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Many foreign companies leaving Russia reserve opportunity to return — Central Bank

It is noted that the impact of sales of Russian assets by foreign investors on the Russian market is limited at the national scale

MOSCOW, May 26. /TASS/. The share of foreign companies that have sold their Russian assets is small against all foreign companies operating in Russia, and many foreign companies leaving Russia reserve an opportunity to return, the Central Bank said in its financial stability review.

About 200 transactions with the divestment of assets in Russia were made in total from March 2022 to March 2023 and just 20% among them were deals related to sales of major foreign assets (over $100 mln). Just five transactions among the ones approved from October 2022 provided for actual payments to nonresidents totaling over $400 mln.

The impact of sales of Russian assets by foreign investors on the Russian market is limited at the national scale, the regulator noted.

"Firstly, the majority of such transactions implies as a rule keeping of required licenses to production and patents and trademark rights. Raw materials, materials and components are continued to be supplied to companies; technical and material assistance is being provided. Furthermore, many foreign companies, when exiting from Russian assets, reserve the opportunity to return for them," the Central Bank said.

Such transactions comprise options granting the right to buy assets back within a certain period. The business normally continues smooth functioning.