Press Release

Amid tensions between world powers and Russia in the wake of the invasion of Ukraine, Dubai and other GCC cities have served as a safe harbour for Russian citizens escaping the political and economic instability of their country. Citizens of Russia and former-Soviet states are flocking to the UAE and GCC in high numbers.

The influx of Russians has pumped up the real estate markets, especially within city centers and the luxury segment. Natasha Turak, journalist, wrote in an article published for CNBC: “The influx of buyers from Russia — as well as from the Commonwealth of Independent States (CIS), a group of nine former Soviet countries spanning Eastern Europe, the Caucasus and Central Asia — has pumped up the UAE’s property sector.” While many Russian families are setting up roots in Dubai, others consider the metropolitan city as a stopover on their way to their final destination.

“We have witnessed a sharp increase in the number of Russian families reaching out to us to inquire about the United States golden visa,” says Shai Zamanian, founder and legal director of The American Legal Center, leading experts on the US golden visa based out of Dubai. “This city is a great destination for expats as it is welcoming to all. That said, many Russian families are seeking greener pastures in the West, specifically the US.”

What is the US golden visa?

The EB-5 Immigrant Investor Program is a lucrative immigration program that was first introduced by the US government in 1990 with the goal of promoting the inflow of foreign capital to boost the US economy through job creation. The EB-5 program allows foreign investors and their qualifying dependents to obtain US Green Cards with an investment of $800,000 in a government pre-approved real estate project. With a Green Card in hand, a family can freely live and work in the US and take advantage of a plethora of benefits in this land of opportunity, such as access to top quality education, limitless career opportunities, and world-class healthcare. The investment of $800,000 is returned to the family after approximately five years of benefiting the US economy.

Despite sanctions imposed on many Russian nationals and entities as a result of the Russia-Ukraine war, the EB-5 program does not disqualify applicants on the basis of nationality and remains a viable option for Russian families seeking to access America. While Russian investors can participate in the EB-5 programme and obtain Green Cards for themselves, their spouses, and children under the age of 21, they must be mindful of the below considerations prior to submitting their EB-5 applications to the United States Citizenship and Immigration Services (USCIS).

Investors must show lawful source of funds

Although EB-5 remains one of the most flexible immigration programmes to the US and does not discriminate based on nationality, it nonetheless requires all investors to show that the capital used for investment in the US is from lawful sources and can be legally traced. One of the requirements for the source of funds is that the funds should not be commingled with government sources. Therefore, politically exposed persons (PEPs) cannot participate in the EB-5 programme. While children of PEPs can participate in the EB-5 program to obtain their Green Cards, the source of funds used for the investment must not be a gift from a PEP.

“Prior to submitting a family’s EB-5 application to the US immigration office, we take a deep dive into a family’s source of funds and history to determine if they are eligible to participate in the EB-5 program,” says Zamanian. “For a successful review, we need applicants to be honest and cooperate so that we can provide an accurate assessment.”

Investors must be mindful of US financial regulations and sanctions

U.S. regulations mandate that all US entities and persons must comply with the Office of Foreign Assets Control (OFAC) regulations. OFAC is a federal agency under the US Department of the Treasury that administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. Currently, OFAC regulations have imposed economic sanctions on Cuba, Iran, Sudan, North Korea, Syria, Russia, and fewer sanctions on other countries.

That said, OFAC has authorised “general licenses” pursuant to 31 CFR Section 501.801. Generally, the EB-5 program is exempt from requiring foreign investors from obtaining a “specific license” and investors are authorized to transfer funds from a sanctioned country for the purpose of participating in the EB-5 program by virtue of a general license. A general license is beneficial to investors as they can avoid the lengthy and complicated process of applying for a specific license.

While Russian nationals are generally not required to obtain a specific license from OFAC prior to participating in the EB-5 program, investors must still be mindful of the Specially Designated Nationals (SDN) list. If an EB-5 investor’s funds originate from a person or entity on the SDN list, they are most likely required to obtain a specific license prior to making an investment in the US Therefore, if you suspect that your funds may originate from a source on the SDN list, you must be proactive in conducting a search prior to transferring your investment funds to the US An experienced EB-5 consultant can guide you through this process.

Contact The American Legal Center to discuss next steps

As each investor’s petition varies based on the source of their funds, investors are highly recommended to work with an experienced consultant in serving as their active guides throughout the application process. The team of US licensed lawyers and professionals at The American Legal Center have over a decade of experience in assisting individuals and families apply for US residency via the EB-5 program.

“We will prescribe a set of documents depending on your personal circumstances for the purpose of pre-qualifying your file. Prior to payment of any fees or making an investment, our team will review your documents to ensure that you are a suitable candidate for the EB-5 program,” says Zamanian.

If you are interested in learning more about the US golden visa and whether it is a suitable immigration programme for your family, you can contact the team at The American Legal Center of Dubai for more information and a complimentary consultation.