"Avtovoz": The company of the last Minister of the USSR "Avtotor" moved from Switzerland to the UAE due to sanctions

The Kaliningrad automobile holding "Avtotor" has changed the jurisdiction of key structures, transferring them from Switzerland to the United Arab Emirates, according to the Telegram channel "Avtovoz". According to the channel, the process of redomiciliation (change of legal registration) began back in June 2024 and ended with the transfer of two main companies to the "Abu Dhabi Global Market" (ADGM) free economic zone.

We are talking about the structures of Avtotor Investment Group (formerly the Swiss AIG SA), which manages the Kaliningrad "Finprominvest", and DUQESA Limited (formerly the Swiss "Duqueza SA"), which manages "Prommanagement". It is noted that both companies are re-registered in one of the most prestigious financial zones of the UAE, which offers foreign investors preferential taxation and asset protection.

According to "Avtovoz", the decision to move is due to the change in Switzerland's status after 2022, when the country joined the sanctions against Russia. The UAE, on the contrary, has maintained a neutral position and has become one of the few jurisdictions where Russian business can operate without restrictions.

It is noteworthy that the Kaliningrad Special Administrative Region (SAR) on Oktyabrsky Island offers similar preferences: zero income tax for management companies, dividend benefits and protection against sanctions risks. The SAR is more profitable than offshore zones in the Emirates in a number of parameters — for example, exemption from currency control and simplified corporate governance. Nevertheless, Avtotor chose the UAE. At the same time, the company's top management pays personal taxes in Moscow, and the holding is building housing for employees in Kaliningrad.

The founder and long-term owner of Avtotor is Vladimir Shcherbakov, the former Minister of Economy and Forecasting of the USSR. In 1991, he served as the first Deputy Prime Minister of the USSR and headed the State Planning Committee. After the collapse of the Soviet Union, Shcherbakov went into business, and in 1994 he headed the board of directors of Avtotor. In 2017, he transferred the management of the business to his son Sergey, but remains a key figure who was at the origins of the largest automobile production in the Kaliningrad region.