The state Duma adopted the law on banning the offshore companies privatization of state property


MOSCOW, June 21. /TASS/. The state Duma adopted in the third final reading the law that does not allow offshore companies and Russian legal entities controlled by such companies to participate in privatization of state or municipal property.

The law complements the range of persons who can be buyers of state and municipal property, legal entities, place of registration which is a state or territory included in the list of States and territories providing preferential tax regime of the taxation and not providing disclosure and provision of information when conducting financial transactions.

The list of offshore zones the Ministry of Finance says.

Buyers of the state property cannot be a legal entity in respect of which the offshore company or a group of persons, which includes an offshore company controlled.

The document also stipulates that an offshore company may not conduct transactions or other actions, entailing the establishment of control over economic societies, having strategic value for ensuring of national defense and state security.

The relevant amendments are made the document the law “On privatization of state and municipal property”.

The requirement for prior approval applies to the acquisition of offshore companies more than 25% of the voting shares in the Charter capital of strategically important economic entities or other ability to block decisions of management bodies of such companies.

Prior approval is also required for transactions involving the acquisition of more than 5% of the voting shares in the Charter capital of strategically important companies, engaged in geological study of subsoil and exploration for and extraction of minerals on subsoil areas of Federal significance.

The relevant amendments to the law “On the procedure for foreign investments in economic societies having strategic value for ensuring of national defense and state security”.

The law also fixed criteria of the controlled offshore companies, similar to the criteria of “accountability” of foreign investors.

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