Andrew Biliter
Business

Doubting Putin's Popularity, Oligarch Returns His $600M Gift

Russian billionaire Mikhail Prokhorov secured the purchase of the world’s most expensive house last summer — a $600 million villa in the south of France. Now, he wants to give it back. If this sounds like another oligarch unable to pay his bills, it isn’t; apparently flush with cash, Prokhorov was planning to buy the villa as a present for Russia’s current leader. He only hesitated because he’s no longer sure who that is.

There is little doubt that Prokhorov is now well positioned to win the ear of the Kremlin. Just before the markets crashed, the metals and mining tycoon managed to sell off his assets to rival oligarch Oleg Deripaska, effectively bankrupting the Rusal CEO and making Prokhorov for the first time the richest man in Russia.

So when Vladimir Putin visited the Villa Leopolda in Villefranche-sur-Mer last summer, Prokhorov purportedly saw an opportunity to convert his good fortune into some political clout. As the French daily Le Monde reported and our sources in Russia confirm, Prokhorov’s sole reason behind purchasing the villa was as a gift to the prime minister. But even as he was making a 10 percent downpayment on the property, Prokhorov felt the political landscape in Russia shifting.

Putin, who became the prime minister after installing Dmitry Medvedev as his hand-picked successor in the Kremlin, enjoyed unparalleled popularity during his presidency and was credited with Russia's economic prosperity and increased political influence. But as the economic crisis deepens, there is a chance Putin's popularity will wane and Medvedev will assume dominance in Russian politics.

Generous though Prokhorov may be, the metals mogul has no interest in buying $600 million retirement homes for outgoing heads of state. So for now, our sources assume, he is putting the gift shopping on hold and waiting for a clear sign about which man is the de-facto ruler of Russia.

Meanwhile, the owner of Villa Leopolda, philanthropist Lily Safra, is refusing to return Prokhorov’s downpayment, promising instead to give it away to charity. Had the deal gone through, it would have been the largest real estate transaction in history.

L'immobilier de prestige n'échappe pas à la crise [Le Monde]


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