Finance Ministry announces "dozens" of applications from companies leaving Russia
Every month, a subcommittee of the Government Commission for the Oversight of Foreign Investments reviews dozens of applications from foreign businesses wishing to exit Russia. This was reported by Deputy Finance Minister Ivan Chebeskov in an interview with RBC.
According to Chebeskov, the subcommittee reviews not only transactions related to companies leaving the Russian market, but also real estate sales and dividend payments. "In total, there are at least 100 applications a month, but if we talk about 'exit' transactions, there are dozens," the official said.
He added that compared to previous periods, the flow of applications from foreign entrepreneurs wishing to leave the market has slowed. Chebeskov believes this is primarily due, not to the tightening of conditions for such transactions, but to geopolitical expectations. "The conditions may be tighter, but they remain feasible; these are not prohibitive conditions," he said.
In autumn 2024, the conditions for foreign businesses to quit their Russian assets took a more complicated turn: the minimum discount was raised from 50% to 60%, and the contribution to the Treasury was increased from 15% to 35% of the company's market value. Chebeskov said this contribution is usually paid by buyers due to legislative restrictions imposed on sellers making money transfers to the Russian Treasury.
Chebeskov said that the commission had not received any applications for the return to Russia from foreign businesses that had left. There were only "one-off applications by foreign companies already operating in Russia to purchase new Russian assets."
Chebeskov continued that foreign businesses would only be able to return if they met certain criteria currently being put together by the authorities. At the same time, the conditions for "entry" will be tougher than they were before 2022, the deputy minister said. But if the seller and the foreign buyer agree on a deal at market price and the seller is satisfied with its terms, the authorities will not interfere, he added.
Amendments are currently being prepared for consideration by the State Duma which provide for a tightening of the conditions for foreigner businesses to return to the Russian market. They allow the present Russian owner to unilaterally terminate a transaction with a foreign business, even where it has a repurchase option or similar agreement.