Putin allows 'key enterprises' to hide information about their work

Radio Svoboda reported it, according to Ukrinform.

Enterprises recognized as 'economically significant' may not disclose information under the laws 'On the Securities Market', 'On Joint Stock Companies', 'On Banks', and seven other laws. At the same time, the information must still be submitted to the authorities.

Putin's decree explains the measure as necessary to take 'urgent measures' in response to the 'unfriendly' actions of the US and 'foreign states and organizations that have joined them'. First and foremost, this refers to international sanctions imposed on the Russian economy.

Read also: More than 1,700 attempts to circumvent sanctions against Russia detected at Georgian customs

After Russia's invasion of Ukraine, an unprecedented number of restrictions were imposed on Russia and Russian companies and businessmen by Western countries. At the beginning of January, 18,772 restrictions were in place against Russia, according to the Statista portal. Iran is in second place in terms of the number of sanctions, with 4,593 restrictions imposed on it.

Moscow is trying to reduce the effectiveness of sanctions, in particular by hiding data on the economy. In February 2023, the State Duma passed a law allowing the government to withhold any official statistics. Concealing economic information leads to lower economic efficiency and increased corruption risks.

As reported, the concept of an 'economically significant organization' appeared in Russian legislation in the summer of 2023. The government has the right to create a list of such companies. To be included in the list, a 'significant company' must have at least one criterion: annual revenue of more than 75 billion rubles ($843 million), tax payments of more than 10 billion rubles per year, asset value of more than 150 billion, and a staff of more than 4,000 employees. Or such a company should operate in critical industries or provide services to more than two million Internet users.