Russian govt plans to force foreign IT companies to found branches in the country

Nieuws Breedband Russische Federatie 19 MAR 2021
Russian govt plans to force foreign IT companies to found branches in the country

The Russian government plans to oblige foreign IT companies with large numbers of users to register branches or subsidiaries in the country, reports Kommersant. The companies would then become tax-payers in Russia. They are expected to be offered a special format of digital residence.

Experts consider that companies such as Google, Facebook, Amazon and others could come under the legal requirements according to a draft document. They also emphasised that increased pressure on foreign companies could lead them to change their strategy in the country.

The digital residence system is expected to be launched by the end of this year.

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