The Russian Ministry of Finance has proposed extending the rules that allow companies to keep their annual and interim consolidated financial statements undisclosed for another six months, moving the deadline to July 1, 2023. The draft government decree was sent to the federal portal for normative legal acts.
The explanatory note accompanying the document states that the purpose of the draft resolution is to reduce the risk that information contained in consolidated financial statements could be exploited in connection with external sanctions against the Russians who compile such statements.
At present, the right to withhold disclosure applies to public joint stock companies. The current measure remains valid through the end of the year and was introduced following the onset of broad international sanctions targeting the Russian financial and banking sectors.
On September 16, the Central Bank extended restrictions on the disclosure of information by banks through the end of the current year. The right to withhold financial statements remains in effect through the fourth quarter, with a plan to begin a gradual disclosure of credit institutions’ information from the start of 2023.
In context, these regulatory moves reflect a broader policy approach aimed at managing sanction risks and maintaining stability within Russia’s financial reporting framework. Observers note that the balance between transparency and sanction-related protections continues to shape corporate disclosure practices. Analysts highlight that public companies and their auditors may adapt timelines in response to evolving legal requirements and international enforcement actions. Market participants are closely watching how the Central Bank and Ministry of Finance coordinate their guidance to ensure consistency across financial reporting, governance, and compliance processes.
Civic and investor groups in Russia and abroad have urged clarity on disclosure standards, while regulators emphasize the importance of timely, reliable information for market confidence. The evolving rules underscore the ongoing tension between sanction management, corporate accountability, and the needs of stakeholders who rely on consolidated financial statements for decision making.
As the situation develops, firms are advised to monitor official notices from the Ministry of Finance and the Central Bank, and to engage with legal and accounting professionals to align their reporting practices with any new or extended requirements. In doing so, they can better navigate the potential implications for liquidity, credit ratings, and investor relations in a rapidly changing sanctions landscape.
Attribution: Ministry of Finance of the Russian Federation; Central Bank of Russia, regulatory announcements and explanatory notes.