Oligarchs holding European passports avoid sanctions

The sanctions against Russian President Vladimir Putin and a circle of hundreds of people around him are unprecedented. In addition to these targeted sanctions, there are also sanctions that apply to all Russians. But they are not waterproof. A group of oligarchs with a double passport can escape some of these sanctions.

This is confirmed by lawyers who, at the request of news time touted the specific penalty provisions. This is a group of Russian born people, who are also full citizens of the European Union because they bought a passport. They often bought such a “golden passport” in such EU countries as Malta and Cyprus.

Dealing with these oligarchs, who have dual nationality, has always been difficult for the EU. But now that sanctions are being imposed, it’s even more true, says Maltese investigative journalist Matthew Caruana Galizia: “They will put their Maltese nationality on all documents. For example, if you set up a business in France and you use your Maltese nationality, you are registered as a Maltese.” The Russian possessions are then undetectable by France.

“Not for residents”

One of the other sanctions that “EU-Russians” can easily avoid is the provision that no more than 100,000 euros can be deposited from Russia into the EU. It has one important exception. Because this †does not apply to nationals of a Member State (of the EU) or to natural persons who are in possession of a temporary or permanent residence permit for a Member State.” Lawyer Yvo Amar: “Russians with a EU passport are therefore excluded from this regulation”,

According to Miguel Maduro, professor of transnational government at the European University Institute, this arrangement exists simply because the EU wants to offer its citizens the possibility of withdrawing their money from Russia. “It makes sense that the European Union would allow EU citizens or residents to continue depositing money into their European bank accounts.” According to him, it is legally possible to restrict this, “but it is a political choice”.

“Navigating Between Sanctions”

Lawyer Amar is an expert in the area of ​​sanctions and export control. He sees that Russians with dual passports have the ability to circumvent sanctions. “They can spread their money around, so they can navigate between different sanction regimes and ultimately still have access to their money.”

They are helped in this, among other things, by their superyachts, which contain part of their assets. An example of this is construction tycoon Maxim Shubarev, a Russian with a Maltese passport. He quickly moved his yacht from Malta to Turkey when the European Parliament called for all EU ports to be closed to superyachts.

“Stop the Golden Passports”

The European Parliament wants a the end of the so-called golden passports† But it is difficult for the EU to enforce this itself, says Hans Vedder, professor of economic law at the University of Groningen. “In any case, sanctions will have to be put into practice by EU member states, not the EU. The EU does not have banks that can freeze assets. And the EU cannot not chain boats either. Member States must do that.”

A procedure is underway against Malta and Cyprus with the European Commission, but the diplomatic route seems the most promising. The United States has also come out against golden passports. British Prime Minister Johnson has already indicated that she will also use .in London fight with the oligarchs want to continue. This is why the British stop the “Golden Visa”.

Nieuwsuur has already delved into the murky world of the passport business: