The real threat to the UK comes not from the credit crunch, but Russia

Dirty Russian money threatens to undermine London's reputation, built on respect for the law and mutual trust. And Russia's dominance of the energy market could have dire consequences for the UK.

There's so much Russian money around in Britain these days that we've become rather complacent about it. So long as the money is used to buy football clubs or Belgravia property, we don't bother to ask too much where the money has come from. We just assume it is better spent here than elsewhere.

But not everyone shares this benign view of the influx of Russian billionaires setting up shop in London. Talking to one of the UK's senior financial regulators last week, I was startled by the vehemence of his concern at the menace posed by some of the unsavoury characters trying to break into the City. The arrival of a new breed of Russian banker in London worried him far more than the flaws in the financial system revealed by the subprime fiasco and the credit crunch. His argument was simple. We have a healthy financial market in London based on respect for the law and for the most part mutual trust. Some of these Russians he did not name names do not have respect for the law and cannot be trusted. If they succeed in bringing their business practices with them to London, the integrity of the whole market will be threatened, at huge cost to everyone.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Simon Nixon

Simon is the chief leader writer and columnist at The Times and previous to that, he was at The Wall Street Journal for 9 years as the chief European commentator. Simon also wrote for Reuters Breakingviews as the Executive Editor earlier in his career. Simon covers personal finance topics such as property, the economy and other areas for example stockmarkets and funds.