Minister of Economic Development names factors that make companies move to Russian offshores

Minister of Economic Development names factors that make companies move to Russian offshores

The first residents of the Special Administrative Regions (SAR) - Russian offshore zones created on the Russian Island in Primorsky Krai and Oktyabrsky Island in Kaliningrad - are ready to become either companies that face pressure on the part of foreign authorities or those for which the change of jurisdiction is not associated with high costs, Minister of Economic Development Maxim Oreshkin states during the Eastern Economic Forum, crimerussia.com reported citing RBC.

"A new regime has been created, and it's still unclear to people how it works, what needs to be done, there is no practice of re-registration of companies, so, first of all, there are those [companies] that face pressure on the part of foreign authorities. You have just mentioned Deripaska's holding company, which is now changing its investments," Oreshkin says at the Financial Center and Offshore in the Far East session.

Other types of residents of Russian offshore may be "those companies that could do it easily," the Minister believes. "For example, we work with one of the groups in the Far East, in Vladivostok, so that it becomes the first resident here. It does not face large transaction costs," the Head of the Ministry of Economic Development adds.

"Now it is essential to work out the practice, get the first re-registrations, then this regime will become more intelligible, more transparent, we will get many more companies that want to do it; on the other hand, we understand that the legislation has to be amended," Oreshkin states.

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