Miles Johnson

The great Russian takeaway

Londongrad, by Mark Hollingsworth & Stewart Lansley

issue 22 August 2009

That the rise of a powerful coterie of Russian billionaires overlapped with Britain’s transformation into an offshore tax-haven is unlikely to escape the notice of both countries’ future historians. Indeed it is entirely plausible that had successive British governments in the 1990s been less amenable to foreign wealth, this book would have been entitled Genevagrad rather than Londongrad.

Mark Hollingsworth and Stewart Lansley raise interesting questions about how the rocketing price of property, contemporary art and even private school fees of early Noughties Britain, fuelled by a steady supply of roubles, contributed to the bubble preceding the bust. While there are several excellent studies of the impact of the oligarchs on post-Soviet Russia, few have examined in detail how their arrival on our shores has shaped the UK.

Identifying a turning-point in 1996 with John Major’s government introducing an ‘investor’s visa’, allowing permanent UK residence after five years to those able to invest £750,000 in government bonds or UK companies, the book notes that by 2007 the IMF ranked London as an ‘offshore financial centre’ alongside the Cayman Islands and Bermuda.

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