The capital is called back home

In the annual state-of-the-nation address Vladimir Putin expressed an idea to give the total one-time amnesty to the overseas capital, the basic country for origin of which is Russia; provided that it would be released from any kind of administrative or criminal prosecution at the moment of reregistration in the Russian jurisdiction.

Certainly, the President’s initiative should be considered in the positive aspects, as the problem of business legalization including those being received with the breach of legislation has arisen long time ago. Neither taxmen, nor law enforcement or other inspecting authorities will be interested in the source of capital origin and its legitimacy. However, it is highlighted that the entrepreneurs would be given an opportunity to use the chance only once.

The corresponding step is more than ever to the point: the heavy situation in the external markets, devaluation of the ruble and the flare-up with the Western countries lead to major capital outflow. It became very difficult to raise long investments from abroad. Moreover, unofficial prohibition on lending to Russian companies, being beyond sanctions, in Europe and the USA makes the authorities turn to “our” money abroad.

It remains to expect that the business community will hear the President’s address and the inspecting authorities won’t change their mind and won’t start persecuting the returning capital. It is left to wait till the address will be legalized and the law will contain specific steps and outlines of the historical amnesty.