The owner / ultimate beneficial owner of the business is a citizen of the Russian Federation, what are the actions?
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Due to the military aggression of the Russian Federation against Ukraine, Ukrainian legislation has introduced restrictions on the activities of companies whose ultimate beneficial owners are Russian citizens. In particular, there is a prohibition on fulfilling monetary and other obligations toward such individuals, as well as restrictions on the disposal of their property.
To avoid potential negative consequences, it is recommended to consider restructuring the company's ownership:
- Divestment of the Russian owner's share: The sale or transfer of the ownership share in the company's authorized capital to another person not subject to sanctions. This can be done through a sale-purchase agreement or a gift of the share.
- Withdrawal of the participant from the founders: The Russian owner can submit an application to withdraw from the company's founders, transferring their share to other participants or third parties.
- Reorganization of the company: Conducting a reorganization, such as a merger or joining another company that does not have sanctioned owners.
