Russia to ban offshore companies from winning state contracts

The Russian government will consider amendments to state procurement laws that would ban state contracts from being awarded to companies registered offshore.

The Russian government will consider amendments to state procurement laws that would ban state contracts from being awarded to companies registered offshore.

"The document would ban conclusion of state and municipal contracts with companies located, let's say, registered in offshore jurisdictions, that is, in special zones where a special, favorable tax regime has been established," Prime Minister Dmitry Medvedev said at a government meeting on Thursday.

"I want to emphasize that the state does not intend to buy goods and services from them. If a business wants to receive a profit from participating in the state procurement system - I stress, state procurement, because the state does not control the rest - it must be registered in Russian jurisdiction," Medvedev said.

The commission for carrying out purchases will have to check that potential participants comply with that requirement, he said.

"If companies from such offshore jurisdictions are discovered, their bids will be rejected," Medvedev said.

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