The Russian government has prepared a draft resolution on the exclusion of information about individual companies from the Unified State Register of Legal Entities. Analyst Ilya Shumanov explains in his channel the consequences of this measure:
“Many foreign banks, in order to carry out transactions with any Russian companies and individuals, already require a certificate of absence of connection with persons included in the sanctions lists. If this draft government decree is nevertheless adopted, then it will simply be impossible to verify in a legal way that there are no persons under sanctions in the owners of a particular company.
Classifying information in the Unified State Register of Legal Entities about tens of thousands of Russian companies, the country's economy will turn into a minefield for any bona fide counterparty, both from Russia and from abroad.
If the market needs such information, although even the Russian market is in dire need of such information, then a shadow service for verifying such information should appear, and this is a direct path to corruption..."