Page 63 - RusRPTDec19

(SAR)​, recently established domestic offshore zones. ​Vedomosti​ reminds that according to various estimates by 2015 Russians have been diverting up to 75% of national income abroad. In 2018 over $10bn have been transferred to Cyprus, and over $2bn to other offshore zones, according to the data by the central bank.
For the first time (originally supposed to remain the only one), under the Act on Capital Amnesty, declarations of foreign property were permitted in 2015-16​. The second round took place between 2018 and 19. According to the Ministry of Finance, a total of around 19,000 declarations were made during this period, covering around € 35 billion in assets. The third round, which is currently underway, will be valid until the end of February. The requirements have been tightened, because now the funds in foreign banks have to be transferred to Russian banks. Companies registered abroad must either be closed down or registered in a so-called "offshore company". domestic tax havens, the Kaliningrad and Vladivostok Special Economic Zones, established just over a year ago. So far, there have been dozens of companies registered in the area, most of which are linked to US-listed businessman Oleg Deripaska. Russian capital security agency FSB's seized capital amnesty documents have been used this autumn as evidence in a pending lawsuit accusing a businessman of illegally transferring funds abroad in connection with the construction of Ust Luga port. The lawfulness of the evidence was raised several times in different instances. President Putin was also briefed on the matter, who, when the law came into force, stressed that authorities would not misuse the information obtained under it. In the end, the Supreme Court ruled that information on the amnesty of capital should not be used as evidence. The case may reflect internal confusion in the Russian system
63​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com