The European Union may soon block Russian investments in Crimea
Moscow - Simferopol, July 21 (Navigator, Mikhail Stamm) - Sanctions could affect any economic activity of the Russian Federation on the peninsula and affect companies that were present in Crimea before its annexation to Russia.
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The EU Council decided by the end of July to introduce legal instruments and create a list of organizations and individuals that materially or financially support actions that threaten the sovereignty or territorial integrity of Ukraine. In addition, the council demanded that the European Commission submit proposals for additional measures to limit investments in Crimea and Sevastopol. The details of possible bans are still unclear, writes Kommersant.
So far, the measures of economic coercion on the part of the EU are the ban on the import of Crimean products into the EU introduced on June 25, as well as the closure of civil aviation flights over Crimea by Eurocontrol (Russian airlines ignored it). Now sanctions may in the future be extended to any economic activity in Crimea or ownership of assets in the region, since the wording of EU council decisions is extremely vague.
Managing partner of the law firm “Dmitry Matveev and Partners” Dmitry Matveev believes that it will be difficult for large companies to hide their presence in the region: their business is quite open, and there are practically no offshore jurisdictions left to hide behind.
But for now, Russian companies are in no hurry to start working in Crimea. So far, only state-owned energy companies have expressed interest: RusHydro intended to engage in water supply to the region, and the Inter RAO structure “Settlement Center” (SOC) should become the operator of the energy market in Crimea. But things don't go beyond interest.
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