NICOSIA – Western and European Union sanctions imposed on Russia for the ongoing invasion of Ukraine have seen Russian companies who’ve long favored being on Cyprus and using its banks now pulling out to other countries.

That was reported by Radio Liberty and the Ukrainian site Ukrinform that said at least 10 large Russian companies have left or are planning to leave Cyprus whose banks have been used as depositories by rich Russians and businesses

Those leaving, said the report, include TCS Group (the parent company of Tinkoff Bank), marketplace Ozon, retailer Fix Price, and United Medical Group (the holding company of the European Medical Center).

https://www.ukrinform.net/rubric-economy/3814787-russian-companies-leave-cyprus-due-to-sanctions.html

Some choose to re-register in Kazakhstan, the United Arab Emirates and other countries that are not on the Russian government’s “unfriendly” list or to Russia’s Special Administrative Region (SAR) in the Kaliningrad region, which was created “to attract foreign business and investment from foreign jurisdictions.”

The sanctions make it difficult to conduct transactions between subsidiaries and parent holdings. Counter-sanctions from Russia, which restrict, for example, the payment of dividends, also have an additional impact, said the report.