Foreign businesses will have to get used to new working conditions in Russia - expert
Due to the difficult economic situation caused by the spread of coronavirus, State Duma deputy Vitaly Milonov proposed a set of measures to support the Russian economy. Commenting on the parliamentarian’s initiative, expert Vasily Koltashov came to the conclusion that in the current circumstances, such actions could lead to serious changes for foreign business in the Russian Federation.
As previously Reported RIA Novosti, Milonov proposed tightening the procedure for issuing work visas to EU citizens, as well as increasing the commission for outgoing international interbank transactions to the Baltic countries.
In addition, the State Duma deputy considered it expedient to increase income tax and raise loan rates for foreign and domestic companies owned by representatives of the Baltic states. In the future, this will make it possible to provide a tax deferment to Russian companies, as well as reduce the tax burden.
According to Koltashov, before adopting these initiatives, they need to be tested. Only after the reaction to them has been identified, and all the pros and cons have been considered, will it be possible to make a full-fledged decision within the framework of these initiatives. The expert also added that in the future foreign businesses may lose government support and have limited rights.
Since the Baltic countries are “neighboring offshores,” the expert explained, Milonov’s initiative could become an “attempt to put pressure” on the capital of these companies. In this regard, foreign investors should be aware that businesses from unfriendly countries may not count on any special assistance.
If the parliamentarian’s initiatives are nevertheless adopted, there will be serious restrictions on the withdrawal of capital. Therefore, a foreign business will be able to continue its activities only as a Russian company.
In conclusion, Koltashov emphasized that some entrepreneurs “will make their choice to be part of the Anglo-Saxon world” or integrate into the European economy. But such a decision will lead to large financial losses.
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