Amid Russia-Ukraine conflict, UK to scrap 'golden visa' scheme

The Tier 1 investor visas, or golden visas, are for to those who show they have at least £2 million to invest in the UK. (Representative image: Reuters)

The UK government is planning to abolish the visas offering foreign investors fast-track residency in the country amid the pressure to cut ties with Russia after its actions over Ukraine.

The announcement to scrap Tier 1 “investor visa”, often called a “golden visa” may come next week, reported BBC citing a government source in the United Kingdom.

Meanwhile, Russia announced a new drawdown of military forces from the Moscow-annexed Crimean peninsula on February 17, continuing a troop withdrawal that was met with scepticism from Ukraine's Western allies.

The Tier 1 investor visas are for those who show they have at least 2 million pound to invest in the UK. These visas offer residency to those investing 2 million pound or more in the UK, and allows their families to join them. These visa holders can then apply for permanent residency in the country, at a speed depending on how much they invest.

The scheme was introduced in 2008 in order to encourage wealthy people from outside the European Union (EU) to invest in the UK. As per the scheme, a 2 million pound investment allows an application within five years, shortened to three years with 5 million pound or two years if 10 million pound is invested.

However, the visas have been under review for some time, after concerns were raised that it was open to abuse, said the report.

The next week’s announcement is expected to come amid pressure on ministers to cut UK ties to Russia over the threat of invasion to Ukraine, it said.

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According to the Home Office, the scheme had already been reformed to make sure it was not used to facilitate corruption, and did not rule out further changes, the report said.

The report further stated that the Home Office has issued 14,516 investor visas to Russian citizens since the scheme opened in 2008.