There are lots of reasons why Scotland should be in the headlines in Tatarstan. After all, many people in this country of nearly four million on the Volga – forced in to a union with Russia half a millennium ago – instantly "get" our politics of Unionism and nationalism.
So perhaps it was not so surprising when a local news site followed up on June's Brexit vote with an article headlined Scotland prepares to exit the United Kingdom. True, the site, Kazan-Inform, assumed Nicola Sturgeon was a man and wrongly reported that our independence referendum was just six months before the EU vote. But those were just details. The story had a simple message: "Scotland wants stability," the site's unnamed writer declared, "and clearly understands that very hard times could come with Britain's exit from the European Union."
The interest is not in our constitutional niceties. Kazan-Inform is speaking to a specific audience: "investors" in the kind of Scottish shell companies routinely advertised across the former Soviet space as vehicles for corporate secrecy and tax avoidance.
People stashing their cash in tax havens through Scottish firms have a natural interest in our constitutional future. "Scottish offshore companies, which enjoyed considerable popularity among European and Russian investors, are being registered increasingly rarely," the site asserts. "This is because of uncertainty over the country's legal and tax regimes." At present, it says, many entrepreneurs have found a place for tax-free activity within the EU. But will this continue after Brexit? The site even suggests that independence within the EU could re-establish stability and end "the panic that has given rise to rumours and is putting off potential investors".
Kazan-Inform – one of hundreds of similar local websites that are, in my view, frankly promoting murky agencies selling offshore firms – links to an advert for Scottish limited partnerships or SLPs.
These are the most popular Scottish shell companies and sell for around £1,500 on the open market. They are a significant and disproportionate part of a general market in British "brass-plate" companies used, in conjunction with bank accounts in Latvia, to syphon billions of pounds from the former Soviet Union.
As journalist colleagues in the former USSR emphasise, this is money that should be taxed to help provide basic services in places such as Tatarstan.
Last week, The Herald published its calculations for the value of the SLP business. We reckon there are some £25 million in fees a year made from selling hosting shell companies. This is not a lot. But there are still people positioning for a share of this business in the wake of Brexit. There is open talk in Latvia about Riga replacing London, Bristol or Edinburgh as the new natural home for EU shell companies that, bluntly, are bleeding some poor countries dry.
There is a paradox in this: Scottish and British politicians have only just realised that the UK is a giant conduit for multi-billion-dollar laundering. Two British firms were named in the United States this month for handling a total of $10 billion. Kazan-Inform may be wrong about the decline in SLPs. But it would be funny if this dirty little industry in Scotland was ended by Brexit, not political action.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here