Russian President Vladimir Putin has ordered that funds be directed towards the development of tourism infrastructure from voluntary contributions to the federal budget made in transactions for the alienation of assets of foreign residents from unfriendly states. The instruction was given following a meeting on socio-economic development in Crimea and Sevastopol, and the relevant document has been published on the Kremlin website. The funds will be calculated from the amounts of transactions presented at meetings of the subcommittee of the government commission on control over foreign investment of the Ministry of Economy. Russian Prime Minister Mikhail Mishustin has been appointed responsible for ensuring the order’s completion by July 1. Additionally, Putin has instructed the Russian government and the government agencies of Crimea and Sevastopol to take measures to gradually reduce the deviation of incomes of the population of the peninsula from the average for Russia, as well as the Krasnodar Territory and the Rostov Region. The first report on this assignment must be prepared by September 1. Companies from unfriendly countries that sell Russian assets at a discount below 90% must pay a voluntary contribution of 5% of the market value, and if the discount exceeds 90%, the contribution must be at least 10%. This was stated in the extract of the minutes of the meeting of the subcommittee of the government commission on control over foreign investment in the Russian Federation dated March 2, which was published on the website of the Ministry of Finance. For more information, please refer to Kommersant’s article “Non-refundable ticket to the West without luggage.”
Russian President Vladimir Putin instructed to ensure the direction of funds for the development of tourism infrastructure from voluntary contributions to the federal budget in transactions for the alienation of assets of foreign residents from unfriendly states. The relevant document is published on site Kremlin.
The order must be completed by July 1. Russian Prime Minister Mikhail Mishustin has been appointed responsible for it. The funds will be calculated from the amounts of transactions presented at meetings of the subcommittee of the government commission on control over foreign investment of the Ministry of Economy.
Vladimir Putin also instructed the Russian government and the government agencies of Crimea and Sevastopol to take measures to gradually reduce the deviation of incomes of the population of the peninsula from the average for Russia, as well as the Krasnodar Territory and the Rostov Region. The first report on the work on the assignment must be prepared by September 1.
All instructions were given following the meeting on the socio-economic development of Crimea and Sevastopol. The meeting took place on March 17th.
Companies from unfriendly countries must pay a voluntary contribution of 5% of the market value when selling Russian assets at a discount below 90%. If the discount exceeds 90%, the contribution must be at least 10%. This is stated in the extract of the minutes of the meeting of the subcommittee of the government commission on control over foreign investment in the Russian Federation dated March 2, published on the website of the Ministry of Finance.
For more details, see Kommersant’s article “Non-refundable ticket to the West without luggage.”
In conclusion, the Russian President’s recent instructions regarding the direction of funds for tourism development and income deviation reduction in the Crimea and Sevastopol regions are significant steps towards their socio-economic development. The requirement for companies from unfriendly countries to contribute towards the federal budget is also an interesting move. It remains to be seen how effective these measures will be in achieving their intended goals. For more information, readers can refer to Kommersant’s article “Non-refundable ticket to the West without luggage.”
