Rich russians move cash to europe

Concerned by a slow economic recovery and political Change in Moscow, Russia's wealthy business leaders are increasingly eyeing assets in Europe, focusing on prime real estate that is viewed as safer even than cash, a recent survey said.

The flight of personal and business assets has contributed to Russia's net capital outflow of $31.2 billion this year, a figure that has weighed on the ruble and redoubled President Dmitry Medvedev's and Prime Minister Vladimir Putin's so-far unsuccessful efforts to seek foreign investment on the eve of the 2012 presidential elections.

Only 12% of wealthy Russian businessmen currently keep a substantial amount of their personnel assets in rubles, or a third as many as in 2009, according to a study published Thursday by UBS AG and Campden Media. The survey includes entrepreneurs whose businesses have at least $100 million in annual turnover and who have at least $50 million in personal wealth, often much more.

Russians concerned about a slowdown in demand at their businesses are increasingly moving assets to the U.K. and Switzerland, with Cyprus a much less favored destination than two years ago. Almost nine out of 10 of those surveyed see foreign real estate as a haven for personal investments, compared with less than a third two years ago.

Source: Online.WSJ.com