Headlines
Wealthy Russians Flee to Dubai to Avoid Sanctions
By Derrick Bangura
Dubai has emerged as a haven for wealthy Russians fleeing the impact of western sanctions over the war in Ukraine.
Russian billionaires and entrepreneurs have been arriving in the United Arab Emirates (UAE) in unprecedented numbers, business leaders told the BBC.
Property purchases in Dubai by Russians surged by 67% in the first three months of 2022, a report said.
The UAE has not put sanctions on Russia or criticised its invasion of Ukraine.
It is also providing visas to non-sanctioned Russians while many Western countries have restricted them.
It is estimated that hundreds of thousands of people have left Russia over the last two months – although exact figures are not available.
One Russian economist said as many as 200,000 Russians had left in the first 10 days after the war began.
Virtuzone, which helps companies to set up operations in Dubai, has seen a huge surge of Russian clients.
“We are receiving five times more enquiries from Russians since the war began,” said chief executive George Hojeige.
“They are worried about an economic meltdown that’s coming. That is why they are moving here to secure their wealth,” he added.
The influx of Russian nationals has bolstered demand for luxury villas and apartments across the city. Real estate agents are reporting a surge in property prices, as Russians arriving in Dubai are looking to purchase homes.
Dubai-based real estate agency Betterhomes found property purchases by Russians surged by two thirds in the first three months of 2022.
And another real estate agency, Modern Living, told the BBC it had hired many Russian-speaking agents to cater to rising demand. Chief executive Thiago Caldas said they were receiving numerous calls from Russian nationals looking to relocate to Dubai immediately.
“Russians who are coming down are not buying just for investment, they are looking at Dubai as a second home,” he said.
‘Brain drain’
Many multinational companies and Russian start-ups are also relocating their employees to the UAE.
Fuad Fatullaev is the co-founder of WeWay – a blockchain technology company that had offices in Russia and Ukraine. After the war broke out, he and his partners shifted hundreds of employees to Dubai.
“The war had a massive impact on our operations. We couldn’t continue [as we were] as we had to move hundreds of people outside of Ukraine and Russia,” says Fuad, who is a Russian citizen.
He adds that they chose to shift their employees to the UAE as it offers a safe economic and political environment to operate a business.
He said Russian businesses were moving out as they were finding it incredibly difficult to operate due to sanctions. The challenge was even more acute for companies dealing with international clients and brands, as most western firms have severed ties with Russian-based enterprises, he said.
Global firms like Goldman Sachs, JP Morgan and Google that have shut down offices in Russia, are also relocating some of their employees to Dubai.
“There is definitely a brain drain that is happening. A lot of people are leaving because there are a lot of business restrictions right now,” says Mr Fatulley.
Real estate prices soar
Russia’s central bank is barred from tapping into the billions of foreign reserves held overseas in foreign banks. Some Russian banks have been removed from the Swift financial messaging system.
To protect its reserves, the Russian government has enacted capital restrictions and banned citizens from exiting the country with more than $10,000 in foreign currency.
Finding it difficult to transfer cash, a lot of Russian buyers are making payments in cryptocurrencies. Some of the purchasers have an intermediary who will take the payment in crypto and then pass on the cash to the seller on behalf of the buyer.
Gulf states including the UAE and Saudi Arabia have rejected calls from western governments to impose sanctions on Russia.
The UAE was one of only three countries, along with China and India, to abstain in a United Nations Security Council vote in February to condemn Russia’s invasion of Ukraine. It also abstained in a General Assembly vote on 7 April to suspend Russia from the UN Human Rights Council.
The rise in Russian investment comes just months after the UAE was placed on a “grey list” by the Financial Action Task Force (FATF), a global financial crime watchdog.
It means the country faces increased monitoring of its efforts to counter money laundering and terrorist financing. The UAE government has claimed to have taken significant measures to regulate inbound investment, and has stated that it remains committed to working closely with FATF on areas for improvement.
Headlines
Commission, journalists partner to revamp water sector in Kaduna
The Kaduna State Water Services Regulatory Commission (KADWREC) says it is partnering media practitioners towards revamping water services in the state.
Mr Dogara Bashir, the Executive Chairman of KADWREC, disclosed this on Monday at a one-day workshop organised for media practitioners on regulation of ‘Water, Sanitation and Hygiene’ (WASH) activities held in Kaduna.
Bashir said the commission was aware of the importance of the role media practitioners played in the society.
He stated that the workshop was to provide an avenue to liaise with them as important stakeholders on water supply and sanitation services in the state.
Bashir said: “As media practitioners, we believe you are a gateway to the citizens so, the workshop would acquaint you with some of the regulations already in place so that you can in turn transmit it to the public
“The state of water services in Kaduna State is in dire need of attention and the State Water Corporation and KADWREC were established towards addressing the seeming challenges.
“The commission is mandated to ensure better service delivery and regulation of water and sanitation services in the State.
“The idea is that once the regulations are developed, we send them to the State Ministry of Justice to gazette and then we get the state government to endorse and give the go ahead to commence the implementation of the regulations
“We intend to implement them fully come January, 2025 God willing, as we have embarked on advocacy activities having gone to zones 1 and 2 where we talked to traditional rulers, security agencies and the Judiciary.”
He disclosed that a special Court has already been attached to the commission by the Chief Judge of the State for service providers who may likely violate regulations.
The chairman further said that amongst the commission’s objectives include ensuring security, reliability and quality of service in the production and delivery of water to the consumers as well making regulations to control the sinking of boreholes.
Others included; maximising access to water services by promoting and facilitating consumer connections to distribution systems in urban and rural areas.
According to Bashir, they also include ensuring that regulatory decision-making has regards to all the relevant health, safety, environmental and social legislation applying to the water sector.
Bashir further said that the commission collaborate with the relevant state and federal agencies on water policies.
Crime
2 ladies docked for allegedly obtaining money by fraud
The police in Lagos have dragged two women, Mmesuma Ofunna, and Blessing Adimekwe, before an Ojo Magistrates’ Court in Lagos, over alleged obtaining money by false pretence.
Ofunna, 22, and Adimekwe, 25, were arraigned before the Magistrate, Mr L K J Layeni, on a four-count charge bordering on conspiracy, obtaining by false pretence, stealing and conduct likely to breach peace.
They each, however, pleaded not guilty to the charge.
The prosecutor, ASP Simon Uche, told the court that the defendants conspired with others now at large, to commit the offence on Oct. 26 at the Okokomaiko area of Ojo.
He alleged that they had obtained the sum of N70, 000 from one Faith Ahamefule, with a promise not to post her nude photo on social media.
The prosecutor alleged that the defendants later posted the nude photo of the nominal complainant on social media, knowing that their promise was false.
He alleged that they stole the N70, 0000, thereby conducting themselves in a manner likely to breach public peace.
The offence contravenes the provisions of sections 168(d), 287, 314, and 411 of the Criminal Law of Lagos State 2015.
The court granted the defendants bails in the sum of N500, 000 each, with two sureties each in like sum.
He adjourned the case until Jan. 8, 2025 for mention.
Headlines
Driver jailed 6 months for attempting to steal a car
A Jos Magistrates’ Court on Monday, sentenced a 37-year-old driver, Ahmad Umar to six months in imprisonment for attempting to steal a car.
The Magistrate, Shawomi Bokkos, summarily tried and sentenced the convict after he pleaded guilty to the charge.
Bokkos in his judgment, ordered the convict to pay an option of N30, 000 fine or spend six months in prison.
Earlier, the Prosecutor, Insp Ibrahim Gokwat, told the court that the case was reported on Oct. 10, at the Area Command Police station through a distress call by one Sydney Peacemorie the complainant.
Gokwat said the complainant parked his Toyota RAV4 in front of Access Bank and went inside to carry out some transactions, only to return to find the convict inside his car.
“The convict unlawfully opened the car and was in the driver’s seat when the complainant raised alarm and he was apprehended, but his accomplice escaped.
“The convict was severely beaten by a mob but was rescued by the police,” said Gokwat.
“The prosecutor said that the offence contravened the Plateau Penal Code Law.
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