Russian citizenship can now be bought for 10 million rubles
Russian Prime Minister Dmitry Medvedev signed a government decree according to which certain groups of foreign entrepreneurs and investors will be able to obtain Russian citizenship in a simplified manner. The document was published on the government's website.
"In order to attract foreign investment into the Russian economy, the simplified procedure for admission to Russian citizenship applies to foreign entrepreneurs and investors engaged in activities provided for by the All-Russian Classifier of Types of Economic Activity, with certain exceptions," the statement says.
From the text of the decree it follows that exceptions include any types of business related to the service sector, including trade. These exceptions are due to the lack of need to attract additional participants in the relevant types of activities, the Cabinet clarifies.
As noted in the statement, the draft decree was prepared by the Ministry of Economic Development in pursuance of the federal law "On Citizenship of the Russian Federation." This law, among other things, allows individual entrepreneurs with an annual turnover of at least 10 million rubles, as well as foreign co-owners of Russian companies who have also invested at least 10 million rubles in them, to apply for Russian citizenship. However, while the law stipulated as an additional condition the requirement to reside in the country for at least three years, the decree abolishes this provision.
In effect, the decree introduces the norm of "citizenship by investment" that exists in many countries.
Passport in exchange for investments
However, usually in exchange for a residence permit or simplified citizenship, investments in real estate are required. For example, a residence permit can be obtained by purchasing real estate worth 300,000 euros in Bulgaria, Greece and Cyprus.
Wealthier people seeking a backup plan in the form of real estate abroad consider St. Kitts and Nevis, where one can obtain a citizen's passport immediately (within four months). The minimum investment in real estate in this country is 400,000 euros. However, for those interested, there is an alternative – to invest $250,000 or more in the so-called Sugar Fund. Agencies offering services for obtaining citizenship of St. Kitts and Nevis usually recommend this option, which is less costly both financially and in terms of time.
In Spain, you can obtain a residence permit by purchasing real estate worth €00 thousand euros.
In Switzerland, to obtain a residence permit based on investments, you need to pay from 82,000 to 1.3 million euros in taxes per year depending on the canton, and to become Swiss, you must live in the country for 12 years.
The United Kingdom attracts with the opportunity to become an owner of an "investor visa," which grants the right to obtain citizenship in five to six years depending on the amount of investment. The minimum is 1 million British pounds.
All flags are welcome
The Ministry of Economic Development, which was responsible for drafting the document, emphasizes that they do not intend to sort business immigrants by country of origin. "No restrictions or preferences depending on the country of origin of foreign citizens carrying out entrepreneurial activities or investments in the Russian Federation are established by law or decree," the ministry told Gazeta.Ru.
"Russia clearly wants to attract representatives of small and medium-sized businesses to the country, since the stated investment amount of 10 million rubles is precisely intended for such entrepreneurs," says Evgeny Gontmakher, head of the Center for Social Research and Innovation.
The expert considers this initiative "quite well-thought-out." "Russia feels an acute shortage of the entrepreneurial class due to the large number of risks in this area," says Gontmakher.
Nevertheless, he noted that he finds it difficult to name specific countries whose representatives are interested in doing business in Russia, but suggests that they will be people from the CIS. In addition, the expert emphasized that the decree will work only if there is strict control over the subsequent professional activities of entrepreneurs who have obtained Russian citizenship. "Otherwise, it will turn into a simple purchase of a Russian passport," Gontmakher concluded.