Mutual Recognition of “Unfriendliness”

In the first decade of November, Russia once again expanded the list of “unfriendly” countries and added the Cayman Islands, Turks and Caicos Islands, British Virgin Islands, and Gibraltar to it. In total, the Russian list of “unfriendly” countries includes 14 British territories and the United Kingdom itself. Such recognition is reciprocal, as the British territories have previously supported sanctions against the aggressor country.

Such a status, particularly a mutual one, makes impossible or significantly complicates any relationship in the financial sector and ownership of movable and immovable assets. It is worth reminding that citizens of the Russian Federation own, for example, real estate in Great Britain, the Caymans and the Bahamas, yachts in Gibraltar, as well as bank accounts (including offshore ones).

Back in the spring, the Russian government compiled the first such list, which also included countries whose legislation provides for the creation of offshore companies: Andorra, Monaco, Singapore, and Switzerland.

Reciprocated “unfriendliness” recognition was followed by an unexpected reaction from the citizens of the Russian Federation. According to the information of agents and local providers of offshore services, cases of re-registration or involvement of citizens of Latvia, Kazakhstan, Moldova and Ukraine as beneficiaries have become more frequent.

We consider it important to remind that deliberate actions aimed at circumventing established sanctions (or indirect participation in such actions) shall have grave consequences for all persons participating in them.