It Is not enough that Mr. Putin is trying to put the ‘Genie back in the bottle’ by grabbing Crimea and possibly Ukraine, he is now trying to stop the tide of money leaving Russia for safer climes by imposing a penal tax on the exodus of wealth.
Frankly, the substantial fall in the Rouble against world currencies should dissuade enough Russian oligarchs from taking their money out of the jurisdiction; however, it appears this is not enough to stem the outflow.
Russia is bleeding foreign reserves since its economy and capital markets are in disarray as a direct result of the sanctions presently imposed by western nations. In addition, Putin’s self made, self-imposed, restrictions on imports is denying his consumers the goods that serve their lifestyle and make them happy.
For the last year, the numbers of Russians buying properties in the UK has slowed from a torrent to a trickle, as at present.
To estate agents, Russian buyers are probably the most cherished purchasers that we have dealt with over the last 40 years. They are a pleasure to do business with, they have the money and they usually honour their commitments.
The UK are missing the inward flow of foreign earnings, the SDLT and VAT receipts that would be earned by the sizeable acquisitions that, hitherto, these buyers have made in this country. Their absence is a lose-lose for us.