Over the past few months, dozens of large Russian companies that were based in Cyprus have closed their headquarters on the island.
Due to numerous sanctions, inspections and increased interest in their activities, many have chosen to leave what was once the most popular offshore jurisdiction.
As it became known, some moved their offices to neighboring countries, others - to special administrative districts in Kaliningrad and on Russky Island in Primorye. At the same time, according to competent experts, the exodus of Russian business from Cyprus will continue. The island state will lose organizations that work in finance, real estate, retail trade, management of medical centers, software development and food delivery.
It should be noted that the companies that have already announced the relocation of their headquarters from Cyprus include: TCS Group Holding, Etalon Group, Fix Price, United Medical Group CY, Transmashholding, Noventiq Holdings, EuroMedCenter, MD Medical Group Investments and Sbermarket.
More details:
- Tinkoff Bank's parent company TCS Group Holding, which has been operating on the island for 20 years, has decided to withdraw from Cyprus on December 15, 2023. The organization said it intends to move its headquarters to one of the "Russian offshore locations" established on the islands of Oktyabrsky in Kaliningrad and Russky in Primorye.
- Shareholders of the Etalon development company approved the move from Cyprus to Oktyabrsky Island in the Kaliningrad region also on December 15, 2023. The plan for the reverse relocation of Cypriot employees should be implemented by the end of September 2024.
- Fix Price, owned by Paphos soccer club manager Sergei Lomakin, decided on November 9 to move its headquarters from Cyprus to Kazakhstan. Fix Price is a chain of discounters, which revenue is 4 billion dollars.
- United Medical Group CY Plc, the parent company of EMC, which operates a network of private clinics, is also leaving Cyprus. The organization includes seven multi-specialty medical centers, a maternity and rehabilitation center, and three nursing homes in Moscow. United Medical Group CY Plc had an estimated annual turnover of €326.3 million at the end of 2022.
- The three companies that decided to leave Cyprus last summer included Transmashholding, the largest manufacturer of railroad equipment in Russia, Globaltrans, one of the largest private railroad management companies in Russia, and online retailer Ozon.
- In the fall of 2023, software developer Noventiq Holdings, Euro Med Center and MD Medical Group Investments announced plans to leave Cyprus.