Russian companies leave Cyprus due to sanctions

More and more Russian companies are changing their jurisdiction to Cyprus due to the expanding sanctions. The firms are transferred to special administrative regions of the Russian Federation with a special tax regime or to neighboring countries such as Kazakhstan. This is reported by Radio Liberty, UNN writes .

Details

At least ten large Russian companies have left or are planning to leave Cyprus, which has long been the main offshore "piggy bank" for Russian business. Among them are TCS Group (the parent company of Tinkoff Bank), marketplace Ozon, retailer Fix Price, and United Medical Group (the holding company of the European Medical Center).

Some choose to re-register in Kazakhstan, the UAE, and other countries that are not on the Russian government's "unfriendly" list. Others move to Russia's Special Administrative Region (SAR) in the Kaliningrad region, which was created "to attract foreign business and investment from foreign jurisdictions.

It is noted that the main reason for the companies' withdrawal is the constant expansion of sanctions against Russia in response to its invasion of Ukraine. Sanctions make it difficult to conduct transactions between subsidiaries and parent holdings. Counter-sanctions from Russia, which restrict, for example, the payment of dividends, also have an additional impact.

Addendum

As for Cyprus itself, in the spring of 2023, an investigation into the Russian presence was launched, opening 29 cases against firms and individuals who helped Russian businessmen avoid sanctions. Since December, US FBI agents have been assisting in the investigation.

Recall

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