Brexit & EconomyPoliticsSpat between UK and Russia could impact on business

Spat between UK and Russia could impact on business

UK companies could face tough tax and regulatory inspections in Russia if the current diplomatic row escalates

A powerful Russian business group has warned that UK firms could lose out on
big contracts and face more intense tax and regulatory scrutiny in Moscow
because of the current diplomatic row.

Alexander Shokhin, president of the Union of Industrialists and Entrepreneurs
said that Russian firms planning to float in London could also review their
plans, while others listed in London may switch to other stock exchanges if the
dispute escalates, The Times reported.

Shokhin’s comments has caused alarm, since the UIE – the equivalent of
Britain’s CBI – represents some of the largest companies, as well as billionaire
entrepreneurs Oleg Deripaska, Viktor Vekselberg, Alexei Mordashov, and Vladimir
Potanin.

Six companies were listed on the LSE this year alone, with a collective
listing worth of $12.2bn.

There are 42 other Russian companies on the LSE and Alternative Investment
Market, due to be joined later this year by mining giant Rusal in what would
probably be London’s biggest IPO of 2007.

Andy Scott, CBI director of international and UK operations was surprised by
the comments. He said there seemed to be mixed messages coming out of Moscow
about the impact on business.

‘It is important that we carry on business as usual, and separate business
from politics,’ he said.

Further reading:

Russia’s
Companies May Pull Out of LSE

Britain
could lose out, warn Russians

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

4m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter