[ENOG discuss] Update on payment options to the RIPE NCC

Jochem de Ruig jochem at ripe.net
Tue Feb 14 14:16:55 CET 2012


Dear Sergey,

Thanks for your feedback.

We always aim to take all comments and considerations into account and we did consider the options proposed. We looked at
registering a bank account there as well as a full registration. Several members at the last two ENOG meetings stated that this would
not simplify payments. We also had this confirmed by our legal counsel in Russia.

To summarise why it wasn't a feasible option: registering a bank account in Russia would not bring any change to the current situation
because the RIPE NCC would still be a foreign entity without a branch in Russia and therefore it does not make payments easier. Firstly, a
full registration is not possible because we have no physical presence in Russia and secondly, this would make RIPE NCC's
membership fees collected in Russia subject to Russian profits tax. This is clearly an unwanted situation as it would obviously increase
the amount of overall contribution.

Generally speaking, we have been operating the current system in Russia for over seven years now and in the overwhelming majority of
cases it works out fine. We are aware that situations differ depending on the position of specific members' accounting departments
and banks and we are happy to give additional explanations if and when required.

In summary, either establishing a local bank account or a full local organisational presence will increase cost and are thus counterproductive.

Regards,

Jochem

On Feb 13, 2012, at 3:47 PM, Sergey Myasoedov wrote:

> Hi Jochem,
> 
> JdR> Russian members informed us that local Russian payments can only be made
> JdR> to organisations registered in Russia.
> 
> That's wrong. If everything you can perform during one year of discussion is that
> conclusion - we can summarize that your department did nothing.
> 
> Why you are referring to 'russian members'? What is a result of conversation with
> Unicredit bank? Who was your consultant?
> 
> 
> I can say again: any non-resident company is able to open a bank account in RUB in any of
> russian banks. You need only to prove the existing of company and provide AoA
> (translations, of course). And the powers of representative as well.
> 
> JdR> The RIPE NCC values input from our members and is open to investigating other
> JdR> feasible payment options. If you have any further suggestions, please let us know.
> 
> Unfortunately you are always ignoring such input.
> 
> 
> --
> Sergey
> 
> 
> Monday, February 13, 2012, 3:14:10 PM, you wrote:
> 
> JdR> Dear colleagues,
> 
> JdR> We are pleased to report that the RIPE NCC has expanded its payment options to all
> JdR> RIPE NCC members this year to include PayPal and VISA virtual credit cards.
> 
> JdR> This change is the result of last year's discussions at ENOG 2 and on the mailing
> JdR> list that the RIPE NCC investigate different payment options for RIPE NCC members in Russia.
> 
> JdR> After investigating several methods, it became clear that PayPal and virtual credit
> JdR> cards would be the most suitable alternative payment options at this time.
> 
> JdR> Other options, like opening a local bank account in Russia in RUB or EUR or opening
> JdR> a bank in the Netherlands in RUB to facilitate payments in local currency would not
> JdR> decrease the complexity and costs of payments to the RIPE NCC since this would be seen as an international
> JdR> transfer. Russian members informed us that local Russian payments can only be made
> JdR> to organisations registered in Russia. Our Executive Board decided that the RIPE NCC
> JdR> will not pursue a registration in Russia at this point in time as this would result in a high overhead and cost.
> 
> JdR> The RIPE NCC values input from our members and is open to investigating other
> JdR> feasible payment options. If you have any further suggestions, please let us know.
> 
> JdR> Kind regards,
> 
> 
> 
> JdR> Jochem de Ruig
> JdR> RIPE NCC
> 
> 
> 
> 
> 
> 

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