New Cypriots: how golden passports threaten EU security

New Cypriots: how golden passports threaten EU security

The European Commission for the first time presented a report on the practices of granting foreigners citizenship or residency in the European Union in exchange for investments. These schemes pose risks to the security of the EU, the commission concluded

Photo: Yves Herman / Reuters

Three EU countries offer citizenship to foreigners in exchange for investments (“golden passports”), and 20 EU countries - residence permits in exchange for investments (“golden visas”). These programs pose risks in terms of potential money laundering, tax evasion and corruption, according to a report by the European Commission (EU executive) on the “citizenship / residency for investment” schemes, published January 23 (.pdf).

Bulgaria, Cyprus and Malta from 2005, 2007 and 2013, respectively, have issued “golden passports” to foreigners:

in Bulgaria for this you need to invest € 1 million;

in Cyprus - from € 2 million plus purchase property on the island;

in Malta, it is required to contribute € 650 thousand to the national investment fund, to additionally invest € 150 thousand into the economy and to purchase or rent real estate.

EU citizenship without physical residence

In these three countries, the applicant does not even need actual residence in the territory, except for a visit to submit biometric data, submit an application, and have a personal interview. Thus, it is relatively easy to obtain EU citizenship and all rights and privileges associated with it, including free movement within the EU.

In addition, residency programs in exchange for investments are in place in 20 EU countries. The investment threshold varies from very low (about € 13.5 thousand for Croatia) to very high (more than € 5 million in Slovakia and Luxembourg). A residence permit in most EU countries makes it possible to travel freely within the Schengen zone for 90 days during any 180-day period.

The European Commission believes that such schemes pose risks to the security of the European Union, including the possibility of infiltration of organized criminal groups into the EU. Although Cyprus, Malta and Bulgaria require the applicant information about his “purity” from the point of view of criminal connections, the European Commission has identified “gray areas” when the applicant can bypass security filters. There are also risks in terms of money laundering and tax evasion. In addition, the transparency of citizenship schemes leaves much to be desired. Thus, neither Malta, nor Cyprus, nor Bulgaria provide complete information about the personalities of investors who acquire citizenship. If Malta at least annually publishes the names of those who received citizenship, Bulgaria and Cyprus do not provide such information.

Cyprus from 2008 to early 2018 granted citizenship to 1,685 foreign investors and 1,651 members of their families, wrote

Center for the Study of Corruption and Organized Crime (OCCRP). In particular, in 2017, Oleg Deripaska received Cyprus citizenship, the Guardian newspaper wrote and a representative of a businessman confirmed to RBC. In addition to Deripaska, Cypriot citizenship was also offered to the head of the Renova group, Viktor Vekselberg, but he refused.

Cyprus Parliament voted to tighten the issuance of "golden passports"

Cyprus Parliament voted to tighten the issuance of "golden passports"

From January 31, 2020, investors will find it harder to obtain the “golden passports” of Cyprus. The law tightening the provision of such documents was supported by 29 deputies, 17 parliamentarians opposed

Ayia Napa, Cyprus (Photo: Petros Karadjias / AP)

Cyprus Parliament voted for the bill, toughening the issuance of so-called gold passports to investors, the Cyprus Times reported. So called passports and residence permits, issued in exchange for investment in the economy.

29 deputies voted for the law, against - 17. It will come into force on January 31, 2020, until that time, the Cyprus authorities must work out the rules for granting Cypriot citizenship. Voting was preceded by lengthy discussions, during which opponents of the bill indicated that it would impede investment.

According to them, there are sectors of the economy of Cyprus, which require additional investments, such as agriculture and research, but the authorities are limited only to the construction of luxury housing in the country, for example, towers in the city of Limassol. Supporters of the law indicated that it was intended to "protect the integrity of Cyprus."

In the European Union, three countries - Bulgaria, Cyprus and Malta - issue golden passports to foreigners. To obtain such a document in Malta, it is necessary to contribute € 650 thousand to the national investment fund and another € 150 thousand to the economy, and it is necessary to purchase or rent real estate. The Bulgarian “gold passport” will cost € 1 million, Cyprus’s - from € 2 million, you also need to buy real estate.

In January, the European Commission prepared a report in which it pointed out the risks of providing "gold passports" that may contribute to money laundering, corruption and tax evasion. The European Commission also pointed out the risks to the security of the European Union, because thanks to such programs, organized criminal groups can get there. The report emphasized that Cyprus, Malta and Bulgaria do not provide complete information about the identity of investors who are granted citizenship.

Russians become leaders among foreigners who received Cyprus passport

Russians become leaders among foreigners who received Cyprus passport

In 2017, 5,517 people acquired Cyprus passports, most of them are Russians (more than 1.3 thousand people), followed by the British and Ukrainians. In early 2019, the Cyprus authorities tightened the provision of citizenship to investors

Photo: Yiannis Kourtoglou / Reuters

The Statistical Office of the European Union (Eurostat) has published data on the number of foreigners who received European citizenship in 2017 - this is about 825 thousand people. In 2016, this figure was 995 thousand people, in 2017 - 841 thousand

The most numerous group, which was given passports of the EU member countries, were Moroccans - almost 68 thousand people, 83% of them received citizenship of Italy, Spain and France. Albanians follow (almost 59 thousand, 97% of them received passports of Italy and Greece) and Indians (31.6 thousand people, 53% became citizens of Great Britain).

Then come the Turks (almost 30 thousand people, more than 50% received German passports), Romanians (25 thousand, of whom 32% decided to obtain another EU citizenship, in particular Italian), Pakistanis (23.1 thousand, 45% became citizens of Britain), Poles (22 thousand, 63% received another EU citizenship - British and German) and Brazilians (21.6 thousand, 74% of them received passports of Portugal and Italy).

Most of the passports for foreigners were issued in Italy (146.6 thousand), then in Britain (123.1 thousand), Germany (115.4 thousand) and France (114.2 thousand). In 2017, over 5.5 thousand people received Cyprus citizenship, of which 23.8% (1313 people) were Russians, 9.1% (502 people) were British, and 8.7% (479 people) were Ukrainians.


In February 2019, the Cypriot parliament voted for a bill to toughen the issuance of so-called gold passports to investors, which, like a residence permit, can be obtained in exchange for investment in the economy of the republic. It will take effect from January 31, 2020.

In the same month, the Cyprus authorities tightened the conditions of the program for issuing citizenship for investments, now investors need to make an additional contribution of € 150 thousand. Since 2013, 1864 applications have been approved for this program, not counting the applicants' family members, the total investment amounted to € 6.6 billion

In St. Petersburg there will be an enterprise for the production of power plants

In St. Petersburg there will be an enterprise for the production of power plants

The Petersburg Diesel Building Plant of PJSC Zvezda (controlled by the Ekaterinburg holding Sinara) and the power engineering company Zvezda-Energetika announced the creation of a joint venture for the production of autonomous power plants Zvezda-Energokompleks LLC. This was reported in a joint press release.

According to SPARK, 51% of the new enterprise belongs to PJSC Zvezda, another 10% belongs to the investment holding MTV, and 39% belongs to Zvezdy-Energetika. The volume of investment in the new project and the capacity of the enterprise is not announced. According to preliminary data, the new production will be located in St. Petersburg, on the basis of the Zvezdy squares.

"The parties intend to organize the mass production of power plants based on electrical units for backup and continuous autonomous power supply of facilities, as well as the assembly of diesel generator sets of medium and high power," said the press service of PJSC Zvezda. In the production of power plants will be used engines developed by PJSC "Star". PJSC planned to start production of these engines jointly with the Ekaterinburg holding Sinara (investment in this project was estimated at 10 billion rubles).

The new power plants will be used as emergency backup and main sources of power supply for objects of oil and gas producing industries, medical institutions, facilities of the Ministry of Emergency Situations and communications, and construction facilities.

“Cooperation of enterprises is logical; Zvezda-Energetika makes large diesel generators (from 3-4 MW), and Zvezda is small - from 300 kW. There is a demand for the products of the new enterprise on the market, including for use in shipbuilding, at social and other facilities, ”says the head of the Association of Industrial Enterprises of St. Petersburg Valery Radchenko.

“The presence in the portfolio of autonomous power plants will allow the company to increase the volume of orders from Gazprom structures. However, the project may require significant investments - and it is not yet clear where to get the money, ”said one of the market experts.

According to the research company Alto Consulting Group, the last three years, the volume of production of diesel generator sets in Russia is growing (for example, in 2017 it amounted to 591.8 MW - by 4.7% more than last year). The revenue of only the largest St. Petersburg manufacturers of diesel power plants for 2017 exceeded 18 billion rubles. The results for 2018 have not yet been published.

In St. Petersburg, diesel power plants are produced by Zvezda-Energetika, REP-Holding, Alliance Group, NG-Energo and Alfa Balt Engineering. The products of the Kolomna Plant are also represented on our market.

reference

PJSC "Zvezda" - a major manufacturer of high-speed diesel engines. In 2017, the plant's revenue amounted to 2.1 billion rubles, profit - 14 million rubles. In the middle of last year, Zvezda came under the control of a new owner, Yekaterinburg holding Sinara, Dmitry Pumyansky. The former owner of PJSC Zvezda Pavel Plavnik has lost all posts in the company.

Zvezda-Energetika produces block-modular power plants, as well as high-power diesel generator sets. The company's revenue, according to SPARK, for 2017 exceeded 6 billion rubles, profit - 79 million rubles. The company’s owner is Cypriot LavencoLimited. According to the media, it is controlled by former shareholders of St. Petersburg "Baltinvestbank" Igor Shvidak and Vadim Egiazarov, they are on the board of directors of the company. In 2017, it became known that Zvezda-Energetika could become part of Transmashholding, but the deal did not take place.

Poland bought the US missile systems to strengthen the eastern borders of NATO

Poland bought the US missile systems to strengthen the eastern borders of NATO

On Wednesday, the United States and Poland signed an agreement. Warsaw will buy HIMARS missile systems with an ammunition range of about 300 km

The signing ceremony for the purchase of HIMARS artillery missile systems was held at the military airbase near Warsaw in the presence of the President of Poland, Andrzej Duda, and the Vice President of the United States, Mike Pence, reports Radio Poland. In accordance with the agreement, the Poles will receive 20 multiple launch rocket systems. The contract value is about $ 414 million.

Duda said in his speech that the signed agreement would help modernize the Polish army and strengthen security on the eastern borders of NATO. At the same time, he noted the growing cooperation between Warsaw and Washington.

In turn, Pence noted the importance of the deal in the conditions of the modern “dangerous world” and thanked the Polish authorities for investing heavily in strengthening the country's defense capability.

The HIMARS (High Mobility Artillery Rocket System) is a multifunctional rocket launcher system. It is able to use both conventional, unguided, and guided munitions, as well as tactical missiles, whose range is about 300 km. The manufacturer of the system is the American company Lockheed Martin.

MLRS HIMARS US Army used in Afghanistan. In 2016, with the help of this system, US troops from the territory of Jordan attacked the positions of the “Islamic state” (banned in Russia) in Syria. Before that, in 2015, systems were used in battles against terrorists in Iraq.

Last year, Poland entered into an agreement with the United States to acquire the Patriot air defense system. The transaction amount was estimated at $ 4.75 billion.

Putin for the first time will deliver a message to the Federal Assembly in Gostiny Dvor

Putin for the first time will deliver a message to the Federal Assembly in Gostiny Dvor

The President’s message to the Federal Assembly this year will be held in Gostiny Dvor, RBC sources told. This is the first time when Gostiny Dvor has been selected for a similar format of the head of state

The presidential address to the Federal Assembly, scheduled for February 20, will be held at Gostiny Dvor. About this, RBC was told by two interlocutors close to the Kremlin.

Presidential spokesman Dmitry Peskov said earlier that this year the message will not be held in the Kremlin, as the St. George Hall of the Grand Kremlin Palace, where the head of state has read the message in recent years, is currently under repair. Peskov promised to report on the specific location of the message later.

At the request of RBC to comment on whether the message will take place in Gostiny Dvor, the presidential press secretary replied: “We will confirm it in a timely manner.”

The Gostiny Dvor traditionally hosts the annual straight line of the president with citizens. The message to the Federal Assembly will be held in Gostiny Dvor for the first time. Until last year, the president read the message in the Kremlin, in 2018 he spoke at the Manege. Then the president spoke about the newest models of Russian weapons: the Avangard hypersonic missile system, the Dagger hypersonic rocket, the RS-28 Sarmat intercontinental ballistic missile. Audiences showed videos demonstrating the capabilities of this weapon.

It was the technological and logistical difficulties of installing screens in the historic St. George Hall of Peskov that explained the transfer of the location of the message from the Kremlin to the Manege. As another reason, the press secretary of the president called an increase in the number of invitees.

On average, the number of people invited to the message fluctuates around 1 thousand people. These are State Duma deputies, members of the Federation Council, the leadership of the presidential administration, members of the government, governors, chief editors of the media, public figures and representatives of major denominations.

The current message of the president to the Federal Assembly, if nothing changes at the last moment, will be of a working nature, two people familiar with the process of preparing the document of the interlocutor of RBC told earlier. Preparation of the message began before the new year, now the document is in a high degree of readiness, sources said.

Matvienko explained the reason for the absence of Putin’s message

Matvienko explained the reason for the absence of Putin’s message

The Speaker of the Federation Council explained that she would not be present at the message of Vladimir Putin to the Federal Assembly because of a planned trip to Southeast Asia.

Federation Council Speaker Valentina Matvienko will not be present at the announcement of the message to the Federal Assembly of President Vladimir Putin. The reason was a trip to the countries of South-East Asia, planned earlier, the speaker of the Federation Council herself explained in a conversation with journalists, reports TASS.

The Foreign Ministry and the leadership of the presidential administration said that at this stage, a few days before the visit, canceling the visit and postponing <...> was considered inexpedient, ”said Matvienko, noting that canceling the visit would bring“ image losses for the Russian Federation. ” She explained that for this trip it was necessary to agree on many points, including dates for meetings at the leadership level of countries and parliaments. “There is an instruction to convey the President’s message to the leadership of [these countries],” she added.

Matvienko noted that she would have the opportunity to listen online and see Putin’s message online, and then “comment and think about how we can organize the work to fulfill the tasks that will be put in the message”.

Vladimir Putin will deliver a message to the Federal Assembly on February 20. For him, this will be the 15th message in a row. The speech of the head of state is traditionally attended by members of the Council of Federation, State Duma deputies and chairmen of both chambers.

This year the message will not be held in the Kremlin, since the St. George Hall of the Grand Kremlin Palace is closed for repairs. A new place will be announced later. The source of RBC, close to the presidential administration, clarified that the final location of the event will be chosen after the number of guests has been determined.