EB-5 Program Becoming More Mainstream

Filed Under (Uncategorized) by Charles Raether on 13-08-2011

Businesssweek recently had an article highlighting the EB-5 program and it’s increasing importance to the US economy, especially during the on-going recession that looks like it could get worse before it gets better. Some day the politicos in Washington will wake up to the realities and benefits of this program and streamline the process. USCIS has in fact already started to do that, proposing significant enhancements to the EB-5 program to make it more appealing and effective.

In addition, new focus is being placed on the Startup America initiative created by the White House earlier this year to spur foreign investors and investments in the US economy.

High-End Miami Real Estate Bouncing Back Thanks to Russians?

Filed Under (Uncategorized) by Charles Raether on 12-08-2011

Bloomberg recently reported on the return of the high-end real estate market throughout the US in those markets that are traditionally popular for the foreign elite, including perhaps the most conspicuous spending Russians. Although these purchases might make long-term investment sense, it seems the primary motivation is a more simple one: to one-up their peer oligarchs.

This goes hand-in-hand with our experience on the EB-5 market as affluent investors use the EB-5 program to gain permanent residency in the United States to either enjoy their newly bought mansions, send their children to school in the US, or leave themselves an escape hatch in the event things get dicey back in the motherland.

Wal-mart bails out of Russia

Filed Under (Uncategorized) by Charles Raether on 14-12-2010

With its official announcement to close its Moscow office, it seems that Wal-mart the world’s largest retailer has finally decided to pull the plug on its ambitions for the Russian market.

Wal-mart had been hopeful–and publicly remains so–about the prospects of the Russian market, but it seems they followed Carrefour in bowing out.

Hey, it’s not like they said proschai. But it does speak volumes about the challenges of the retail market.

So Long, Borat. Meet the New Kazakhstan

Filed Under (Uncategorized) by Charles Raether on 30-11-2010

Kazakhstan parts with its unofficial spokesperson

Kazakhstan parts with its unofficial spokesperson

Kazakhstan has certainly gone a long way in its global image marketing since its independence less than two decades ago. For most of the 1990’s, the very concept of marketing and promoting the country was a completely foreign concept for the government of Kazakhstan.

Then, Borat came along in the 2000’s, initially raising the ire of the Kazakh authorities to the point of banning the movie. I think they belatedly realized that any PR is good PR, and they somewhat tentatively (holding their nose) embraced the notoriety the movie created for their country.

Now it seems the Kazakh government (specifically the Ministry of Foreign Affairs) has wholeheartedly and quite effectively embraced the notion of “Western-style” international image development and marketing. A new periodical named “Edge” is to be published by the Ministry, and a snazzy online version is available as well.

As the byline of the site proclaims: “This is Kazakhstan. Yes, Kazakhstan.” I think some of Kazakhstan’s neighbors could well benefit by taking note of the Kazakhs’ approach. Granted, whether the reality substantively reflects the packaging is another issue, but, as any good marketer will tell you, it’s the sizzle that sells.

Kazakhstan: Moving Up

Filed Under (Uncategorized) by Charles Raether on 19-11-2010

The most recent annual survey on ease of doing business by the World Bank and IFC promoted Kazakhstan up by 15 places up to 59th out of 183 countries. The annual Doing Business survey focuses on registration issues, permits, etc. and does not consider other factors such as corruption, rule of law, and government transparency, which are all obviously of importance in CIS markets.

By comparison Russia was ranked 123, and Ukraine came in at 145. Thus, Kazakhstan came out far above it’s largest competitors in the CIS region.

Upcoming Webinar in Russian on Investor Visas

Filed Under (Uncategorized) by Charles Raether on 16-11-2010

Join AmLaw Group, together with Grata Law Firm (Almaty), for our upcoming Russian-language webinar on the EB-5 program. To register, click here.

«Программа EB-5: Наиболее надежный вариант получения визы для инвесторов в США»

1 декабря 2010 в 10.00 (время Алматы)/30 ноября в 23.00 (время Вашингтон, округ Колумбия)

Желающие могут принимать участие через:

1) Интернет (при высокоскоростном доступе) перейдя по этой ссылке https://www3.gotomeeting.com/register/271580294 или

2) в Центре обучения GSS  по адресу: г. Алматы, ул. Оспанова 104. Конференц-зал Центра обучения

Целью вебинара является ознакомление участников с реальными возможностями получения грин-карты (ПМЖ) в США через программу EB-5, предоставляющую иностранным инвесторам быстрый и надежный способ получить вид на жительство в США. Однако программа EB-5 чревата известными а, порой, неожиданными сложностями, которые требуют сопровождения опытным юристом с экспертным знанием не только иммиграционного процесса, но и реалий работы и жизни в СНГ.

Основное требование программы EB-5 — это минимальное вложение $500.000 сроком 3-4 года. Это не затраты, а инвестиции в наиболее развитую страну – Соединенные Штаты Америки.  В конце срока Вы обратно получаете свои инвестиции и проценты (размер которых зависит от типа инвестиции). В дополнение Вам открывается свободный безвизовый въезд в целый ряд стран, включая Канаду, страны Евросоюза, почти всю Латинскую Америку.

The end of $500 per hour lawyers

Filed Under (Uncategorized) by Charles Raether on 16-11-2010

I can hardly claim credit for having first noticed this, but the end of lawyers as we know them is near (please hold the applause).

This recent article in the NY Times exemplifies the global trends that will inevitably change the legal industry in the U.S.–and already have.

Although I generally don’t disclose fees, my hourly rate is sufficiently below $500 such that I am safe for some time at least.

The Interior Ministry’s Three-Step Waltz: Abuse, Accuse, Refuse

Filed Under (Uncategorized) by Charles Raether on 15-11-2010

Tagged Under : , , , ,

Russia is spinning out of control, inching towards a truly failed state.

I don’t use those words lightly when describing the growing social and political tension that seems to be increasing by the day in Russia. This blog tends to steer clear of political discussions, which make for quaint chit-chat but are generally a waste of productive time (I say this from living more than 10 years in Washington, DC). However, at some point politics’ influence on business and greater society has such a pernicious effect that one can ignore it further only at one’s own peril.

I should clarify that by “failed state” I am not comparing it to truly failed states such as some in the Horn of Africa, perhaps Iraq, or even North Korea. Russia is still light years from that level of political nihilism. Yet it is also increasingly distant from the values that are prevalent in the international institutions within which it strives to play an increasing role, whether it be the European Parliament, EU or WTO.

The pure audacity, bureaucratic impunity and mind-numbing inhumanity that state actors (or those hiding under the cover of state actors) within Russia has reached a critical density that could easily spin out of control if not properly addressed. And I’m far from being the only one to notice the obvious: the last few weeks have seen a string of violence that is even startling to those inured to the Kafka-esque senselessness that makes Russia, well, Russia. In an opinion piece in the Moscow Times, Vladimir Ryzhkov, one of the last independent politicians forced out of the Duma, questions the further viability of Russia as a country if nothing is changed.  Khodorkovsky himself referred to this in his closing statement last week in his second trial–and this guy hasn’t even seen the light of day or had a free discussion on any related topic for over 6 years! If someone banned to the Russian hinterlands or a prison cell can pick up on this social tension bearing down on the country, you know it’s something tangible.

Hardly a day goes by without some new report on the impunity of government officials, police, or other bureaucrats that supersedes in terms of stupidity and cruelty anything that preceded it. How much worse could it get after Oleg Kashin’s beating? Videos of his beating are all over the internet. It’s pathetic. It makes the Rodney King video like like a playground fight.

This comes on the heels of similar beatings of Mikhail Beketov, Anatoliy Adamchuk and Konstantin Fetisov as well as the death of Sergei Magnitsky’s which occurred exactly one year ago and has received serious resonance among governments throughout the world.And in nearly all of these cases, the bumbling “investigators” follow the same, hackneyed cycle. First they claim complete mobilization of all resources to find the culprits; then they go through some machinations similar to a real investigation; then when the media storm dies down, they blame the victims for perpetrating or participating the crime that was executed against that person. This is exactly what happened with Beketov. The poor guy is crippled and can’t even speak and he was forced to attend the court hearings in a wheelchair in the slander charges against him by the mayor of Khimki. A symbolic verdict of 5,000 rubles was levied against Beketov but it was suspended since the statute of limitations had passed. So why put this poor man through the humiliation and torture of a trial over $150 which wasn’t even collectible because the statute of limitations had passed!?! The judge obviously had to please some politician who was determined to humiliate and destroy Beketov to the best of his abilities. And in a country with few social or political protections, those abilities in the hands of the political elite go pretty far.

The same scenario played out with the journalist Adamchuk earlier this month too outside of Moscow. The investigators, after their “diligent” investigatory work, concluded the journalist had paid someone $30 to give him a serious licking so he could then go complain to the authorities as a victim of his investigative reporting on environmental matters.

Not to be outdone by their colleagues across town, the investigators of the Magnitskiy matter have decided to play that same card as well. Today, on the eve of Sergei Magnitskiy’s death and the release of a documentary film on his demise in a Russian prison, the Interior Ministry’s Investigative Committee announced that–drumroll please–Sergei Magnitsky was in fact one of the co-perpetrators of the massive fraud of 5.4 billion rubles. And that in fact he was the de facto accountant  of the firm that defrauded the government and not in fact an attorney (You think he was able to keep that all from his wife all those years?), and on top of that, this was the same person who notified the authorities three weeks before the theft occurred of the pending plans to do so. And now he is accused of perpetrating the whole thing himself. If only more criminals would rat themselves out by tipping authorities of their impending crime, the world would be such a safer place.

Oh, of course the other two individuals who could someone verify this outrageous claim (i.e. the other co-conspirators) are dead. Both from unexplained accidents. Trifling coincidence, wouldn’t you say? So, anyone who could legitimately confirm or deny these claims is dead, murdered, or a combination of the two. Hollywood could never even think up a screenplay this elaborate.

And to make sure no one with even the slightest hint of a pulse does not miss the irony, the Interior Ministry also gave out awards to the prison officials responsible for Magnitsky’s incarceration on the one-year anniversary of his death. What’s an anniversary without a party, right? No charges have been levied against any one for Magnitsky’s murder, mind you. And one of these officials who was recently awarded, Oleg Silchenko, earlier this year filed a complaint against one of the lawyers from Hermitage Capital with the Bar Association in Moscow to have his law license revoked. That complaint was later revoked by the Interior Ministry itself when the bar had concluded the evidence he had submitted was falsified. Whoops!! Obviously promotions in the Ministry are not based on merit or competence–but audacity and gall. Query why they didn’t sue the Bar Association for slander and misrepresentation; they’re getting soft it seems.

And it’s probably not the end. There are Russian journalists who in essence are on a hit list because of their writings. Here’s one’s portrayal of that pleasant feeling.

HOW INDIFFERENT CAN A NATION BECOME TO IGNORE THESE ABSURDITIES? This is what I mean by failed state. The institutions are all there. The investigators investigate, the judges adjudicate, the politicians politicize, but the difference is it has all become a pathetic charade. This is a Potemkin village on steroids.

Krasnodar, Russia–No. 1 for the Third Year in a Row

Filed Under (Uncategorized) by Charles Raether on 05-11-2010

Back in the “lawless” 1990’s as many Russia observers refer to that period, I spent quite a bit of time in Krasnodar, a sleepy, provincial town in southern Russia. It was quite remote from the fast-paced environment in Moscow, and many of my Moscow acquaintances didn’t even know Krasnodar was in Russia, thinking it went over to Ukraine after the split of the Soviet Union. The big selling point of Krasnodar back then was that at least you could get fresh fruit and vegetables throughout most of the year, unlike most other parts of the country.

Fast forward to 2010, and one can’t help notice how things have changed. Forbes for the third year in a row as rated Krasnodar as the No. 1 city in Russia for doing business. It’s probably not quite a Singapore or Dubai, but No. 1 among your peers is still a distinction. Krasnodar and the Krasnodar Krai is the only Russian region to enjoy a warm climate on the Black Sea suitable for tourism. The mountains provide winter-sport enthusiasts with off-season activities, the culmination of which will be the Winter Olympics in Sochi in a few years.

Entrepreneurs in other sectors are increasingly active as well. This is the home of the largest retailer in Russia–Magnit. I actually worked with the founder of Magnit, Sergei Galitskiy, back in the early 1990’s supplying him with Avon products from the US when he had just opened his company selling household cleaners, laundry detergent, shampoo, and the like. And a good colleague of mine, Tim Post, is leading an undertaking to help support and promote the high-tech sector in Krasnodar and throughout Russia with his Runet Global Alliance.

Let’s see how quickly Russia’s other cities will be able to catch up to the pace being set by Krasnodar

Latest Ukrainian Macroeconomic Update

Filed Under (Uncategorized) by Charles Raether on 14-10-2010

The U.S.-Ukraine Business Council recently posted the latest Ukrainian Macroeconomic Update by SigmaBleyzer.

Their take on the state of the economy is rather update despite the on-going challenges the government is facing on the political and fiscal fronts. Domestic consumption has recovered, supporting real sector growth led by food processing, machine building and chemical sectors. Purchasing power is increasing, and despite the devastating drought that has hit its neighbors (most notably Russia where grain output is expected to be down by a third), Ukraine’s forecast of 39 million tons of grain will be above the average level for the last 10-15 years.