Setting Russian market exit terms for foreign business protects domestic economy — Kremlin

The Kremlin sees measures restricting the ability of foreigners to exit their Russian businesses as part of protecting the domestic economy, Presidential Spokesman Dmitry Peskov said on Friday.

Earlier, the Vedomosti business daily reported that a subcommittee of the government foreign investment control commission had approved a list of 10 points that foreigners must comply with in order to exit their Russian businesses. Some of these restrictions are already in effect, but there are several fundamentally new terms that have not yet been formally applied, the newspaper notes.

He noted that this is "a very extensive issue for discussion."

As Vedomosti reported, one of the conditions for a foreigner to exit a business in Russia is that the buyer of the relevant assets must not enter into a buyback option with the seller for a period of more than two years. If the agreement is signed, the former owner must pay the market price for the return of the business to him. Among other points, the newspaper highlights the provision of a discount of at least 50% of the market value, with the amount of 10% being paid to the budget, if a transaction is executed at a discount of less than 90% of the market value, as well as a ban on the withdrawal of funds from sales abroad for owners from unfriendly countries, and the existence of all other required permits from the Russian authorities for carrying out a given transaction, among other items.