War, sanctions, immigration: a FatFIRE attempt in Russia
Preface
This piece offers a personal perspective on lifestyle and finances during a period of upheaval in Russia. It is not a complaint, and I’m aware many Ukrainians face far tougher circumstances. My aim is to share the financial and lifestyle implications of recent events, while remaining mindful of anonymity. Details are intentionally brief or vague where necessary.
Background
I’m in my late 20s, married with no children, and have spent my life in Russia. For the past five years I’ve worked in the IT department of a large multinational company with a local office. I’m currently at a first-line development-management level, with potential advancement to higher management or director-level roles within the next five to seven years. My plan once I reached FatFIRE was to retire early, pay off the mortgage, and have enough to live and travel for 4–8 weeks per year.
In 2022, my net monthly salary reached about $3,500. I also received a 10–15% annual bonus and annual stock vesting (roughly $15,000 in 2022, with more in the years ahead). I had no loans or student debt, supported in part by full-tuition federal scholarships available locally. I lived comfortably and saved aggressively, reaching roughly $100k in savings that year. By local standards, this was strong money. I enjoyed premium banking benefits, occasional upscale shopping, and several vacations annually.
War arrives
The situation shifted dramatically with rising international volatility. The US and EU began evacuations around Kyiv, followed by events in February and March that signaled long-term changes. Even as I’ve held anti-war views and participated in opposition activities at times, I acknowledge the broader shifts: many employers began reducing or relocating Moscow-based operations, while sanctions began to bite.
Sanctions: Air travel
Russian carriers were hit quickly as many foreign airlines ceased service. Ticket prices spiked, and cancellations became common. Some global organizations chartered flights to relocate staff. Border controls tightened; exit options became more restrictive, complicating travel plans. Ultra-high-net-worth individuals often sought residence in the UAE or Israel. While the situation has stabilized somewhat, flights remain expensive and obtaining visas has become more challenging.
Sanctions: Money
The ruble’s value moved dramatically: a sharp devaluation followed by policy interventions. The central bank raised interest rates to curb inflation and compelled exporters to repatriate foreign earnings, which temporarily boosted the local currency. However, accessing and moving dollars or euros outside Russia remained fraught. Paper cash and bank cards issued abroad were not readily usable within Russia, and international payment networks faced restrictions.
Sanctions: Investments
This is where things became especially complex. The Russian stock market (MOEX) had already been in decline, and some dividends and corporate actions were affected. The broader risk was amplified by freezes on certain ETFs, bonds, and cross-border holdings tied to platforms like Euroclear or BlackRock. A significant portion of personal investments was in US and European equities for diversification, but liquidity and accessibility became major obstacles. Some Russian eurobonds defaulted or delisted, and in some cases, investors faced restricted access to funds held in foreign accounts or through foreign custodians. Transferring capital from Russia to the West grew increasingly difficult, with many banks blocking transfers and many brokerages declining to open accounts for Russian residents. Practical workarounds included using USD tether (stablecoins) as a conduit, though this approach comes with its own set of risks and regulatory considerations.
What’s next
I relocated to a smaller, resilient country in the Caucasus region, with Germany as my long-term destination. The decision to leave family behind was difficult, and I hope to reunite with them someday. I’ve retained my employment and salary, with adjustments expected (around $100k gross plus equity). Nevertheless, wealth accumulation in this new environment is likely to be hindered by higher living costs, taxation, and the complexities of transporting savings abroad. Travel patterns will inevitably shift, and it may be challenging to be fully accepted in some higher-income nations in the near term. I anticipate staying vigilant and low-profile to maintain comfort, while navigating banking and real estate challenges typical of new jurisdictions. Dubai or some Caribbean destinations remain potential options, but they require substantially more capital to sustain.
AMA
I’ll be answering questions in the comments as best I can, given the information and constraints outlined above.
