Banning Russian vodka from US liquor stores is small potatoes as a mere 1.3% of vodka imports comes from Russia. Much more fearful and painful than any hangover from a night of binge drinking is Biden’s threat to the Russian oligarchs: “we’re coming for your assets.”
For those not in the know, the oligarchs are the uber-wealthy Russians with yachts the size of small aircraft carriers, personal jets that rival Air Force One and, for one in particular, ownership of the glorious Chelsea football club. With all these pesky sanctions, what is a Russian billionaire to do?
Commercial real estate has historically been a fine option for parking ill-gotten gains and recent data shows Russians accounted for $1.2 billion in U.S. CRE investment. But with the current sanctions on Russia and its oligarchs, transferring funds out of Russia and into American real estate will be difficult, if not downright impossible.
Bottom line: expect fewer condo sales to the Russians in Miami and Manhattan in the months ahead. Life can be tough at the top, but don’t shed a tear for the oligarchs, the elite find ways to preserve their wealth and prosper. Karl Marx must be turning in his grave.
Modi, Priyanka. “Russian Money Wants to Come to the U.S.. It Won’t Be Easy.” The Real Deal, 3 Mar. 2022, therealdeal.com/2022/03/03/as-russians-seek-a-haven-for-assets-access-to-u-s-real-estate-wont-be-easy/.
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