A die-hard supporter of Putin and one of Russia’s renowned singers fell victim to a scheme that resulted in her unknowingly selling her apartment to an unsuspecting buyer. Both parties realized they had been misled. Following a formal complaint, a court decided that the apartment should be returned, but the financial compensation was not mandated.

This incident has radically altered Russia’s housing market.

The astonishing resolution of this year-long saga, which teetered on the edge of absurdity, has drawn significant attention across Russia recently, with hundreds of thousands tuning in for the concluding court session.

As the prolonged conflict in Ukraine approaches its fourth anniversary, the question arises: Did the Dolina affair represent a moment where public indignation could still influence state actions, or was it merely a distraction?

The tale began in the spring of 2024.

Larisa Dolina, a 70-year-old pop icon known for her striking platinum blonde hair and glamorous fashion, had aligned herself with the ruling, pro-Putin United Russia party back in 2003, recognizing the professional benefits of political involvement. Recently, she had even performed in the Russian-occupied Donetsk region.

Last year, when officers from the Federal Security Service (FSB) reached out claiming they needed her assistance to combat criminal activity, she complied, unaware that these were actually con artists looking to exploit her.

For months, they manipulated Dolina into believing she had to sell her luxurious Moscow apartment to prevent it from being stolen, persuading her to transfer the funds to what they assured her was a secure account.

Complicating the narrative, they had a genuine buyer in 35-year-old Moscow businesswoman Polina Lurye, who ended up purchasing the apartment for 112 million rubles (approximately $1.4 million).

After discovering the deceit, Dolina publicly revealed in August 2024 that she had been defrauded.

“Initial evidence suggests that the fraudsters are based in Ukraine,” Dolina stated, though she did not provide proof. In a criminal case earlier this January, the impostor FSB agents were ordered to compensate her nearly 70 million rubles ($875,000).

However, what about Lurye and the money she had lost?

Three courts ruled in favor of Dolina, determining that the seller had been misled, which invalidated the sale. As a result, Dolina retained ownership of the apartment, leaving Lurye without a means to reclaim her funds.

Lurye voiced her objections. As public anger surrounding the scandal grew, the case ascended to Russia’s Supreme Court, which, during a livestreamed session watched by over 230,000 viewers on Tuesday, reversed the lower courts’ judgments.

The Supreme Court declared Lurye the rightful owner of the apartment.

In its final ruling, the court commented that Dolina’s behavior stemmed from a “change in mental state,” rendering her incapable of comprehending the scam or foreseeing the legal implications of her actions.

The initial decision allowing Dolina to keep her property sparked significant public outcry.

Many Russians took to social media to denounce the perceived injustice against Lurye, who resonated with the public as an honest buyer and single mother. A survey by Lenta.ru indicated that over 95% of respondents criticized Dolina’s actions.

This scandal, which began as mere gossip, has now begun to have real consequences for Russia’s real estate market, a phenomenon now referred to as the “Dolina effect.”

The implication is clear: If Russian courts establish a precedent where sellers can finalize a deal and later reclaim both the property and the sale proceeds after lodging a complaint, it creates significant risk for buyers.

Reports from the Russian Guild of Realtors noted a 15-20% rise in court disputes related to property transactions over the last year, as stated by local media.

“Indeed, the number of cases concerning contested apartment transactions has risen,” said Anzhelika Alshaeva, commercial director of KVS Group of Companies, to a St. Petersburg real estate publication. “Typically, the sellers are elderly women who are either genuine victims of fraud or have played a role in fraudulent activities themselves.”

This left many Russians across the country’s 11 time zones sharing similar experiences reminiscent of the “Dolina effect.”

The Kotkov family from the Volgograd region can relate. After purchasing a Moscow apartment for 9 million rubles ($113,000) in cash, they found themselves embroiled in a legal dispute when the previous owner claimed he had been deceived by scammers into selling it, according to local reports.

The Supreme Court’s decision in favor of Lurye may alleviate some uncertainty in the housing market. However, for Dolina, the end of the year is shaping up to be quite unfavorable.

Lurye, now in possession of the apartment, has reportedly requested the eviction of the previous owner. Authorities have set a hearing date for December 25 regarding this matter.

Dolina may choose to vacate voluntarily, which could result in the eviction claim being dismissed, according to RBC news.

Meanwhile, the four individuals behind the fraudulent scheme are currently incarcerated, facing sentences ranging from four to seven years.

Who is ultimately at fault? Many hold Dolina responsible, considering that she not only initiated the situation but also illustrated how the elite receive preferential treatment from the state in contemporary Russia.

Amid the severity of the war in Ukraine, authorities suggest even disputes over property can be linked to the broader conflict with the West.

Maria Zakharova, a spokesperson for the Foreign Ministry, stated in an interview last week, “We should examine this narrative through the lens of what our adversaries aim to achieve. One tactic they are exploring is to create discord among our people.”