We are sightseeing in Londongrad. The city got its nickname because it is precisely here that wealthy Russians choose to buy luxury homes.
Some are behind high fences, others at street level. Some in the west, others in north London, but what they all have in common is that the owner does not live here.
GUIDE: Oliver Bullough, journalist and author of Pengeland and Butler for the world. Photo: Andrew Blake
Author and journalist, Oliver Bullough, is one of the guides who takes us to see some of London’s most expensive and largest properties.
Several of the owners have been hit by sanctions after Russia started its war against Ukraine, but not all.
Rolled out the red carpet for kleptocrats
He believes that London does not have nearly as bad a reputation as the city deserves.
WANTED: This property belongs to Ukrainian oligarch Dmytro Firtash, with close ties to Gazprom and pro-Russian politicians. He is wanted by the FBI, but not sanctioned by the UK. Photo: Andrew Blake
– This city is the largest laundry in the world. This is where the world’s kleptocrats and criminals come with their money to launder it, invest it and spend it. This is a gigantic scandal on a geopolitical level and far too few know about it, he says.
Bullough adds that one must focus on all oligarchs in London, regardless of nationality, because they undermine democracy.
Received them with open arms
Anti-corruption activist Roman Borisovich believes London has welcomed criminals with open arms.
ACTIVIST: Anti-corruption activist Roman Borisovich talks about London properties bought with dirty money on a guided bus tour through Londongrad. Photo: Tonje Iversen
– London rolled out the red carpet and oligarchs were embraced. Not only did they sell them properties, but let them invest in football clubs and sponsor cultural events. It was a demonstration of soft power, says Borisovich.
He is part of the organization ClampK (The Committee Against Moneylaundring in Properties by Kleptocrats), which has organized guided tours through Londongrad for six years.
End of golden visa
But a year ago, then Prime Minister Boris Johnson announced that oligarchs in London would have nowhere to hide.
Since then, over 1,200 oligarchs and companies have been met with sanctions and so-called golden visas for foreign investors have come to an end.
– They have taken a big step like a couch potato takes a big step by getting off the sofa. That sanctions have been introduced against many oligarchs and new legislation on transparency around the ownership of companies and properties is all well and good, but now the hard work begins.
We must prosecute and investigate them. So far I have not seen any signs that the government is willing to do that, says Borisovich.
Why not?
– You can be conspiratorial and say that it is probably because they like money and that is probably true, but if you are realistic then it is hard work. It is not easy to investigate such sums of money, you have to go up against some of the world’s best lawyers paid by some of the world’s richest men. It will take several years, so there are many reasons for that, he continues.
Pathetic handling of dirty money
Labor MP Margaret Hodge says this is a problem politicians on both sides of the House of Commons recognise.
MEMBER OF PARLIAMENT: Margaret Hodge MP, Labour, represents Barking/Dagenham. Photo: Tonje Iversen
– Dirty money in London costs our economy approximately £300 billion a year, which is twice as much as what we spend on the health service in this country, says Hodge.
Hodge says Britain’s handling of kleptocrats has been pathetic.
– Part of the reason why it happens here is partly because of history, partly because of our own relationship with tax havens and because we have a whole army of auditors, advisers and bankers who are ready to facilitate them, she continues.
Figures from the UK government show that Russian assets worth £18.39 billion have been frozen and reported. But Hodge can tell of people who have been sanctioned but are still allowed to spend as much as £600,000 a year on so-called essentials.
– That is more than what people earn in their entire lives in the constituency I represent, says Hodge.
– Nobody has done anything to stop this
Bullough says politicians from all parties have had little will to fight when it comes to London degrees.
– Since the end of the British Empire, since the 1950s, we have had Labor governments, Conservative governments and coalition governments and none of them have done anything to stop this, he says.
WILL TO FIGHT: Bullough believes the politicians have had little will to fight. Photo: Tonje Iversen
Don’t freeze, but confiscate
– The next year must be about investigating where the wealth comes from and if it turns out to be corruption we must confiscate the value in the same way you would have done with any other stolen value. This is money that can be used to build up Ukraine, he says.
But Bullough adds that it is not just Russian oligarchs who are a problem in London.
– We have oligarchs from Malaysia, Venezuela, Nigeria, South Africa, Kenya and Kazakhstan, if there is a place they come, it is here, he concludes.
