In Russia, the amount of payment for business termination for Western companies has been changed

Payment in the amount of 5% of the market value
of the business must be made to the budget by foreign companies from unfriendly
countries in the event of the sale of their assets in Russia. Prior to this
change, it was necessary to make 10% of the transaction size.

A special government commission dealing with
the control of foreign investments took into account certain requirements
during the discussion and changed the conditions for approving transactions
made by foreigners from unfriendly countries for the sale of Russian assets.

When deciding to grant such permits, the
commission will take into account the principle of expediency under the
following conditions:

– obligation to pay at least 5% of the market
value of the company’s assets to the Russian budget;

– an obligation to pay to the Russian budget an
amount of at least 10% of the market value of the company’s assets when selling
at a discount of more than 90% of the market value.

At the end of 2022, a special commission
established a rule on paying at least 10% of the size of the transaction to the
budget, while there was a requirement to sell the company at a discount of at
least 50% of the cost, which was determined by an independent assessment.

Now the amount of the contribution to the
budget is fixed at 5% of the market value of the company. The Commission does
not specify who should pay such a fee, in fact, the buyer pays it, since it is
impossible to make such a payment from unfriendly countries.