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Tech firms request inclusion on Russia’s domestic software list -RBC -Breaking

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© Reuters. Customer uses his mobile wallet to make a payment at Omsk cafe, Russia, on March 1, 2022. REUTERS/Alexey Malgavko

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(Reuters] – Tinkoff Online, a Russian lender online, and Ozon Online are two of a small number of foreign-owned companies seeking approval from the government to take part in tenders for public services and receive preferential tax rates.

Russian-owned companies with over 50% ownership may be added to Russia’s Register of Domestic Software. This allows them to participate in government procurement and receive some benefits when applying value-added taxes.

Moscow was denied technology imports by the West, due to supply chain problems and sanctions from Western countries. Companies have also abandoned Russia’s market after Moscow sent hundreds of thousands troops into Ukraine on February 24, 2014.

Maksut Shahaev minister of communications, mass media said Tuesday that barriers to entry to the register (primarily the 50 percent ownership threshold) needed to be decreased and simplified.

Shadaev, a Russian citizen who owns less than half of the shares of Russian corporations but controls their activities, stated that “we believe this criteria needs to be modified slightly” at Tuesday’s forum.

RBC reported that a letter was sent to Prime Minister Mikhail Mishustin asking him to approve the proposed changes for the digital ministry in May. TCS-owned Tinkoff and Ozon signed the letter, RBC reported. Other signatories were Headhunter and Cian, a real estate database, Vimpelcom and Avito online marketplace.

RBC quoted this letter saying that “For many Russian companies leaders in digital economy and who conduct business only within Russia, and have, due to their success, attracted substantial foreign investment, this is a block.”

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