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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

Friday, Aug. 1


Bikers from all around the world will gather to take part in a parade, extreme shows and rock concerts during the International Biker Festival that revs its engines today and runs through Aug. 3 near Olgino Hotel, 4/2 Primorskogo Shosse.


The Peter and Paul Fortress will be turned into an open-air cinema today and tomorrow as part of the 5th International Short and Animation Film Festival. A huge screen across the fortress walls will air short films non-stop with board games, photo sessions and other activities also on offer for visitors. For more information, visit www.opencinemafest.ru



Saturday, Aug. 2


Gatchina Palace Park Museum will host its second annual Night of Light, an impressive audio-visual show across the night sky. Tickets are 600 rubles ($16).


If graphic design is more your thing then check out Illustration Day, where you will be able to visit an exhibition, attend lectures by professionals and even show experts some of your own work. The event starts at noon at Zona Deystvia, 73 Ligovsky Prospekt. The entrance fee is 350 rubles ($10).



Sunday, Aug. 3


History lovers shouldnt miss the chance to see reenactments of World War I battles in Pushkin at noon. Besides exciting war scenes, visitors can enjoy live music, historical costumes, an equestrian show and a fancy-dress parade starting from the Moscow gates.


Garage Sale, the popular and growing flea market where nothing is priced over 500 rubles ($14.11), starts today at noon in Loft-Project Etagi, 74 Ligovsky Prospekt. Be sure to get in early to score a bargain. Entry costs 50 rubles ($1.40)



Monday, Aug. 4


Continue the working week with a calm and steady mind with a free yoga lesson at 7 p.m. in the Bukvoyed store at 23A Vladimirsky Prospekt.



Tuesday, Aug. 5


Visit The Romanov Dynasty doll exhibition today, where more than fifty porcelain dolls depicting Russian rulers, and made by Olina Ventzel, will be on show. The exhibition continues through Aug. 31 in Sheremetyev Palace, 34 Fontanka Naberezhnaya.



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