News Feed
Show More
News Feed

Financial Times: Western companies exiting Russia forced to make donation to Russian state

1 min read

Western companies wanting to leave and sell their assets in Russia are now forced to make a direct donation to the Russian state, Financial Times reported, citing a new Russian ruling issued on March 27.

According to Financial Times, the move puts pressure on groups that have yet to leave Russia, leaving them to face criticism either for continuing to operate in Russia or for funding its full-scale war against Ukraine through direct payments to the state.

Previously, companies wishing to pull out of Russia were presented with the option of making a "voluntary contribution" to the country's state budget, valued at 10% of the sale value, or having the payment from the sale postponed by several years.

The new ruling will mean companies no longer have an option – they will be forced to make a direct donation to Russia's state budget.

"It just highlights that companies should be making decisions faster, because it won't be getting any easier in the future," Kyiv School of Economics Chairperson Nataliia Shapoval told Financial Times.

Shapoval reportedly said the move has been "looming" since the summer.

‘It’s a cult-like mentality’: Historian Ian Garner on the militarization of Russian society
In the second year of Russia’s full-scale war against Ukraine, Moscow has shown its intent to fight and win the war without regard for the lives of its servicemen, or the damage caused to Russia’s economy and social fabric. The Kremlin’s choice to announce “partial” mobilization in
Avatar
The Kyiv Independent news desk

We are the news team of the Kyiv Independent. We are here to make sure our readers get quick, essential updates about the events in Ukraine. Feel free to contact us via email with feedback and news alerts.

Read more