Coming in From the Cold:
Prospects and Challenges of
Working with EB-5 Investors
from Russian-Speaking Markets
The EB-5 option is gaining momentum in Russia among its high
net-worth residents despite cultural and financial challenges.
By Charles Raether
K
nowledge of the EB-5 program has gradually
improved over the past few years among Russian
investors and other Russian-speaking investors in
surrounding markets. However, despite the program's
increased profile, these markets continue to be
underrepresented among EB-5 investors, particularly
in light of the number of high net-worth individuals in
these markets.
Likely explanations for this phenomenon are multifold,
including a low level of knowledge of the program
in general and typical structuring of projects, the
absence of specialized and knowledgeable agencies
to assist with project promotion, and a near complete
lack of any concerted marketing efforts by EB-5
stakeholders to promote the program in general.
Many of these factors can be easily remedied by
more direct engagement in these markets by EB-5
stakeholders. At the same time, other indirect factors
are likely to improve awareness and interest in EB-5.
The wave of anti-Americanism that was widespread
at the time of the annexation of Crimea by Russia in
2014 has significantly subsided.
The continued economic stagnation in Russia and
elsewhere in the region has caused many to seriously
consider offshore options for their capital and
families. The election of Donald Trump has also raised
hopes of a reset of relations between Russia and the
United States, although that optimism now seems
to be a bit misplaced. All of these developments will
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EB5 INVESTORS M AGAZINE