In Ukraine there are 104 branch of Russian companies and 13 thousand with founders from Russia

Ukrainian companies often base a legal entity in Russia in wholesale trade and public organizations, and Russian in Ukraine are hiding their origin. To such conclusions in his research intelligence system for verification of contractors YouControl, which recently in the free access has information about the companies from Russia.

Source: delo.ua

Representatives YouControl note that despite the tense Ukrainian-Russian relations, Russia still has branches of Ukrainian companies. Thus, according to the Russian registry EGRUL 85 companies in wholesale trade and 84 non-profit organizations still have open branches in the Russian cities. Also their units in Russia are companies involved in real estate transactions, construction, and temporary accommodation supply.

В Украине работают 104 филиала российских компаний и 13 тысяч — с учредителями из РФ

At the same time, an economist of economic strategy Center Darius Myhaylishyna explains that sometimes Ukrainian companies have no choice but to continue to supply products to Russia. This is especially true of such industries as metallurgy, where the production chain was tied to Russia ever since the Soviet Union, and this dependence is still maintained.

В Украине работают 104 филиала российских компаний и 13 тысяч — с учредителями из РФ

Most companies with branches in Russia from Kiev — 210. The founders of legal entities in Russia are quite a lot of companies from South-Eastern Ukraine: 70% of readers, 56 — from Donetsk region, 55 — Kharkiv; 48 — from Dnipropetrovsk and 30 — from the Zaporozhye region. But in Western Ukraine are almost absent: in Ivano-Frankivsk, Volyn, Ternopil and Transcarpathian regions only one such company in Khmelnitsky — 2, Chernivtsi — 3, Rivne — 4, a Lviv — 5.

In turn, according to the register, branches of Russian companies in Ukraine is much lower — only 104. “However, the branches are not the only type of relation that may exist between the company in Ukraine and Russia. For example, according to the Unified state register in June 2020, Ukraine had as many as 12 970 companies that had the Russian founders or beneficiaries”, — added analysts.

According TSES over the last 10 years, the Russian presence fell in Western Ukraine, but grew up in Zakarpattia, Sumy, Cherkasy, Kirovohrad and Chernihiv regions. However, this does not necessarily indicate a systematic increase of the Russian presence: for example, in Zakarpattia and Cherkasy regions, the key factor was the acquisition of a Russian company with local power companies.

В Украине работают 104 филиала российских компаний и 13 тысяч — с учредителями из РФ

According to Mikhailishin, some Russian companies hide the real beneficiary and do not specify it in the registry, although it is contrary to the law. These companies want to hide from the Ukrainian sanctions, and continue to work in Ukraine.

Ex-CEO of Naftogaz of Ukraine Yuriy Vitrenko believes that only the capital market can help to reduce Russian influence in Ukraine.

“To reduce Russian influence in Ukraine, it is necessary to reduce the impact of Russian institutions, and it needs to offer an alternative. Such an alternative there is the capital market. Successes in the gas sector of this show. At the center of all of the reforms introduced were not politicians but the market,” he says.

Analysts report that Russian companies are located mainly in Kiev and in Eastern Ukraine. Ukrainian companies also continue to do business in Russia, as members of the Russian non-profit organizations, and founders of commercial organizations in Russia. As with the presence of Russian companies in Ukraine, there is also most associated with Russia companies from Eastern Ukraine.

В Украине работают 104 филиала российских компаний и 13 тысяч — с учредителями из РФ

“How ethical cooperation with the aggressor, each Ukrainian company decides on their own. Of course, this carries reputational risks,” — said the Deputy Director YouControl legal Affairs Daniel Globa.

According to him, such legal risks for companies can arise when legal entities or related individuals, which represent their interests, are under Ukrainian or international sanctions.