En + will move from Jersey to Russia

En + metallurgical company En + Oleg Deripaska is studying the possibility of changing the registration from the "crown" island of Jersey to the Russian one. Re-registration in Russia can be a condition for providing state support to the company that suffered from US sanctions.
This was told to "Vedomosti" two people close to the company and to one of its shareholders. In Russia, all the necessary conditions for comfortable business have finally appeared, adds one of them: "All the major assets are in Russia, and it's more logical for her to register here."

Re-registration in Russia is very likely one of the conditions for rendering state support to a company that suffered from US sanctions, according to Tertychny Agabalyan's partners Ivan Tertychny and BMS Law Firm Denis Frolov. En + considers, most likely, registration in the internal offshore - on about. Russian or in the Kaliningrad region, believes Oleg Vyugin, professor at the Department of Economics of the Higher School of Economics.

The bill on the creation of territories with a special tax regime on. October in Kaliningrad and Fr. Russian in the Far East was developed by the Ministry of Economic Development. Whether it's about registering En + here, Vedomosti's interlocutors did not specify. The representative of the company declined to comment.

If we are not talking about internal offshore companies that suggest a number of tax breaks, there are no advantages for the company in changing the registration, experts believe. Re-registration of the company simply in Russia, on the contrary, will only create a lot of inconvenience, says Vyugin. "In offshore jurisdictions belonging to the British jurisdiction, the transaction mechanism is well-established. From the legal point of view, the company will only lose from moving to Russia, "the expert points out. On the other hand, the specific situation of En + is that the company is under sanctions. And now she needs to solve the issue of the possibility of business functioning in principle, and not the question of finding more comfortable for the beneficiary and for committing transactions of jurisdiction, points out Vyugin.

 There is no reason to talk about improving the conditions for business in Russia: the tax base has not changed, taxes are constantly rising, said partner of the consulting company Urus Advisory Alex Panin. "The international structure of Deripaska's companies made it possible to significantly reduce tax payments. When re-registration in Russia, the tax burden increases many times, "he notes. "Obviously, the desire to change jurisdiction is only related to sanctions," the expert believes.

Internal offshore should be earned from January 2019, perhaps a little earlier, recalls the president of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin. To what extent they are able to minimize the sanctions pressure, it is not yet possible to say, Shokhin emphasizes.

The result of the change of jurisdiction may be delisting from the London Stock Exchange, Tertychnyi suggests. Now the shares of the company are traded in London, but after moving to Russia they will have to be replaced with receipts, he points out. En + could go along the way of "Polyus": the company conducted delisting, reregistered the parent company in Russia and then re-settled, admits the portfolio manager of the capital "Kapital" Vadim Beat-Avragim.