Russia nationalizes foreign assets in the country
2022.12.30 12:05
Russia nationalizes foreign assets in the country
Budrigannews.com – The finance ministry stated on Friday that foreign investors from “unfriendly” nations selling stakes in Russian assets may be required to do so at half price or less, with the Russian budget potentially receiving a 10% cut of any transaction.
Numerous Western businesses, including food and clothing chains and energy producers, have left Russia since Moscow sent its army into Ukraine in February.
A list of precautions that could be taken when selling assets by “foreign persons associated with foreign states that commit unfriendly acts against Russian legal entities and individuals” was included in the minutes of a meeting of a government commission that monitors foreign investment.
Countries such as members of the European Union, the United States, Japan, Canada, Britain, and Australia that have imposed sanctions on Russia in response to its military intervention are referred to as “unfriendly.”
It was not immediately clear whether the measures would apply to every deal or how the government would implement them.
According to the minutes of the meeting on December 22 that were released on Friday by the finance ministry, transactions may necessitate an independent assessment of the assets’ value, as well as the establishment of key performance indicators for the new shareholders.
One requirement stated, ” The offer of resources at a rebate of something like half of the market worth of the important resources showed in the resource valuation report.”
Another said that sellers might have to make additional payments for one to two years or pay an upfront fee of 10% of the total transaction to the Russian government’s budget.
This summer, parliament did not pass a bill that would have allowed authorities to seize assets in Western countries.
However, investors from unfriendly nations were prohibited from selling shares in the most significant and transferable investments—key energy projects and banks—by a decree President Vladimir Putin signed on August 5 unless Putin granted a waiver.
More Chinese companies that bet on energy reaping benefits
