Due to problems with transferring foreign currency payments, Russian businesses began to register companies in Uzbekistan. According to Kommersant, many Russian banks were switched off SWIFT, and from February to July there were significant restrictions on the transfer of foreign currency payments.
Now the value of currency transfers is limited for individuals to 1 million US dollars, and it is possible to make transfers only for specific purposes. As a result, many businesses began to register companies in the CIS countries.
“The most popular destination are Kazakhstan, Armenia, Uzbekistan and Kyrgyzstan. In these countries, you can register a business and continue settlements in foreign currency with foreign counterparties. Some businesses relocate their companies and employees, obtain residence permits in other countries and continue their work under other rules and laws. Someone believes that registering a business in another country is an opportunity to scale up, to explore new markets. Others use companies opened in other countries only as currency hubs,” said Alps & Chase lawyer Natalia Salnikova.
According to her, if earlier banks in the CIS countries were happy to open accounts for almost any business remotely, now Kazakhstan, Armenia, Uzbekistan and Kyrgyzstan have introduced stricter compliance: it is no longer possible to open accounts for a company without the arrival of the director, and you also need to describe in detail your business processes.
“If a business considers the country as a transit country for its business, without real activity on its territory, it will be denied opening a bank account,” the expert concluded.