Russia's billionaire class reportedly is quietly moving large amounts of money out of the country as fears grow that President Vladimir Putin's government could seize private assets to help finance the Kremlin's wartime spending.
Bloomberg reported that several of Russia's wealthiest businessmen, including figures close to Putin, have shifted more of their wealth into cryptocurrency, gold, foreign real estate, and private investment funds, particularly in the United Arab Emirates and other Gulf states.
The moves have accelerated over the past year as concerns mount over Russia's slowing economy, a strained federal budget, and an increasing number of state asset seizures.
According to Bloomberg, wealthy Russians fear the Kremlin could confiscate additional private holdings as it searches for new revenue to sustain its war in Ukraine.
Prosecutors reportedly reclaimed assets worth more than 4 trillion rubles, or about $51.5 billion, last year, targeting several high-profile tycoons.
The report said some billionaires have moved money to Cyprus and the UAE, while others have expanded investments in Turkey, Saudi Arabia, and Africa.
Russia's elite are also reportedly buying luxury property in Dubai, Turkey, and Monaco while increasingly relying on cryptocurrency and alternative financial networks to move assets beyond the reach of both Western sanctions and the Kremlin.
The Moscow Times reported that despite Russia's billionaire class reaching a combined net worth above pre-war levels, many oligarchs remain uneasy as wartime nationalization threatens their fortunes.
Three prominent billionaires were removed from Forbes' Russia list this year after the state nationalized major assets, including Moscow's Domodedovo Airport and one of the country's largest gold mining companies.
Bloomberg said concerns have also spread to Russia's banking sector.
Officials have privately warned of mounting debt problems, while a pro-Kremlin economic think tank recently cautioned that signs of a systemic banking crisis are emerging.
Wealthy investors reportedly estimate that tens of billions of dollars have quietly left Russia beyond official reporting this year alone.
The growing capital flight comes as Putin seeks additional revenue while trying to shield military spending from budget cuts.
Bloomberg reported that during a closed-door meeting in March, billionaire Suleiman Kerimov suggested Russia's wealthiest businessmen make substantial contributions to the state, a proposal Putin reportedly welcomed, although Kremlin officials later denied the president had demanded such payments.