Russia says it will not let foreign banks exit the market easily — unless they unfreeze Russian assets
Russia is demanding that foreign banks unfreeze Russian assets if they want to exit the market, imposing increasing costs for corporate breakups.
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Posted 9/4/2023, 4:08:00 AM
businessinsider.com
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Foreign companies trying to exit Russia are facing higher costs as Moscow demands bigger discounts on the assets they want to sell, amidst tightening exit requirements and the threat of nationalization.
The Russian government will not make it easy for foreign banks to leave the country, and the decision will depend on the unfreezing of Russian assets.
Chinese banks are offering billions of dollars to Russia as Western lenders withdraw due to sanctions, leading to a quadrupling of renminbi-backed loans in Russia and deepening the country's economic ties with China.
Russia is sticking to its conditions for a return to the Black Sea grain deal, including the reconnection of its state agricultural bank to the international SWIFT bank payments system, while Ukraine refuses to alter its stand and be hostage to "Russian blackmail."
Western companies remaining in Russia are finding it increasingly difficult to leave due to changing rules and the risk of state expropriation, making the Russian market a dangerous one to remain in.
Hundreds of companies have left Russia due to its invasion of Ukraine, but others remain due to financial concerns, assets being difficult to sell, and humanitarian reasons, however, the long-term consequences for staying in Russia may include reputational damage and potential financial risks.