Rich Russians Make London Their Playground
Russian millionaires are coming to London in droves to spend, spend, spend.
June 1, 2007 — -- A group of very rich Russians are becoming highly influential on the British economy, and the city of London might never be the same again.
In fact, the next time you visit London, you may notice a few new additions to its usual list of core attractions. Extravagances like chilled vodka and caviar are more popular, leading some English residents to a simple conclusion -- London is turning Russian. To some, the city is now called Moscow-on-the-Thames.
"If you took the Russians away, London would feel it in a very, very big way," said James Black, a public relations agent at Red Square Projects, a promotions company that specializes in the Russian market.
London has always been a bolt hole for Russians. Pre-revolution Lenin was in exile there. Anna Pavolova, the ballerina, relaxed there between tours. More recently, KGB dissident Alexander Litvinenko was mysteriously poisoned in London last year.
Today it's the oligarchs -- the businessmen made rich on the back of Russia's vast natural resources. They're the men who snapped up assets in the chaos and confusion of the collapse of communism.
Many Russians now have a stake in London. One in three high-end London properties sold last year were bought by Russians. Some of the players include Boris Berezovsky, who has lived for six years in a London pad worth $30 million; Oleg Deripaska, the aluminium king, who is only 39 but is worth $13.3 billion; and the most visible oligarch, Roman Abramovich, worth more than $18 billion.
Abramovich even purchased Chelsea, one of London's major soccer clubs -- a national institution. It's tantamount to moving to New York and casually buying the Yankees.
Abramovich pays out about $200 million a year in salaries for the global superstars that he has brought to London to play for Chelsea. If you're worth as much as he is, that staggering amount of money is basically pocket change. Soccer was of course invented in England, but Abramovich, with his cash, is reinventing the way the game is played, and other British clubs are struggling to keep up.
"I think Roman Abramovich was the first to show that there's business sense," said Aliona Muchinskaya, another PR agent at Red Square. "You know, that people stopped growing potatoes, drinking vodka, hugging bears."
