04:32 GMT27 October 2020
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    The Russian parliament's upper chamber approved a package of laws enabling Russia-controlled foreign offshore companies to be re-registered in offshore financial centers (OFCs) established in Russia's Kaliningrad Region and Primorsky Territory in order to minimize the possible consequences of sanctions and political risks from foreign countries.

    The legislation establishes the procedure of creating such areas on the Oktyabrsky Island in Kaliningrad and the Russky Island in Vladivostok, providing an opportunity for foreign-registered companies to become subject to Russia's jurisdiction in a process known as redomiciliation and obtain the status of an international company.

    READ MORE: Russia Considers Creation of 2 Tax Havens Over US Sanctions — Reports

    To do this, it will not be necessary to liquidate the company abroad, it is enough to withdraw it from registration, register in the OFC and obtain the status of an international company.

    In April, the US Treasury Department added another 38 Russian entrepreneurs, senior officials and companies to its sanctions list in response to Russia's alleged "malign activity" worldwide. Russian entrepreneurs designated by the Treasury Department include Viktor Vekselberg, Oleg Deripaska, Alexey Miller, Suleyman Kerimov, Kirill Shamalov and Andrey Kostin.

    Related:

    Russia Considers Creation of 2 Tax Havens Over US Sanctions – Reports
    European Union Reportedly Blacklists 17 Tax Havens
    Tags:
    tax, sanctions, Russia, Kaliningrad region, Vladivostok
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