The governor of the Leningrad region offered IKEA to be rented out
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The governor of the Leningrad region, Alexander Drozdenko, suggests that the Ministry of Economic Development and Trade be tougher in assessing the behavior of foreign partners who announce they are leaving the Russian market. So, according to the head of the region, foreign companies, including IKEA, should be obliged to return the money from the received tax benefits, in case of deliberate overpricing of assets, lease them to the region for the amount of depreciation charges, and also terminate lease agreements with foreign enterprises for forest and subsoil use.
The governor of the Leningrad region called his proposals counter-sanctions against foreign enterprises that decided to leave the Russian market. “If the investment agreement with such a company is still in effect, but it has decided to leave, then let it return to the state budget the funds from the benefits received and direct investments of the region in which it worked,” Mr. Drozdenko formulated his first proposal.
The meaning of the second sentence is that if a company uses natural resources and is put up for sale, the lease agreement for forest use and subsoil use should be terminated with it and it should be prohibited to include the assignment of licenses for the use of resources in the sale price.
The third initiative concerns a situation where the exiting company sets an unacceptable sale price and is about to curtail production due to a lack of buyers. In this case, Governor Drozdenko proposes to set conditions for the partner to lease the business to a region or a friendly company for the amount of depreciation deductions under the state guarantee of preserving the profile of the enterprise and jobs.
These measures can be applied, in particular, to such market players as IKEA and Metsa (the companies’ production sites are located in Tikhvin and Svir in the Leningrad Region), Mr. Drozdenko is convinced. “According to IKEA, this is the proposal: either they sell their business, or, if they want to leave, we will demand that the company be leased in order to maintain production. Either rent or buy. Everything is in a licensed way, ”RIA Novosti quotes the words of the head of the region.
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