Enemies burned their native harbor – Business – Kommersant

The Board of Directors of VK Company Limited, registered in the British Virgin Islands (BVI), approved the possibility of redomiciliation (transfer of a company from one jurisdiction to another) to Russia. The company explains this by strengthening the focus on Russian users and investors: in 2022, VK ​​sold the international gaming business, and the foreign investment holding Prosus withdrew from its capital. Experts note that the message about the readiness to change jurisdictions was released on the same day when the finance ministers of the EU countries must approve the inclusion of the BVI and Russia in the list of “tax havens”.

VK reported that the board of directors of its structure VK Company Limited approved the possibility of transferring a legal entity from the British Virgin Islands to Russia. The decision was made on February 13 press release company, it is associated with the growth of Russian holders of securities, as well as the fact that “the vast majority of assets are based and generate revenue in Russia.”

The decision was preceded by changes in the business of VK, which occurred as a result of the Russian military operation in Ukraine. In particular, in September, VK sold its international gaming division My.Games to the managing partner of Leta Capital Alexander Chachava, in December My.Games announced its withdrawal from the Russian market (see Kommersant dated December 15, 2022). November VK announcedthat the Prosus investment company donated to VK its stake (25.9%) in the Russian holding, after which the stake was sold to a structure led by VK senior vice president for investment and business development Alexander Aivazov.

VK announced the possibility of redomiciliation today, the day the EU Council of Finance Ministers must approve the inclusion of the British Virgin Islands, Russia, the Marshall Islands and Costa Rica in the list of non-cooperative jurisdictions. Paragon Advice Group partner Alexander Zakharov admits that the company’s decision may be related to this, and recalls that the BVO is also included in the Russian list of “unfriendly states”.

In the event of redomiciliation, VK, according to Mr. Zakharov, will receive new opportunities to attract funding within the Russian Federation.

“It cannot be ruled out that for aspects of the company’s activities related to financing and payments to shareholders, it may be decisive that the structure is in Russian jurisdiction,” he said.

Registration of the VK structure in the BVI made it possible to attract foreign funding, says Leonid Delitsyn, an analyst at the Finam group of companies: .Games”. Now, in his opinion, “there is no need to keep an office and lawyers in the BVI.”

Mr. Delitzin, however, notes that the VK message does not mention the possibility of closing VK Company Limited, so the structure may continue to work in a different status.

Receipts of VK Company Limited on the Moscow Exchange after the announcement of the company were sold at 505 rubles, by 11:30 their price was 493.40 rubles. (+2.28% to the level of February 13). Trading in VK securities on the London Stock Exchange, as well as in securities of other companies with Russian roots, has been suspended since March 3, 2022. Because of this, in March of this year, the right to demand early redemption of bonds comes; by November 10, VK bought back about 55% of the total bond issue.

Yuri Litvinenko