Western entrepreneurs in Russia continue to need special permission from the government to sell their shares in large companies. This applies above all to the banking and energy sectors.
According to the Interfax news agency, a decree passed by Russian President Vladimir Putin in August was extended by one year on Monday and will now expire on December 31, 2023.
Following the war launched by Russia against Ukraine, the West has imposed sanctions on Moscow. Because of the increased risks, many companies and entrepreneurs are trying to reduce their business with Russia.
However, the Russian government put a stop to these efforts months ago and prohibited the sale of shares in strategically important sectors such as raw materials extraction or the financial sector.
Such sales are only possible with an exemption from the government.The regulation applies to entrepreneurs from "unfriendly countries," that is states that have introduced sanctions on Russia. With this regulation, the Kremlin wants to prevent a mass exodus of Western companies.
At the same time, the government has given its blessing to such deals where foreign companies hand over their factories to state-owned Russian players well below market price.
For example, carmakers Renault and Nissan have sold their production facilities in Russia for the symbolic price of 1 rouble ($0.016).
