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Wealthy Russians Prefer British Visas

Published: March 19, 2014 (Issue # 1802)



  • Millionaires have flocked to Britains Tier 1 investor visa program in recent years.
    Photo: Wikimedia Commons

Wealthy Russians are likely to favor a popular British citizenship-for-investment program despite a shifting legal landscape and a looming threat of EU sanctions connected to the Crimea crisis, people familiar with the situation said.

Millionaires have flocked to Britains Tier 1 investor visa program in recent years. Between 2008 and 2013, Britain granted 433 visas to Russian investors through the program, more than to any other nationality during that period.

The program, which launched in 1994, offers a range of citizenship options to applicants looking to invest upwards of £1 million in Britain.

Related: How Wealthy Russians Buy a 2nd Passport

Although applicants are required to spend a minimum of 180 days per year in the country to qualify for the program, investors can circumvent this requirement by listing a spouse as the primary applicant.

Recently proposed changes may threaten the programs cost-effectiveness and simplicity. In February, the British Migration Advisory Committee, or MAC, proposed raising the investment threshold to £2 million and encouraging riskier investments.

Many of the MAC recommendations are likely to pass, given the respect the independent advisory body holds, said Anatoly Gakenberg, an attorney specializing in citizenship-for-investment programs.

The British Home Office and the British Embassy in Moscow did not reply to requests for comment.

Meanwhile, the European Union has threatened various sanctions amid escalating tensions over Russias handling of the Ukraine crisis. On Mar. 6, the EU announced the suspension of visa-liberalization talks with Russia, and warned that other measures could follow.

Asset freezes and travel bans may be implemented against certain Russian officials as well, potentially to be followed by additional and far-reaching consequences.

British politicians have also expressed strong support for possible EU sanctions. Hesitancy or weakness on the part of the EU about its response will send precisely the wrong message, said Ed Miliband, leader of Britains Labour Party, BBC reported.

Despite these difficulties, people who assist Russians in obtaining the visas said that Russian investors would likely continue to enjoy the benefits of the Tier 1 program.

Phillip Barth, top immigration attorney at Withers LLP, said the program would remain an attractive option because of Britains friendly attitude toward foreign investment. In contrast, a similar program in the U.S. requires extensive proof of the source of an investment, while Britain merely requires that the money be held in a freely transferable bank account under the investors name for 90 days.

The Brits have always been very welcoming to capital, no matter what part of the world it comes from, as long as it is legitimate, Gakenberg said.

Furthermore, Britain will remain more attractive to investors than some of the alternatives, said Matthew Roazen, special counsel at Withers LLP. Roazen explained that the perceived strength of Russian and Cypriot law enforcement ties has discouraged investment in Cyprus, noting that his clients are not interested in sharing with the Russian government what their plans are with respect to passports and residences.

Still, Gakenberg encourages clients to apply for the program before the proposed amendments take effect, while costs are still relatively low.





 


ALL ABOUT TOWN

Thursday, Oct. 2


The celebration of the bicentennial of the birth of Mikhail Lermontov continues with todays free exhibition in the citys Lermontov Library at 19 Liteiny Prospekt. Titled Under the Rustling Wings, the temporary exhibition will feature the costumes and scenery used in the 1917 production of Lermontovs play The Masquerade, which he wrote in 1835 when he was only 21 years old.



Friday, Oct. 3


Learn more about how to manage and evaluate employee performance during SPIBAs Human Resources Committee meeting this morning on Employee Assessment: Global and Local Trends. Starting at 9:30 a.m., the discussion will touch on such topics as the partnership between HR and business, reliable assessment strategies and more, with Tatiana Andrianova, the head of the SHL Russia and CIS branch in St. Petersburg, as the featured guest. Confirm your participation by Oct. 2 by emailing office@spiba.ru or calling 325 9091.


AmChams Procurement Committee Meeting is at 9 a.m. this morning in their office in the New St. Isaac Office Center on Ulitsa Yakubovicha.



Saturday, Oct. 4


Wine and cheese lovers will get their chance to revel during Scandinavia Country Club and Spas Wine Market Weekend. Going on today and tomorrow, wining diners can listen to live music, take part in culinary classes and, of course, sample a variety of fine wines from around the world. The cost of admission is 400 rubles ($10.30) for adults and 200 rubles ($5.15) for children.



Sunday, Oct. 5


Look for the latest fall fashions at the Autumn Market today in Freedom Anticafe at 7 Kazanskaya Ulitsa. The minimarket plans to offer clothes more flattering than the puffy jackets that are a staple of the citys cold-weather fashion, while offering the same amount of protection from the biting winds blowing off of the Baltic.



Monday, Oct. 6


SKA St. Petersburg, the citys KHL affiliate, welcomes Slovakian club HC Slovan in a match-up tonight at the Ice Palace near the Prospekt Bolshevikov metro station. The puck drops at 7:30 p.m. and tickets can be purchased on the clubs website or in person at either the arenas box office or the clubs merchandise store on Nevsky Prospekt.



Tuesday, Oct. 7


Learn more about Russias energy industry at the St. Petersburg Energy Forum that begins today and runs through Oct. 10. Attracting industry experts and political and business representatives, the forum plans to welcome more than 350 plus companies and their representatives to discuss the future of Russias largest economic sector.



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