Exploring rentier Aleksin's Dubai fortune: Lukashenko's “moneybag” profits from prime real estate
The Dubai real estate market has emerged as an attractive investment opportunity for businessmen who have been affected by Western sanctions due to their ties with Aleksandr Lukashenko. They own luxury apartments on the glamorous island of Palm Jumeirah and rent them out to generate revenue.
Leaked data provides a detailed overview of hundreds of thousands of properties in Dubai and information about their ownership or usage, largely from 2020 and 2022. The data was obtained by the Centre for Advanced Defense Studies (C4ADS), a non-profit organization based in Washington, D.C., that researches international crime and conflict. It was then shared with Norwegian financial outlet E24 and the Organized Crime and Corruption Reporting Project (OCCRP), which coordinated an investigative project with dozens of media outlets from around the world. Buro was part of this project, called Dubai Unlocked.
Dubai is not only known as the Middle East's financial centre. The glamorous emirate also has a shady reputation as a tax haven and hub for money laundering, often involving real estate.
“Corrupt actors and politically exposed individuals avoiding public accountability use secrecy jurisdictions like the UAE to hide assets in plain sight”, said Maria Giuditta Borselli, a Portfolio Manager at C4ADS.
The Dubai leak contains property details of dozens of Belarusians, including the family of businessman Aliaksei Aleksin. In late 2009, he purchased a 140-square-meter apartment in a residential estate on Palm Jumeirah Island, as evidenced by transaction data from Dubai. The purchase price for the apartment was approximately $400,000. From 2021 through 2023, the housing was rented. The owner received a total of over $90,000 for his services.
A residential estate in Dubai. Source: bayut.com
A villa registered in the name of his son, Dzmitry Aleksin, is three kilometres from Aliaksei Aleksin's apartment. The 600-square-metre mansion on Palm Jumeirah Island was purchased in early 2013. The deal is valued at over $3.5 million.
In 2021, Aliaksei Aleksin was subject to EU and US sanctions. In the West, he is considered Lukashenko's "tobacco moneybag". Aleksin is best known in Belarus for owning the Tabakerka kiosk chain and the Inter Tobacco company. He is one of the top ten most successful businessmen in Belarus. After the restrictions were imposed, Aleksin transferred the assets to his wife and sons, who also became sanctioned. Aliaksei Aleksin did not respond to calls and inquiries. Dzmitry Aleksin declined to comment.
Another family under sanctions for links to the Lukashenko regime has property in Dubai. The family concerned is that of the Serbian businessman Karić. Nebojša Karić owns a 220-square-metre apartment on Palm Jumeirah Island. His father Bogoljub Karić also has real estate in Dubai.
Bogoljub Karić has been living in the United Arab Emirates for about eight years, the businessman's lawyers replied. Almost three years ago, he purchased an apartment in Dubai.
"The purchase was made according to all applicable laws, using a banked (not cash) transaction. At the time of the purchase, he [Bogoljub Karić] was a tax resident of Dubai. He has always complied with the laws and regulations of the UAE, as well as the laws and regulations of any country in which he has resided. This also applies to any real estate owned by Mr. Karić's relatives", the lawyers explained in their response.
When Bogoljub Karić doesn't stay in Dubai, he rents out his apartment. The businessman sees buying a home as a worthwhile investment, as rents in Dubai are higher than in other countries.
A residential estate in Dubai. Source: bayut.com
The Karićes are best known in Belarus for building the Mayak Minsk and Minsk-Mir housing estates. Nebojša Karić is subject to US sanctions and Bogoljub Karić is sanctioned by the EU. In the West, the Serbian family is seen as Lukashenko's "construction moneybags". The lawyers emphasized that Bogoljub Karić had bought real estate in Dubai before the EU sanctions were imposed. The businessman is challenging his inclusion in the blacklist.
"Now he [Bogoljub Karić] is retired and is no longer in business. So are his family members", the lawyers' response said.
The transfer of assets to jurisdictions such as Dubai represents an attractive insurance option for elites in authoritarian countries, according to Felix Wiebrecht, Assistant Professor in Politics at the University of Liverpool. He believes that authoritarian regimes are at constant risk of being overthrown, in which case assets acquired by elites can be confiscated.
Furthermore, in an authoritarian system, members of the elite may fall out of graces with the authorities and be subject to prosecution, for instance. In such a case, their assets may also be confiscated.
"It's in their best interest to move their assets overseas so their families can access them even if their careers end", Wiebrecht shared.
