Russian spending in London down 17% since Ukraine crisis, survey says

Wealthy Russians shop in Knightsbridge. Photograph: Gary Calton/Network Photographer

Russian spending in British shops and hotels has dropped by 17% since the political crisis in Ukraine began and the value of the rouble started sliding, figures show.

Visitors from Russia remain one of the biggest-spending groups among foreign shoppers, splashing out an average of £669 in each transaction, according to a survey by the shopping and tourism company Global Blue.

But the fall in spending in the UK in February, compared with the same month in 2013, saw them drop to fourth place among non-EU shoppers, behind Nigeria.

Gordon Clark, UK manager of Global Blue, said: "The unstable situation in Russia has shown its effect on tourism spend this year as the weakening economy leaves shoppers disinclined to travel."

But he added that wealthy Russians continued to be drawn to British luxury brands.

The high-end shops of Bond Street and Kensington are unlikely to feel the pinch: foreign tourists from the Middle East, the largest-spending group, spent 31% more than last year, while Chinese tourists increased their spend by 23%.

Global Blue said growth in Russian tourism could slow in the near future but the long-term forecast was positive.

Meanwhile, the Open Europe thinktank argues that Russia's importance to the City of London has been overstated. Analysis from Open Europeindicates that Russian investment in London is worth £27bn, representing just 0.5% of total assets invested in London. Only 1% of the UK's financial services are exported to Russia, compared with 6% exported to Switzerland and 28% to the EU.

Around 70 Russian companies are listed on the London Stock Exchange, but these account for only 4% of all listings. The thinktank said severing credit lines for Russia's state-owned companies and banks could be an effective way to put pressure on Moscow.