MOSCOW, January 24 (RAPSI) - The Russian Investigative Committee has proposed prohibiting offshore companies and their subsidiaries from participating in privatization proceedings, Senior inspector Georgy Smirnov told reporters on Friday.

During President Vladimir Putin’s 2013 address to the members of the State Duma, he raised the issue of offshore companies. He said that companies that had been registered in foreign jurisdictions, but that had operated in Russia, should be barred from receiving government support, as well as from participation in state procurement bids and contracts with entities in which state has an interest.

Addressing the offshore problem, Putin said that first of all, it is necessary to disclose the end beneficiary. Second, there should be unified rules of offshore zones’ operation. And third, he said, tax-loopholes should not be used.

The Investigative Committe also proposed criminal liability for the illegal takeover of strategic companies by foreign investors, if such action was proven to be deliberate. By deliberateness in this instance the investigators refer to evasion of contractual obligations or the provision of false data concerning the deal.