Stole and run

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Наворовали и бегут

The Nouveau riche hailing from the 90s are getting ready to leave Russia

As reported by the real estate Agency “Kalinka Group”, over the last four years the number wishing to sell luxury real estate in Russia has grown three times. According to him, every third owner disposes of assets in order to subsequently leave the country.

In the first quarter of 2018, the number of applications clients that wish to sell expensive housing is located at the end of 2017. With only three months of 2018 the company received the same number of sell orders, as in all of 2013. If in 2014 the share of those who sells real estate for the purpose of departure from Russia was 20 percent, now it has increased to 30 percent, experts say. Thus, every third owner gets rid of the apartment to permanently leave the country.

“In absolute values, the number of people wishing to emigrate has grown 4.5 times. Analyzing the behavior of the owners of real estate, we observe that Russian millionaires are actively leaving Russia. The reasons most of our clients referred to economic instability and the current political situation. Many admit that Russia is becoming increasingly difficult to do business”, — States the report, it is noted that in search of more high quality of life provided by the Russians choose Cyprus, Malta, UK and Switzerland.

Earlier it was reported that from the beginning of 2018 only in the secondary market of elite real estate in Moscow has sold 49 apartments. The average budget of the transaction amounted to $ 3.4 million, the aggregate value of all sold lots — 168 million dollars, with an area of 9.9 thousand square meters.

Well, in General, the situation looks even more impressive: over the past 13 years, Russia went from 20 thousand millionaires and billionaires (dollar, of course), that is, one in five of them. Especially actively they began to leave in the last three years.

However, analysts believe that the links to the fugitives to the difficulties of doing business and political instability are in fact only a disguise. Never in Russia, where support for the President, as shown by recent polls, nearly 80 percent of the vote, was more stable, and the economy for the first time in recent years there has been steady growth. Moreover, the course authorities for the modernization of industry, the rapid growth of agriculture, which is literally blossomed under Western sanctions, provide tremendous opportunities for the profitable investment of the money in Russia. The government of Russia a priority of its work considers the improvement of the investment climate in the country. As a result, in recent years, Russia has significantly risen in the world Bank’s Doing Business. So, in the updated ranking of the ease of Doing business Russia in 2017 rose to 40th place with 51 in 2016.

But because the cause of flight is actually quite different: the comprador elite of our business and the corrupt officials who became rich on the predatory privatization of the 90-ies, refers to his country as only a “trough”, where it was profitable in troubled waters to make a fortune, then to escape to the West and to live there acquired by overwork money.

Another reason: “the Nouveau riche of the 90’s” fear that, having such a strong popular support, President Putin will take, finally, for those whose capital was acquired by illegal means, will take the necessary measures to combat corruption. Because a significant portion left Russia in recent years – not just those who fled, fearing prosecution for his fraudulent or even criminal offences. This former head of “Euroset” Evgeny Chichvarkin, the former co-owner of “the International industrial Bank” Sergei Pugachev, the former owner of “Bank of Moscow” Andrey Borodin, the former General Director of “VimpelCom” Mikhail Slobodin, not to mention Mikhail Khodorkovsky, which, although left after his release, but is hiding abroad in connection with charges of involvement in the murders. This shameful robbed Russia of fugitives, unfortunately, can go on and on.

The other part of the richest Russians ceased to be a tax resident of the country to avoid the consequences of the 2014 law on controlled foreign companies (CFC), according to which citizens must pay tax in Russia on their foreign assets. About it to Agency Reuters has told the businessmen themselves, their managers, lawyers, current and former officials.

The law on deoffshorization was initiated by the President of the Russian Federation to return to Russian jurisdiction and capital assets from abroad and to force companies that do business in Russia to pay taxes in the country. According to effect from 2015, the law, entrepreneurs must declare their offshore assets and pay taxes in Russia. Adopted in 2014, the law introduced a new concept of “controlled foreign company” and “controlling person”. At the same controlling person, according to the document, is obliged to notify the tax authorities about their participation in equity of foreign enterprises. For failure to disclose a controlled foreign company or submission of false information provided penalties. To avoid this, many entrepreneurs refuse tax residency of the country where their enterprise. They are in Russia for less than 183 days in a year, becoming a kind of paleshanina and find themselves outside of the domestic tax system.

Two members of the list of 100 richest businessmen of Russia according to “Forbes” magazine on condition of anonymity said the Agency “Reuters” that they have ceased to be tax resident, not to obey the law.

In the end we can conclude that formed at the result of predatory privatization and gangster lawlessness “class of Russian millionaires” devoid of any sense of patriotism and, moving to the West only confirms its treacherous nature. So when “rats” are fleeing, in General there is nothing wrong. The socio-political atmosphere in the country only to be cleared if it would leave those who do not like Russia, did not consider it their homeland, for which the chief God and idol of “Golden calf”.

Not so behaved entrepreneurs in tsarist Russia. When, for example, the First world war in 1914, many donated to the army, its capital, Nicholas II himself gave to the military all of his personal funds, and in the Winter Palace staged a hospital for wounded soldiers. Patriotism in Russia is particularly evident in the hours of trial and hardship. The great Russian patriot, philosopher Vasily Rozanov wrote: “Happy and a great home — loving, not a big thing. We have to love it when it is weak, small, humiliated, finally, stupid, even flawed. That is, that when our mother “drunk”, and is all entangled in sin, we must not depart from it.”

But today, when Russia is against Russophobia in the West, our nouveaux riches ran together. And the main problem is that running these jaunty fellows along with capital! By all means, legitimate and with the help of outright fraud, money abroad. According to estimates by the famous economist James Henry for the past 20 years from Russia had withdrawn more than $ 800 billion (!). This is mainly the funds received in the result of privatization. This is the worst among all States. However, the Chinese rich people was taken abroad for more money – 1, 189 trillion, but it’s for 40 years. The Russian elite has time to “warm up” the state is almost twice as fast, closely having been engaged in output since 1991. But now the process has intensified. And is not this the main obstacle to accelerating economic progress in our country?

On the path of withdrawal of the Russian capital you need to deliver, finally, a reliable barrier. Although, judging by recent statements in the West, such a barrier can put there yourself. To seize the fugitives from Russia, which previously willingly gave asylum to their illegally derived assets.

And another thing. Enough Lisp about the homegrown oligarchs, who, though not left, but boast the fact that they buy in the West, football clubs, stadiums, hotels and Islands. Who invest in the economy of the countries who have publicly declared Russia an “enemy.” You must deal with them as the “civilized West”. To impose such a tax to teach it!

Andrey Sokolov

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