Kathrine Frich
Figures from the Federal Tax Service reveal the biggest outflow of private capital since the start of the full-scale war.
For years, Russian elites treated offshore havens as safe extensions of their business empires.
But since the invasion of Ukraine, those financial routes have been rapidly redrawn. New data now shows an unprecedented shift of wealth out of Russia and into one of the few jurisdictions still welcoming it.
Capital on the move
According to Rzeczpospolita, Federal Tax Service chief Daniil Yegorov told Vedomosti that residents have transferred around one trillion rubles, nearly $13 billion, to the United Arab Emirates.
He described the Emirates as the “clear leader” among countries holding Russian corporate assets abroad, a point he also raised during a meeting with Vladimir Putin.
The UAE has become a preferred destination thanks to its double taxation treaty with Russia, open investment rules and developed financial infrastructure.
Entrepreneurs and oligarchs have been relocating companies there with increasing speed.
Cyprus loses dominance
Before the annexation of Crimea and the outbreak of the full-scale war, Cyprus was the main foreign base for Russian wealth.
Rzeczpospolita notes that Russians bought property on a large scale, obtained golden visas and used the island to access EU markets. Cypriot banks and investment vehicles held substantial Russian portfolios.
That pattern shifted sharply after 2022. EU sanctions, visa restrictions and tightened oversight pushed Russian capital to withdraw.
Yegorov said that as recently as 2021, roughly 80% of Russian company transactions and 70% of turnover involved Western partners.
Today, both figures have dropped to about 20%.
New safe harbour
With Western connections deteriorating, Russian funds are now flowing into what Moscow calls “friendly markets,” led by the UAE. A significant part of the financial elite has also moved there.
Several sanctioned billionaires keep their largest yachts in Emirati ports, including “Motor Yacht A” owned by Andrei Melnichenko, “Ocean Victory” owned by Viktor Rashnikov, “Quantum Blue” owned by Sergei Galitsky and “Pacific X” owned by Leonid Michelson.
In some cases, owners have obtained Emirati citizenship, further easing business operations.
Official reassurances
Russian authorities insist the shift is not alarming.
Yegorov argued that these transfers are not an “outflow” but a natural relocation of residence and business, saying there is no issue as long as assets are moved legally.
Despite those reassurances, Russian office data cited by the press shows that the UAE has become the dominant destination for outbound Russian capital.
Analysts see the trend as a long-term realignment shaped by sanctions, geopolitical isolation and the shrinking space for oligarch wealth in Western jurisdictions.
