Russian businesses could get new secrecy privileges to guard against U.S. sanctions

Russia’s Economic Development Ministry has prepared legislation that would allow companies to hide certain transactions and the composition of their executive boards from investors. The government would have final say regarding the specific circumstances under which such secrecy would be permitted. The draft law was reportedly developed in response to a government order on April 17 to develop ways to support Russia’s “systemic enterprises.”

In late 2017, federal officials allowed state companies to hide procurement data about suppliers and subcontractors. The Defense Ministry, Federal Security Service, and Foreign Intelligence Service were also temporarily permitted to make all purchases in total secrecy. These measures, like the Economic Development Ministry’s new proposal, are reportedly meant to help Russian institutions evade Western sanctions.