An intensely changing external environment, uncertainties in legal relationships under international contracts, logistical problems and disruption of established post-pandemic supply chains are all shaping a new economic reality. In this environment of geopolitical change businesses, both Russian and foreign, have to adapt every day and face new constraints caused by Western sanctions and Russian retaliatory sanctions.
In the current situation, where it is difficult to determine which solution is applicable and which is not, one of the priorities for businesses is risk mitigation to build a corridor of action within which it will be possible to operate. To date, several risk mitigation strategies can be identified:
- ceasing to do business in "unfriendly" countries;
- ceasing to do business in Russia;
- relocating all business to Russia.
Such strategies can be implemented through such risk mitigation instruments as: redomiciliation, reorganisation, or liquidation of a business.
Redomiciliation is the process by which a company moves its registered office from one jurisdiction to another while retaining its legal form, structure, assets, liabilities, bank accounts, etc. Redomiciliation allows for improvement of the business situation in terms of taxation, business procedures, and other regulatory requirements, including those of a political nature.
Reorganisation is the process of winding up a legal entity, which is accompanied by the transfer of obligations and rights to the assets of another company. This action results in the formation of one or more newly formed entities that take over the property and other rights and obligations of the reorganised entity.
Liquidation is the termination of a business, in which there is no transfer of rights and obligations to other legal entities.
Depending on the objectives of the business owners they can choose the risk mitigation strategy best suited to them within the political pressure dictated by sanctions.
Mainstay provides a comprehensive range of services no matter what strategy you choose, because our primary objective is to ensure that your business thrives, even in such uncertain times.
OUR SERVICES
- formulating the best strategy for redomiciliation;
- support for the procedure of reorganisation of legal entities;
- supporting the liquidation of legal entities.
