Russia prepares new measures to support firms subject to Western sanctions

In order to systematise subsidies, Russia’s finance ministry has proposed a legal distinction for firms subject to Western sanctions. While the relevant subsidies have yet to be defined, suggestions include looser forex rules and the possibility of not disclosing certain economic information. The finance ministry is even contemplating the establishment of a separate stock exchange for sanctioned firms to help them raise financing. Russia’s ministry of industry and trade has proposed favouring firms subject to Western sanctions in public procurements.

The proposed measures are feared to further reduce competition, weaken transparency in the economy and increase opportunities for various abuses.