Who are the Beneficiaries?
What jurisdictions does the Russian Business belong to?
When you look at the map and find the country of Russia on the map you would think that this country should be the richest and wealthiest in the world. And it is! But does that wealth belong to Russia or it has foreign owners? Let us investigate and find out what is the origin of Russian business.
According to the recent researches 222 out of 500 companies ranked as the largest companies in Russia were found registered in foreign countries (including offshore entities).
183 out of 222 of limited companies were registered outside of Russia and 38 companies belong to so called shell companies (Yandex N.V. and United Company RUSAL). One of the company in the list is fully international (VimpelCom).
Other 152 companies were registered in Russian Federation. But 40 companies refused to disclose their true origin. And the rest of 87 companies are apparently Russian state companies.
According to the recent researches 222 out of 500 companies ranked as the largest companies in Russia were found registered in foreign countries (including offshore entities).
183 out of 222 of limited companies were registered outside of Russia and 38 companies belong to so called shell companies (Yandex N.V. and United Company RUSAL). One of the company in the list is fully international (VimpelCom).
Other 152 companies were registered in Russian Federation. But 40 companies refused to disclose their true origin. And the rest of 87 companies are apparently Russian state companies.
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Foreign Business in Russian Energy Sector
What are the shares of foreing entities in Russian energy sector?
Russia is one of the major supplier of oil and gas in the world. It is known as the largest natural gas reserve on the globe, second largest reserve of coal and eight largest reserve of crude oil deposits. This is actually the main source of income for Russian economy and country's budget. Heavy dependence on hydrocarbons accounts for 50% of the total Russian revenue.
It is worth noting that there is a significant exposure of UK and USA stocks to the Russian energy market. For instance, BP (British Petroleum) owns around 20% of Rosneft BP. And Royal Dutch Shell is another investor in the huge Sakhalin LNG project in Siberia.
The massive site of Sakhalin-2 on the island was known to be owned by Shell for 55%. And despite the effort of Russian government in 2006 to force the foreign investors of Sakhalin project to reduce their share, just within a few years later, the same investors were asked and invited to develop two new oil and gas fields in Sakhalin island due to the lack of Russian capital.
It is worth noting that there is a significant exposure of UK and USA stocks to the Russian energy market. For instance, BP (British Petroleum) owns around 20% of Rosneft BP. And Royal Dutch Shell is another investor in the huge Sakhalin LNG project in Siberia.
The massive site of Sakhalin-2 on the island was known to be owned by Shell for 55%. And despite the effort of Russian government in 2006 to force the foreign investors of Sakhalin project to reduce their share, just within a few years later, the same investors were asked and invited to develop two new oil and gas fields in Sakhalin island due to the lack of Russian capital.
Russia's Trade Turnover
56%
European Union
16%
China
10%
East Asia
18%
Rest of the World
Major Marketplace for Western Companies
Russia is one of the largest marketplaces for western companies
Among other exposed companies is Coca-Cola HBC, which has Russia as one of the largest market by volume. Since 2003 the company saw a compounded annual growth rate of 10% each year, and since 2008 the flagship Coca-Cola saw a significant growth of about 55%.
European companies are also well exposed to Russian Federation. The Carlsberg company from Denmark is one of the biggest brewers in Russia. Germany is also the second-largest trade partner of Russia with Volkswagen, Siemens and ThyssenKrupp having their assets in the country.
There were found at least 15 companies having their depositary receipts listed on the London international market, including Gazprom, Lukoil, Rosneft, and Sberbank.
European companies are also well exposed to Russian Federation. The Carlsberg company from Denmark is one of the biggest brewers in Russia. Germany is also the second-largest trade partner of Russia with Volkswagen, Siemens and ThyssenKrupp having their assets in the country.
There were found at least 15 companies having their depositary receipts listed on the London international market, including Gazprom, Lukoil, Rosneft, and Sberbank.
Bermuda as a Refuge for Russian Aircraft
Bermuda has always been known as the best place for insurance, but it has also thrived in other activities that made Bermuda a premier offshore jurisdiction. This is the registration of aircraft.
Bermuda has been registering aircraft since 1931. There are different airplanes registered on Bermuda islands varying significantly in size and ranging from small private helicopters to large commercial or private jets. A large number of Russian aircraft has been registered in Bermuda. It provides benefits to both operators and financial institution that is committed to security over the aircraft.
Bermuda has been registering aircraft since 1931. There are different airplanes registered on Bermuda islands varying significantly in size and ranging from small private helicopters to large commercial or private jets. A large number of Russian aircraft has been registered in Bermuda. It provides benefits to both operators and financial institution that is committed to security over the aircraft.
Offshore Jurisdictions in Russian Business
The role and function of offshore companies in Russian business
Among the most popular offshore jurisdictions in Russian business in 2019 were British Virgin Islands, Cayman Islands, Islands of Bermuda, and the Republic of Seychelles.
Even though formally Cyprus is not an offshore, according to the available information as of August 2019, Cyprus was actually the most popular place for businesses with Russian origin. It attracts minimum taxes, has simple registration and reporting procedures. More than half (53%) of the Russian companies with shareholders from low-tax or offshore jurisdictions are regulated and controlled via Cyprus. The Seychelles islands are ranked as the second popular place of offshore operation and account for 14% of all companies.
Also, Russian business uses different shell companies for funneling millions of USD dollars to private foundations. For example, the company registered in Bermuda transfers to the Sea Change Foundation. These amounts are paid in the form of anonymous donations. Sea Change then forwards them to various US organizations such as the Sierra Club, League of Conservation Voters Education Fund, and other funds. After that, these "donations" are dispersed as grants to different private individuals or organizations.
Even though formally Cyprus is not an offshore, according to the available information as of August 2019, Cyprus was actually the most popular place for businesses with Russian origin. It attracts minimum taxes, has simple registration and reporting procedures. More than half (53%) of the Russian companies with shareholders from low-tax or offshore jurisdictions are regulated and controlled via Cyprus. The Seychelles islands are ranked as the second popular place of offshore operation and account for 14% of all companies.
Also, Russian business uses different shell companies for funneling millions of USD dollars to private foundations. For example, the company registered in Bermuda transfers to the Sea Change Foundation. These amounts are paid in the form of anonymous donations. Sea Change then forwards them to various US organizations such as the Sierra Club, League of Conservation Voters Education Fund, and other funds. After that, these "donations" are dispersed as grants to different private individuals or organizations.
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Russian Translation for Cross-Border Communications
Russian translation services for international communications between businesses and companies
In view of the above it is evident that the cross-border communications between Russia and the rest of the world is absolutely necessary and actually demanded every day. There are millions of words translated daily from English to Russian and vice versa. To get a high-quality Russian translation you should contract or hire the professional Russian translation agency in the UK that would be able to cope with your project and handle your documents without a hassle.
There are thousands of translation providers and it is not always easy to find the best Russian translation company for your English to Russian translations. If your project is small and you have to translate just a one page document you can find a Russian translator in your place and give him the job. But if the scope of your assignment is a hundred pages manual on operation and maintenance for oil and gas industry, then you should trust your project to a company with years of experience in providing Russian translation services and a team of professional Russian native-speaking linguists that would be capable of accommodating your project.
Have a nice business day!
There are thousands of translation providers and it is not always easy to find the best Russian translation company for your English to Russian translations. If your project is small and you have to translate just a one page document you can find a Russian translator in your place and give him the job. But if the scope of your assignment is a hundred pages manual on operation and maintenance for oil and gas industry, then you should trust your project to a company with years of experience in providing Russian translation services and a team of professional Russian native-speaking linguists that would be capable of accommodating your project.
Have a nice business day!
