EU countries are planning to help their companies get out of the Russian market because of the risk that they will be taxed to finance the war.
About a hundred more companies and individuals could fall under the 11th package of EU sanctions against Russia. This was reported by Euobserver.
So, EU countries are planning to help their companies exit the Russian market because of the risk that they will be taxed to finance the war.
It was noted that the 11 package of sanctions could include new special permits for financial transactions and legal services designed to help European companies leave Russia.
In total, since the start of the war, the EU has imposed sanctions against 1,600 Russian individuals and legal entities.
Under the new proposal, the EU may allow financial transfers to authorized Russians “when it is determined that such funds or economic resources are necessary to complete transactions, including sales, that are strictly necessary to liquidate, by August 31, 2023, a joint venture or similar legal structure, created in Russia with the participation of this individual or a legal entity owned by this individual before February 28, 2022.
European law firms are also banned by the EU from providing commercial services to Russian clients. At the same time, the 11th package of sanctions should weaken this prohibition to help resolve the tangle of common interests of the EU and Russia within Europe itself.
Data from Yale University in the US shows that as of May 16, more than a thousand foreign companies have left Russia. At the same time, there are dozens of companies that are still present on the Russian market. Among them are some of the largest European banks and energy companies: Deutsche Bank, ING Bank, Raiffeisen Bank International, UniCredit, Engie, OMV, Total, Austrian energy drink manufacturer Red Bull, Danish medical equipment manufacturer Coloplast, Dutch consumer goods firm Phillips and drinks maker Heineken, Estonian taxi company Bolt, French hotel chain Accor and cosmetics manufacturer Clarins, and German engineering company Bosch.
Now banks and energy companies have to obtain permission to sell Russian assets from the foreign investment commission under the Ministry of Finance of the Russian Federation. The commission, for its part, issues no more than 10 permits per month, despite the fact that the waiting list is more than 700 applicants.
In March, Russia forced foreign companies to pay a 10% tax on assets sold if they left the country.
“Until now, most European companies have paid almost no tax in Russia on their income thanks to the favorable double tax treaty. But in March, the Ministry of Finance proposed the freezing of such tax treaties in approximately 40 ” unfriendly” countries that have sanctioned Russia, such as the EU-27,” the post said.
Recall that representatives of EU member states, who on Friday, May 12, gathered for a meeting on the 11th package of sanctions against Russia, could not make a decision.
As reported, the coordinator of the White House National Security Council, John Kirby, said that the participants of the G7 leaders’ summit, which will be held this week in Japan, will take concrete steps to worsen Russia’s isolation.
Source: korrespondent
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