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Vanuatu Bans Russians and Sudanese From CBI Program · IMI Podcasts

• 0:00
  SPEAKER_00: Vanuatu's Citizenship Office has instructed all designated agents that Russian and Sudanese nationals may no longer apply to the country's citizenship by investment program, according to a memo dated March 9th and signed by Jack Canis, manager of compliance and due diligence.
• 0:15
  SPEAKER_00: The updated restricted list, issued under Reference 02COC-26, now covers eight countries: Iraq, Iran, North Korea, Yemen, Syria, Afghanistan, Russia, and Sudan.
• 0:31
  SPEAKER_00: Russia and Sudan are the only new additions.
• 0:34
  SPEAKER_00: The remaining six were already subject to restrictions.
• 0:37
  SPEAKER_00: Russians can still apply for citizenship by investment in Turkey, Jordan, Egypt, and several other jurisdictions.
• 0:44
  SPEAKER_00: But the Vanuatu ban closes another door for a demographic group that has seen its options narrow sharply since 2022.
• 0:52
  SPEAKER_00: Caribbean nations banned Russian and Belarusian applicants in early 2023 under pressure from the U.S.
• 0:59
  SPEAKER_00: Treasury, which brokered a set of six CBI principles with the five Eastern Caribbean programs.
• 1:06
  SPEAKER_00: Vanuatu, operating outside that framework, continued to accept Russians with enhanced due diligence, a position its designated agents once cited as a competitive advantage.
• 1:18
  SPEAKER_00: Vanuatu's CBI programs have taken a beating from Western governments over the past three years.
• 1:23
  SPEAKER_00: The UK stripped visa-free access in July 2023, citing clear and evident abuse.
• 1:29
  SPEAKER_00: The EU went further, permanently revoking the Schengen visa waiver in late 2024.
• 1:35
  SPEAKER_00: Port Vila also appeared on a reported U.S.
• 1:38
  SPEAKER_00: travel ban list earlier this year.
• 1:40
  SPEAKER_00: Banning Russians fits a pattern of concessions aimed at clawing back credibility with all three.
• 1:46
  SPEAKER_00: Anastasia Barna, CEO of One World Migration, sees the restriction as a calculated diplomatic play aimed at restoring lost travel privileges.
• 1:57
  SPEAKER_00: Quote, I see only one reason.
• 2:00
  SPEAKER_00: They are trying to negotiate with the UK or the European Union about reopening the visa-free regime, she observed.
• 2:08
  SPEAKER_00: Banning Russians would be the first condition London and Brussels demand.
• 2:12
  SPEAKER_00: I used to tell my clients to hurry, because this was always coming, end quote.
• 2:16
  SPEAKER_00: Jeremy Savory, CEO of Savory and Partners, noted the timing lag.
• 2:22
  SPEAKER_00: Quote, every other country did this two years ago.
• 2:25
  SPEAKER_00: Vanuatu still accepted, he observed.
• 2:28
  SPEAKER_00: They probably assumed they didn't need to defer to the UK and EU, but something may have triggered this decision.
• 2:34
  SPEAKER_00: It likely involved considerable volume, and what those passport holders subsequently did with their documents is what forced the government's hand, end quote.
• 2:44
  SPEAKER_00: His firm has not recommended Vanuatu to clients for several years.
• 2:48
  SPEAKER_00: Quote, the due diligence we conducted on the program from the outset showed it was not to the standards that other units around the world were held to, Savory said.
• 2:58
  SPEAKER_00: Time has proven that it was a prudent decision, end quote.
• 3:02
  SPEAKER_00: Manpreet Kataria, managing director of Alpha Immigration Associates, framed the ban as part of a wider compliance drive under Prime Minister Jotham Knoppit's government.
• 3:12
  SPEAKER_00: Quote, Vanuatu is prioritizing long-term credibility over short-term volume, Kataria noted.
• 3:19
  SPEAKER_00: Between the diplomatic passport investigation, tighter bank compliance, and moves like this, the new government deserves credit for trying to reset the tone.
• 3:29
  SPEAKER_00: End quote.
• 3:30
  SPEAKER_00: That reset has been visible on multiple fronts.
• 3:33
  SPEAKER_00: In March 2025, the government suspended the capital investment immigration plan entirely for a regulatory overhaul.
• 3:41
  SPEAKER_00: Authorities investigated four designated agents for forging payment receipts in late 2025, and NAPAT personally ordered the cancellation of former IPL founder Lalit Modi's Vanuatu passport over extradition concerns.
• 3:55
  SPEAKER_00: Quote, in this market, the real asset isn't the passport itself.
• 3:59
  SPEAKER_00: It's the trust behind it, end quote, Kataria added.
• 4:03
  SPEAKER_00: The ban carries a measurable financial cost.
• 4:06
  SPEAKER_00: Vanuatu's CBI revenue peaked at 132.6 million U.S.
• 4:11
  SPEAKER_00: dollars in 2020, 42% of all government income, fell to 68 million US dollars in 2023 after the Schengen suspension, and was approximately 60 million US dollars for 2024.
• 4:25
  SPEAKER_00: How much of that remaining demand came from Russians is unknown.
• 4:29
  SPEAKER_00: Port Vila does not publish detailed breakdowns.
• 4:32
  SPEAKER_00: Grenada's experience offers a rough proxy.
• 4:35
  SPEAKER_00: Before its own Russian ban took effect, roughly 90% of its 2,023 applicants were Russian.
• 4:42
  SPEAKER_00: Vanuatu's exposure may not have been as extreme, but the government's willingness to sacrifice the revenue stream suggests it has concluded the diplomatic costs now outweigh the fiscal benefits.
• 4:54
  SPEAKER_00: Quote, a smaller, cleaner program is ultimately a stronger one, Kataria said.
• 5:00
  SPEAKER_00: Protecting the passport's reputation matters far more than chasing application numbers, end quote.
• 5:06
  SPEAKER_00: A source close to the Citizenship Commission, speaking to IMEI on condition of anonymity, said the memo may have resulted from an internal miscommunication and that the intended announcement was enhanced due diligence for Russian and Sudanese applicants rather than a full suspension.
• 5:24
  SPEAKER_00: The source said the government will clarify the matter shortly.
• 5:28
  SPEAKER_00: This episode first appeared as an article by Amada Bas on IMIDaily.com.
• 5:34
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