Russian entrepreneurs are still active in the EU via letterbox companies – according to a new survey, 31,000 companies are controlled by Russians. The EU Commission is calling for these assets to be made transparent in order to be able to implement the sanctions.
According to the EU Commission, Russian oligarchs and other businessmen are still very active in Europe despite all the sanctions. According to a new report on the risks of money laundering and terrorist financing, there are almost 31,000 companies whose actual owners came from Russia. They are mainly active in the real estate, construction and hotel sectors as well as in the financial and energy sectors.
The 31,000 companies are controlled by Russians, who are thus the beneficial owners. Civil law owners can also be shell companies, which obscures the traces to Russia. According to the EU report, at least 1,400 companies have owners who have recently been sanctioned. Specifically, it is about 33 people.
The EU Commission is calling for Russian assets to be made transparent. This is necessary if you want to freeze them under the sanctions. The agency is therefore calling for better information sharing and “appropriate” disclosure and monitoring of assets hidden from tax authorities. Establishing letterbox companies is still far too easy. This would currently shift “hundreds of millions of euros through opaque transactions”.
Shell companies could not only help criminals to hide the origin and destination of funds. They could also obscure the actual beneficiary of the transaction. Some oligarchs may disguise their ownership or control of companies through third-country incorporated intermediaries or local nominal shareholders, the EU warns.
The funds were used for personal enrichment – or for the destabilization of entire countries. “The uncovering of black money flows not only contributes to the defense of democracy and the security of the citizens of the EU, but also helps to fight the influence of autocracies,” states the commission.
