Russian President Vladimir Putin really wants Russian offshore capital to come home. As Western sanctions continue to bite, and are even strengthened, Putin is using the opportunity to make it very easy for Russian businessmen to send back to the Russian Federation offshore profits.
“Russia should scrap the 13 percent profit tax on funds repatriated from abroad and renew an amnesty from penalties for businesses returning capital, as Washington moves toward tougher sanctions, President Vladimir Putin said on Monday,” writes Reuters.
“I have two proposals that I have not yet made public before. The first is to extend the amnesty timeline, I mean external restrictions are not easing, but, on the contrary, tending to rise,” said Putin, reported Russian state news agency TASS.
Russia also plans to use sovereign bond offerings as a way to allow offshore Russian funds to return. The sales schedule for new debt securities will possibly be altered to allow those targeted by sanctions to move funds without penalty.