SummaryCompaniesThis content was produced in Russia where the law restricts coverage of Russian military operations in UkraineWestern companies have lost more than $80 bln in RussiaNew demands slow sales processCompanies looking to exit face new pressuresMoscow already requires 50% discount, 10% taxMOSCOW, Aug 25 (Reuters) – Some foreign companies trying to exit Russia are facing a big jump in costs as Moscow is demanding bigger discounts on the price tags of assets they want to sell, three people with knowledge of the matter said.Russia has steadily tightened exit requirements since Western companies started leaving soon after Moscow began what it calls a ”special military operation” in Ukraine in February 2022. Executives say navigating the rules is becoming harder.Foreign companies have already been hit by losses of more than $80 billion from their Russian operations due to writedowns and lost revenue, based on an analysis by Reuters of company filings and statements.Dutch brewer Heineken (HEIN.AS) said on Friday it had completed its exit from Russia by selling its operations there to Russia’s Arnest Group for a symbolic one euro.Moscow has also gradually imposed additional exit hurdles. The threat of nationalisation also looms, particularly following the July seizure of Danish brewer Carlsberg’s (CARLb.CO) and French yoghurt maker Danone’s (DANO.PA) Russian assets.Companies still in the process of negotiating exits include telecoms group Veon (VON.AS), Nasdaq-listed tech group Yandex (YNDX.O) and Italian lender Intesa (ISP.MI).Moscow already demands a 50% discount on all foreign deals after consultants selected by the Russian government have valued the business.Russia also requires a contribution to the Russian budget of at least 10% of the price.But three people familiar with the exit process for foreign companies said that some deals are facing demands for additional discounts before the government gives a green light.The sources requested anonymity because the information is confidential.The Russian finance ministry said it does not force final sales prices to be cut, but it may adjust valuations during the sales process.”The price may change only in a case when the commission points out the incorrect valuation of a foreign business’ market value,” it said in a written response to Reuters’ questions.The economy ministry and central bank also appraise businesses and may also make a “correction” to a price, it said.A government commission that monitors foreign investment has to approve deals involving companies from so-called “unfriendly” countries – those that have imposed sanctions against Russia over its actions in Ukraine. Banks and energy companies also require President Vladimir Putin’s personal approval to sell.A financial market source working with companies seeking to leave Russia said the commission was sending some deals back, saying the valuation should be 20-30% lower.It is an “unpredictable black box”, this person…
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