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Number of German companies in Russia decreases by 7% in 2015 — expert

The expert says the decline may be due to the new procedure of reregistration of representative offices and affiliates that came into effect in Russia on January 1, 2015

© AP Photo/Ferdinand Ostrop

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MOSCOW, January 20. /TASS/. The number of representative offices, affiliates and legal entities with participation of German capital in Russia reduced by almost 7% in 2015, an official with the Russian-German Foreign Trade Chamber said.

"The total number of the representative offices, affiliates and legal entities involving German citizens and companies on the territory of Russia amounted to 5,583 companies. In 2014, 6,000 companies with German capital were registered in Russia," the expert of the Russian-German Foreign trade chamber said.

The expert said the decline may be due to the new procedure of reregistration of representative offices and affiliates that came into effect in Russia on January 1, 2015.

"As a result of the innovations which caused the transfer of the registry of entities from of the State Registration Chamber to the tax authorities the representative offices and branches of foreign companies encountered serious procedural difficulties and faced ungrounded refusals in the process of reregistration during the year. However, the main reasons for reducing the number of representative offices and branches were deteriorating economic situation in Russia in 2014-2015, and a significant devaluation of the ruble, which lowered the purchasing power of Russian customers of German companies," the expert said.

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