ALRUD Study: Who Is Creating Private Foundations in Russia

ALRUD’s Private Clients Practice has conducted a detailed study on the landscape of private foundations in Russia. The firm’s lawyers analyzed publicly available data on private foundations established over the past three years (up to and including February 2025), and surveyed foundation founders, those considering using this tool for asset management, heads of family offices, and professional advisors involved in the foundation formation process, including legal and banking consultants and notaries.

Number of Foundations, Asset Structure, and Contributions

As of early 2025, over 170 private foundations had been registered in Russia, including three international foundations, according to the Unified State Register of Legal Entities (EGRUL). Around 50 of these (29%) hold shares in the charter capital of LLCs (according to public data from the Russian Federal Tax Service) and disclose information about their assets, activities, and in some cases, their founders. No public data is available for the remaining 71%, which ALRUD believes may own shares in JSCs, mutual investment funds, real estate, or precious metals.

The year 2024 saw the highest number of new registrations—135 foundations. Thirteen were registered in 2023, and four in 2022. In the first two months of 2025 alone, 22 new foundations were registered, with that number rising to nearly 70 by early April.

According to survey responses, approximately 30% of current foundation founders transferred over RUB 1 billion in assets to their foundations. Among those planning to establish a foundation, 62.5% expect to transfer assets of similar value.

ALRUD estimates that the top five private foundations collectively manage assets worth over RUB 110 billion.

There has long been a demand for a domestic mechanism for asset management and succession planning in Russia. Today, private foundations are becoming an effective tool for hedging both business and family risks. Wealthy individuals are increasingly turning to this option, which offers not only protection and efficient asset management but also minimizes the risk of sanctions-related asset seizures. The key is to avoid rushing the setup process so the foundation can truly serve its founders’ needs. Kira Yegorova, Counsel, ALRUD Private Clients Practice

Sectors, Founders, and Geography

Among foundations that own shares in LLCs, 25% operate in the industrial sector. Another 19% are linked to real estate management, while IT and retail each represent 13%. Construction accounts for 9%, followed by betting and pawn activities (6%), food services (6%), hospitality (6%), and pharmaceuticals (4%).

For foundations registered before September 2024, founder information was publicly disclosed under the regulations in effect at the time. This provides valuable insights: 74% of founders are entrepreneurs, followed by government officials (13%), public figures (4%), top managers (4%), and media personalities (5%). For newly created foundations, founder information is now confidential.

According to ALRUD’s survey, those exploring the foundation structure are typically aged 45 and older, with 50% falling into the 45–64 age range. Among current foundation founders, 90% are married and have children.

The majority of private foundations are registered in Moscow and the Moscow Region, as well as St. Petersburg and the Leningrad Region—105 and 20 foundations, respectively. The Rostov Region, Republic of Tatarstan, and Krasnodar Krai follow with five foundations each. The Republic of Bashkortostan and Sverdlovsk Region each have four. Kaliningrad Region has three; Novosibirsk, Omsk, and Ryazan Regions, Buryatia, and Perm Krai have two each. One foundation was registered in each of the following: Yaroslavl, Ulyanovsk, Chelyabinsk, Vologda, Nizhny Novgorod Regions, Krasnoyarsk, Khabarovsk, and Zabaykalsky Krais, and the Kabardino-Balkarian Republic.

Motivations and Challenges

According to ALRUD’s survey, 67% of existing foundation founders created them to retain access to assets and provide financial support for their families during the inheritance transition. About 30% cited business continuity during emergencies, increased ownership confidentiality, tax benefits, and consolidated asset management.

Among those still considering a foundation, all respondents said they aim to ensure succession. Additionally, 38% cited confidentiality and improved business governance during life events, and 25% mentioned tax advantages.

Professional advisors working with clients report similar motivations. The most cited reasons include confidentiality and business continuity in the event of force majeure (55%), reduced liability risks and asset access during inheritance (45%), and family financial support in emergencies (36%).

The biggest challenge in foundation setup, cited by 100% of respondents, is the need to plan for different governance scenarios. 67% mentioned difficulties in preparing founding documents, and 67% pointed to unresolved tax and accounting issues.

Among those who already set up a foundation, all cited tangible benefits: 100% noted tax advantages, while 67% emphasized retained asset control and improved confidentiality.

Those considering a foundation identified the top benefits as transparent inheritance (75%), ownership confidentiality (63%), and stable asset management (50%).

Despite growing interest, some concerns remain. Among potential founders, 75% view the relative novelty of the structure and lack of information as major obstacles. This is understandable, given that judicial and notarial practice is still developing and legal gaps persist. Another 25% fear losing control over assets once transferred to the foundation, which by law becomes the owner. Many also struggle to find a trustworthy manager.

Like founders, advisors highlighted legal uncertainties and the lack of court practice (82%) as key risks. Another 64% pointed to concerns over asset alienation and loss of direct business control.

Private foundations are not just a tool for capital preservation—they’re an effective Russian mechanism for managing wealth and passing it on to the next generation. We've seen how the absence of a structured inheritance system can lead to business collapse, legal disputes, and major financial losses. A private foundation mitigates these risks by offering flexible succession, investment, and asset management solutions. Maxim Alekseyev, Senior Partner, Head of ALRUD Private Clients Practice