Deputy Minister of Economy Torosov announced work on a new plan for business deoffshorization

Deputy Minister of Economic Development Ilya Torosov said that the Ministry of Economy is developing measures by which foreign companies can become residents of the Russian Special Administrative Region (SAR), bypassing foreign prohibitions. This will create protective mechanisms to help Russian business, which is structured through foreign jurisdictions and controlled foreign companies.

“Now it is not enough just to make decisions there, in the West, and move to the SAR, it is simply very often impossible due to the blocking of corporate decisions. We think, and now such an initiative is on the table, the opportunity to create a company, not to move,” said Ilya Torosov during the St. TASS).

Among the new measures, Mr. Torasov said, the possibility is being considered to eliminate the requirement for listing securities of foreign legal entities, allowing the incorporation of international companies in the SAR, as well as to increase the period for excluding international companies from the foreign register to five years. One of the conditions, the Deputy Minister of Economy noted, could be the transfer of assets to an international company in the amount of at least 800 million rubles. during a year.

Russian President Vladimir Putin, during his address to the Federal Assembly on February 21, instructed the government to develop measures to accelerate the deoffshorization of the economy. Corresponding bill was submitted to the State Duma on April 14. It involves granting the right to foreign legal entities to create, by way of incorporation, a business entity with the status of an international company within the Kaliningrad Region and Primorsky Territory – the SAR regime operates in these territories.

The main goal of creating the SAR in 2018 was the deoffshorization of foreign companies controlled by Russians and owning assets in Russia. In particular, the measure is designed to ensure the operation of holdings in the face of sanctions. Ilya Torosov clarified that the development of a new bill is due to the fact that the sanctions regime will continue for a long time.

Lusine Balasyan