Russian businessman Albert Avdryan has been hit with EU sanctions for Moscow’s war in Ukraine, but he can partially avoid the bloc’s travel ban thanks to a Maltese passport he purchased under the “golden” visa scheme, which faces European court rulings on the future this week.
Avdrairan, who received his passport in 2015, was one of seven people who gained Maltese citizenship and later struck Ukrainian sanctions over Russian war in Ukraine.
Passport holders are one of the larger groups of 16 people who have successfully paid Maltese citizenship or later appeared on the sanctions list or were convicted of a crime despite being a politically exposed individual.
Malta is still the last EU country to offer citizenship for sale, and is drawing rage from the European Commission.
The Commission argued this scheme “undermines both the essence and integrity of EU citizenship.” The court is scheduled to take control on Tuesday.
Schemes that provide citizenship and cash settlements have been common in Europe and the Caribbean for decades, but have attracted criticism. When the UK abolished its golden visa, the scheme said it “gives the opportunity for corrupt elites to access the UK.” The European Commission says such programs pose “significant risks, such as corruption, money laundering, tax evasion.”
“This is an insurance contract for some people and an exit strategy for some. These schemes are very problematic for a number of reasons,” says Eka Rostomashvili of Transparent International. “It’s not just Maltese doors because it opens the EU doors.”
Rostomashvili said it is a “trend” in other countries that provide citizenship in Malta and other countries, providing citizenship to apply for passports “just before sanctions are placed on them, or just before the major scandal breaks and criminal prosecution begins.”
People who purchase Maltese passports will become EU citizens with the right to live within the bloc. They can easily open EU bank accounts and businesses and travel to many other countries without a visa.
Applying for citizenship in 2014, Avdrairan praised Malta’s “reliability, security, peace, tranquility and comfort.”
And three individuals who received Maltese passports were subsequently subject to US sanctions over the war in Ukraine, while the other three were approved by Kiev.
Authorized individuals include Evgeniya Vladimirovna Bernova, who was accused of mistakenly acquiring the US.[ing] “Dual equipment that can be used for military purposes on behalf of Russian end users.” The US said it “spurred the export of equipment.” . . It was intended to be an end user of the Russian government by a Malta-based company she ran.
Belnova said he “earned Maltese citizenship based on a thorough and multi-layered due diligence process,” and that he had a “real connection to Malta,” including businesses that said “it was an actual investment in Malta and nothing illegal or hidden.” She said she has “deeply personal reasons” to invest in filmmaking on the island and pursue citizenship.
Belnova said the list of sanctions was “a misconception by US authorities.”
At least one of Maltese passports was then revoked.
In addition to those who were later approved or convicted, those who were also paid Maltese citizens include political figures. The so-called politically exposed individuals are treated by regulators as taking a specific risk of corruption.
Three members of the Saudi royal family, Prince Khaled and his sons Badar and Mishar, received Maltese passports. There was no immediate response to requests for comment from Prince Khaled and his family through their company.
The Maltese government also entrusted the “Gilberto Eduardo Gerardo Kojuanco Teodoro” to the Official Gazette in 2016 as a new citizen. This is the same name as the current Secretary of Defense of the Philippines. Teodoro’s lawyer said he was “not a Maltese citizen or a Maltese passport owner,” but declined to comment on whether Theodoro has returned his passport since 2016.
No corruption allegations have been filed against Saudi Arabia or Theodorro.
The European Commission states, “EU values are not sold. The Investor Citizenship Scheme constitutes a violation of EU law.
Malta has been living in the country for three years, requiring applicants to make a one-time investment of at least 600,000 euros to purchase or rent the property, donating 10,000 euros to charities. Those investing 750,000 euros could be cut in a year.
Avdrairan, who owns coal and gas companies in Russia, said in his application that “as a businessman, holding such a passport would greatly support regular travel to Europe and around the world.”
Abdryan, who also got a Maltese passport, is able to travel to Malta in February, despite his business being hit by EU sanctions in February for “providing a substantial source of income” to the Russian government.
His list of sanctions points out that he is “closely linked” to the state weapons giant Rostec.
Documents from private company Henry & Partners, leaked to the Organized Crime and Corruption Report Project and shared with other media, show that Avdoliyan received his residency card in 2014 and traveled to Malta four times the following year.
Henry designed and implemented the “golden” passport system when it was launched in 2013.
The documents suggest that Avdrians spend around two weeks in the country, offering hotel and restaurant bills and private jet reservations as proof. The properties they rented, including a “boutique apartment” in Sriema, on the coast overlooking Valletta, were selected and managed by Henry, paid rent each year and emptyed their mailboxes each month.
Identity Malta, the governmental body tasked with approving the application, said “as a rule” that Avdrairan met all requirements for a 12-month residence in Malta. Avdolyan said, “I refuse to comment on the points indicated.”
Russian billionaire Pavel Melnikov received his Maltese passport in 2015 and in 2012 he received his passport from St. Kitts and Nevis with the help of Henry.
In 2018, Finnish authorities stormed property on the Finnish archipelago of Turku. He was declared tax and accounting fraud in Finland in February. His citizenship in Malta was subsequently revoked.
Melnikov has pleaded his beliefs and said he will try to cancel Maltese passport. His lawyer, Kai Kotiranta, said, “Melnikov denied all wrongdoing in Finland and elsewhere. He acquired nationality under local laws and clearances.
Melnikov said he has acquired his Maltese citizenship. “It is not to get a tax credit, but you can only live and move around Europe. Maltese passports were obtained legally, in accordance with all legal requirements through criminal planning.”
Another example is semen kussov, who was imprisoned in the UK for washing criminal funds last year. The Crown Prosecutor’s Office said the 24-year-old acted as a courier “to raise criminal money and deliver money that was washed overseas.”
In a similar revelation, Cyprus and Bulgaria abandoned their passport sales programme under pressure from Brussels. However, the Maltese government maintains its plan, strengthens due diligence checks and claims it has banned Russian and Belarusian citizens from obtaining passports.
“What Malta did is like hacking the European Union,” said Matthew Caruana Galizia of the Daphne Caruana Galizia Foundation. “We created this commons in the EU, and now our member countries are starting to eat. [away] So. ”
This year, US President Donald Trump announced plans for a US “gold card” worth $5 million. In Europe, countries such as Portugal, Spain, and Hungary offer cash residency permits rather than passports.
Caruana Galitzia’s mother, Daphne, is a journalist who revealed an early golden passport scheme in Malta and was killed in a car bomb in 2017. The trial of two men accused of being involved in her murder began in Malta on Thursday.
The Maltese government did not respond to a request for comment.
Sarah Nicklin, a spokesman for Henley & Partners, said he could not comment on individual cases due to lack of information and data protection. She said that individuals “may pass all the rigorous due diligence tests imposed, but they may still continue to engage in criminal activity.”
She said, “Malta has actually requested the applicant to establish other actual connections between the residence and the country. Henry and his partner have always adhered to the laws and regulations of all the countries in which it operates.”
Henry has previously received fees for all successful applications from the Malta government, but is now one of many companies running the program.
Matthew Caruana Galicia said improvements to due diligence checks do not modify the scheme. “It’s not a progressive change [you can] Stop . . . Please put the bad guys in. It has to do with the nature of the scheme itself,” he said.
Actors fear that the ECJ ruling in Malta’s favor could engulf other countries such as Cyprus to revive or open new schemes.
“If that happens, we will probably see a race to the bottom.
Additional reports by Chris Cook of London, Richard Milne of Oslo, Polina Ivanova of Berlin and Ahmed Al Omran of Jeddah
