The Federation Council of Russia has approved the bill on amnesty of declared capital today. It will affect all the real estate and assets of organizations and controlled foreign companies. Lawmakers expect businessmen to reveal their capital and stop evading taxes. Dmitry Piskulov, the chairman of the board of the National Currency Organization, said that the political decision was aimed at repatriating capital that had fled the country in the 1990s and early 2000s. Many companies, in his words, are returning capital from Holland, Cyprus, Caribbean states. They amount to billions of dollars, according to Piskulov.
Alexander Abramov, senior fellow of the RANEPA Institute of Applied Economic Research, said that the initiative was more associated with low expectations to see capital return than any improvements in the investment climate. He is confident that a positive effect would be achieved, albeit without any mass capital, as mentioned by Sberbank head German Gref. Even the middle class, Abramov quotes Gref, moves its capital out of Russia at a rate of $50,000-100,000 per person. Overall, the amnesty targets quasi-foreign investments, thus inviting foreign investors to the Russian economy. In his opinion, improving the investment climate would be more effective.Alexander Abramov, senior fellow of the RANEPA Institute of Applied Economic Research, said that the initiative was more associated with low expectations to see capital return than any improvements in the investment climate. He is confident that a positive effect would be achieved, albeit without any mass capital, as mentioned by Sberbank head German Gref. Even the middle class, Abramov quotes Gref, moves its capital out of Russia at a rate of $50,000-100,000 per person. Overall, the amnesty targets quasi-foreign investments, thus inviting foreign investors to the Russian economy. In his opinion, improving the investment climate would be more effective.
