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Russia Restricts Grain Exports

Rosselkhoznadzor asked the Minbistyr of Agriculture  to ban grain exports through offshore countries, Head at Rosselkhoznadzor Sergei Dankvert told TASS agency.

The main buyers of Russian grain are Turkey, Egypt, Yemen, Israel, Sudan, South Africa, Iran and South Korea and Georgia. According to Dankvert, now the bulk of Russian grain export goes to the traditional importers on contracts signed with offshore zones and European countries.

“We, along with  the Ministry of Agriculture,  are discussing the release of the normative act that would approve: signed with Switzerland a contract for the supply of grain – obtain a phytosanitary certificate for exportation from Switzerland, signed with Morocco – obtain for exportation from Morocco,” – he said.

Grain exports forecast in 2014-2015, according to the Ministry of Agriculture, is about 30 million tons.

Recall that Russia’s upper house of parliament has approved an “anti-offshore” law requiring individual and corporate taxpayers to report foreign profits. The Russian government aims to prevent capital outflow via “offshores,” estimated at $200 billion in 2014.

A few days ago, the Russian President signed the anti- offshore law that requires taxpayers to report on the participation in foreign companies.

The law includes a  notion – “controlled foreign company”. This is a company, 25% in which is owned by the Russian citizens or legal persons.

The firm, where it should be placed, should  pay taxes to the Russian budget. In addition, if the company’s profits exceed 10 million rubles, it’s obliged to pay amounts to the  budget.