Russian and Chinese investors are gulping in French vineyard assets, but Tracfin, the French office dedicated to the fight against money laundering and terrorist financing, says the trendy purchases may be tied to money laundering.
In particular, representatives of the organization said that suspicions were raised by transactions with holding companies in tax havens like Cyprus.
In one case a Cypriot company making a purchase was owned by a company in another unspecified low-tax area and ultimately controlled by a Russian citizen, the Financial Times reported Sunday.
However Tracfin does not have a right to conduct full investigations and must pass all documents into relevant courts, Vedomosti reported.
French wine expert Gregory Pecastena told Rossiiskaya Gazeta that he is doubtful that foreigners are buying wine chateaus for money laundering, saying that he suspects the investors want to get involved in a profitable business.
In the last decade, wine and cognac exports to China and Russia have soared, fueling the demand for French wineries among the countries' newly rich buyers.
Russians seem to particularly prefer the Cognac region's vineyards and over the past eight years have bought seven wineries in the northern French province.
However the Russian invasion has sometimes led to conflicts with locals, as increasingly expensive real estate has priced out French manufacturers. Jacky Chat faced opposition last year when he sold his cognac estate to the Russian Lagoda Group and had to pay off all of his debts because the bank did not want to deal with a foreign company.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.