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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

Sunday, Dec. 21


The Zenit St. Petersburg basketball team returns to the northern capital this evening for a matchup with Krasny Oktyabr, a Volgograd-based basketball club. Tickets for the game, which tips off at 6 p.m. this evening, can be purchased on the clubs website or at their arena, Sibur Arena, on Krestovsky island.


Satisfy your sugar cravings during Sweet New Year, an ongoing seasonal festival at the Raduga shopping center. Each weekend of December will welcome hungry visitors to taste hundreds of different kinds of desserts. Workshops are open to visitors and seasonal gifts can also be purchased for those rushing to finish their New Year shopping.



Monday, Dec. 22


Pick out the latest fashions as holiday gifts for loved ones or as early presents for yourself during the Christmas Design Sale at Kraft on Obvodny Kanal, starting on Dec. 20 and continuing through Dec. 27. Designer clothes will be on sale every day of the week or you can buy something more festive to decorate the home while sipping on hot coffee and perusing the various master classes.



Tuesday, Dec. 23


Meet Arctic explorers Fedor Konukhov and Viktor Simonov during SPIBAs and Capital Legal Services event Arctic Expedition this morning in the Mertens House business center at 21 Nevsky Prospekt. The meeting will discuss the explorers ongoing eco-social project and how companies can use the project as a unique marketing opportunity. Email office@spiba.ru by Dec. 22 if you wish to attend.



Wednesday, Dec. 24


The Anglican Church of St. Petersburg we will be holding a Christmas Eve service at 7 p.m. led by Rev Wm. Shepley Curtis of the Episcopal Church. The service will be held at the Swedish Church at 1/3 Malaya Konyushennaya Ulitsa.



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