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some sources of satisfaction: the number of jobs built with the Russian Federation since 2015 including to pay their employees and their rents.”
exceeding 57,000 employees and real estate and even well before have been squashed,” Some real estate agents have thus already seen
registering 400 transactions for an amount says Guillaume Rose, Executive Director of sales agreements snatched from under their
of €2 billion and crossing the historic bar of the MEB. Some Monégasque companies noses, their Russian clients retracting at the
€50,000 per m². are already affected. The Monaco Economic last moment. Unable to transfer the necessary
Board, which immediately cancelled its planned funds, they have found themselves out of cash.
Fund-freezing measures mission to Saint Petersburg in June, gave an Some Russians, perceiving Russophobia, have
Since the Russian invasion on 24 February and overview of its members. “We called several even chosen to leave for countries that do not
the escalation of war crimes, the Monégasque companies. The most impacted sectors are impose any sanctions, such as Turkey and Dubai.
state has adopted, in accordance with its luxury shipping and trading, particularly in oil.
international commitments, procedures for Dietsmann, an international group specialising For real estate, the question also arises for new
freezing funds (ie bank deposits) and economic in maintenance operations for the gas and oil builds, sold off-plan: will buyers who have only
sanctions identical to those taken by most industry, which had bought a company in Russia paid for part of the property have the cash to pay
European states: sanctions of an unprecedented as a subcontractor of Rosneft, was thus forced for the rest when the storm is over at the signing
scale intended to “further isolate Russia and to lay off 1,500 people in Russia. Moreover, it of the contract? Or will they have to invoke force
exhaust the resources which are used to finance could be complicated for local banks that were majeure to avoid their commitment? Will we
this barbaric war,” according to European counting on Russian customers, as well as in see a drop in prices? At the head of the Dotta
Commission President, Ursula von der Leyen. real estate. The Société des Bains de Mer is Immobilier agency, Michel Dotta believes that the
The latest package of measures ban coal imports also affected in its rental activity. For Michel overall impact will be limited on the sector: “The
from Russia and close European ports to Russian Dotta, “The impact could be quite significant. price per m², which has now reached €50,000,
vessels. “A reflection is in progress” to institute Many wealthy Russians, who still have their is stable and should remain so,” adding, “There
a seizure and confiscation of private property. businesses in Russia, risk suffering directly or is going to be one hell of an inflation and that is
In return, Russia has placed Monaco on its list indirectly from the sanctions. Their real source of very good for real estate. It is protection.” Clearly,
of hostile countries. income is not in Monaco but in Eastern European though, there are still some good deals around:
Whilst the volume of trade with Russia is countries. They risk having their assets frozen - at the Odeon Tower, a Russian has just “let go”
very limited (€6.3 million in 2021), it is now and if these people make less money, they will his apartment for €19 million, down from €31
at a complete standstill. “All the ties we had have less money to spend in the local economy, million, as a result of two sets of sanctions.

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