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With UK-Russia relations falling to a low not seen since the Cold War, some in London’s large Russian expat community are beginning to think of taking their money elsewhere. The move would have a domino effect for British companies and shareholders.
"The Russian-speaking community still contributes a lot to this country, not only economically but also culturally. And I think this country will be a lot poorer, not just economically, if the Russian community wasn’t here, if the Russian community wasn’t respected in this country," said Tatiana Sharposhnikova, managing director at RSL Law in London.
Embassy staff and children leave Russia's Embassy in London after the UK government expelled 23 diplomats, March 20, 2018.
Russia-UK business ties are deep and complex. More than 46 billion US dollars in Russian stocks have been sold in London since the mid-1990s. But the huge Russian investment has become controversial in the UK, with the British government considering expanding the so-called “unexplained wealth rules”, subjecting Russian investors to greater scrutiny.
Lawyer Edward Mermelstein, who helps wealthy investors buy property and private equity in London, says he’s getting worried calls from clients who might take their business elsewhere.
"Realistically, the expectation is yes it’s going to be much more difficult for someone holding a Russian passport to do any business in the UK… I would say all of our clients have no issues to show where their wealth came from, but when politics comes into play it changes the equation because no matter what you show it’s never going to be enough, and that’s the concern they have today," Mermelstein told CGTN.
Many businesses, both Russian and British, hope the current diplomatic row blows over soon. If not, the days of London being an easy environment for Russians to hold investments could be numbered.
(CGTN)
