The head of the State Duma Committee on Industry and Trade, Vladimir Gutenev (United Russia), presented a bill to expand state support for companies with an offshore share of more than 25%. He aims to extend the opportunity until January 1, 2025.
The authors of the document explained the initiative by the fact that companies do not have time to complete the exclusion of foreign elements from their structure due to obstacles in “hostile” countries, writes Kommersant.
Experts point out that this is not an easy process and takes time. In addition, now companies whose structure contains elements of several “friendly” countries may also be subject to the ban on state support.
As of January 1, 2023, it is prohibited to provide subsidies to Russian legal entities in whose authorized capital the direct or indirect participation of offshore companies in aggregate exceeds 25%. The current amendments provide the opportunity for such organizations, in rare cases, by decision of the Russian government, to receive state support measures: subsidies and budget investments. The rules are valid until January 1, 2024, since these companies were supposed to exclude Russian legal entities from the ownership structure before this date.
- At the end of the first half of 2023, 87 companies changed their registration from foreign offshore companies to Russian offshore companies. The interest in moving companies to Russian offshore areas is due to the difficulties of working with “hostile” countries and the restrictions that apply to foreigners in Russia.
Author:
Karina Pardaeva
Source: RB
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