The Draft Law about banning offshore participation in government procurement

The Ministry of Economic Development has got working the development of the law about banning offshore participation in government procurement. Developers says that the Draft Law is directed to stimulating the domestic offshore economy and increase transparency of financial flows. These amendments - only a part of the planned changes in working with offshore companies in Russia. In accordance with the request of the president until the end of June relevant ministries and authorities need to develop a set of measures to against gone capital abroad.

Ministry of Economic Development and Trade developed the draft law - only a part of the planned changes in working with offshore companies in Russia. To review the result of President’s annual message to the Federal Assembly, President instructed to develop specific measures in three directions. At first, prepare the concept of "controlled companies," applicable to Russian law. The second, to realize a ban on the provision of state companies based in the offshore jurisdiction. The third, impose a ban on the conclusion of the state or municipal contracts with companies located in an offshore jurisdiction.