the Foreign Affairs Committee.[4] In 2020, the Intelligence and Security Committee said that the influence of Russian business was so deeply embedded in the British financial system that it "cannot be untangled".[3][5]

Following the 2022 Russian invasion of Ukraine there was a political desire to take action against UK-based oligarchs. Unexplained wealth orders are expected to be better enforced and foreign investor routes scrapped. The Economic Crime Bill was also revived and it includes a register to improve transparency of ultimate land ownership, currently obscured through the use of shell companies.[6][7][1][2] Reuters reported that some Russian citizens have been making ownership changes and consulting lawyers to shield their assets.[3]