Russian migratory policy in the era of Western-Russian tensions
The current crisis in the relationships between Moscow and the West led to the confrontation not only in political but also in economic and social spheres. Foreign business society, especially the businesses already operating or aiming to launch in this country, has become extremely concerned about the migratory environment in Russia.
However, despite many fears, legal consequences for foreign citizens working or having their businesses in Russia proved to be less dramatic than it may have been expected. On the contrary, against the negative background of sanctions and general deterioration of its relationships with the West, Moscow is trying to soften the blow by attracting high-profile specialists and new investors to Russia. Let us look at some of the most popular examples.
A Work Permit for Highly Qualified Foreign Specialists
One of the most efficient instruments for working in Russia is getting the work permit for a highly qualified foreign specialist. HQFS implies a number of tax (13% of income tax) and other benefits. Following the accession of Crimea to Russia foreigners working for the employers with domicile in the region (as well as in Sebastopol) and meeting all legal requirements, were allowed to obtain this status. What is more, the right to hire HQFS was granted to high-tech companies engaged in scientific and innovative activities. Finally, there was a decrease in the amount of the minimal salary (fee) per month required to recognize a foreign citizen as HQFS, which is equal today to 2 200 euros.
Other Work Permits
Before 2014, foreign citizens were allowed to work only in the region where they obtained their work permit. However, with recent amendments having taken effect, this constraint was partially lifted, so that foreigners in a number of cases are allowed to get a job in a different region. However, given the complexity of Russian regulations in this sphere, foreign employees are strongly recommended to apply for details to their lawyers.
Russian Citizenship
In order to attract more investors, the Russian government has simplified the admittance into Russian citizenship for three types of foreign citizens who are engaged in economic activities: individual entrepreneurs, foreign shareholders of Russian companies and natural persons working as qualified specialists in prescribed spheres. These categories of foreigners are entitled to apply for admittance to Russian citizenship without observing the condition concerning the time of residence.
Currency Transactions
Following the adoption of austerity policies, foreign citizens recognized as Russian residents were obliged to produce more data to competent governmental bodies. Specifically, they are held to file the reports on cash flows in foreign banks. Be aware that for a citizen of a foreign country to be recognized as Russian resident such person shall have a residence permit and annually produce the required data to the Federal Migration Service.
However, in the context of current Russian policy certain groups of foreign citizens have become subject to a few new legal restrictions concerning their status and the scope of opportunities in this country. With tensions in Turkey-Russia relationships, Moscow, first, suspended the visa-free travel agreement with Ankara. Second, Turkish citizens were prohibited to work as employees in Russia in most spheres (e.g. house-building, engineering, tourism). Finally, the companies having there domicile in Turkey are not anymore allowed to engage in a number of activities specified in the Resolution No 1457 of 29 December 2015.
To conclude, Russia will obviously keep trying to prevent a large exodus of foreigners and attract more specialist to come to this country by creating favorable conditions. Despite popular rumors in business society, Moscow has generally sustained a friendly migratory policy to foreign citizens. Certain changes are likely to be linked to personal limitations and restrictions and can be explained by the current political situation worldwide. Russia holds to global trend in this issue, but this is another story.
⇒ The article was written upon Moscow Rentals suggestion by our partner Bellerage, the Financial and Legal Outsourcing company. We hope the article written by Arthur Abouzov, Partner at Bellerage, was interesting to you and useful to your businesses.
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