A growing trend is taking shape as many Russian businesses that once organized ownership through foreign structures are expected to regroup on Russian soil in the years ahead. This shift was highlighted by Deputy Finance Minister Alexey Moiseev during a session at a Promsvyazbank forum, with coverage by TASS. The plain takeaway is that the majority of firms that now operate via offshore-like holdings abroad are likely to relocate or reconfigure their ownership within Russia, using different legal forms and corporate arrangements.
Moiseev noted that special administrative regions in the Russian Federation, implemented with favorable tax and legal regimes, have become increasingly attractive to domestic companies. They see SARs as viable vessels to simplify compliance, optimize tax outcomes, and streamline governance within Russia rather than relying on foreign jurisdictions. This reflects a broader push to bring business activity and corporate structures back under national oversight while preserving operational flexibility.
The government’s moves around administrative territorial systems have been framed as enabling companies that are unhappy with certain Russian regulations to adopt offshore-like models, but entirely within the country’s borders. This approach is described as offering the advantages of offshore arrangements without the need for cross-border complexity. The practical effect, as explained by Moiseev, is a notable enhancement in the functionality and attractiveness of Russia-based SARs for a range of business purposes.
Analysts connect the rising demand for SARs to a perception that offshore structures lose some functionality in hostile regions or in the face of evolving sanctions regimes. Firms that previously relied on foreign registration are seeing SARs as a credible alternative that preserves access to Russia’s market and resources while maintaining a clear, compliant domestic footprint. The trend is also linked to the political and economic recalibration aimed at strengthening domestic capital formation and governance standards.
Earlier comments from Maxim Reshetnikov, head of Russia’s Ministry of Economic Development, indicate a concrete move in 2023 where around two hundred companies with foreign bases but Russian capital reorganized under Russian SAR frameworks. This signals a measurable shift in corporate localization and a preference for operating within national rules that still accommodate business needs, growth perspectives, and investor confidence. The relocation pattern underscores a broader strategic priority: sustaining capital flows within Russia and reinforcing domestic corporate ecosystems.
In related developments, the parent company of the Tinkoff group reportedly completed a governance transition away from Cyprus to a Russian structure. This move is cited as part of a broader landscape where firms reconsider jurisdictional choices in favor of domestic regulatory alignment and clearer oversight, while retaining access to essential markets and financial networks. The trend reflects a balancing act between regulatory clarity, tax efficiency, and strategic flexibility for large and mid-size enterprises alike.