Foreign companies show increased demand for redomiciling to Russia
Companies registered abroad and operating in Russia are showing an increased demand for redomiciliation – "moving" to a Russian jurisdiction, RBC reports, citing several law firms providing services in this area. Consultants put this down mainly to the fact that the simplified redomiciliation procedure approved in spring 2022 expires in December 2025. A procedure for redomiciliation to Russia has actually been in place since 2018.
Under the simplified procedure, if foreign companies with Russian roots are unable to provide certain documents for re-registration in Russia due to sanctions, they may simply provide an explanation why. A similar procedure is available if individuals are unable to sign documents. Essentially, this is a procedure whereby an "incoming" redomiciliation is sufficient to "move" to Russia without the need for an "outgoing" redomiciliation in the original jurisdiction.
The simplified redomiciliation procedure has been extended several times, most recently in August 2024, when it was extended until December 2025. After that, there was no information about the next extension. "We are currently working on the issue of extending the simplified registration procedure in SARs [Special Administrative Regions: one in the Kaliningrad region, the other in Primorsky Krai] and a strategy will be created that will factor in, among other things, the views of the SAR management companies," an Economic Development Ministry spokesperson told RBC. As of the beginning of 2025, 488 companies were registered in special administrative regions of Russia.
The consultants interviewed by RBC also cited difficulties (such as administrative, cross-border, and currency barriers) in continuing to use foreign companies as among the factors boosting the demand for redomiciliation.
Lawyers interviewed by the publication believe that yet another extension of the simplified procedure for redomiciliation to Russia could be approved by the end of 2025.