August 17, 2022

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Ukraine’s war … and the “immigration” of the rich – Al-Ittihad newspaper


Ukraine war … and the “immigration” of the rich

The world will not be the same as it was before the Russian war in Ukraine. The collapse of the Berlin Wall represents the greatest turning point for globalization, where thorny political issues have always been on the sidelines, increasing the effects of the Ukraine war and the associated sanctions, without affecting the vital source of oxygen for the growth of the world economy. Against Russia, and against its “geopolitical” consequences, it began to attack the political limbs of economic globalization, and created “geopolitical” problems at the center of investor decisions.

Thus, the efforts of companies began to focus on moving business to the centers and abandoning party agreements, which was the reverse direction of globalization. The war in Ukraine has had a number of negative effects on the world economy, destabilizing it as never before and weakening investor and consumer confidence amid rising costs of living around the world.

This is expected to get worse, with the protracted war, the tightening of sanctions on Moscow and the imposition of counter-sanctions on the West, especially after President Vladimir Putin described the sanctions as an “economic declaration.” The war “insists that its country will not be surrounded by an” iron curtain “like the Soviet Union, which collapsed in the catastrophic” geopolitical “of the twentieth century, and that the Russian economy will not be isolated from the rest of the world.

Since the beginning of last March, Western sanctions have prompted major credit rating agencies (Standard & Poor’s Global, Fitch and Moody’s) in the US and Europe to realize that the Black Sea has been classified as a high-risk area. Cessation of operations in Russia and withdrawal of estimates for the country’s sovereign debt and institutions. Moody’s plans to close its Moscow office later this month, surpassing previous expectations that the Russian market will be a lucrative market for appraisals.

Over the years, globalization has provided a series of positive indicators that, if they have been shown to strengthen the productive forces of integration and trade, and the expansion of goods and services, the size of the world economy has tripled, 1.3 billion people have been lifted out of extreme poverty and ten times richer have contributed to the accumulation of wealth. It widened the gap within. But the impact of the end of globalization is likely to spread and affect the economy as a whole.

Against the backdrop of the losses suffered by the world economy as a result of the “geopolitical” crisis that pervaded all markets, the fortunes of the world’s 10 richest people recorded losses of $ 330 billion, down from $ 1515 billion to $ 1185 billion.

As for the rich Russians, their losses began to accumulate before the war as a result of the sanctions imposed on Russia since the annexation of Crimea, according to Forbes magazine. Russia is currently witnessing the migration of the wealthy, and London-based Henley & Partners’ immigration data predicts that 15% of Russians will immigrate this year with more than $ 1 million in ready-made assets.

Henley expects the United Arab Emirates to attract the largest net inflows this year after losing its position as the number one investment destination for expatriate millionaires, in the context of monitoring the migration trends of private wealth. , America is rapidly losing its appeal as a magnet for the rich of the world.

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