Sanctions will be imposed by the European Union against 100 individuals and legal entities as part of the 11th package of anti-Russian restrictions. This was reported by the EUobserver publication.
The report argues that new sanctions, as well as special permissions for financial transactions, could be imposed on European companies leaving Russia.
These firms can make financial transfers to EU-sanctioned Russians “if these funds or economic resources are necessary to complete the transactions” until August 31, 2023.
In addition, European regulators may allow the provision of legal services by the end of this year to complete the withdrawal from the Russian market.
Although around 1,000 foreign companies have left Russia since February 24, 2022, dozens of EU entities still operate in the Russian Federation, such as subsidiaries of major European banks, energy companies Engie, OMV and Total, and others.
However, they cannot so easily leave the Russian Federation – because all transactions related to the sale of Russian enterprises by companies from “hostile” countries must be approved by a subcommittee of the government commission on foreign investment, chaired by the Minister of Finance of Russia. Federation.
In addition, EUobserber writes that foreign businessmen must pay an “exit tax” to the Russian Federation: at least 5% of the market value of the business and at least 10% of the sale, if the discount on sale is less than 90%. market value if the discount exceeds 90%. .
In addition, foreign companies that continue to operate in the country may be required to pay taxes up to 25% of profits, according to material citing an anonymous source in Russia.
This can happen when double taxation treaties are terminated. The suspension of its activities with countries that impose sanctions on Russia was previously proposed by the Ministry of Foreign Affairs and Finance of the Russian Federation.
Work on the 11th package of sanctions has been carried out by European bureaucrats since the beginning of spring 2023. Ursula von der Leyen, the head of the European Commission, said during her visit to Kiev on May 9 that the new sanctions package will focus on circumventing the measures already in place. For example, they may prohibit the transit of European goods to third countries via Russia. Or they may ban the export of European products to third countries that supply products to Russia under EU sanctions.
Sanctions could also be imposed on the energy sector – Germany could be banned from buying oil from the Druzhba pipeline, leaving such a right only to Hungary.
In addition, they could introduce new visa bans and freeze the assets of several dozen Russian officials, a number of organizations and “two small banks”, EUobserver reported.
On May 13, Polskie radio reported that the European Union countries had not yet agreed on the 11th package of sanctions against the Russian Federation. No decision was taken at the meeting of the permanent representatives of the EU countries on 12 May.
The radio station also states that this sanctions package will aim to combat restriction bypasses and eliminate legal loopholes.
“If it turns out that some goods for export to third countries enter the Russian market, an export ban will be imposed on them,” says the publication. As Polskie radio points out, such sanctions will be imposed after careful and careful analysis.