FBK Legal Director Maria Semenova on Replacing Foreign Offshore Jurisdictions with Russian Alternatives

According to data from Abdullah bin Touq Al Marri, UAE Minister of Economy & Tourism, over 13,500 Russian companies were registered in the UAE by the end of last year, of which 2,000 obtained licenses in the past year alone. The escalation of the military conflict in the Middle East has affected not only the direct parties involved—the United States, Israel, and Iran—but also numerous other Gulf states.

In this context, Russian businesses may start adjusting their international strategies to diversify risks, including by considering other regions.

Maria Semenova, Director of FBK Legal: Russian businesses may well turn their attention to using ‘Russian offshore’ alternatives—special economic zones (SEZs) and territories that offer a range of tax benefits and other incentives. Similar options also exist within EAEU countries, for instance, special economic zones in Kazakhstan.