Russia tightens Western firms’ ‘free exit’

The Russian government has tightened restrictions on foreign companies trying to sell their Russian subsidiaries, placing de facto caps and deadlines on transactions, the Financial Times reported on Tuesday.

The Kremlin later said there would be no “free exit” for Western companies selling their Russian assets and they would have to abide by strict rules as dictated by Moscow.

“Russia remains a country that is open to foreign investment … Russia is ready to create comfortable conditions for foreign companies working here,” Kremlin spokesman Dmitry Peskov said.

“But taking into account the quasi-war that the collective West is waging with Russia, including an economic war, a special regime applies to those Western companies that are leaving under pressure from their governments.”

Hundreds of Western companies have left Russia in the 20 months since Moscow launched its special military operation in Ukraine. According to the report, citing people involved in recent deals, the new restrictions add to existing rules requiring foreign companies that seek to leave the country to sell their Russian assets at a discount of 50 percent or more and pay a “voluntary” 15 percent contribution to the state budget.

Moscow has imposed a raft of capital controls in response to Western sanctions that it says are needed to boost economic sovereignty.

Russia’s commission on foreign investments, which signs off on Western-owned transactions, introduced the currency limits after the rouble began to weaken in July.

New round of sanctions

Since then, Russia’s Central Bank has raised its key rate four times, and President Vladimir Putin earlier in October ordered 43 companies to sell part of their foreign currency earnings on the domestic market.

The move came as Bloomberg reported that the European Union is expected to impose trade restrictions worth $5.3 billion as part of the 12th package of sanctions against Russia.

The latest round of EU sanctions list was expected to include more than 100 individuals and 40 business entities.

The new planned restrictions will affect exports of welding equipment, chemical products and other military-related technologies.

Separately, Ukrainian President Volodymyr Zelensky’s confiscated apartment in Crimea was sold for 44.3 million roubles ($473,500).— China Daily