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Wealthy Russians Flee to Dubai to Avoid Sanctions

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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.

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Gov Eno Urges Corps Members to Champion Unity and Development in Akwa Ibom

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Governor Umo Eno

Governor Umo Eno of Akwa Ibom State has called on members of the National Youth Service Corps (NYSC) to serve with diligence and contribute meaningfully to the development of the state and the nation.

The governor made this appeal on Friday during the swearing-in ceremony of Batch C, Stream II corps members at the permanent orientation camp in Ikot Itie Udung, Nsit Atai Local Government Area.

Represented by the Permanent Secretary of the Ministry of Youth Development, Mr. Effiong Nicholas, Governor Eno encouraged the corps members to maximize the opportunity to serve their fatherland and foster unity across diverse backgrounds.

“As stakeholders in Nigerian projects, it is incumbent on you to continue the building process across linguistic, religious, ethnic, and socio-cultural boundaries,” he said. “Nigerians are looking up to you to give the country a new lease of life.”

The governor assured the corps members of the state government’s unwavering commitment to their welfare and safety.
“We are consciously taking necessary steps to ensure that your life and property, including those of other citizens, are protected against all forms of molestation and abuse,” he added.

Governor Eno also urged the corps members to develop a positive attitude to work, embrace innovation, and make lasting friendships during their service year.
“Nigeria needs people like you to show that we can stay together and achieve our aim of a united and indivisible nation, though tribe and tongue may differ,” he said.

Earlier, the State Coordinator of NYSC, Mr. Sam Pepple, disclosed that 1,660 corps members, comprising 718 males and 942 females, had been deployed to the state. He noted that the corps members were settling into the orientation exercise, which was designed to instill the vision and ideals of the NYSC scheme.

Pepple appealed to the state government to address the camp’s infrastructure challenges and urged local government chairmen to construct corpers’ lodges in their respective areas for the benefit of the corps members.

The ceremony’s highlight was the administration of the oath of allegiance by the Chief Judge of Akwa Ibom State, Justice Ekaete Obot.

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Delta Governor Urges Private Sector to Boost NYSC with Community Projects

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Delta Governor Urges Private Sector to Boost NYSC with Community Projects

Delta State Governor, Sheriff Oborevwori, has called on the private sector to support the National Youth Service Corps (NYSC) by sponsoring community development projects initiated by corps members.

Governor Oborevwori, represented by Prof. Nyerhovwo Tonukari, the Commissioner for Higher Education, made the appeal on Friday during the swearing-in ceremony of the 2024 Batch C, Stream 2, corps members at the NYSC Orientation Camp in Issele-Uku.

He emphasized that such investments would enhance the quality of life in host communities and positively engage corps members.

“My dear corps members, the NYSC, established over four decades ago, has consistently proven its relevance in the development of the nation,” Oborevwori stated. “Its appeal to Nigerian youths remains strong despite challenges, including the contemporary issues of insecurity in some parts of the country.”

The governor also acknowledged the efforts of the NYSC management in tackling youth unemployment through the Skill Acquisition and Entrepreneurship Development (SAED) programme. He urged corps members to take full advantage of the initiative during their orientation course.

Reiterating his administration’s commitment to the NYSC, he said, “My administration is committed to supporting NYSC with the necessary resources, encouragement, and enabling environment to foster progress in the scheme.”

Oborevwori disclosed that the state government had sensitized and mobilized communities to prioritize the security and welfare of corps members. He also urged the corps members to actively participate in orientation camp activities designed to engage and prepare them for their service year.

“The state government is continuously striving to make this camp more conducive and leave a lasting positive impression on you. With God on our side and adequate financial resources, we shall achieve this objective,” he added.

The Secretary to the State Government, Kingsley Emu, also addressed the corps members, encouraging them to embrace the challenges of transitioning from academic life to a more demanding environment.

“Take full advantage of the various skill acquisition programmes offered by the scheme, which are aimed at empowering you with the requisite knowledge and skills to address the challenge of post-service unemployment,” Emu said.

Delta State NYSC Coordinator, Mr. John Kwaghe, commended the corps members for their discipline and readiness to serve. He urged them to apply the knowledge and skills acquired during the orientation course to make a meaningful impact in their host communities.

“Serve with humility, diligence, and creativity. Be exemplary in your roles as teachers and leaders, and strive to impact positively on the lives of those you encounter,” Kwaghe advised.

He expressed gratitude to the state government for its continuous support, including the promise to provide a 150KVA generator to address the camp’s power challenges. However, he appealed for attention to the camp’s perimeter fencing, which he described as weak and inadequate.

A total of 2,159 prospective corps members, comprising 993 males and 1,166 females, were registered at the camp. Community leaders were also urged to prioritize the welfare and security of the corps members, treating them as their own children.

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FEC Mourns Ex-FCT Minister, Lt.-Gen. Jeremiah Useni at 82

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FEC Mourns Ex-FCT Minister, Lt.-Gen. Jeremiah Useni at 82

The Federal Executive Council (FEC) has expressed deep sorrow over the death of Lt.-Gen. Jeremiah Useni (rtd.), a former Minister of the Federal Capital Territory (FCT), who passed away at the age of 82.

In a condolence message issued on Friday in Abuja, the Secretary to the Government of the Federation (SGF), Sen. George Akume, conveyed FEC’s sympathies through a statement signed by Mr. Segun Imohiosen, Director of Information and Public Relations in the SGF’s office.

The late General Useni, who also served as Minister of Transport during the military regime of Gen. Sani Abacha, was praised for his pivotal role in implementing the FCT’s master plan during its formative years.

“Late General Useni served the nation meritoriously in the implementation of the master-plan of the FCT during its budding stage,” Akume said.

Describing Useni as a “quintessential army general,” the SGF lauded his selfless contributions to promoting peace and unity in Nigeria, noting that his sacrifices would remain indelible. He urged younger military officers to emulate Useni’s outstanding legacy.

Akume also highlighted Useni’s transition into politics, where he served as a Senator of the Federal Republic under the platform of the Peoples Democratic Party (PDP) in 2015.

The SGF commiserated with the Government and people of Plateau State, Useni’s family, and associates, praying for divine comfort and eternal rest for the departed.

Useni’s demise marks the end of an era for a distinguished soldier, statesman, and patriot whose dedication to the nation remains a shining example.

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