Rich Russians consider London-#Dubai property swap to avoid financial scrutiny | Financial Times

Rich Russians consider London-Dubai property swap to avoid financial scrutiny | Financial Times

Wealthy Russians are trying to swap their luxury properties in London for multimillion-pound homes in Dubai as they seek innovative ways to circumvent financial restrictions imposed since the full invasion of Ukraine. 

A list of properties including a Knightsbridge mansion worth £34mn and a three-bed Eaton Square apartment with an £8mn asking price has been circulated in recent weeks by high-end real estate agents operating in the Gulf emirate. 

They are being offered by Russians who are willing to barter their London properties for a new residence in Dubai, while avoiding bank transfers and financial scrutiny, according to people involved in the transactions. Prospective buyers are being offered deep discounts on the UK properties to complete the deals. 

The mooted house swaps are the latest workaround on behalf of rich Russians who have found themselves frustrated by the western financial system since Moscow’s invasion of Ukraine on February 24. About 1,000 individuals and companies have so far been hit with sanctions, with others facing additional checks as well as difficulties navigating money transfers and opening bank accounts. 

But there were doubts in Dubai over how a deal would be structured, and whether any United Arab Emirates residents would risk such an exchange.