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Many clients of “Geoburo“, when wanting to enter Russia, ask our employees where it is possible or where it is better to open a bank account? But not everything is so simple, if we talk about the territory of Russia itself, then for agricultural projects it is better to open an account in Rosselkhozbank. For obtaining leasing and factoring operations, then this is VTB Bank, the largest bank in Russia is Sberbank.

But today we will describe the situation not with Russian banks, but with foreign banks, if you want to work with Russia through offshores or because you are a citizen of a country that is not friendly to Russia. The list can be found HERE

Despite the numerous sanctions and challenges that Russia faces, including financial restrictions, capital flight, and the withdrawal of international companies, the country’s economy has demonstrated remarkable resilience and adaptability. GDP growth forecasts for 2024 range from 0.6 to 3% depending on the source, indicating the possibility of a positive economic trend. The Russian economy has shown unique growth under sanctions. The data indicate that despite sanctions and economic challenges, the Russian economy continues to develop and adapt to new conditions. This creates a potentially favorable environment for entrepreneurs, especially those who are able to quickly adapt to changing economic and geopolitical realities. In light of the current circumstances, some countries and banks that previously worked actively with Russian clients have introduced restrictions. However, there are still countries where Russians can open bank accounts to conduct business with Russian companies. In this article, we will examine which countries are ready to open their doors to entrepreneurs from Russia and offer possible transactions with Russian banks, thus facilitating mutual settlements with foreign partners for businesses from Russia.

Where can I open an account for working with Russia?

Based on the above, it should be noted that at the moment the list of banks ready to service business related to Russia has significantly decreased due to the current sanctions and restrictions. However, there are options for solving the problem, and we will study them below.

Banks of Southeast Asia:

In the context of banks in Southeast Asia, compliance with all regulatory requirements and avoidance of unwanted lists, restrictions and sanctions is a top priority. For this reason, for a long time, banks in this region provide services only to resident companies. In addition to the country of registration, the key criterion for banks is the feasibility of opening an account in this region. Therefore, for a legal entity, full compliance and recognition of its resident status in this country is necessary.

The most popular jurisdictions whose banks are ready to support work with Russian organizations are China and Hong Kong.

Over the past month, the policy of Chinese banks regarding work with Russia has changed its direction. At the moment, Chinese banks do not make payments to Russia. This trend has gradually increased its influence and has become fully entrenched in China today. It can only be added that China is not a low-tax jurisdiction. This is a country where it is necessary to create a full localization of business, obtain a work permit for a foreign director and generally meet all the requirements of a local company, which affects the costs of effort and money to support such projects. This should be taken into account when choosing a jurisdiction if the lack of the possibility of settlements with Russia is not an obstacle. Hong Kong has always been a good alternative to China, especially considering the requirements of both the Chinese registration authority and Chinese banks. Unlike China, Hong Kong offers convenient tax conditions, applying the territorial principle of taxation – profits received outside the territory of Hong Kong are not taxed in the country of registration. The country offers remote registration, no requirements for foreign shareholders and directors, attractive cost of registration and maintenance of the company. However, for the purposes of working with Russia, banks of this jurisdiction are no longer suitable. Following China, Hong Kong banks have stopped opening accounts for companies associated with Russia and making payments, especially if the banks notice that the accounts were used for transit transactions. The trend is gaining momentum, the largest banks have already notified clients that they will no longer work with Russia. There is no talk of completely freezing such accounts, but banks are conducting thorough checks on existing clients, complicating the work and increasing the time for crediting payments to unexpectedly long terms – more than 1 month. Many large Chinese banks, including those acting as correspondent banks in a large list of financial institutions in China and Hong Kong, have a presence all over the world, including the United States and EU countries, so their goal to avoid sanctions against their banks and their branches is logical. We decided to indicate these two jurisdictions, despite the fact that it is impossible to offer options for solving the issue of opening an account in these countries, since we understand that China and Hong Kong were one of the first solutions for opening an account, for many entrepreneurs and companies – a key partner. But do not forget that companies registered in these countries can still open accounts outside of China and Hong Kong, in banks and payment systems that maintain operations with Russia.

Indonesia An interesting and complex jurisdiction.

We can immediately highlight the important points: local banks only serve resident companies whose activities are related to the country of registration. Therefore, full placement of business in the country will be necessary. In addition, the director is a person in constant contact with government agencies, must reside in Indonesia and have permission to do so, and the company’s shareholder must contribute an authorized capital of at least 10 billion IDR. Despite all the features, Indonesia remains a popular country for relocators from Russia, including entrepreneurs. Depending on the volume of business, this jurisdiction can be an excellent solution for organizing work with Russia, since it supports operations with our country. In general, this jurisdiction should be singled out as one of the few that retains the option of working with Russia in Southeast Asia. For some types of business, it may be important to have an account in the specified region. We recommend that you agree and discuss in detail the issue of the size and payment of the authorized capital with our consultant when registering a company in Indonesia. Some deferments are possible, depending on the specifics of the project.

Middle East banks:

It is known that banks in this category have always focused on the domestic market and have not shown much interest in international business or foreign clients. Financial institutions in the Middle East still prefer to adhere to their established practices and focus exclusively on national clients – both individuals and legal entities. For this reason, opening an account in the countries of this region will require registering a company in the country of the selected bank and complying with all requirements for obtaining a residence permit or work visa for its participants where necessary. The main thing is that the banks of these countries are ready to solve the main problem of mutual settlements with Russian organizations.

Turkey and the UAE:

Since the beginning of 2024, Russian companies have encountered difficulties in carrying out financial transactions in banks of partner countries. First of all, Turkish banks began to freeze payments, which led to the paralysis of the activities of many enterprises. Then, banks of the United Arab Emirates joined the ranks of problems, which limited local companies in working with Russian organizations. We all realize that such actions are forced and necessary in order to avoid possible sanctions against banks. Despite the fact that the region still remains our “friendly” partner, cooperation with it is now severely limited. This limitation is felt by both small and medium-sized businesses and large corporations engaged in the trade of oil and oil products. Even such key market participants have no choice but to accept the new reality of restrictions.

Qatar:

Banks in Qatar currently support payments to Russia, while cooperating with banks that are not on the sanctions list. Although with restrictions, the possibility of working with Russia is currently preserved. Qatari banks offer to carry out transactions in the local currency – the Qatari real (QAR). Qatar offers a large list of banks, each with its own requirements and established minimum balances, limits and fees:

• Commercial Bank of Qatar (CBQ)
• Doha Bank Masraf
• Al Rayan
• Qatar International Islamic Bank (QIIB)
• Qatar Islamic Bank (QIB)
• Qatar National Bank (QNB).
  • To open an account, the personal presence of the account signatory is required. The peculiarity of Qatar banks is that banks only serve local companies and individuals – residents of the country. Foreign organizations will need to open a branch in Qatar. Many of the banks will want to see a connection between the activity and the country of registration.

Bahrain:

Bahrain also offers solutions for working with Russian organizations. The requirements are approximately the same as in Qatar – local banks open accounts for companies registered in Bahrain, and the signatory to the account and the founders of the company will need to visit the bank. The country offers a large list of banks, the selection of which must be carried out based on the bank’s requirements and the options offered:

• Ahli United Bank
• Arab Bank
• Bahrain Development Bank (BDB)
• BBK (Bank of Bahrain & Kuwait)
• Kuwait Financial House
• National Bank of Bahrain (NBB)

Oman:

Oman is no exception in this list of countries. Most Omani banks are ready to make payments from/to Russia, and also maintain the requirement for the residency of the company or individual applicant for opening an account. Omani banks are ready to work with Russian banks that are not on the sanctions lists. Opening an account also occurs with a personal visit of the company founders and the future signatory to the account. The list of banks ready to work with our country is also quite impressive:

• Bank Muscat
• Bank of Beirut Maisarah
• Bank National
• Bank of Oman
• Oman Arab Bank (OAB)
• Sohar International

CIS Banks:

The CIS countries maintain close economic and political relations with Russia, which is due to historical, cultural and geopolitical ties. This cooperation covers various areas of activity, so banks in these countries are often willing to process payments from companies to Russian organizations, which contributes to the development of economic ties and the strengthening of trade relations.

Kazakhstan:

For a long time, Kazakhstan was considered one of the most convenient options for conducting business transactions with Russia. Local banks were ready to provide services for opening accounts for foreign organizations and making payments with Russian counterparties. However, the increased risk of falling under sanctions became a serious factor, and in the context of Kazakhstan’s desire to develop its own economy, a decision was made to limit cooperation with Russian organizations. In addition, Kazakhstan announced the introduction of restrictions on working with Russian banks due to the risk of receiving double sanctions. This decision was made in the context of tightening sanctions policies towards Russia by some Western countries and international organizations. This news reflects the complexity of the situation in the region and the uncertainty in relations between the CIS countries and Russia. In such circumstances, banks in these countries are forced to take precautions and assess the risks associated with cooperation with Russian financial institutions.

In Kazakhstan, remote account opening for non-residents is possible in two large banks at once:

Forte Bank – you will need an EDS (it can be created in the NCALayer mobile application), as well as documents with registration data and confirmation of authority of persons;

Kaspi bank – just download the Kaspi Pay application and open a main account in tenge. After that, you can open additional accounts in other currencies (rubles, euros, dollars).

Armenia:

For a long time, Armenia has provided a wide range of services for registering companies and opening accounts in local banks, including the ability to interact with Russian partners. However, recent events indicate a change in this dynamic. Armenia recently announced its participation in international sanctions against Russia, which may seriously affect the level of cooperation between the two countries. In light of these events and the unpredictability of the development of relations between Armenia and Russia, we recommend choosing this jurisdiction with caution, studying in detail the issues of working with Russia and the requirements of correspondent banks that currently process payments, and monitoring new information updates. Despite all the difficulties, the possibility of working remains – this is the main advantage in solving the issue.

In Armenia, remote account opening is available only in three banks:

Ameriabank – international card and full online service via the application or the official website of the bank.

IDBank – issues Visa Business for individual entrepreneurs and legal entities, including non-residents. You can choose dollars or euros as the currency.

Banks of Uzbekistan and Kyrgyzstan:

These jurisdictions are friendly countries for Russia, ready to make payments with the Russian Federation. It is only important to carefully study the rules for opening an account, the company registration process and the requirements for applicants. Banks of Uzbekistan and Kyrgyzstan serve local companies. Foreign organizations will need to open a branch in the country and register with local registration chambers. Opening an account in a Kyrgyz bank is carried out during the company registration procedure for contributing the authorized capital personally by the founders and in the presence of the signatory to the account. As for the Uzbek bank, the need to open an account arises after the official registration of the company, while applicants must also be present in person at the bank. Bank options, conditions and basic requirements for accounts will be presented after analyzing your case and preparing a project for company registration. Considering that in both cases the personal presence of applicants in the country where the banks are located is required, clients have the opportunity to choose the most suitable bank and open an account in several financial institutions at the same time.

How to choose a bank to work with Russia?

• Firstly, the list of possible options cannot be called very large, and from a narrow list of services you can always discard the most inconvenient solutions for a specific project and stop at the right one.
• Secondly, given the requirements of many banks for registering a local company, obtaining a residence permit and localizing a business in the country where an account is opened, it is worth paying attention to the cost of servicing such organizations, taking into account the capabilities of the entrepreneur or his goals and desires.
• Thirdly, it is important to take into account the specifics of the activity, the geography of payments outside of Russia, the need to create and maintain a certain image of the company, the popularity of banks offered by a particular jurisdiction.
• Fourthly, it is necessary to take into account that the final decision of the bank or payment system, as well as the tariff plans they offer, the established limits of outgoing and incoming payments, the number of transactions and the requirements for placing deposits or minimum balances often depend on the overall picture of the project’s activities.

These indicators are often set individually for each specific company. All this can be found out in advance and the possibility of opening an account can be checked by conducting preliminary coordination with financial institutions selected from a possible list.

I would like to separately describe the situation with Mauritian banks for one of our clients who wants to work with Russia through an offshore company in Mauritius.

Cooperation with banks of the Republic of Mauritius is a reasonable measure for modern businessmen and investors. Most European markets are already overloaded with international clients, and this keeps them under constant scrutiny of regulatory authorities at various levels. Along with the vaunted guarantees and protection of investments, entrepreneurs receive many requirements and criteria that they must meet. In total, this entails the emergence of additional costs for maintaining bank accounts.

Despite its geographical remoteness, Mauritius has established itself as one of the leading economic reformers in the African region. The island’s economy is quite stable and is characterized by a low level of corruption.

What are the advantages of opening an account in one of the local banks:

• Loyal policy of banks towards companies from offshore or low-tax jurisdictions;
• Clients are provided with a full range of financial services;
• High level of service at a relatively moderate cost of banking services;
• Convenient platform for doing business and investing in the African continent;
• One time zone with Moscow;
• Remote opening of personal and corporate accounts is possible.

Criteria for choosing a bank in Mauritius.

The main criteria for choosing a bank in Mauritius include the following:

• political and economic stability of the country where the bank is located;
• degree of control over banking operations by the state;
• set of banking services provided to clients;
• compliance of the bank profile with the specifics of the expected transactions on the account;
• minimum deposit;
• cost of service;
• convenience of servicing remote clients;
• possibility of obtaining credit cards;
• interest rates on current and deposit accounts;
• availability of investment programs;
• territorial location of the Bank of Mauritius and its branches.
• reliability and prestige of the bank, high position in the rating of international rating agencies

As a rule, to open a bank account in Mauritius, it is sufficient to provide the bank with the following documents and information:

• documents confirming the identity of the account administrators and beneficiaries of the company – passport, international passport, document confirming permanent residence. The specified documents must be provided in originals;
• original corporate documents of the company (charter, memorandum, certificate of registration, appointment of director – all specified documents must be notarized and apostilled, certificate of issue of shares. In case of account management by a third party, the latter must have a notarized and apostilled power of attorney, as well as a resolution on its issuance);
• depending on the bank in which the account is opened, the following documents are required: recommendations from the client’s business partners, from other banks in which the client has accounts, account statements, resumes, business cards, names and websites of counterparty companies, a detailed description of the activities;
• in some cases, a personal meeting with a representative of a foreign bank is required before the account opening procedure begins.

Our company has heard of only two banks from Mauritius that opened accounts for working with Russia within two months:

• MauBank (Republic of Mauritius)
• State Bank of Mauritius Ltd (Mauritius)

A blacklist of offshore zones has been published in Russia, you can read about it HERE

The article was prepared and published by the founder of the “Geoburo” company Andrey Kichaev on 23/08/2024.