Deoffshorization implications for Russian companies management: JSC KAMAZ, UC RUSAL and JSC Sovcomflot cases

Abstract

Description of the goal, tasks and main results. The paper investigates the influence of deoffshorization in Russia on the Russian companies, including announcement of intentions to leave offshores from several major companies and introduction of anti-offshore legislation. Empirical study shows evidence of significant negative effect on market value for several companies. Case studies reveal that deoffshorization impact to large extent depends on offshorization structure and can be effectively countered by applying the initiatives developed in the course of this research. The recommendations are tailored for three offshorization structures: incorporation in offshores, ownership through offshore holdings and assets (vessels) registration under offshore flags of convenience.