Russia’s second largest internet company is heading home. The tech giant

VK

has announced plans to relocate its operations from the British Virgin Islands back to Russia. VK is the technology group behind the Russian version of Facebook called VKontakte. VK runs the popular social media sites

Vcontacts

And

Odnoklassniki

which together have over 100 million monthly users.

The company will now be listed primarily in Moscow and registered on Kaliningrad’s Oktyabrsky Island, one of two special tax zones established to attract offshore companies as well as international investment. Founded in 2006, VK has since grown into one of the most popular social media platforms in Russia and other parts of the world. The platform has been a major player in the social media space for many years.

The announcement comes at a time when Moscow is encouraging companies registered in “unfriendly countries” to return home. Since the start of the Moscow-Ukraine war in early 2022, Russian companies have faced increasing restrictions and scrutiny from the authorities around the world.

In a statement, VK said that its shareholders and board of directors approved the decision and that its operations in Russia will continue “as an international public joint-stock company in accordance with Russian legislation.” The company also announced on Friday that it would delist its depositary receipts (GDRs) from the London Stock Exchange.

In April last year, Moscow passed a law banning Russian companies from trading their shares abroad through such depositary receipts (depositary receipts) – securities representing an interest in a foreign company. The move was intended to curb foreign control over Russian companies.