RE: Licenses on the way !29 Mar 2023 18:25
Huileng Tan
Wed, 29 March 2023 at 9:14 am BST
A headshot of Russian President Vladimir Putin standing in front of an orange background.
Russia witnessed a mass exodus of Western companies after it invaded Ukraine.Valery Sharifulin, Sputnik, Kremlin Pool Photo via AP
Foreign investors exiting Russia must donate at least 10% of asset sale proceeds to the state.
The new rule applies to investors from "unfriendly countries" that imposed sanctions against Russia.
Over 2,000 applications have been sent by companies seeking to exit the Russian market, per the FT.
More than a year into the Ukraine war, the Kremlin is still thinking of ways to penalize foreign companies exiting the country — and it is now making the departure more expensive.
Investors who are selling their businesses and are from "unfriendly countries" — those that have imposed sanctions against Russia over its invasion of Ukraine — must donate at least 10% of the sale proceeds to the Russian budget, according to a document posted on Monday by the country's finance ministry.
The new ruling states that such companies have "an obligation to make a voluntary cash contribution to the federal budget" that amounts to at least 10% of what they receive from the sale, according to a Reuters translation.
This donation is on top of a previously announced 50% cut on the sale of their assets, which has to be borne by these investors.
Russia witnessed an exodus of companies after it invaded Ukraine, but some have remained — either voluntarily or because of challenges in leaving the Russian market.
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