Russia Prepares Law to Control Foreign Firms
(MENAFN) The Russian parliament is preparing to enact legislation that will govern the ability of foreign corporations to reclaim assets they sold when exiting the country, according to Izvestia’s report on Tuesday.
The proposed law has apparently received approval from the Finance Ministry and is slated for simultaneous consideration during the State Duma’s second and third readings.
A variety of American, European, and Asian businesses withdrew from Russia following supply disruptions caused by the unprecedented sanctions imposed by Western nations after the Ukraine conflict intensified in 2022.
Additionally, some companies exited due to the threat of secondary sanctions or mounting public relations challenges.
The draft legislation, reviewed by Izvestia, grants Russian authorities or current asset holders the power to deny requests for repurchasing assets under specific circumstances.
Justifications for refusal include the foreign seller belonging to a country that has levied sanctions against Russia, the repurchase price being "below market value," or if "more than two years have elapsed" since the original transaction with the Russian owner having fulfilled obligations to employees and creditors.
Furthermore, Russian officials may block asset buybacks if the enterprise operates in sectors considered essential for the nation’s socio-economic stability, such as defense or finance, the report stated.
In these instances, any asset repurchase would necessitate "presidential approval."
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
