EU May Temporarily Ease Part of Sanctions to Facilitate Business Exodus from Russia

The European Union (EU) may include in the new, 11th package of sanctions against Russia a number of temporary reliefs aimed at facilitating the withdrawal of European companies from the Russian market. About it writes the EUObserver portal, which has reviewed the submitted proposals.

We are talking, in particular, about allowing financial transfers to Russian individuals and businesses that have fallen under sanctions, if such transactions are necessary for a European company to close a joint venture or legal entity in the Russian Federation before August 31.

In addition, it is proposed to allow European firms to provide Russian clients with the legal services necessary for European business to leave the Russian Federation until December 31.

The portal also notes that the new sanctions package may include about 100 new individuals and legal entities.

In mid-April, Russian Finance Minister Anton Siluanov announced introduction of a tax for foreign companies of 10% on the amount of a transaction for the sale of a business in the Russian Federation.

“We are creating conditions so that, on the contrary, companies with foreign participation continue to work here, so that the exit would be unprofitable for foreign business,” he said at the time.

In Russia, at the same time, they are working to ensure that “stimulus plan measures” are preserved and extended to business, regardless of whether it has a Russian or foreign owner, Siluanov emphasized.

In February, Russian President Vladimir Putin said that many foreign companies are leaving Russia under pressure from their governments, which causes them big losses. In March, he said that in the current situation, it is important for Russian business not to miss the opportunity to occupy the niches vacated after the departure of Western companies.

After the start of the special operation in Ukraine, many Western brands announced their withdrawal from the Russian market and the suspension of investments. According to Yale University, more than 1,000 companies have reported this publicly.