Another EU Listed Company To Re-Domicile To Russia

Cian plc, the holding company of the Cian classifieds real estate advertising services company, has filed a request with the Cypriot regulator for redomiciliation to Russia on August 18, the company has stated. Cian’s shareholders approved the redomiciliation of the legal entity in spring this year.

The redomiciliation of Cian plc involves the subsequent automatic and compulsory conversion of its receipts into shares of the redomiciled company. After the conversion, Cian may consider options for an additional exchange of shares of the redomiciled Cian plc for shares of the current holding company, ICPJSC Cian, which is based in Moscow. The move was taken following pressure from the European Union on the company to exit Europe, amongst generally unfavourable operating attitudes within the EU. 

Following the redomiciliation of Cian plc to the Moscow Stock Exchange, the group’s management intends to submit the issue of paying special dividends in Russia for consideration by the board of directors. This is now expected to exceed 100 rubles per share.

Cian are a successful company – according to its financial statements, 2024 revenue increased by 40% over 2023 to €111 million, with profits reaching €16.29 million.

Cyprus had been a popular destination for Russian companies seeking IPO’s as the Greek-Cypriot culture is similar to Russia’s including the Cyrillic alphabet. The corporate income tax rate is also one of the lowest in Europe at just 12.5% compared to 25% in Russia. Dividends could also be paid out in Euros.

Cian’s move means that Cyprus loses out on over €2 million of taxable revenues from the companies current level of annual profits, plus the loss of all professional personnel work in Cyprus, such as accounting and legal services. That money and those jobs will now pass to Russia.

There is a growing trend of Russian or Russian-market focused companies leaving the European Union for Russia. We previously highlighted others here, here and here.

Further Reading

Russian MNC In The West Redomicile To Friendlier Jurisdictions: Two Case Studies