Russia to change rules for selling foreign businesses: owners to receive only 5%
The former owners of foreign businesses in Russia will be able to receive only 5% of its market value after the conditions for selling them have been changed. Source: BBC News Russian, citing a letter from the Russian Ministry of Finance Details: The minimum discount for selling foreign assets will rise from 50% to 60%, while the voluntary budget contribution will increase from 15% to 35% of the asset's market value.
The former owners of foreign businesses in Russia will be able to receive only 5% of its market value after the conditions for selling them have been changed.
Source: BBC News Russian, citing a letter from the Russian Ministry of Finance
Details: The minimum discount for selling foreign assets will rise from 50% to 60%, while the voluntary budget contribution will increase from 15% to 35% of the asset's market value. In addition, transactions exceeding RUB 50 billion will require presidential approval.
Former owners will consequently receive only 5% of the market price of their assets after the sale.
These new conditions will apply to both future transactions and applications that have been submitted but not yet reviewed by the government subcommittee.
Background:
- The British conglomerate Unilever, which produces household chemicals and food products, has announced its exit from the Russian market.
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