Russia’s Fed Council nods bill to ban state support to offshore cos

MOSCOW, Feb 10 (PRIME) -- Russia’s Federation Council, the parliament’s upper house, on Wednesday approved a bill that prohibits provision of state subsidies, budget investment, and state guarantees to foreign companies, including offshore companies.

The bill prohibits offshore companies and Russian companies that are more than 50% controlled by such companies to receive subsidies or budget investment and be principals of state or municipal guarantees.

The government may still provide guarantees to such Russian companies so they are able to boost exports or fulfill liabilities if the government is unable to define the deals’ beneficiaries at the moment of guarantees’ provision.

The bill also bars all Russian firms from buying foreign currency with state subsidies, excluding operations on purchases of foreign high-tech equipment, raw materials, and component parts.

Russian state nuclear power corporation Rosatom and state space corporation Roscosmos will be allowed to sign agreements for participation in property of non-state and non-municipal companies in order to provide them with budget investments.

To become law, the bill must be signed by President Vladimir Putin.

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