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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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China Introduces Instant Tax Refunds for Foreign Tourists to Boost Shopping Experience

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China Introduces Instant Tax Refunds for Foreign Tourists to Boost Shopping Experience

China has revamped its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a more convenient refund-upon-purchase system, according to the State Taxation Administration (STA).

The STA announced on Tuesday that under the new system, foreign visitors can now claim Value Added Tax (VAT) rebates instantly at designated tax-free stores. This change allows tourists to use their refunded amount immediately for additional shopping, enhancing their overall experience in China.

Previously, VAT rebates could only be withdrawn upon departure, but with the new policy, tourists will be able to access their refunds in real-time during their stay. The policy, which was initially tested in cities like Shanghai, Beijing, and Guangdong, has now passed all operational requirements and will be rolled out nationwide.

The STA emphasized its dedication to improving policy guidance and simplifying refund procedures to better serve international visitors.

Li Xuhong, Vice-President and Professor at the Beijing National Accounting Institute, welcomed the change, stating that the nationwide implementation would raise China’s tourism service standards. “It will foster a friendly, efficient, and convenient tourism environment,” Xuhong added.

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Nigeria Reaffirms Commitment to One-China Policy Amid Taiwan’s Trade Office Claims

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Nigeria Reaffirms Commitment to One-China Policy Amid Taiwan's Trade Office Claims

Rep. Jaafaru Yakubu, Chairman of the House of Representatives Committee on China-Nigeria Parliamentary Relations, has reiterated Nigeria’s firm commitment to the One-China Policy, following recent comments by Taiwan’s Trade Mission Head in Nigeria, Andy Yih-Ping Liu.

Speaking in Abuja on Tuesday, Yakubu firmly declared that Nigeria continues to recognize Taiwan as an integral part of the People’s Republic of China. He rejected Liu’s claim that Taiwan was not part of China, labelling it as “propaganda” aimed at undermining the strong diplomatic ties between Nigeria and China.

“For the record, United Nations General Assembly Resolution 2758, adopted in 1971, recognised the People’s Republic of China as the sole legitimate representative of all of China, including Taiwan,” Yakubu stated. “The One-China Policy remains the cornerstone of China-Nigeria relations.”

He emphasized that since Nigeria and China established diplomatic ties in 1971, the country has consistently upheld this principle. “Efforts by Taiwan’s trade office to challenge this stance are futile and will not succeed,” Yakubu added.

Yakubu criticized Liu’s comments as an attempt to draw Nigeria into China’s internal matters, accusing the Taiwanese official of deliberately sowing discord and provoking a diplomatic rift. “Nigeria’s relationship with China is built on mutual respect and non-interference in each other’s political matters,” he said.

In response to Liu’s claim that China acted as a bully, Yakubu pointed to the positive trajectory of Nigeria-China relations. “Contrary to these baseless assertions, Nigeria has enjoyed a mutually beneficial partnership with China, yielding tangible results for both nations. Since 1971, our ties have grown significantly.”

He highlighted the strategic nature of the partnership, referencing the elevation of the relationship to a Comprehensive Strategic Partnership during the 2024 FOCAC Summit in Beijing. “Today, Nigeria stands as China’s second-largest trading partner in Africa, with bilateral trade surpassing 20 billion dollars,” Yakubu noted.

Furthermore, Yakubu praised China’s role in Nigeria’s infrastructural development, with investments in sectors such as rail networks, roads, ports, power stations, and water treatment facilities.

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Shettima Warns Media Against Romanticising National Challenges

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Shettima Warns Media Against Romanticising National Challenges

Vice President Kashim Shettima has cautioned Nigerian media practitioners against the growing tendency to romanticise serious national issues, describing the trend as a dangerous departure from the media’s constitutional duty of promoting truth and accountability.

Represented by his Special Adviser on Special Duties, Modibbo Umar, the Vice President issued the warning on Tuesday while delivering a speech at the 17th LEADERSHIP Conference and Awards held at the Old Banquet Hall of the State House, Abuja.

“We must resist the temptation to romanticise serious national issues or frame them in ways that distort public understanding,” Shettima said. “Doing so only weakens the fabric of our democracy and derails our collective efforts at nation-building.”

The Vice President’s remarks came as stakeholders in governance, business, and civil society gathered to reflect on the theme of the event, “Challenges and Opportunities in Nigeria’s Fiscal Federalism.” The conference provided a platform for thoughtful engagement on some of the country’s most pressing issues, with a focus on the responsibilities of leadership at all levels.

Shettima also used the occasion to commend LEADERSHIP Newspapers Group for its consistent contributions to national discourse and its commitment to celebrating excellence in leadership.

“I commend LEADERSHIP Newspaper for the vision to convene this vital discourse and for shining the light on those who have chosen to lead with courage and competence. May we never tire of striving for a better Nigeria,” he said.

The annual LEADERSHIP Conference and Awards continues to be a major event that brings together influential voices to deliberate on national progress and honour individuals and institutions making meaningful impact in society.

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