EU: New restrictions on Russian business

KPMG Review

KPMG Review

In this issue we will share information with you on the new prohibitions and restrictions introduced in the EU countries.

In the light of the restrictions introduced, at the earliest possible date, we recommend that you:

  • check out ownership structures which include Dutch companies and trusts (funds) established in EU countries
  • consider restructuring, in particular, liquidating these companies and trusts (funds) and/or transferring their assets directly to other group companies or owners / their attorneys (including bearing in mind the fourth stage of amnesty, abeyance of financial benefit, and the possibility of tax-free receipt of assets from CFCs)
  • consider redomiciliating of group companies and funds to other jurisdictions or to special administrative regions (SAR) in Russia

However, it should be noted that it is impossible to directly redomiciliate an organization from the Netherlands to the Russian Federation – this transition needs to be additionally structured.

KPMG will be pleased to provide you every assistance in search of best risk management solutions to avoid the risks of doing business in the EU and using companies / structures in the EU.