opinion by Armand Arton
Founder & President Arton Capital
THE END OF THE GOLDEN PASSPORT OR THE SIGN OF A GOLDEN OPPORTUNITY? Many have cast doubts about the future of citizenship by investment programmes in the wake of Russia’s invasion of Ukraine. But increased oversight in Europe signals a promising new era for the industry.
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BlackRock Chief Larry Fink made headlines last month when he warned of a monumental shift in global economics, supply chains, currencies and climate change goals in his annual letter to shareholders on 24th March. In summary, he wrote that Russia’s invasion of Ukraine triggered punishing Western sanctions that “put an end to the globalisation we have experienced over the last three decades." Justifiably, global powers have isolated Russia from financial markets while many private companies have pulled out of the country or halted unnecessary business relationships. The sanctions have simultaneously spurred fresh scrutiny over another important element of globalisation: Citizenship by Investment programmes (CIP). As the conflict in Ukraine continues, legislators in Europe question whether such programmes have enabled powerful and wealthy Russians who are supporting the war in Ukraine to evade sanctions via European citizenship. On 28th March, the European Commission urged member states to end CIP – socalled ‘golden passports’ – citing concerns over Russian and Belarussian nationals and the risks they pose to European society. The disquietude has prompted at least one state, Bulgaria, to terminate its programme. Meanwhile, Cyprus and Malta have committed to halting their programmes in the near future.
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THE CITIZEN
For some in the CIP industry, increased calls for regulation and oversight signal a death knell. For others, like Arton Capital, it’s a positive turning point – one that will lead to an honest, transparent and sustainable future for the industry. “Policymakers, citizens and investors alike must share a foundation of trust. Increasing oversight makes CIP programmes safer and, ultimately, more sustainable for participating countries and applicants,” says Armand Arton, President and CEO of Arton Capital. “By investing in regulation, governments can eliminate any lingering doubts about who gains access to citizenship and by what means. It also legitimises the process
