Jakarta –
Rich people or crazy rich Russia en masse left Russia after the invasion of Ukraine and sanctions from the West. A report by a company that helps wealthy clients move abroad, Henley & Partners, reveals that nearly three times as many people are leaving Russia as in previous years.
Sanctions from the West make life for the elites more difficult. Russia is estimated to have suffered a net loss of around 15,000 high net worth individuals (HNWIs), defined as people with assets of more than US$1 million or IDR 14.6 billion (exchange rate of IDR 14,600) in 2022, compared to 5,500 in 2019. That’s equivalent. with 15% of Russia’s wealthy population.
Head of Research at New World Wealth Analytics Company, Andrew Amoils said that Russia has destroyed the rich people in the country.
“If we look at the collapse of any great country in history, it is usually preceded by the migration of the rich from that country,” Amoils said. CNNWednesday (15/6/2022).
Kremlin spokesman Dmitry Peskov dismissed the report in a phone call. He said the government Russia not paying attention to the trend of the rich leaving the country.
Previously, the migration rate of Russia’s rich and powerful fell sharply in 2020 and 2021 due to the COVID-19 pandemic. According to the International Monetary Fund (IMF), the Russian economy is expected to shrink by about 8.5% this year.
The West has imposed sanctions on Russia, including expelling several Russian banks from the SWIFT International payments system and freezing about half of the country’s international reserves. Dozens of Western companies, including major retailers, have stopped doing business in the country.
Crazy Rich Destinations Russia
Most people Russia this year it is expected to move to countries in Southern Europe, where many have second homes there. The United Arab Emirates (UAE) is also an attractive stopover for the country’s wealthy because of its zero tax rate.
The UAE is predicted to overtake the United States (US) and the United Kingdom as the main destination for the wealthy who move this year. Henley & Partners estimates the country welcomes 4,000 HNWIs by the end of the year, compared to around 1,000 each year before the pandemic.
Amoils said elites were drawn to the UAE as an international business hub with a high-income economy that has a reputation as a safe haven in the Middle East and Africa region.
(aid/ara)
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