The situation regarding foreign companies entering the Russian market in 2026 is truly complex: on the one hand, there are new simplifications, but on the other, significant barriers remain. We've highlighted the key points to consider.
What makes it easier to log in
• Simplified registration when opening an account. Amendments to the Tax Code (Federal Law No. 416-FZ of November 17, 2025) will come into force on September 1, 2026. Foreign companies no longer need to submit an application to the Federal Tax Service for registration. When they visit a Russian bank to open an account, the financial institution automatically identifies them, verifies their documents, and submits the application electronically to the tax authority. The Federal Tax Service assigns a Taxpayer Identification Number (TIN) within five days, and the bank receives a certificate. This significantly reduces the timeframe and eliminates duplication of documents (previously, two sets had to be prepared—one for the bank and one for the tax authority).
• Simplifying redomiciliation. In May 2026, the State Duma passed a bill in its first reading that relaxes the rules for foreign companies relocating to Russian special administrative regions (SARs, Russky and Oktyabrsky Islands). The problem was that the legislation of many unfriendly countries either does not provide for redomiciliation to the Russian Federation at all or deliberately blocks this process. Under the new rules, if the country of origin explicitly prohibits such a move, the requirement for removal from the foreign register can be deemed fulfilled. Furthermore, the two-year period for removal from the foreign register is suspended until December 31, 2027, and the Government Commission will be able to deem the requirement fulfilled on an individual basis if the company has already extended the procedure twice.
• Market Research Permission. The State Duma approved a law allowing companies with non-resident participation to conduct market research in Russia, provided that the results are used in tax or customs tariff regulation. This law is valid until September 1, 2028.
What difficulties and risks remain?
• Permission from the Government Commission. Certain actions (e.g., transactions involving shares, real estate, loans, and royalties in favor of a foreign company from an unfriendly jurisdiction) still require individual permission from the Government Commission for Control of Foreign Investments. When reviewing an application, the commission will evaluate various factors, including how the company conducted itself while it was out of the market, whether it caused any damage, and its future plans.
• Asset issues. If a company has previously left and left assets (enterprises) in Russia, there is a risk that under certain circumstances (for example, if the parent company finances entities imposing restrictions on the Russian Federation), these assets may be transferred to temporary state management.
• Sanctions risks. Companies from a number of countries face the risk of secondary sanctions from the US or EU for doing business with Russian counterparties. This forces many to carefully weigh the risks and sometimes seek complex arrangements (for example, working through agency structures in neutral jurisdictions) to reduce the likelihood of transactions being blocked.
• Industry and competitive barriers. In certain sectors (strategic industries, telecommunications, and mining), there are direct restrictions on foreign participation. Furthermore, the authorities expect returning companies to make specific commitments: localization of production, job creation, investment, technology transfer, and partnerships with Russian suppliers.
• Logistics and operational challenges. Even if regulatory barriers have been overcome, businesses still face practical challenges: building new supply chains, adapting to changes in the payment infrastructure, and recruiting local staff.
Practical advice
Before planning an exit, we recommend conducting a thorough audit: assess whether a specific transaction qualifies for regulatory approval, analyze the sanctions risks for your jurisdiction and beneficiaries, and clearly outline a business plan with localization and investment commitments—this will increase the chances of a favorable regulatory decision.
Promising investment projects in Russia in 2026
Guarantees for foreign investors in Russia 2026
State support of foreign business in Russia 2026
Business forms of foreign companies in Russia in 2026