2023-11-09 19:40:19
Kremlin rules
The restrictions imposed on anyone who wants to sell Russian companies favor new buyers.
During 2022, the Kremlin prevented foreign investors from selling Russian assets without the approval of a special government committee, and ordered the sale of assets at a discount of no less than 50% of the market value, as the country attempted to discourage the stampede of foreign companies to exit the country.
Under rules implemented earlier this year, companies seeking to sell their assets in Russia face a forced contribution to the budget even if they dispose of them for a nominal sum or for free.
Alexander Isakov of Bloomberg Economics explained that when locals buy assets owned by foreigners, the concern is that they are trying to capture lucrative markets that were previously difficult to enter.
He added: “There is usually limited scope to increase production, and therefore little incentive to invest or attract capital. Ultimately, we expect that takeovers will exacerbate the market control of a handful of investors and increase corporate profits, but productivity and investment growth will decline.”
1699560501
#elite #rushing #fill #void #departure #foreign #companies #Russia
