Sanctions on Russian oligarchs including Roman Abramovich and Oleg Deripaksa may take the heat out of the UK’s luxury property market while the Ukraine conflict enters its fourth week. The chill may just be temporary, experts said. The move against some high-profile billionaires came amid a rebound in high-end transactions around London. Properties in London’s most prestigious postcodes had lost one-fifth of their values over the past seven years, according to Savills, who predict a return to 2014’s peak by 2026. “As the sanctions bite, we are unlikely to see any more Russian oligarchs, or those connected to the Kremlin, join the prestigious ranks of prime London home ownership,” said Marc von Grundherr, director of Benham and Reeves, a London-based agency. “The impact will be temporary as there is an abundance of demand from other international buyers.” Russians made US$1.4 billionof headline-grabbing deals in countries including the UK, Germany and Greece from 2018 to 2021, according to Real Capital Analytics, a tiny drop compared with US$358 billion by Hong Kong investors and US$296 billion from US funds. Russian individuals or entities spent US$869 million on properties globally in the first nine months of 2021, official Russian government data showed. Ukraine crisis: UK clampdown on Russian owners of luxury London property in wake of invasion In concerted sanctions by Western governments, the UK imposed various restrictions including freezing the assets of tycoons like Chelsea football club owner Abramovich and aluminium magnate Oleg Deripaksa of EN+ Group and Rusal for their alleged cosy ties with President Vladimir Putin. The sanctions are aimed at stopping funds to sustain Russia’s month-long invasion of Ukraine. Abramovich’s assets include 16 Kensington Palace Gardens, worth an estimated £150 million (US$197 million). Deripaska or his family is believed to be the owner of 5 Belgrave Square worth an estimated £50 million. “The property portfolios of the super prime London buyer are often shrouded in secrecy for a number of reasons,” von Grundherr said. “But we’re now seeing details on many Russian-owned homes come to the surface in the wake of government sanctions.” Russians accounted for only 1 per cent of the UK transactions in 2021, according to Andrew Weir, chief executive officer of London Central Portfolio. Social media publicity tends to overplay their influence on the high-end luxury market. “In recent years the number of Russians buying expensive prime London property has been small” to have an impact on the overall health of the London property market in either direction,” he said. “Sanctions against a relatively small number of individuals should not put off others who are not connected to the Russian government.” A more vibrant market has emerged since last year as concerns about the pandemic subsided and affluent buyers returned. Sales of London luxury homes, those priced above £15 million, jumped 50 per cent last year to £773 million, according to property agency Beauchamp Estates.