- This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.
MOSCOW, Dec. 30 (Reuters) – Foreign investors from “unfriendly” countries selling stakes in Russian assets may have to do so for half the price or less, the finance ministry said on Friday, cutting Russia’s budget by 10% is reduced. every transaction.
Since Moscow sent its army to Ukraine in February, many Western companies – from energy producers to food and clothing chains – have left Russia.
Minutes of a meeting of a government commission that monitors foreign investment listed a series of measures that could apply to “foreigners associated with foreign states who commit unfriendly acts against Russian entities and individuals” in the sale of assets.
The term “unfriendly” describes countries that have imposed sanctions on Russia in response to its military intervention, including members of the European Union, the United States, Japan, Canada, Britain and Australia.
It was not immediately clear how the government would choose to implement the measures and whether they would apply to every deal.
Transactions may require an independent assessment of the asset’s value, with key performance indicators set for the new shareholders, according to the minutes of the December 22 meeting released on Friday by the Treasury Department.
One condition stated: “The sale of assets at a discount of at least 50% of the market value of the relevant assets as indicated in the valuation report.”
Another said sellers could be required to make one to two years of additional payments or a 10% upfront payment of the total transaction to the Russian federal budget.
A bill that would have allowed authorities to seize Western assets failed to pass parliament this summer.
But a decree signed by President Vladimir Putin on August 5 prohibited investors from unfriendly countries from selling shares in the most significant and transferable investments – major energy projects and banks – unless Putin issued a waiver.
Reporting by Alexander Marrow; Edited by Kevin Liffey
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