As a result of dubious financial transactions involving offshore companies associated with Russian officials, billions of rubles were withdrawn from the Russian economy. This was announced by the head of Rosfinmonitoring (financial monitoring agency) Yuri Chikhanchin.
“The analysis of our information showed that Russian citizens control thousands of foreign companies” said Chikhanchin, speaking at the Eurasian anti-corruption forum “Conflict of Interest: the law and ethics. ”
According to the department, these offshore companies belong mostly to government representatives at the Regional Governor or Duma Deputy level, as well as heads of executive bodies at various levels. The information obtained as a result of the investigation has been sent to law enforcement agencies for further analysis, Chikhanchin said.
The Russian investigation began when Mossack Fonseca (Panamanian law firm) had its “Panama Papers” leaked to journalists in 2016. While the Western media did its best to give the scandal a primarily anti-Russian spin, there were 11.5 million leaked documents that detail financial information of more than 200,000 offshore entities. The documents contain personal financial information about wealthy individuals and public officials from all over the world.
These companies in question are utilised to siphon money from the Russian Federation to offshore accounts , whether for tax evasion of private revenue or misappropriation of public funds.