17 Nov 2022 15:56

Econ Ministry proposing extending simplified rules of redomiciliation to SARs through end-2023

MOSCOW. Nov 17 (Interfax) - The Economic Development Ministry has prepared a bill to extend by a year the simplified conditions for redomiciliation of foreign companies in special administrative regions (SAR) on the islands Russky Island in the Primorye Territory and Oktyabrsky in the Kaliningrad Region, a source familiar with the document told Interfax.

The government initiated the simplification of the redomiciliation procedure in SARs in March 2022 amid the introduction of sanctions on Russia after the start of the military operation in Ukraine. It was formalized by law 72-FZ, adopted at the end of March, which until the end of this year allowed companies when applying for residency in SARs not to provide a number of documents, if it is impossible to present them. For example, a document of state registration of a foreign legal entity, a copy of its charter with all the amendments and additions made to it, a copy of annual financial statements, including consolidated ones, etc.

Now the Ministry of Economic Development is proposing that this opportunity be prolonged for another year, through the end of 2023, the source said.

Furthermore, he said, the ministry is proposing that companies that underwent redomiciliation in SARs prior to law 72-FZ be allowed to take advantage of a doubled period - from six months to one year - for investment of at least 50 million rubles which must be carried out to obtain the status of a SAR resident. This will allow the six companies that "moved" in March 2022 to make these investments after the expiration of the earlier deadline in September, the source said, relaying the Economic Development Ministry's position.

According to the Unified State Register of Legal Entities, from March 1 to March 26, 2022 [the period covered by the proposals], nine international companies were redomiciled in Russian SARs. Among them are New Aluminum Investments (NAI), the beneficiary of which is Viktor Vekselberg, through Renova Holding Rus LLC and Renova LLC, NAI-affiliated Integrate Energy Systems LLC, Brookweed Trading LLC, Sual Partners LLC, and Gotelia Management LLC.

Also among these nine residents of the ATS are Alexey Repik's Amsel, Zastonia Investments Limited, whose largest co-owner, according to the register, is Vyacheslav Kuzmichev, and World Boat Service Ltd, where Magnan Genevieve is the founder (citizenship - Seychelles) and the CEO is Sergey Bogushevsky (Russia).

Another company among these nine is IJSC Wandle Holdings Limited. The beneficiaries of this company are not currently disclosed, but in May of this year, it was reported that Said Kerimov donated 100% of shares of this company to the Fund for Support of Islamic Organizations. Previously, it was through Wandle that Kerimov owned 46.35% of gold miner PJSC Polyus .