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Comment by MrDisposable | Hacker News Reader

  > Do you know if its only incorporation in EU countries?

Anywhere abroad. It is illegal (and has been illegal since 2014 or so, can't remember) for a Russian resident to have a controlling stake in a company not incorporated in Russia.

  > is that transactions out of the country or any transaction

It's about transfers of funds from Russia to foreign bank (and "bank-like") accounts. Accepting money from abroad is still legal -- which is confirmed by the fact that they yesterday imposed a requirement of mandatory conversion of 80% of any foreign-currency revenue to rubles.

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> Anywhere abroad. It is illegal (and has been illegal since 2014 or so, can't remember) for a Russian resident to have a controlling stake in a company not incorporated in Russia.

Do you know if that also applies for legal entities or only natural persons? That would mean a Russian holding company for the shares? Its a structure common even inside the EU as well for tax reasons.

  > Do you know if that also applies for legal entities or only natural persons?

Not sure (would adive to consult a lawyer), but it's quite possible that it applies both to physical persons AND legal entities.

> It is illegal (and has been illegal since 2014 or so, can't remember) for a Russian resident to have a controlling stake in a company not incorporated in Russia.

How does this work with Gazprom owning Nord Stream 2 AG (incorporated in Switzerland)? Exempting legal entities would make the law extremely easy to circumvent, so I'm guessing that's not it.

1) It's not forbidden to control foreign company - you have to report it in 3 months time. And potentially pay taxes if there's no double taxation agreement. 2) That 80% is for corporations bringing funds into Russia as foreign currency. For an individual you'd need ruble to buy things in Russia anyway so it is not a thing to care about.

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