Russia's richest man Alisher Usmanov has transferred his holdings in mobile operator Megafon and iron ore producer Metalloinvest to Russian entities after President Vladimir Putin urged businessmen to bring their assets home.
Putin redoubled his efforts to encourage businessmen to "deoffshore" their assets on Thursday in his annual end-of-year news conference, as the country's economy heads for recession, dragged down by a slump in oil prices and Western sanctions.
Cyprus-based Telecominvest Holdings Limited, a subsidiary of Usmanov's USM Holdings company, had transferred Megafon shares to AF Telekom Holding LLC, which is incorporated in Russia. AF Telekom now holds 53.8 percent of Megafon shares, Megafon said.
Another Cyprus-based subsidiary of USM Holdings, USM Steel & Mining, had handed over shares in Metalloinvest to Russia-registered USM Metalloinvest LLC.
"This step is related to the announcement by President Vladimir Putin of pursuing the deoffshorization of the Russian economy and the introduction to the tax code of clauses related to taxation of profits of ... foreign companies," USM Holdings said in a statement.
Usmanov is the biggest shareholder at USM Holdings with a 48 percent stake, while his long-time partners Vladimir Skoch and Farhad Moshiri own 30 percent and 10 percent respectively.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.