The State Duma has figured out how to circumvent Western financial sanctions against Russian Crimea
Russia must withdraw from a number of international agreements to ensure privacy for foreign and domestic investors who are willing to enter Crimea and Sevastopol. Deputy Alexey Chepa stated this today at a meeting of the State Duma of the Russian Federation.
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“Russia has signed treaties on the avoidance of double taxation with 80 countries and has entered into a number of conventions on mutual legal assistance. Under the banner of fighting terrorism and laundering illegal proceeds, foreign governments can obtain information from Russian financial institutions. I consider it necessary to suspend these agreements in relation to companies and individuals operating or registered in the territory of Crimea and Sevastopol,” Chepa said.
He also proposed a number of measures that would ensure the entry of large Russian and foreign banks into Crimea.
“A solution could be to allow the opening of branches of foreign banks in the international transit zone in the free ports of Crimea, which would work directly with the parent bank without opening correspondent accounts in Europe and America,” Chepa said.
To ensure the safety of capital in Crimea, the deputy believes, legislative measures are necessary.
“Introduction into legislation of the concept of a safe account, the funds in which will not be considered the bank’s own funds, and the bank will not have the right to dispose of them. And they will be kept as a mandatory reserve in the Central Bank of Russia. This will ensure free movement of capital in Crimea
It is necessary to abolish licensing of financial activities for international financial institutions carried out within the international transit zone in Crimea. And also to remove foreign exchange transactions carried out within them from foreign exchange control,” Chepa said.
He also proposed extending the capital amnesty for persons opening investment accounts in Russian banks participating in the international transit zone.
“I believe that the potential of this instrument for returning financial assets to Russian jurisdiction is far from exhausted. In conditions of anonymity and exemption from liability, many businessmen who did not risk returning their capital to their homeland as part of the previous campaign could take advantage of it,” Chepa said.
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