The amount should not exceed the volume of their investments in the country, according to new regulations
© Getty Images / anouchka
The Russian Finance Ministry and central bank announced on Wednesday that they would soften restrictions on the payment of dividends to foreigners investing in the Russian economy.
The restrictions were part of capital controls Moscow introduced last year in response to Western sanctions.
According to a statement published on the ministry’s website, “the payment of dividends (profits) to foreign persons can be carried out without restrictions, but its volume should not exceed the amount of investment in Russia.”
Also among the conditions for dividend payments to non-residents from so-called ‘unfriendly’ jurisdictions is that their investments in Russia were made after April 1, 2023, and involved “the expansion of production in Russia [and] the development of new technologies.”
Previously, the volume of dividend payments could not exceed 50% of the total net profit of the previous year, subject to the fulfillment of the relevant key performance indicators (KPIs).
Russian Finance Minister Anton Siluanov earlier told TASS that foreigners should continue to work in Russia and that companies would be entitled to dividends only if they demonstrated a desire to stay in the country, maintain jobs, and continue operations.
For more stories on economy & finance visit RT’s business section
