Fourth package of EU sanctions
Experts believe that the fourth package of EU sanctions over the past eight years will cause the maximum damage to the Russian economy. The European Union’s sanctions against Russia will ruin the logistics processes of Russian companies. The Russian government will not be able to benefit from the country’s membership in the World Trade Organization.
The banking sector will be the hardest hit by the sanctions. Many banks (Otkritie, VTB, Sovcombank, etc.) are already on sanctions lists and cannot use SWIFT. These restrictions will not allow Russian businesses to continue working with foreign partners due to the lack of possibility of interbank transfers outside the country.
The sanctions will be the main reason for the destruction of Russia’s trade relations with European countries and the United States. At the moment, economists are publishing pessimistic forecasts about the future of the Russian economy. We will be able to assess the accuracy of these forecasts a few months from now. One way to keep a company viable is to change jurisdiction. Registering a company in a country free of sanctions will allow Russian businessmen to conduct foreign economic activity.
After companies change jurisdiction, their owners will be able to conclude deals with partners from any country. Entrepreneurs will be able to exchange currency and trade with old partners from any continent. Kazakhstan is one of the few countries in the world, which are ready to give Russian citizens the possibility to do business.
Business status of the Republic of Kazakhstan
Many economists call the republic a window to overcome sanctions. Restrictive economic measures on the part of the EU did not affect Kazakhstan. The country, which recently experienced a gas revolution, is free from European and U.S. sanctions. The economic restrictions imposed by Western countries on Russia have had only an indirect impact on Kazakhstan.
Kazakhstan’s trading partners have no plans to impose sanctions on the entire country or its individual representatives. Russian citizens will be able to conduct any economic activity on the territory of Central Asia state.
Advantages of doing business in Kazakhstan
Economists believe that Kazakhstan can become a second Singapore or a new Silicon Valley. The country’s economic potential will not open up immediately – it will take several years. The republic’s development is supported by a stable political situation and a favorable economic environment.
Russian companies that have completed their relocation to Kazakhstan will be able to achieve a rapid increase in revenues. The main arguments in favor of doing business in the republic:
- The government has approved the “Digital Kazakhstan” social program – 80% of public services are provided to entrepreneurs electronically. (Instagram (Russian)
- Russian citizens can register new companies in Kazakhstan without any restrictions.
- Russian citizens can enter the territory of Kazakhstan without a visa.
- The amount of taxes in Kazakhstan is lower than in Russia (VAT is 12%, in Russia – 18%).
- Residents of Kazakhstan know the Russian language, Russian citizens do not have to learn a foreign language to do business in the new country.
- Tax legislation of Kazakhstan is almost the same as in Russia. Records management in the republic is conducted in Russian and English.
- A few years ago, the International Financial Center opened in Astana. This organization helps people develop business through investors, grants, and government funding.
- Local government actively invests in development of national economy.
- IT specialists from Kazakhstan have excellent skills and ask employers for relatively small salaries.
Registration of a legal entity in Kazakhstan should be entrusted to professionals. West East Legal specialists will solve any organizational and legal issues related to the change of company jurisdiction. Call us right now – protect your business from sanctions.
Russian version of the article →