Rusal, a Russian aluminum producer who fell under US sanctions, announced that his legal address was being transferred from Jersey to Russian territory. This is stated in the message of the company, distributed on the Hong Kong Stock Exchange.
"After careful discussion, the board of directors decided that this is in the interests of the company and shareholders," the statement said.
It is noted that the company must agree with the authorities of Russia, stock exchanges and other regulators, change the English name and full and abbreviated names to Russian, as well as bring the documents into line with Russian legislation.
Until now, the En + Group, as well as its largest asset Rusal, was registered on the British island of Jersey. In October 2017, Interfax, citing the review of the investment bank Sberbank CIB, announced plans to re-register a group of companies in Cyprus. The En + Group itself declined to comment on this information.
In early June, the newspaper Kommersant, citing government sources, indicated that Rusal was considering the possibility of re-registration in the Kaliningrad region and Primorsky Krai. These two regions are mentioned in a document that was distributed in Hong Kong.
On August 3, Vladimir Putin signed a package of laws on the creation of special administrative districts (SAR) on Russky Island in Primorsky Krai and on Oktyabrsky Island in the Kaliningrad Region. In accordance with the adopted laws, only foreign legal entities will be able to apply for residency on the islands. The law provides for a procedure for redivision (change of legal address from one jurisdiction to another), however, if the company was created before January 1, 2018, and its controlling persons took their positions no later than January 1, 2017. The minimum investment in Russia must be at least 50 million rubles. For half a year. Special tax rates to income received by foreign companies in the form of dividends are set at 0%.
One of the main shareholders of Rusal, Oleg Deripaska (controls 48.13% of the company) was included in the US sanctions list in early April 2018. Viktor Vekselberg also came under sanctions (together with his partners he controls 26.5% of Rusal).