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December 17, 2006


A Russian Outpost With More Freedom: Londongrad 


By ALAN COWELL
<http://topics.nytimes.com/top/reference/timestopics/people/c/alan_cowell/in
dex.html?inline=nyt-per> 

LONDON, Dec. 16 - To those fearful of homegrown Muslim extremism, this city
was Londonistan. But now, after the mysterious poisoning death of the former
K.G.B. agent Alexander V. Litvinenko
<http://topics.nytimes.com/top/reference/timestopics/people/l/alexander_v_li
tvinenko/index.html?inline=nyt-per> , other sobriquets are more current:
Londongrad, Moscow-on-the-Thames.

The new names reflect the changes wrought here by a complicated influx from
beyond the Urals, one that has built with ever greater pace since the cold
war. 

By several accounts, London is now home to an estimated 300,000 citizens
from the former Soviet Union, a third of them arriving in the last two
years. Among them and around them twist hazy connections linking spies and
former spies, conspirators, ex-dissidents, rich businessmen - and a few of
those from the transcendent class of wealth known in Russia as oligarchs. 

There is a long tradition of wealthy outsiders gathering here to disport
themselves in restaurants and nightclubs, gambling dens and other places:
Arabs in the 70s, Japanese in the 80s, Americans sporadically for decades.
But since the economic free-for-all of post-Soviet Russia in the 1990s
spawned both a superrich class and vast networks of organized crime -
followed by a crackdown by President Vladimir V. Putin
<http://topics.nytimes.com/top/reference/timestopics/people/p/vladimir_v_put
in/index.html?inline=nyt-per>  - the notoriety goes to rich Russians. 

While they might have to exercise some degree of discretion back home to
avoid drawing Mr. Putin's ire, they spend freely in London. Some buy art,
some party. Some buy homes in London for their families and commute to work
in Russia each week; Moscow is just a three-and-a-half-hour flight away. 

"Germany is good for savers; London is for spenders," said Andrei Nekrasov,
48, a Russian filmmaker and friend of Mr. Litvinenko who spent many years in
London and now lives in Berlin. Russian business executives are drawn, in
part, he said, by the "flexibility of anything to do with banks" in London. 

"A lot of them are upper middle class in Western terms," he said. "They can
afford a $2 million apartment in cash. That's the middle class by Russian
standards - and a Russian would come and bring the money in a plastic bag."

Russians snapped up almost a quarter of the London homes sold for more than
$15 million in roughly the past year, said Liam Bailey, a real estate
broker. Some estimates put the level of buying of fancy homes even higher:
according to Gulnara Long, a property adviser, Russians buy about 60 percent
of homes costing more than $20 million.

The influx has "changed property prices, it's changed restaurant bookings -
you hear a different language being spoken in restaurants now," said Geordie
Greig, the editor of Tatler society magazine.

Mr. Greig helped organize a white-tie party last summer that Alexander
Lebedev, a Russian businessman and critic of corruption, gave at Althorp,
the ancestral home of Diana, Princess of Wales
<http://topics.nytimes.com/top/reference/timestopics/people/d/princess_of_wa
les_diana/index.html?inline=nyt-per> . The party was studded with
celebrities like Elle Macpherson and Orlando Bloom, the meal was sumptuous
and entertainment was provided by, among other things, a classical pianist,
the Black Eyed Peas and several pole dancers.

The Russian rich praise London's freedom in financial affairs and its tax
code benefits for those who spend significant time outside Britain.
Meanwhile, Russian dissidents and artists in exile praise it for its
adherence to laws and its political freedoms. 

Akhmed Zakayev, whom the Kremlin calls a terrorist, is a former
Shakespearean actor representing the ousted rebel government of Chechnya. He
received asylum here three years ago, "thanks to the law of this country,"
he said in an interview. 

Oleg Gordievski, a high-ranking K.G.B. spy who defected 21 years ago and who
blames Russian authorities for the death of Mr. Litvinenko, said, "London is
attractive because England is the freest country in Europe."

Yekaterina Lebedeva, 37, a concert pianist who came here 12 years ago,
agrees. "One thing that strikes me in London is that you feel there are
opportunities and things you can achieve, a sense of artistic freedom," she
said.

As in any community, there are splits. Those in Londongrad may just be
flashier. 

In June 2003, Roman A. Abramovich - one of Russia's and England's richest
people with a fortune estimated at almost $19 billion - bought the Chelsea
soccer club for $233 million, and some headline writers renamed it Chelski.
He has since spent $900 million to acquire players, and the club's payroll
reportedly surpasses that of the Yankees. 

In the 1990s, Mr. Abramovich was a business associate of another Russian
billionaire, Boris A. Berezovsky
<http://topics.nytimes.com/top/reference/timestopics/people/b/boris_a_berezo
vsky/index.html?inline=nyt-per> , who made his money with a car dealership
and other ventures including oil, but the two have gone different ways. As
if to underline that, Mr. Berezovsky maintains a box at Arsenal soccer club,
Chelsea's rival. 

"There are Russians and Russians," said Alex Goldfarb, an associate of both
Mr. Litvinenko and Mr. Berezovsky. "And the nonpolitical ones do not touch
the political ones with a 10-foot pole."

Heather Timmons and Sarah Lyall contributed reporting from London, and Ian
Fisher from Rome.

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