Latvia, aiming to become the center of innovation in the Baltics, developed a startup visa program offering temporary residence permits (TRP) for entrepreneurs from abroad. However, the program faced unexpected consequences: several businessmen, especially from Russia, used it as a way to gain unrestricted access to the EU without developing real projects in Latvia, as reported by Delfi.
Among the active participants in this program was Russian entrepreneur Alex Pospikhov, who received a startup visa in 2018 and registered several companies in Latvia, including the consulting firm "Mission Tech." He actively promoted the Latvian program among Russian startup founders, explaining in blogs and forums how the TRP in Latvia opens up the opportunity for travel across Europe and the USA. Pospikhov also assisted his clients by helping them register businesses and apply for TRPs, advising them to declare addresses in Latvia, including his apartment in Riga.
In recent years, the program gained popularity: in 2021 alone, 295 applications were submitted, but many of them were rejected. In 2022, Latvia stopped issuing startup visas to Russian citizens due to concerns that the program was being misused. Earlier, the program allowed 292 Russian businessmen and their families to obtain TRPs, most of whom listed the same address in their documents—the office building at Ganibu Dambis 26A, where, it turned out, no companies were actually located.
In the spring of this year, Pospikhov was placed on Latvia's "blacklist." Local authorities considered him a threat to the country's security, as he helped people enter who provided false information about their intentions. To date, Pospikhov lives in Luxembourg, where he advises Russian businessmen on opportunities in that country.
Meanwhile, in Latvia, the process of annulment of companies linked to Russian startup founders who obtained TRPs through Pospikhov's program has begun. Many of them have also had their residence permits revoked, but 41 individuals have retained their status.
The Latvian startup visa program attracted a significant number of entrepreneurs, but, facing abuses, the government is reconsidering its approach to attracting foreign companies to ensure that innovation support remains an effective tool for real business ideas.
