A Russian court has suspended the corporate rights of Rusagro’s Cypriot parent company in its main Russian subsidiary, signaling a potential redomiciling of the farming conglomerate from Cyprus to Russia. This move comes as many Russian companies are registered in Cyprus or the Netherlands, with Moscow aiming to reduce foreign interference in economically important entities.
The court ruling in favor of a claim brought by Russia’s agriculture ministry allows the ministry to limit the voting power and shareholder rights of Ros Agro Plc, the Cypriot parent company of Rusagro. This decision underscores the efforts of the Russian government to regain control over key organizations, following similar actions taken against other prominent companies.
Rusagro, a major agricultural firm in Russia, has not yet commented on the court’s decision. The case highlights the challenges faced by foreign-owned companies operating in Russia, particularly in the current political climate where external ownership can be seen as a potential risk.
