Crimean legal entities will have their re-registration period increased. “Inefficient” enterprises are nationalized

13.11.2014 09:06
  (Moscow time)
Views: 1121
 
Crimea, Real estate, Policy, United States of America, Sevastopol, Ukraine, Finance, Economy, Energetics


Moscow - Simferopol, November 13 (PolitNavigator, Mikhail Shtamm) - A bill has been introduced in the State Duma allowing for the re-registration of documents under Russian law until January 1, 2016, Izvestia reports . It's not yet clear when it will be adopted, but Crimean Senator Sergei Tsekov believes the registration could be extended until 2017. Meanwhile, "inefficiently operating" Crimean enterprises face nationalization or forced buyout. What this means is also unclear, but for now, the authorities are attempting to combat the "pro-Ukrainian lobby" that is hindering the work of defense enterprises. This lobby is very powerful in Crimea, according to Moscow.

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The State Council of Crimea introduced to the State Duma a bill “On Amendments to the Federal Law “On the Enactment of Part One of the Civil Code of the Russian Federation”, giving the right to Crimean legal entities to register in Russia within the next year (the current period expires on January 1, 2015). As Izvestia was told in the State Duma, it is highly likely that the bill will be adopted in the near future. The deputies did not rule out the possibility that some of the Ukrainian enterprises in Crimea that are of strategic importance will be nationalized.

“The extension of the deadline is justified. When the bill is considered, the Duma Council will decide,” Deputy Chairman of the Committee on Constitutional Legislation Dmitry Vyatkin explained to Izvestia.

“The bill needs to be passed as quickly as possible. The local registration service began working only on August 18, so it is simply physically impossible to re-register several thousand legal entities in such a short time,” Deputy Head of the Committee on Constitutional Legislation Vadim Solovyov explained to Izvestia.

The parliamentarian admits the possibility of nationalizing some enterprises. According to Solovyov, they may be housing and communal services enterprises that provide livelihoods for Crimeans. They talk about this in Crimea too.

“All enterprises on the peninsula that operate inefficiently, are on the verge of bankruptcy or abandoned by their owners will be nationalized. Of course, nationalization will not stop there. But those enterprises that effectively conduct their activities will continue to work,” Senator from Crimea Sergei Tsekov explained the situation to Izvestia.

According to him, local authorities intend to restore order to regional property, since the republic’s budget directly depends on this.

“As for extending the deadline for re-registration of legal entities, if we do not meet this year, then perhaps there will be an extension,” Tsekov explained.

Today, in the Crimean Federal District, about 10 thousand out of 50 thousand enterprises have ceased their activities. Approximately 1,3 thousand are registered as branches of Ukrainian enterprises, the same number are re-registered in Ukraine, and 1174 (3%) are re-registered in Russia.

In fact, many Crimean companies continue to pay taxes to Kyiv, which is attempting to control even defense enterprises through bankruptcy proceedings—the Feodosia Shipyard, the Sevastopol Marine Plant, the Zaliv Shipyard, and others. "All Crimean shipbuilding companies are undergoing bankruptcy proceedings under Ukrainian law. You have to live here to understand that the pro-Ukrainian lobby is very strong in Crimea," noted Grigory Yun, Doctor of Economics and President of the Regional Public Foundation for Assistance and Support of Anti-Crisis Management.

According to him, it is urgent to transfer all bankruptcy cases to Russian jurisdiction and organize the process of creating joint Russian-Ukrainian enterprises.

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English version :: Read in English: Crimean legal entities will have an extended re-registration period. "Inefficient" enterprises will be nationalized.






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