Luxury island Saint Barth: Oligarchs leave Little Russia in the Caribbean

9,000 kilometers from Moscow lies a place of longing for Russian oligarchs: in the French overseas paradise of Saint-Barthélemy in the Caribbean, countless giant yachts belonging to rich Russians anchor every year.

Luxury island Saint Barth: Oligarchs leave Little Russia in the Caribbean

9,000 kilometers from Moscow lies a place of longing for Russian oligarchs: in the French overseas paradise of Saint-Barthélemy in the Caribbean, countless giant yachts belonging to rich Russians anchor every year. But since Putin's invasion of Ukraine, the yachts have gone and Roman Abramovich, popular with islanders, has stopped coming.

White sand, crystal clear water, outrageously expensive wine, luxury shops everywhere. This is what paradise for the super rich looks like. Payment is made in euros, the official language is French and Emmanuel Macron is the head of state. Saint-Barthélemy, often simply called Saint Barth, is a French overseas territory thousands of kilometers from mainland Europe. And it's an eldorado for the super-rich, especially Russian oligarchs.

Saint Barth is part of the Lesser Antilles, a chain of islands stretching from the American and British Virgin Islands in the north to Venezuela's Margarita Island in the south of the Caribbean Sea. Neighboring islands of Saint Barth are the Dutch-French St. Martin with its world-famous airport and the mini-state of St. Kitts and Nevis.

Saint Barth is tiny even by Caribbean standards, barely larger than Hiddensee and five times smaller than Sylt. Only 10,000 people live permanently on Saint-Barthélemy, in the main holiday season from December to April there are many more. Especially celebrities populate the island. From Leonardo DiCaprio to Dua Lipa to Sean Penn or Mike Tyson, they all love the exclusive luxury island. Perhaps also because the stars on Saint Barth are hardly noticeable. In the shadow of the super rich and billionaires like Jeff Bezos or, above all, the Russian oligarchs, who make up the majority of luxury vacationers on the island.

"For Americans, Saint Barth is a chic wedding island. For people with a lot of money, the island is a magnet because Dior, Hermès, Louis Vuitton and other luxury shops are all right next to each other on the main street at the port," says Karin Binz in the ntv podcast "Learned something again". She has been traveling the seven seas with her husband Holger for many years. Not on an oligarch's yacht, but with their sailing boat, the "Rivercafe".

In their blog "sailrivercafe.com" the two report about their travels. And also write about stays on Saint Barth. They have already been to the Caribbean oligarchs' paradise four times. They immediately noticed the super-rich Russians. There is hardly a second place in the world where so many mega yachts are moored in such a small space at the same time as in the port of the island's capital Gustavia.

The oligarchs themselves and their girlfriends or wives then populate the luxury shops downtown. "They never look at the price either. They go into the shops, point to things and say: I would like that. The saleswomen are often extremely overwhelmed and also a bit annoyed. But the super-rich bring the money," says Karin Binz . "This disrespect really got on the nerves of the people on the island," adds her husband Holger.

But not everyone has had bad experiences with the oligarchs. One islander told Business Insider magazine that many people on Saint Barth don't want ultra-rich tourism to stop.

Roman Abramovich in particular actually has a good reputation on the island. There is talk of a "wonderful person". France and the EU "made a mistake" in imposing sanctions on him, a local private chef, who claims to have worked for Abramovich a dozen times, told Forbes magazine. "A shop assistant in a furniture store on Saint Barth told us that Abramovich is one of the few mega-rich people who behave properly," reports Karin Binz.

Saint Barth has become a kind of second home for Roman Abramowitsch. The multi-billionaire has been spending many vacations on the island for several years now, and his mega yacht "Eclipse" regularly anchors off Gustavia. In 2009, Abramovich bought a villa on the Caribbean island for $90 million. This property was confiscated by France after the start of the Russian war.

According to Forbes, Abramovich owns a second property in the middle of Gustavia. The building is only half finished, the construction workers were withdrawn shortly after the beginning of the war. In 2010, Abramovich paid four million dollars to rebuild the local soccer stadium, seven years later after Hurricane "Irma" renovated it. And he funded the repair of a saltwater pond, which is important to the local ecosystem, according to Forbes.

For Saint Barth, the super-rich are not only an economic blessing because of such donations. Mooring fees for the yachts, high sales in the luxury shops, outrageously expensive wine that is sold in the exquisite restaurants - sometimes for up to 20,000 US dollars a bottle: All this drives a lot of money into the island's coffers.

But since the start of the Russian war of aggression in Ukraine, life on the dream Caribbean island has changed. The Russian oligarchs are gone and won't be back anytime soon. While semi-autonomous and not directly part of the European Union, the island is governed by French law. And therefore also the sanctions. "A harbor master on the neighboring island of Saint Martin once told us that 60 percent of all super yachts and at least 90 percent of all mega yachts on Saint Barth were controlled by Russians," says Holger Binz in the podcast.

Super yachts are between 24 and 80 meters long, mega yachts up to 100 meters long. Anything beyond that is referred to as a gigaacht. This also includes the "Eclipse" by Roman Abramowitsch. At 163 meters long, his giant yacht is the fourth longest in the world.

Normally, in May - after the end of the main season - the big yachts set off again towards Europe. This year the yachts of the Russian oligarchs left at least two months earlier. Shortly after the beginning of the war, they brought their yachts to safety. For fear that they will be confiscated because of the sanctions.

Without the big yachts, the port of Gustavia now looks almost tranquil, say Karin and Holger Binz. "The atmosphere is much more relaxed. The shopkeepers are happy when you come into the shop. Before, every shop was overcrowded."

But for an entire main season - from December to April - no Russian oligarchs, i.e. far fewer super-rich, Saint Barth can hardly afford that economically. The island is focused on luxury tourism. The "normal" Caribbean tourist rarely gets lost on the island, also because it is so difficult to reach. Direct flights to the tiny airport are only available from the neighboring islands. Those arriving from Europe fly with KLM or Air France from Amsterdam or Paris to the international airport on St. Martin and from there continue with a small propeller plane to Saint Barth.

Americans get to the island much faster. They too have to transfer to St. Martin, but from Florida or New York the flight to the Caribbean takes not nine but only three to four hours.

"The island will experience enormous changes. The chance for Saint Barth is that more Americans will come again. I had the feeling that in recent years they were held back by the predominantly Russian clientele," suspects Holger Binz in the podcast . The circumnavigator is convinced that a large-scale collapse of tourism would have fatal consequences. "Then it will be really difficult for Saint Barth if one day all the luxury shops are empty. That's whole streets."

Luxury stores and expensive restaurants are now hoping for US millionaires instead of Russian billionaires. They don't usually come with mega or giga yachts, but they always have enough money. According to Holger Binz, the past holiday seasons were "a bit too decadent". Now Saint Barth has the chance to "take a deep breath".

But a new tourism strategy is urgently needed. And prospects for the islanders. "I think, as it stands, it's a certain relief that they have the island to themselves again. But it can't stay like this."

Especially since the effects are not only affecting luxury shops and gourmet restaurants, but a number of other sectors. "Many oligarchs also own overpriced villas. There is also an incredibly large industry behind it. I have never seen so many pool cleaners or gardeners in my life as on Saint Barth. It will affect everyone," adds Holger Binz.

Saint-Barthélemy is facing a major upheaval. Less decadence, fewer mega yachts, maybe a little cheaper wine. At Easter, you could even camp on the beach as an exception. Saint Barth breaks new ground.

(This article was first published on Monday, July 25, 2022.)