Foreign companies may be able to register in “Russian offshores”

The Ministry of Economic Development is working on amendments to a bill that would give foreign companies the ability to register as residents of the Russian Special Administrative Region (SAR) bypassing restrictions imposed by foreign governments. This was stated by the first deputy head of the department Ilya Torosov at the St. Petersburg International Legal Forum (SPBILF).

He clarified that it was about the registration of a new international company, or incorporation in the SAR.

“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, and not to move,” said Torosov (quote according to TASS).

The official added that for such a “relocation” to a new international company, assets worth at least 800 million rubles must be transferred. in a year.

“Some kind of restriction on the amount, at least 800 million rubles. But this mechanism is the formation of foreign companies in the SAR from scratch, we will definitely deal with it and move in this direction,” said the First Deputy Minister,” said Torosov.

According to the agency, the bill has already been submitted to the State Duma for consideration.

On May 10, Vedomosti reported that the State Duma Committee on Property Criticized, but at the same time unanimously recommended that the chamber approve in the first reading a bill on creating conditions for the “moving” to Russia of the assets of foreign companies controlled by Russian business. It is expected that it will give foreign legal entities the opportunity to create, by way of incorporation, a business entity with the status of an international company within special administrative districts in the territories of the Kaliningrad Region and Primorsky Territory.

The issue of deoffshorization was raised by Russian President Vladimir Putin during his address to the Federal Assembly in February. Then, among other things, the head of state instructed the government to prepare additional measures to de-offshorize the economy and revise certain norms of the Criminal Code on economic crimes. Putin also announced tax incentives for the purchase of domestic equipment and the need to train 1 million workers for all industries.