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VKontakte moves to the Russian jurisdiction

The process of returning to Russia for IT developers might become a popular trend. Not only because there are difficulties in a foreign land. The Russian laws have finally begun to adapt to the challenges of the market.

   
February 19, 2023, 08:12
Business & Energy
Photo: VKontakte

Photo: VKontakte

MOSCOW (Realist English). VKontakte (VK Company Limited (VK) is moving to the Russian jurisdiction from the Virgin Islands (UK). A reasonable question is when Yandex will move from Holland?

Obviously, this issue plays a strategic role for the Russian-speaking information environment. At the end of last year, interesting news came to light that the matrix company in the Netherlands was starting a restructuring: with the separation of the main part of the business into a separate Russian structure. After that (if the restructuring takes place), the Dutch Yandex N.V. will withdraw from the shareholders of the group of companies, as well as change the name, leaving the locomotive brand to the Russian heir.

The process of returning to Russia for IT developers might become a popular trend. Not only because there are difficulties in a foreign land. The Russian laws have finally begun to adapt to the challenges of the market. There are a number of objective reasons for a little twinge of nostalgia for the native jurisdiction.

One of them is the latest clarifications of the “Ministry of digitalization” on the criteria of Russianness. To be considered a domestic developer, the company must be legally “registered” in the Russian Federation, while the share of foreign rights holders among shareholders should not exceed 30%, and more than half of the personnel must have Russian citizenship.

There is also a set of requirements for software. It should not have restrictions on the territory of the Russian Federation (not based on foreign components) and must be compatible with Russian OS and (Database management System) DBMS.

Digital and Social MediaRussiaVKontakteYandex
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