Foreign companies may lose access to government guarantees and Budgetary Investment
Foreign companies may lose access to government guarantees and to investment budget. The relevant bill is being prepared by Russia's Finance Ministry.
Article 241 of the Budgetary Code of the Russian Federation dedicated to the execution of the budget, proposes that "subsidies from the budgets of the budgetary system of the Russian Federation and budgetary investments will not be available to foreign entities and will not be provided with state or municipal guarantees."
Exceptions may be made for government guarantees for the purpose of support for the export of industrial products.
In the same Article it proposes to prescribe that Russian legal entity, subject to availability in the Incorporation of information on beneficial owners, will be able to obtain government guarantees and subsidies in the amount of:
• More than 10 million rubles from the federal budget,
• 5 million rubles from the regional budget
• 1 million rubles from the local budget
If such owner has an opportunity to influence the legal entity on behalf of third parties, which are registered in a tax haven or not disclose information on financial transactions, subsidies or government guarantees will be provided only if included in the Incorporation of information about these third parties.
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