Just days after the Federal Grid Company told business partners who refused to disclose ownership that it was terminating their contracts, the state-owned electricity distributor announced that it will avoid buying materials from contractors registered offshore.
It also said it would steer clear of contractors whose owners — including beneficiary owners — are registered offshore.
Federal Grid Company, or FSK, "has made the decision to restrict the participation of contracting parties connected to offshore zones in the company's purchasing procedures," the company said in a statement Wednesday.
"Tightening up its purchasing rules … makes it possible to strengthen the protection of shareholders' interests and create additional obstacles to sending capital out of Russia," the company said in the release.
FSK said it informed business partners "interested in extending current contracts" of its new stance ahead of time and warned potential purchasing partners.
A similar approach was taken in last week's action against contractors. On March 13, FSK sent letters to contractors that hadn't disclosed the identity of their owners, FSK spokesman Oleg Kozlov said at the time. Before those notifications went out, FSK "had undertaken painstaking work" with all of its contract partners to obtain ownership details, Kozlov said by e-mail.
Both announcements have cited a need to meet standards established by a December commission led by Prime Minister Vladimir Putin, as well as by a government commission on energy-sector development.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.