Putin instructed to complete the transfer of Russian business assets to Russian jurisdiction by the end of the year

During SPIEF-23, Russian President Vladimir Putin instructed to expedite the return of domestic business assets to the jurisdiction of the Russian Federation. This must be done before December of this year, the President noted.

“I ask the government, in contact with the business community, to expedite the return of assets in key industries to Russian jurisdiction. This includes simplifying the procedure for moving a business to Russia and its registration in special administrative regions in cases where such a move, figuratively speaking, is blocked by a foreign party or is not provided for in their legislation at all. This must be done before December of this year,” Vladimir Putin said.

During his address to the Federal Assembly in February, the head of state urged to the deoffshorization of Russian business. In May, Deputy Economy Minister Ilya Torosov informedthat the department is developing measures that will help domestic businesses move to Russian jurisdiction, bypassing foreign prohibitions.

May 16 State Duma in the first reading accepted draft law on a new procedure for the “relocation” of foreign companies to Russian special administrative regions (SAR). In early June, experts from the Presidential Council on Codification and Improvement of Civil Legislation criticized this bill.

June 8 Ministry of Economy presented business deoffshorization plan. It, in particular, involves tax incentives, protection of shareholders, simplification of relocation and fine-tuning the regulation of international funds.

Read more about the mechanism for business deoffshorization in the material “A new path will be paved to “Russian offshores””.

Erdni Kagaltynov