Economics
Russia Tightens Squeeze on Foreign Businesses Seeking to Leave
- Government lowers price cap, raises tax for foreign unit sales
- Raiffeisen Bank is among entities affected by hike in costs
Russia has made it increasingly difficult for international companies to leave with significant proceeds from asset sales.
Photographer: Alexander Nemenov/AFP/Getty ImagesThis article is for subscribers only.
Russia intends to increase the financial pain for foreign companies seeking to exit its market, leaving them with only a fraction of the value of their assets.
Companies that want to quit Russia will now have to accept a 60% discount on the sale value, up from 50% previously, according to two people with direct knowledge of the situation. The exit tax on deals will also more than double to 35% from 15%, they said.