OREANDA-NEWS. The EU authorities have reasons to impose sanctions against Russian Special Administrative Regions (SAR), which actually play the role of Russian offshore companies and target nominally foreign companies. Experts of the RANEPA warned about this in the conclusion on the draft federal budget, Vedomosti writes.

SAR practice can be called a “harmful tax regime”. According to experts, the Russian initiative may become a target for restrictive measures against the backdrop of intensifying the fight against unreliable jurisdictions.

The authors of the document called for harmonizing the CAP regime with the approaches of the G20 and the Organization for Economic Cooperation and Development (OECD) in order to remove hypothetical questions about the limitation of international competition.

Earlier, the European Union has already expressed objections to the practice of CAP. A June report from the EU Council said that this approach looks harmful. As the interlocutor of the publication explained, the Ministry of Finance is already preparing an official response to the European Union regarding the CAP. He did not give any details of the department's argumentation.

Nikolai Milogolov, head of the Tax Policy Research Laboratory at RANEPA, suggested that Russia would be able to take into account the issues and recommendations regarding the CAP. One of the ways he called the permission to register in the SAR for Russian companies. However, the expert admits, in this case, the budget will lose part of its income.