(Bloomberg) -- Russia intends to increase the financial pain for foreign companies seeking to exit its market, leaving them with only a fraction of the value of their assets.
Companies that want to quit Russia will now have to accept a 60% discount on the sale value, up from 50% previously, according to two people with direct knowledge of the situation. The exit tax on deals will also more than double to 35% from 15%, they said.
That would leave businesses with even less revenue from any sale, further complicating efforts by companies such as Austria’s Raiffeisen Bank International AG to leave Russia. Deals valued at more than 50 billion rubles ($514 million) will also need approval from President Vladimir Putin.
The terms were changed to encourage more businesses to stay in Russia, while the state budget will receive more revenue from any that do exit, the people said.
The Finance Ministry didn’t respond to a request to comment. The new terms were first reported by the RBC newswire late Thursday.
The press service at Raiffeisen International declined to comment. The lender has been seeking to sell its Russian unit since 2022 after Putin ordered the invasion of Ukraine and the US and its allies imposed sweeping sanctions.
Russia has made it increasingly difficult for international companies to leave with significant proceeds from asset sales. It created a special government commission to approve such deals and obliged businesses to sell at a discount on top of paying the exit tax. It also took control of some western assets when companies tried to leave, including those belonging to yogurt maker Danone SA, which eventually managed to negotiate an exit, and Danish brewer Carlsberg A/S, which is fighting the seizure in the courts.
Still many international corporations from Volkswagen AG to Unilever Plc have managed to cash out, though often on unfavorable terms.
Other major businesses still in Russia include Italy’s UniCredit SpA and the American PepsiCo Inc.
--With assistance from Marton Eder.
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