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The Citizenship by Investment Program in Moldova – embracing great opportunities or risks?

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Dubai, November 5th – The Citizenship by Investment Program in the Republic of Moldova was officially launched at the 12th annual Global Residence and Citizenship Conference in Dubai. Since the very first moment when the legislative initiative was registered in the Parliament (December 2016), the law of citizenship by investment gained support, along with a lot of criticism. The government presented the program as an opportunity to attract new investments, whereas the opposition and some experts argued that granting citizenship to foreign investors involves major risks to the state security and could affect the liberalized visa regime with the EU, as reported by Ziarul de Gardă.

The law adoption outlines

The law of citizenship by investment was adopted and promulgated in record time without waiting the results of the anti-corruption expertise report published by the National Anticorruption Centre (NAC). One week after the final voting of the bill, the results of NAC report stated that “the promoted interests through the law of citizenship by investment are detrimental to the public interest, and imply major risks to the safety and security of the citizens and the state of the Republic of Moldova, , in the context of the emigration crisis in EU and the global terrorism threat.”

In March 2018, the Ministry of Economy and Infrastructure (MEI) has published a decision to amend the Regulation on Acquisition of Citizenship by Investment. According to the Transparency International Moldova experts,  the changes to the selection procedure of candidates for granting citizenship were made without public debates and a preliminary notification. The procedure was simplified by omitting the governmental institutions from the examination process.

A series of law amendments came next, enabling the persons who would obtain the Moldovan citizenship by investment to be exempted from the obligation to know the provisions of the Constitution of the Republic of Moldova and to speak the Romanian language. Moreover, the name and other personal data of the candidates would be kept in secret, only the applicant file number being published.

The ex-president of the Parliamentary Commission for national security, defence and public order, Roman Boţan, qualified the amendments as doubtful. “It’s strange that the names of the candidates for granting the Moldovan citizenship by investment is concealed. It is plausible that such investments could come from fraud, and premises of decriminalizing illegal assets could be created,” declared Boţan.

Vlad Ţurcanu, a political commentator and a former presidential adviser, mentioned that the relationship Moldova – EU could be negatively affected in the light of a non-transparent citizenship granting process. Furthermore, such problematic future citizens could create crises which would be very hard to be managed by the Moldovan institutions.

In July 2018, MEI signed a partnership contract with the Moldovan Investment Company (MIC) Holding and with Henley & Partners Government Services Ltd. The stated scope of the contract was the development, implementation and international promotion of the Citizenship by Investment Program. The official MIC Holding website presents neither the name of the founding persons or companies nor the contact address of the holding.

MEI signing the partnership contract with the MIC Holding| Source: mei.gov.md

The Henley & Partners Government Services Ltd appears in an investigation article written by The Guardian that presents the company as doing business with ‘golden’ passports.  “For a few hundred thousand dollars, the right passport, from the right place, can get its owner into almost any country,” is stated in the article. The company was involved in the Maltese program of citizenship by investments and was accused of intimidating the investigative journalist Daphne Caruana Galizia. The journalist examined the scheme of offering the Maltese citizenship but was assassinated in October 2017.

The Henley & Partners’ perspective

In an interview for Newsmaker, the president of Henley & Partners, Christian Kälin and the Group Public Relations Director at Henley & Partners, Paddy Blewer talked about the candidate selection process of Moldovan citizenship granting and the benefits of the program.

First, it is important to mention that the Henley & Partners company, as a part of the MIC Holding, is responsible for the consultancy and the strategy implementation for the Moldovan Citizenship by Investment Program.

When asked about the possible applicants for the Citizenship by Investment Program, Christian Kälin clarified that they would be wealthy people that want to enlarge their possibilities of traveling and moving around the world.

“It is not about a Russian oligarch with lots of money and relationships in the political world. It is more about an UAE citizen who is not sure he wants to stay in his country in the next 15 years or an American citizen that can’t enter an Arabic country using his American passport and needs the second citizenship for security reasons.”

According to Kälin, the applicants would be interested in being protected and moving around, not tax evasion. He admitted that among the beneficiaries of the program could be not well-intended people: “It’s like in the bank. There are thousands of clients and among them there could be 5,7,10 delinquents. Still, that’s not a reason for the bank to cease its activity.”

“The most important benefit for a country that implements a program of citizenship by investment is the possibility to attract new investments,” as Paddy Blewer stated. In the case of the Republic of Moldova there is a possibility, at the moment, to invest in the Public Investment Fund. The law of citizenship by investment stipulates for now only the opportunity of real estate investments, according to Christian Kälin. He also added that the real estate sector is a key one in the economy of any country and that most programs of granting citizenship in return for investment provide such a component. “Real estate investments have a considerable positive effect on the economy of a country. They increase the number of transactions and develop the construction industry. The real estate sector has many intersections with other sectors of the economy. Thus, it will be a driver of job creation,” said Kälin.

According to the officials’ declarations at the Moldova Business Week of this year, the industries that should have priority when it comes to investments in Moldova are the tourism and information technologies sectors. Also, the automotive and manufacturing industries need the government’s support in order to be developed as the country’s strategical sectors.

The expert’s perspective

The expert and activist Sergiu Tofilat explained for Moldova.org several important aspects regarding the law of citizenship by investment. First, “some European countries are trying to attract investment by selling citizenship. Such programs are interesting for wealthy people who want to be able to travel visa-free in the EU and the US, who would like to easily open bank accounts in western banks,” said Tofilat. He highlighted the serious issues in verifying the source of the ‘invested’ money for acquiring citizenship, but also national security issues when different criminals or terrorists get foreign citizenship.

In case of the Republic of Moldova, “there are problems related to politically subordinate justice, labour shortages, the lack of predictability of public policies as when the government changes the law, and this affects the business environment that can’t plan its activity for at least 3-5 years,” as Tofilat mentioned. Taking into consideration these circumstances, “the Citizenship by Investment program raises suspicions of money laundering, especially since nothing of the stolen billion has been recovered,” stated Tofilat. He indicated that the program in question must be analysed together with the so-called tax amnesty law, which allows the legalization of any dirty money for a 6% tax. “As a result, the beneficiaries of the bank fraud can decriminalize their money through certain foreign citizens who will receive citizenship by granting loans to the Moldovan Government, after which the new Moldovan citizens will benefit from the tax amnesty,” explained Tofilat.

“The authorities stated that the objective of the citizenship program is to attract foreign investments in Moldova. It is absurd to believe that foreign investors queue up for investing their money in Moldova and that getting citizenship is the biggest obstacle for them.”

According to the Tofilat’s opinion, “a special attention should be paid to the dangerous similarities of the Moldovan program with the programs in Hungary and Malta.” Just as in the case of Hungary, the names of those who will receive the citizenship of the Republic of Moldova will be classified under the pretext of protecting their personal data.

An international inquiry from September 2018 revealed that especially Russian officials are interested in receiving the Hungarian citizenship for being able to travel without any visa and to leave Russia in case they need it.  “It’s the case of Russian deputies, heads of state-owned enterprises, and even Serghei Naryshkin’s family, the head of the Russian espionage service, who received the citizenship of Hungary. This happened despite the fact that some officials appear on international sanctions lists,” specified Tofilat.

Featured image source: anticoruptie.md

Society

“They are not needy, but they need help”. How Moldovan volunteers try to create a safe environment for the Ukrainian refugees

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At the Government’s ground floor, the phones ring constantly, the laptop screens never reach standby. In one corner of the room there is a logistics planning meeting, someone has a call on Zoom with partners and donors, someone else finally managed to take a cookie and make some coffee. Everyone is exhausted and have sleepy red eyes, but the volunteers still have a lot of energy and dedication to help in creating a safe place for the Ukrainian refugees.

“It’s like a continuous bustle just so you won’t read the news. You get home sometimes and you don’t have time for news, and that somehow helps. It’s a kind of solidarity and mutual support,” says Vlada Ciobanu, volunteer responsible for communication and fundraising.

The volunteers group was formed from the very first day of war. A Facebook page was created, where all types of messages immediately started to flow: “I offer accommodation”, “I want to help”, “I want to get involved”, “Where can I bring the products?”, “I have a car and I can go to the customs”. Soon, the authorities also started asking for volunteers’ support. Now they all work together, coordinate activities and try to find solutions to the most difficult problems.

Is accommodation needed for 10, 200 or 800 people? Do you need transportation to the customs? Does anyone want to deliver 3 tons of apples and does not know where? Do you need medicine or mobile toilets? All these questions require prompt answers and actions. Blankets, sheets, diapers, hygiene products, food, clothes – people bring everything, and someone needs to quickly find ways of delivering them to those who need them.

Sometimes this collaboration is difficult, involves a lot of bureaucracy, and it can be difficult to get answers on time. “Republic of Moldova has never faced such a large influx of refugees and, probably because nobody thought this could happen, a mechanism of this kind of crisis has not been developed. Due to the absence of such a mechanism that the state should have created, we, the volunteers, intervened and tried to help in a practical way for the spontaneous and on the sport solutions of the problems,” mentions Ecaterina Luțișina, volunteer responsible for the refugees’ accommodation.

Ana Maria Popa, one of the founders of the group “Help Ukrainians in Moldova/SOS Українці Молдовa” says that the toughest thing is to find time and have a clear mind in managing different procedures, although things still happen somehow naturally. Everyone is ready to intervene and help, to take on more responsibilities and to act immediately when needed. The biggest challenges arise when it is necessary to accommodate large families, people with special needs, for which alternative solutions must be identified.

Goods and donations

The volunteers try to cope with the high flow of requests for both accommodation and products of all kinds. “It came to me as a shock and a panic when I found out that both mothers who are now in Ukraine, as well as those who found refuge in our country are losing their milk because of stress. We are trying to fill an enormous need for milk powder, for which the demand is high and the stocks are decreasing”, says Steliana, the volunteer responsible for the distribution of goods from the donation centers.

Several centers have been set up to collect donations in all regions of Chisinau, and volunteers are redirecting the goods to where the refugees are. A system for processing and monitoring donations has already been established, while the volunteer drivers take over the order only according to a unique code.

Volunteers from the collection centers also do the inventory – the donated goods and the distributed goods. The rest is transported to Vatra deposit, from where it is distributed to the placement centers where more than 50 refugees are housed.

When they want to donate goods, but they don’t know what would be needed, people are urged to put themselves in the position of refugees and ask themselves what would they need most if they wake up overnight and have to hurriedly pack their bags and run away. Steliana wants to emphasise that “these people are not needy, but these people need help. They did not choose to end up in this situation.”

Furthermore, the volunteer Cristina Sîrbu seeks to identify producers and negotiate prices for products needed by refugees, thus mediating the procurement process for NGOs with which she collaborates, such as Caritas, World Children’s Fund, Polish Solidarity Fund, Lifting hands, Peace Corps and others.

One of the challenges she is facing now is the identifying a mattress manufacturer in the West, because the Moldovan mattress manufacturer that has been helping so far no longer has polyurethane, a raw material usually imported from Russia and Ukraine.

Cristina also needs to find solutions for the needs of the volunteer groups – phones, laptops, gsm connection and internet for a good carrying out of activities.

Hate messages

The most difficult thing for the communication team is to manage the hate messages on the social networks, which started to appear more often. “Even if there is some sort of dissatisfaction from the Ukrainian refugees and those who offer help, we live now in a very diverse society, there are different kind of people, and we act very differently under stress,” said Vlada Ciobanu.

Translation by Cătălina Bîrsanu

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#WorldForUkraine – a map that shows the magnitude of the world’s actions against Russian aggression

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The international community and volunteers from all over te world have launched #WorldForUkraine as a platform that shows the magnitude of the world’s actions against the Russian aggression. In a digital world – it is an interactive map of public support of Ukrainians under the hashtag #WorldForUkraine – rallies, flash mobs, protests around the world. In the physical dimension – it is your opportunity to take to the streets and declare: “No to Putin’s aggression, no to war.”

„Today, along with the political and military support, emotional connection with the civilized world and truthful information are extremely important for Ukraine. The power to do it is in your hands. Join the #WorldForUkraine project and contribute to the victorious battle against the bloodshed inflicted on Ukraine by the aggression of the Russian Federation”, says the „about the project” section of the platform.

Go to the streets — Tell people — Connect and Unite — Become POWERFUL

Volunteers have launched #WorldForUkraine as a platform that shows the magnitude of the world’s actions against Russian aggression. In digital world – it is an INTERACTIVE MAP of public support of Ukrainians worldforukraine.net under the hashtag #WorldForUkraine – rallies, flash mobs, protests around the world. In the physical dimension – it is your opportunity to take to the streets and declare: “No to Putin’s aggression, no to war.” There you may find information about past and future rallies in your city in support of Ukraine. This is a permanent platform for Ukrainian diaspora and people all over the world concerned about the situation in Ukraine.

So here’s a couple of things you could do yourself to help:

* if there is a political rally in your city, then participate in it and write about it on social media with geolocation and the hashtag #WorldForUkraine

* if there are no rallies nearby, organize one in support of Ukraine yourself, write about it on social media with geolocation adding the hashtag #WorldForUkraine

The map will add information about gathering by #WorldForUkraine AUTOMATICALLY

Your voice now stronger THAN ever

All rallies are already here: https://worldforukraine.net

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How is Moldova managing the big influx of Ukrainian refugees? The authorities’ plan, explained 

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From 24th to 28th of February, 71 359 Ukrainian citizens entered the territory of Republic of Moldova. 33 173 of them left the country. As of this moment, there are 38 186 Ukrainian citizens in Moldova, who have arrived over the past 100 hours. 

The Moldovan people and authorities have organized themselves quickly from the first day of war between Russia and Ukraine. However, in the event of a prolonged armed conflict and a continuous influx of Ukrainian refugees, the efforts and donations need to be efficiently managed. Thus, we inquired about Moldova’s long-term plan and the state’s capacity to receive, host, and treat a bigger number of refugees. 

On February 26th, the Ministry of Labor and Social Protection of Moldova approved the Regulation of organization and functioning of the temporary Placement Center for refugees and the staffing and expenditure rules. According to the Regulation, the Centers will have the capacity of temporary hosting and feeding at least 20 persons, for a maximum of 3 months, with the possibility of extending this period. The Centers will also offer legal, social, psychological, and primary medical consultations to the refugees. The Center’s activity will be financed from budget allocations, under Article 19 of Provision no. 1 of the Exceptional Situations Commission from February 24th, 2022, and from other sources of funding that do not contravene applicable law.

The Ministry of Inner Affairs and the Government of Moldova facilitated the organization of the volunteers’ group “Moldova for Peace”.  Its purpose is to receive, offer assistance and accommodation to the Ukrainian refugees. The group is still working on creating a structure, registering and contacting volunteers, etc. It does not activate under a legal umbrella. 

Lilia Nenescu, one of the “Moldova for Peace” volunteers, said that the group consists of over 20 people. Other 1700 registered to volunteer by filling in this form, which is still available. The group consists of several departments: 

The volunteers’ department. Its members act as fixers: they’re responsible for connecting the people in need of assistance with the appropriate department. Some of the volunteers are located in the customs points. “The Ministry of Inner Affairs sends us every day the list of the customs points where our assistance is needed, and we mobilize the volunteers”, says Lilia Nenescu. 

The Goods Department manages all the goods donated by the Moldavian citizens. The donations are separated into categories: non-perishable foods and non-food supplies. The volunteers of this department sort the goods into packages to be distributed. 

The Government intends to collect all the donations in four locations. The National Agency for Food Safety and the National Agency for Public Health will ensure mechanisms to confirm that all the deposited goods comply with safety and quality regulations. 

The Service Department operates in 4 directions and needs the volunteer involvement of specialists in psychology, legal assistance (the majority of the refugees only have Ukrainian ID and birth certificates of their children); medical assistance; translation (a part of the refugees are not Ukrainian citizens). 

According to Elena Mudrîi, the spokesperson of the Ministry of Health, so far there is no data about the number of  Covid-19 positive refugees. She only mentioned two cases that needed outpatient medical assistance: a pregnant woman and the mother of a 4-day-old child. 

The Accommodation Department. The volunteers are waiting for the centralized and updated information from the Ministry of Labor about the institutions offering accommodation, besides the houses offered by individuals. 

The Transport Department consists of drivers organized in groups. They receive notifications about the number of people who need transportation from the customs points to the asylum centers for refugees.

The municipal authorities of Chișinău announced that the Ukrainian children refugees from the capital city will be enrolled in educational institutions. The authorities also intend to create Day-Care Centers for children, where they will be engaged in educational activities and will receive psychological assistance. Besides, the refugees from the municipal temporary accommodation centers receive individual and group counseling. 

In addition to this effort, a group of volunteers consisting of Ana Gurău, Ana Popapa, and Andrei Lutenco developed, with the help of Cristian Coșneanu, the UArefugees platform, synchronized with the responses from this form. On the first day, 943 people offered their help using the form, and 110 people asked for help. According to Anna Gurău, the volunteers communicate with the Government in order to update the platform with the missing data. 

Translation from Romanian by Natalia Graur

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