Companies in Ukraine Quietly Change Russian Ownership
Ukraine’s monitoring service, Opendatabot, has reported that 93 companies have removed signs of Russian ownership and continue to do business in the country. This is despite a moratorium on altering the registration of companies with Russian owners.
The ban was put in place as part of a law passed by Ukraine in response to Russia‘s full-scale invasion. The law allows for the seizure of assets or property owned by Russia or Russian citizens. Companies were barred from reregistering their ownership, with some exceptions.
Some companies have found ways to remove their Russian owners and continue operating. Opendatabot also found that some of these companies have participated in public procurement tenders. For example, Texter Ltd., a manufacturing and clothing distribution company with Russian ties, won seven tenders totaling Hr 19.6 million ($467,777).
Over 18,000 companies in Ukraine had Russian ties at the start of the full-scale invasion. By May 2024, 621 companies had allegedly altered ownership records to bypass legal restrictions.
The Justice Ministry has checked all 621 companies and found violations in the registration of 14 companies, two of which were related to non-compliance with restrictions on Russian assets.
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