By Francesco Guarascio
BRUSSELS – The European Parliament is about to approve on 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 in opposition to Moscow, with targets together with a lot of highly effective and rich Russians seen as near President Vladimir Putin.
The golden passport business, which between 2011 and 2019 generated investments in EU international locations of over 20 billion euros ($21.8 billion), is at present virtually solely unregulated within the EU, regardless of many international locations having run these schemes for years.
EU states equivalent to Malta and Cyprus have made enormous earnings with their schemes and the European Fee’s vp overseeing monetary coverage, Valdis Dombrovskis, arrange a profitable residence funding programme in Latvia when he was prime minister there at first of the final decade.
EU lawmakers say of their report that ending such schemes might have a major financial impression in some international locations. They're subsequently 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, equivalent to Henley & Companions, would face strict necessities. Beneath 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 a direct halt to gross sales of visa and residence permits to Russians, among the many greatest beneficiaries of those schemes.
As soon as permitted, the report will go to the European Fee, which has the facility to suggest laws.
EU Justice Commissioner Didier Reynders informed lawmakers that the EU govt disagreed with the necessity for brand spanking 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'll assess the necessity for brand spanking new legal guidelines to tighten golden visa schemes, and likewise situation 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 concerning 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.
($1 = 0.9177 euros)
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