Ukraine News 04-24-2024 at 18:28 comment views icon
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Accessibility for «their own» and ban for residents of the Russian Federation: The Council has optimized the work of «Diya.City»

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Igor Sheludchenko

News writer

The Verkhovna Rada adopted in the first reading draft law No. 9319, which optimizes the work of «Diia.City».

About it it says on the «Diia.City» page on Telegram.

There are two main changes.

  1. The draft law makes attractive conditions «Diia.City» available to even more startups. Even the smallest tech companies «will be able to enjoy the best tax rates in Europe and all the tools to attract investment and build a transparent corporate structure».
  2. The document strengthens the anti-criterion of having a «Russian Federation» footprint in the company’s structure. After the law is adopted in the second reading, companies with Russian residents in their ownership structure will not be able to become «Diia.City» residents. It does not matter where they are located or reside now.

It should be noted that about a month ago it became known that Netcracker, one of the largest IT companies in Ukraine, was going to be closed, continues to operate in the Russian market. Netcracker is a resident of «Diia.City».

According to the report:

  • RUB 8 billion — the company’s revenue in 2023;
  • 2762 employees in Russia in 2023.

Recently, DOU published new facts about the company:

  • Netcracker has Russian roots — it was founded in 1993 by Russian Michael Feinberg;
  • a significant part of the management and system architects also come from russia;
  • The company’s offices are dominated by Russian developers;
  • Former employees say that key product development has always been done in Russia.

A month ago, «Diia.City» claimed that they had no legal grounds to exclude Netcracker.

«We can’t react to the news about Netcracker’s work in Russia with anything but anger and condemnation. The company is a resident of Diia City. And as long as it is within the legal framework of Ukraine, we cannot deprive it of its resident status. This raises the issue of imposing sanctions on the company, which is the responsibility of the National Security and Defense Council.

Before obtaining residency status, a company is checked for anti-criteria. These include — a resident of the aggressor country in the company’s structure (a legal entity registered in accordance with the laws of such a state or an individual permanently (mainly) residing in such a state), sanctions, bankruptcy, liquidation, state share in the charter, tax debts, etc. In the case of Netcracker, the structure of the Ukrainian legal entity was and is pure».

 


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