New requirements mandate a 50% discount and a 10% tax, sources have told the outlet
© Sputnik / Vitaly Belousov
Western companies looking to exit Russia have faced rising costs as Moscow is demanding bigger discounts on the price tags of assets they want to sell, Reuters reported on Friday, citing people with knowledge of the matter.
The news agency’s analysis of company filings and statements has reportedly shown that companies have been hit with losses of more than $80 billion from their Russian operations due to write-downs and lost revenue.
The report indicated that Moscow has demanded a 50% discount on all foreign deals as well as a contribution to the Russian budget of at least 10% of the price. Reuters sources said that some deals were facing demands for additional discounts before the government greenlighted them.
The Russian Finance Ministry reportedly told the outlet that it does not force final sales prices to be cut, adding it may adjust valuations during the sales process. “The price may change only in a case when the commission points out the incorrect valuation of a foreign business’ market value,” the ministry was quoted as saying in a written response to Reuters.
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The finance ministry noted that the country’s economic ministry and the central bank have also been involved in appraising businesses and could make a “correction” to a price.
Aleksey Kupriyanov from Aspring Capital, which has advised on dozens of deals, told Reuters that the corporate exodus was a huge windfall for Russian entrepreneurs, as well as the Western companies’ rivals and former business partners.
After the start of Moscow’s military operation in Ukraine, over 1,000 Western firms quit the Russian market, pressured by sanctions, according to Yale University analysts. As a result, Russia was forced to reorient toward non-Western partners, most notably China and India.
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