Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (2024)

2022-03-15T09:49:41Z

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (1)

Eaton Square, an exclusive garden estate in London, is nicknamed "Red Square" because many of its residents are Russian billionaires.
Chelsea FC owner Roman Abramovich and Gazprom chief Andrey Goncharenko are among the oligarchs with properties in the square.
On March 10, the UK sanctioned seven Russian billionaires, freezing their assets.

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This is Belgravia, one of the wealthiest districts in London.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (2)

With more than 870,000 millionaires, no city globally has more high net worth individuals than London, according to a 2021 report by Knight Frank.

The city is also home to 61 billionaires, who have a combined net worth of $316 billion, according to Forbes.

Belgravia is where many of these billionaires — including Russian oligarchs Roman Abramovich and Oleg Deripaska — invest in multimillion-dollar homes. The neighborhood is part of the "Moscow-on-Thames" property market, which has forced wealthy Londoners out of prime postcodes.

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Within the neighborhood of Belgravia is Eaton Square. The exclusive garden estate is nicknamed the "Red Square" because many of its residents are Russian billionaires.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (3)

Eaton Square was once the UK's most expensive street, according to a survey by Lloyds Bank, as reported by The Guardian. It's also been described as London's "most desirable address."The neighborhood is known for its neoclassical residences, which have become synonymous with London's "Old Money" elite.

The estate has been dubbed a "playground" for Soviet-made billionaires and young Russian tech entrepreneurs.

Russians with connections to the Russian state have snapped up £1.5 billion worth of property in the UK since 2016, according to Transparency International.

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Eaton Square is located in the middle of London.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (4)

The estate counts Margaret Thatcher, Sean Connery, Kate Winslet, and Elton John as some of the its past homeowners, reported the Guardian. It has also been home to three UK prime ministers.

The square is full of townhouses that were converted into apartments in the 1950s, according to property group Grosnvenor's official website.

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Among the properties currently listed on the market is a five-bedroom apartment located on 78 Eaton Square (pictured below).

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (5)

The two-story property is listed for £17.5 million ($22.8 million). The home has high ceilings and and a matte-black hallway that leads to the front door.

Another home, which is listed for £25 million ($28.6 million), is replete with a private courtyard garden and multiple large marble bathtubs. The home has nine bedrooms and 10 bathrooms.

These homes are priced significantly above the average sale in the area, according to property website Right Move. Homes in the square sell for around £3 million on average ($3.9 million), per the website.

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Wealthy Russians began moving into the estate after the "golden visa" scheme was introduced in the 2000s, per The Guardian.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (6)

Between 2008 and 2015, more than 3,000 people, including 705 Russians, were granted investor visas in the UK, according to The Guardian. Wealthy people were allowed to enter the country if they invested at least £2 million.

In February, UK Home Secretary Priti Patel announced the immediate closure of the scheme due to Russia's unprovoked invasion of Ukraine.

"We stand shoulder to shoulder with Ukraine amid this unprovoked and antidemocratic act of Russian aggression," Patel said in the statement.

"They come to Harrods to shop, they stay in our best hotels when they like, they send their children to our best public schools, and that is what's being stopped," a UK diplomat told The Guardian in February, referring to the the large number of wealthy Russians living in London.

In a March 10 statement, the UK government announced it was slapping sanctions on seven billionaires, including Chelsea FC owner Roman Abramovich. Over 200 Russian individuals, entities, and subsidiaries have been sanctioned by the UK, the statement said.

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While Abramovich's most notable UK home is his Kensington Palace mansion (pictured below), he dropped £28 million on a classical home in Eaton Square almost 20 years ago.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (7)

Abramovich bought the six-story home in a "very private" transaction in 2003, per The Evening Standard.

Before the UK's recent slate of sanctions, reports indicated Abramovich was scrambling to sell his UK properties.

On March 13, the UK said it is considering using frozen properties as housing for Ukrainian refugees, according to Reuters.

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Oleg Deripaska, the founder of one of Russia's largest industrial groups, also reportedly owns property in Eaton Square.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (8)

While the UK officially sanctioned Deripaska on March 10, he was first sanctioned by the US in 2018, according to Forbes. His properties in Washington, DC, and New York City were raided by the FBI in October 2021, reported Reuters.

Deripaska's seven-bedroom home at 5 Belgrave Square is replete with a home cinema, a gym, and a Turkish steam bath, according to The Evening Standard. He reportedly bought the home for £25 million ($32.5 million), according to the Mirror.

Deripaska has publicly condemned the war in Ukraine.

"Peace is very important! It is insane to prolong [peace] negotiations," he wrote in Russian in a Telegram post on March 3, as translated by Radio Free Europe.

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Insider's Sinéad Baker was at the scene when protesters briefly occupied Deripaska's home in neighboring Belgrave Square on March 14.

—Sinéad Baker (@sineadbaker1) March 14, 2022

She reported that London police had used a mechanical excavator to meet with the protestors through the balcony. The protestors had had hung a sign over the front door that said Deripaska's property had been "liberated."

"We are being arrested for stupid reasons," one man shouted from the mansion's balcony.

The protestors, who belong to a group called London Makhnovists, say they want to use the home to house "Ukrainian refugees and refugees from all nations," according to The Telegraph.

Although Deripaska claims he does not own the Belgravia property, a 2007 High Court document said he "beneficially owns" it.

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Russian billionaire Andrey Goncharenko bought a £15 million home in Eaton Square, pictured below, in 2014.

Inside London's 'Red Square,' the elite address where some of Russia's most powerful oligarchs have bought multimillion-dollar homes (9)

Goncharenko, who is the chairman of state-owned gas company Gazprom, made headlines for purchasing four homes in London amounting to £250 million in three years, according to The Times. This includes the home on 102 Eaton Square.

In 2017, a group of squatters called Autonomous Nation of Anarchist Libertarians occupied the home and turned it into a homeless shelter, according to The Guardian. The property has five floors and briefly housed 15 homeless persons, per the newspaper. A judge ordered the eviction of the group on January 31.

Goncharenko has yet to be sanctioned by the UK.

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I possess a thorough understanding of real estate dynamics, particularly in high-end markets, as well as the geopolitical intersections that influence property investments, especially concerning the London real estate market and its ties to Russian billionaires and oligarchs. My knowledge is derived from extensive datasets, news reports, market analyses, and historical trends up to January 2022. The detailed knowledge base allows me to provide insights into the complex relationships between wealthy individuals, properties in affluent areas like Eaton Square and Belgravia, and geopolitical events such as sanctions against Russian billionaires.

Now, let's dissect the concepts presented in the article:

Eaton Square: Located in London, this exclusive garden estate has earned the moniker "Red Square" due to its significant number of Russian billionaire residents. Historically, it has been the UK's most expensive street, embodying London's "Old Money" elite with its neoclassical residences.
Belgravia: A highly affluent district in London, known for housing numerous high net worth individuals. It's described as part of the "Moscow-on-Thames" property market, indicating its appeal to Russian oligarchs and investors.
Russian Billionaires/Oligarchs: Individuals such as Roman Abramovich, Oleg Deripaska, and Andrey Goncharenko have significant investments in London's prime real estate areas like Eaton Square and Belgravia. Their investments, often running into billions, have reshaped London's luxury property landscape.
Sanctions: In response to geopolitical events, particularly Russia's actions in Ukraine, the UK government imposed sanctions on several Russian billionaires. These sanctions involve freezing assets and have direct implications for their properties in the UK.
Golden Visa Scheme: Introduced in the 2000s, this scheme allowed wealthy individuals, including many Russians, to gain UK residency by investing a minimum of £2 million. However, due to recent geopolitical tensions, especially Russia's invasion of Ukraine, this scheme has been terminated.
Property Listings and Prices: Eaton Square properties are often listed at exorbitant prices, with homes ranging from millions to tens of millions of pounds. This contrasts with the average sale price in the area, emphasizing the exclusivity and luxury associated with the square.
Protests and Occupations: Some properties, like those belonging to Oleg Deripaska, have become focal points for protests. The motivations behind these protests vary, from geopolitical stances to housing concerns for refugees.
Gazprom and Energy Ties: Andrey Goncharenko, associated with state-owned gas company Gazprom, has made significant property investments in London. His acquisitions and activities, including encounters with squatters, highlight the intertwining of energy sectors, geopolitics, and real estate.

In summary, the London real estate landscape, particularly areas like Eaton Square and Belgravia, is deeply intertwined with global geopolitics, especially concerning Russian billionaires and oligarchs. The dynamics of investments, sanctions, protests, and societal implications offer a multifaceted view of luxury real estate markets and their broader implications.