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havens like Cyprus are limiting ‘golden passport’ naturalization programs because of money laundering fears. Under the proposal, the cost of a Russian residence permit would be at least $130,000 invested in a business employing Russian staff. Spending $390,000 on real estate in Russia or Russian government bonds would also secure you the paperwork, as would an investment of $665,000 or more in a foreign company that has worked in Russia for at least three years.
The Trump administration is close to declaring that 89 Chinese companies and 28 Russian companies have military ties and therefore should not be allowed to buy US goods and technologies without special licenses​. The US Department of Commerce updated its “military end use” regulation in April, and the regulation now refers to not only armed forces and national policies but to anybody that supports and/or contributes to the production of military equipment. The products affected by the export restrictions range from computer software such as word processors and scientific equipment (e.g. digital oscilloscopes) to aircraft parts and components. According to Reuters, the administration could impose restrictions on COMAC and Irkut, the designers of rival aircraft to the Boeing 737. Yesterday, 25 November, RIA Novosti reported a list of 28 Russian entities that could be subject to the US declaration, including the Ministry of Defense and companies in the aerospace and nuclear industries, as well as scientific units. The sanctions could affect Rosatom subsidiaries; two Roscosmos subsidiaries; and more than 10 Russian companies in the aviation industry, including helicopter, aircraft-engine and component producers. The list includes entities connected to the Russian Presidential Administration. The sanctions, if implemented, could have a negative impact on the development of the Russian aviation industry and its two major products: the SSJ-100 regional jet and mid-range MC-21, the latter being in the final stages of development. Although Russian producers could possibly substitute foreign suppliers for the MC-21’s carbon fiber-composite wings and engines, it would be more challenging to replace all of the jet’s US-produced components, e.g. the glass cockpit. The same concerns apply to the SSJ-100.
32 ​RUSSIA Country Report​ December 2020 www.intellinews.com