News

Russia has raised the fee for foreign companies planning to leave the country

On#nbsp;October 4, 2023, the decision of#nbsp;the Government Commission was published to#nbsp;increase to#nbsp;15% the voluntary contribution amount from Russian assets for investors from "unfriendly" countries who will leave their business in#nbsp;Russia
Previously, the contribution rate was 5% of#nbsp;the market value of#nbsp;the transaction object, and when the transaction price was set at#nbsp;a#nbsp;discount of#nbsp;more than 90% of#nbsp;the market value#nbsp;— 10%.

To#nbsp;leave the Russian market, foreign companies must obtain permission from a#nbsp;special commission of#nbsp;the Ministry of#nbsp;Finance. In#nbsp;December 2022, the commission adopted four criteria for approving transactions for the sale of#nbsp;assets by#nbsp;foreigners in#nbsp;Russia:
  • availability of#nbsp;an#nbsp;independent assessment of#nbsp;the value of#nbsp;assets;

  • availability of#nbsp;installment payment for the buyer for one to#nbsp;two years or#nbsp;payment of#nbsp;a#nbsp;voluntary contribution to#nbsp;the federal budget in#nbsp;the amount of#nbsp;at#nbsp;least 10% of#nbsp;the transaction amount.

  • sale of#nbsp;an#nbsp;asset at#nbsp;a#nbsp;discount of#nbsp;at#nbsp;least 50% of#nbsp;the value determined during an#nbsp;independent assessment;

  • establishing key performance indicators (KPIs) for new shareholders (owners).

  • In#nbsp;addition, now the fee must be#nbsp;paid within one month from the transaction date and not three months as#nbsp;before.