The European Parliament is anticipated to approve in a while Wednesday a report urging the EU to ban golden passport schemes by 2025 and instantly cease the issuance of visas and passports to wealthy Russians in alternate for investments.
The transfer follows Russia’s invasion of Ukraine which has triggered world sanctions of unprecedented severity towards Moscow, with targets together with a variety of highly effective and rich Russians seen as near President Vladimir Putin.
The golden passport trade, which between 2011 and 2019 generated investments in EU international locations of over 20 billion euros ($21.8 billion), is presently virtually totally unregulated within the EU, regardless of many international locations having run these schemes for years.
EU states similar to Malta and Cyprus have made large income with their schemes and the European Fee’s vice chairman overseeing monetary coverage, Valdis Dombrovskis, arrange a profitable residence funding programme in Latvia when he was prime minister there at the start of the final decade.
EU lawmakers say of their report that ending such schemes may have a big financial impression in some international locations. They’re due to this fact proposing the gradual phaseout of golden passport schemes and tight guidelines for residence preparations, together with rather more rigorous checks on candidates.
Corporations growing and selling these programmes, similar to Henley & Companions, would face strict necessities. Below the proposal, which is backed by a majority of legislators, revenues generated by these schemes could be taxed to fund the EU finances.
In an modification to the unique proposal prompted by the Russian invasion of Ukraine, the parliament urges an instantaneous halt to gross sales of visa and residence permits to Russians, among the many greatest beneficiaries of those schemes.
As soon as accredited, the report will go to the European Fee, which has the facility to suggest laws.
EU Justice Commissioner Didier Reynders instructed lawmakers that the EU govt disagreed with the necessity for brand new guidelines on gross sales of citizenship as a result of it was already pushing by means of authorized proceedings to close down current golden passport schemes in Malta, Cyprus and Bulgaria.
However the Fee has mentioned it should assess the necessity for brand new legal guidelines to tighten golden visa schemes, and likewise problem shortly a non-binding suggestion on EU member states’ issuance of golden passports and residence permits to Russians.
Final month, Britain scrapped golden visas for rich traders amid considerations in regards to the influx of illicit Russian cash at a time when Russia was massing forces alongside the border with Ukraine, per week earlier than launching its invasion. Learn full story
(Reuters)