Dubai has everything Russian oligarchs desire: luxury, sun and – perhaps most importantly – no sanctions. It was already a popular destination for wealthy Russians and their money, but since the war broke out in Ukraine, they have moved in large numbers to the oil state and its luxurious capital.
The emirate is therefore one of the few attractive places where a rich Russian can still go without any problems. In recent weeks, the European Union and the United States introduced far-reaching sanctions against Russian oligarchs and seized their homes and assets. Even countries like Switzerland, Monaco and the Cayman Islands, normally popular destinations for Russian money because of their lenient rules, are joining the crackdown on Russian assets abroad.
mega yachts
Last Thursday alone, after Putin in a speech called for a “cleansing” of Russian society – by which he meant “westernized, non-patriotic” wealthy Russians – four Russian private jets landed at Dubai airport. On Twitter, Danish researcher Oliver Alexander, who monitors the movements of the private jets, called it a “great exodus.” Many more oligarchs have probably landed with rented jets recently, but they are harder to track down.
The effect of the sanctions is also noticeable in the port of Dubai. Since the outbreak of the war, several mega yachts owned by oligarchs have moored there. According to data from MarineTraffic, a site that tracks the location of ships, at least the yachts of oligarchs Aleksandr Abramov and Andrei Skoch are in the Gulf state. There may be more ships en route to the port in the Persian Gulf.
Tension between allies
If the United Arab Emirates, to which Dubai belongs, still follows the example of the western countries, this could have serious consequences for the oligarchs. According to the Center for Advanced Defense Studies, a US think tank, at least 38 Russians with ties to President Putin have assets in Dubai. Together, the value of those assets would be more than $314 million. Six of these Russians are currently on the sanctions list of the United States and the European Union. But their properties in Dubai remain undisturbed.
The attitude of the Emirates leads to tensions with Western countries. The United States, in particular, is saddened by how its ally refuses to follow suit. Other US allies in the Middle East, such as Egypt and Saudi Arabia, are also refusing to cut ties with Moscow despite pressure from Washington.