Antibes, France
Everyone is talking about the Russian invasion here. It's one of the hottest topics in the media, in the open air markets and in the cafes where the Antibois gather to exchange the latest news.
The local newspapers claim that the invaders have taken over much of the best land and real estate and have raided the shops, emptying them of jewels and luxury goods. Huge Russian ships crowd into the harbors. Russians seem to be everywhere, on the streets and in the restaurants. They talk a bit too loud and seem to think they own the place.
As you might suspect, the people of Antibes are not concerned about the invasion of Georgia. It's the invasion of the French Riviera they are talking about. Their paradise on the Mediterranean has been targeted by the Russian oligarchs, who are arguably the richest bunch of people in the world. Unimaginably rich. They make some of the Internet whiz kids and the Wall Street tycoons (whose banks are now imploding) look like small fry.
The oligarchs – men such as Roman Abramovich, Boris Berezovsky and others even richer whose names are less well known to the public – were the power behind the throne in Moscow in the 1990s, when they won control of Russia's natural resources in shady deals with the Kremlin that gave them the title to mines, factories and oil fields at bargain basement prices.
Most of them were not only clever, but also young and restless. They were born in modest circumstances in the old Soviet Union, and suddenly found themselves rich beyond their wildest dreams. Now that they have it, their biggest problem is how to spend it. After all, there is only so much that you can buy in the Gum Department Store in Moscow. So they decided to flaunt their wealth in the pleasure spots frequented by wealthy Westerners.
It has become de rigueur for any self-respecting oligarch to own a mansion in London's Belgravia, a ski chalet in Courchevel, and above all, a splendid Riviera residence. All along the coast they have been buying up the sumptuous villas that decorate the Mediterranean coast like a string of pearls from St. Tropez to Cap d'Antibes, Cap Ferrat and Monte Carlo. One of the latest Russian acquisitions is the Villa Leopolda at Villefranche-sur-mere, which was built like a Roman emperor's palace for the Belgian King Leopold II in 1902. Its owner was Lily Safra, a wealthy widow who had no intention of selling it until Mikhail Prokhorov made her an offer she couldn't refuse. Prokhorov, a slim and dapper 43-year-old with a reputation as a tireless playboy, wrote out a cheque for 496 million euros. That's three-quarters of a billion dollars, an apparent record for a house purchase. Prokhorov could afford it. He is worth more than $13 billion.
Ostentation is the name of the game. The bigger and flashier the better and that goes especially for the oligarchs' yachts. They loom on the horizon off Cannes and Antibes like ocean liners. Some have a flight deck and a helicopter, but most of them these days have two helicopters, and I am told that the latest accessory is a miniature submarine, though I haven't personally seen one. Perhaps one will pop up on the beach some day.
The trickle-down effect of the oligarchs' spending spree is being felt not only by real estate agents but by merchants and salesmen of all sorts. Owners of shops selling high fashion, furs and jewellery tell tales of Russians coming in and buying up the most expensive items without asking the price.
Naturally, the French tourist industry, which has been suffering from an absence of wealthy foreigners in the current Western recession, has welcomed this tide of rubles that has been flooding the Riviera. And as a matter of fact, wealthy Russians are merely coming back after an absence of almost a century. Prior to the Bolshevik Revolution, they spent fortunes in the casinos and grand hotels of the Riviera. The Russians have returned to one of their favourite playgrounds.
But there is another twist to this story. Fifty of the top oligarchs met this week with Russian President Dmitry Medvedev in Moscow. They are seeking government help in riding out the financial crisis that has been battering banks around the world. Russia's billionaire businessmen have seen more than $142 billion wiped off the value of their holdings in the past four months, and banks have become more skittish about lending them money since the invasion of Georgia. Some of Russia's oligarchs are reported to be facing multi-billion dollar margin calls that they will have trouble meeting.
They are the ones who are really worrying about the conflict in Georgia - because of its impact on their finances. They are putting pressure on the Russian government to back off from the confrontation with the United States. Medvedev and Prime Minister Vladimir Putin may not be listening to Washington and NATO, but they are getting an earful from the oligarchs. Money talks, as they say, and in the end it may be more effective in moderating Moscow's behavior than all the hollow threats from the West.
