Over 15,000 millionaires likely to depart Russia by 2022 due to Ukraine war: Report

Over 15,000 millionaires are predicted to leave Russia this year as wealthy residents turn against Vlimir Putin's regime following invasion of Ukraine. According to 2017 Henley Global Citizens Report which examines global investment migration trends, war in Ukraine, political instability and possibility of hiking taxes are forcing world's wealthiest out of Russia, Ukraine, UK, and even US.

According to a report released on June 13, Russia has experienced highest migration of millionaires in last six months, with 15,000 millionaires likely to depart by end of year. Affluent investors are fleeing Ukraine as a result of Russia's invasion, which is set to lose 2,800 millionaires, greatest net loss in country's history.

CEO of Henley & Partners, Dr. Juerg Steffen, stated, " 2022 forecast reflects an extremely volatile environment worldwide. By end of year, 88,000 millionaires are expected to have relocated to new countries."

While millionaires tend to flock to financial behemoths like UK and US, research reveals that this trend is changing. Due to Brexit and rising taxes, Britain, which was long regarded as world's financial hub, continues to lose millionaires, with more than 1,500 predicted to leave by end of 2022. Financial analysts point to political instability and potential of increasing taxes as reasons why millionaires are less interested in migrating to United States.

Although United States continues to attract more wealthy visitors than it loses, net inflox forecast for 2022 is 1,500, down 86% from net inflow of 10,800 in 2019. According to Andrew Amoils, he of research at New World Wealth, affluent individuals are exceedingly mobile and ir moves can provide an early warning signal into future country developments. Countries that attract wealthy individuals and families tend to be stable, with low crime rates, competitive tax rates, and appealing commercial prospects.

UAE to gain most number of millionaires in 2022

According to survey, United Arab Emirates, which surpassed United States to take top rank, Australia, Singapore, Israel, and Switzerland will gain most millionaires in 2022. Millionaires are likely to flock to Malta, Mauritius, and Monaco in large numbers. According to experts, wealthy movement is far from ended and is expected to increase in 2023.

"Next year, largest millionaire migration flows on record are predicted -- 125,000 -- as affluent investors and ir families earnestly prepare for new post-COVID world, with an as yet-to-be-revealed rearrangement of global order, and ever-present threat of climate change as a constant backdrop," Steffen said.

Image: AP