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Companies leave Russia without a penny

Companies leave Russia without a penny

Since Russia introduced new rules, it is not easy for foreign companies to leave the country without losing large sums of money. In the end, it is Vladimir Putin who raises the money.

Since the introduction of new Russian regulations at the end of last year, many foreign companies have left Russia penniless. The money goes instead Russian President Vladimir Putin Because companies are often sold to people in the president’s inner circle, d writes.

The Authority must agree to leave the companies

Sales transactions must be approved by a special committee before leaving Russia as companies must pay up to 50 percent of the value of the assets. The problem is that the committee only meets three times a month, so companies are running out of time Andrey OnuprenkoDeputy Director for Development of the Kiev School of Economics.

“Even if they looked at all the applications, it would take eight years,” he says.

“The fact is that there is a forfeiture of assets.”

Companies leave Russia without getting paid

Some companies leave Russia without trying to get any money at all. One such example is the Russian energy giant Rosneft, which acquired the Norwegian company Equinor for one euro. Rosneft is controlled by Igor SechinPutin’s confidant.

At the same time, the corporate flight from Russia is of course negative for the Russian city’s coffers in the long run.

“It’s very devastating. More than 30 percent, maybe even 40 percent of the economy has been hit really hard,” says the professor. Jeffrey Sonnenfeld at Yale School of Management.

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Supply chains collapse

When companies leave the country, important supply chains cease to function.

“There isn’t a single sector that hasn’t slowed significantly.”

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