You're reading: Russia in no hurry to make Crimea an offshore zone

Moscow - The Russian government has decided not to make Crimea an offshore zone for now, but it may return to this issue after the de-escalation of the sanctions regime, Crimean Affairs Minister Oleg Savelyev said at a briefing.

The bill was approved and it proposes various tax and customs concessions, but it was decided not to introduce a break on profit tax on revenue received in the form of dividends and to postpone the decision on making Crimea and offshore zone to a later date, he said.

“This is a complex issue [setting up an offshore zone]. It is linked to the possibility of applying foreign law and the possibility of choosing jurisdiction, including for deals and it also involves issues with concessions on passive revenue and revenue on dividends. After analysis of the risks and advantages of these measures we have decided that amid the escalation of so-called sanctions the risks significantly outweigh the advantages,” the minister said.

“Therefore, the government has agreed to return to this issue at the next stage when the situation becomes more predictable,” Savelyev said.