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Withdrawal from Russian assets will cost foreign companies 5-10% of their market value

In December 2022, the subcommittee decided to allow alienation of assets by companies from "unfriendly" countries under following conditions: an independent assessment of the market value of assets

MOSCOW, March 27. /TASS/. Companies from "unfriendly" countries, which decide to withdraw from their Russian assets, will be required to pay 5-10% of the market value to these assets to the Russian budget. This is according to an extract from the minutes of the meeting of the subcommittee of the government commission on control over foreign investment dated March 2. The document was published on the website of the Russian Finance Ministry.

According to the document, in case of sale of their assets at a discount of more than 90% of the market value indicated in the asset valuation report ‘unfriendly’ non-residents are obliged to voluntarily contribute at least 10% of the market value of these assets to the Russian budget. If they sell assets without such a discount, the voluntary contribution will be at least 5% of the market value of these assets.

In December 2022, the subcommittee decided to allow alienation of assets by companies from "unfriendly" countries under following conditions: an independent assessment of the market value of assets; sale of assets at a discount of at least 50% of the market value of the relevant assets indicated in the asset valuation report; setting key performance indicators for new shareholders (owners); the presence of an installment plan for 1-2 years and (or) an obligation to voluntarily transfer funds to the federal budget in the amount of at least 10% of the amount of the ongoing (executed) transaction (operation).