Watch: Breaking down the Ukraine invasion’s impact on US real estate
Sanctions have hobbled Russia’s economic standing. But what will that mean for those already in the market?
Russia’s invasion of Ukraine has led to some of the most punitive economic sanctions imposed on one nation since the Cold War. Russia’s currency and stock market has tanked, with its ability to participate in the global banking system hobbled. Energy giants BP and Shell announced that they were exiting joint ventures with Russian energy companies, and you might see the same thing play out in other industries.
What might that all mean for U.S. real estate?
Russian buyers have been a small but headline-grabbing force in the luxury market, snapping up pricey abodes in Manhattan, Los Angeles, South Florida and beyond. But new buying activity from Russia has already been severely curtailed after sanctions imposed following the annexation of Crimea. And on the commercial front, Russian investment in U.S. property is miniscule.
As for existing holdings: Both the federal government and local politicians have made noise about seizing assets connected to Russian oligarchs. Current property ownership laws in the U.S., however, make that easier said than done.
Watch the video above for a quick breakdown.