RSPP asks to extend permission not to publish financial statements – Kommersant

The Russian Union of Industrialists and Entrepreneurs (RSPP) will ask for an extension of the opportunity not to publish financial statements, said RSPP President Alexander Shokhin. This decision is not in favor of investors, however, sanctions risks make the permission not to publish financial statements relevant, according to the RSPP.

“You know, literally today I agreed on a letter of appeal to the Ministry of Finance with a proposal to extend this technology of hiding part of the information from the public,” Mr. Shokhin said in an interview with the Rossiya 24 TV channel (quoted from “Interfax”). Due to sanctions risks, the RSPP considers it appropriate to refrain from publishing reports until at least the end of the year.

“For investors, this, of course, is unhealthy … now Russian investors also do not have the opportunity to assess the financial position of the company and it is more difficult to choose the direction of investment,” said Alexander Shokhin.

“Regulators need to know this information (contained in the financial statements.— ”b”) and evaluate the reliability of certain banks or other organizations, but whether it is worth publishing it is unlikely. I think it’s better to abstain until the end of the year, ”said the head of the RSPP, explaining that any successful company, having published its results, risks falling under sanctions.

In February, the Ministry of Finance called for the resumption of disclosure with the publication of previously unpublished reports. Then the director of the financial policy department of the Ministry of Finance Ivan Chebeskov declaredthat the ministry expects companies to resume publishing financial statements in the second half of 2023.

In 2022, businesses gained the right not to make public or disclose sensitive corporate information in a limited way. This rule is valid until July 1, 2023.

Maria Fedotova