Moscow tax event goes ahead despite sanctions

Tuesday 05 August 2014

Jersey Finance have confirmed that they will sponsor and attend “the world’s biggest tax planning conference” in Moscow next month despite Jersey signing up to EU and US-led sanctions against Russia described as the most stringent since the Cold War.

Financial institutions in the Island were asked on Friday afternoon to check whether they had any accounts, funds or “economic resources” held in the names of a list of people with ties to the Putin regime. They have been told that any assets held by listed people should be immediately frozen and reported the Chief Minister’s department.

Chief Minister Ian Gorst said that there was a balance to be struck between legitimate and illegitimate business.

He said: “Jersey has a duty to act in line with the international community in imposing this sanctions regime against Russia.

“My officials will be working with colleagues in the EU to assess any economic impact that these measures may have.

“The sanctions, which will only apply to new business, are targeted and it is not the intention that they should affect future legitimate, non-sanctioned business with Russia.”

The sanctions follow ongoing conflict in Ukraine and the shooting down of MH17 last month - 298 people were killed when an airliner was shot down near the Russia-Ukraine border. It is believed that pro-Russian separatists, armed by the Putin regime, are responsible.

Jersey Finance say that they will comply with all of the legal obligations placed upon the business community, but that they would be taking part in the Intax Expo Russia in Moscow on 22 September. That event is billed in their promotional material as “the world’s biggest conference and exhibition for practitioners in the sphere of international tax planning, corporate and estate planning”.

Jersey Finance chief officer Geoff Cook said: “We will of course meet the legal obligations placed upon the industry in its business dealings with Russia and our members will be responding to the Chief Minister’s request.

“We will also remain in close consultation with our government over political and wider economic developments and will be considering how these sanctions impact on the business we do with Russia.

“In the meantime, Jersey Finance’s planned strategy regarding existing, legitimate business that falls clearly outside the scope of the sanctions will remain in place.”