According to the SonntagsBlick newspaper, some members of Graubünden’s government are determined to defend the multi-billionaire’s five-year residency permit.
But the State Secretariat for Migration is apparently opposed to the idea and would be happy for the oligarch to leave. Migration officials argue that Melnichenko spends too much time outside of Switzerland to deserve a permit.
The case may have to be decided by the Federal Administrative Court, according to the article.
The newspaper says Melnichenko has lived with his family at a luxury home in the glitzy St Moritz ski resort since 2009.
Swiss cantons often compete to attract wealthy foreigners by offering them special tax rates.
His company Eurochem, based in canton Zug, is one of the world’s leading fertiliser producers.
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If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.