Phuket has seen a major influx of Russian residents and visitors, with many arrivals reportedly seeking to avoid military service, protect savings or escape Russia's political and economic pressures.
At least 60,000 Russians are estimated to have moved to the island, which has 432,000 registered residents. More than 619,000 Russian visitors arrived in the first seven months of this year - almost twice the number from any other country.
The island now has Russian schools, a consulate, a Russian-language newspaper, Orthodox churches, Cyrillic advertising, restaurants serving borscht and dumplings, and businesses catering specifically to Russian customers.
For foreigners already living in Phuket, the most immediate effect is likely to be on housing costs and availability, particularly around Bang Tao and Chalong. Property agents told the Daily Mail that prices had risen by around half since the war in Ukraine began, while another said the most sought-after homes had doubled in price.
Property demand and visa concerns
A Russian property agent told the newspaper that clients were moving money through Bitcoin or currency exchanges to avoid banking restrictions, and that buyers saw Phuket property as a safer place to hold wealth.
One source estimated that half of Russian buyers were investing or protecting savings, while the other half were moving to Phuket because they feared another Russian mobilisation.
Thailand has not imposed sanctions on Russia and has maintained what the report described as a neutral position over the war. Russians interviewed said long-stay visas were relatively easy to obtain, although some alleged that applicants falsely claimed sufficient savings or Thai-language study.
Thai property ownership rules still apply regardless of nationality. In particular, foreigners cannot directly own land, while condominium ownership by foreign nationals is subject to legal restrictions and quota rules.
Businesses benefit, but concerns remain
Russian spending has brought clear benefits to some Phuket businesses. A nail salon owner in Chalong said half her clients were Russian, while a Bang Tao cigar shop and nearby clothing retailers said Russian customers were important to their trade.
Chalermpong Saengdee, one of Phuket's three MPs, said legally entering Russians were welcome and described many as high-income buyers with substantial spending power.
"The high property prices means these buyers are high-income people with very high spending power, and they spend a lot in Phuket," he said. "They group together since they feel safer living among fellow Russians."
However, some Thai business owners said Russian-operated firms were competing in sectors intended to protect local employment, including tours, boat trips and minibus services. A motorbike rental operator also complained that some customers were disrespectful towards Thai staff and customs.
Crime cases and policing
The growth of the Russian community has also brought closer attention from authorities. The report cited arrests over alleged property-law breaches, an alleged drug-selling Telegram channel, and a Russian man deported after making pornographic films on the island.
Denis Obrezko, a former member of Russia's security service, was arrested in Phuket last year in a joint FBI-Thai police operation. He was extradited to the United States and pleaded not guilty to cyber-crime charges in Boston a couple of months ago.
Pictures courtesy of Daily Mail
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