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 Vladimir Putin's regime following the invasion of Ukraine. According to the 2017 Henley Global Citizens Report which examines global investment migration trends, the war in Ukraine, political instability and the possibility of hiking taxes are forcing the world's wealthiest out of Russia, Ukraine, the UK, and even the US.

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

CEO of Henley & Partners, Dr. Juerg Steffen, stated, "The 2022 forecast reflects an extremely volatile environment worldwide. By the end of the 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 the world's financial hub, continues to lose millionaires, with more than 1,500 predicted to leave by the end of 2022. Financial analysts point to political instability and the potential of increasing taxes as reasons why millionaires are less interested in migrating to the United States.

Although the United States continues to attract more wealthy visitors than it loses, the net inflox forecast for 2022 is 1,500, down 86% from the net inflow of 10,800 in 2019. According to Andrew Amoils, head of research at New World Wealth, affluent individuals are exceedingly mobile and their 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 the survey, the United Arab Emirates, which surpassed the United States to take the top rank, Australia, Singapore, Israel, and Switzerland will gain the most millionaires in 2022. Millionaires are likely to flock to Malta, Mauritius, and Monaco in large numbers. According to experts, the wealthy movement is far from ended and is expected to increase in 2023.

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

Image: AP