Government subcommittee weighs higher budget share on foreign asset sales
Officials from the government commission responsible for foreign investment control examined the possibility of changing the federal budget levy tied to the sale of assets located in Russia by foreign companies. The discussions, described by RBC citing multiple sources, center on how the fee is calculated and how much revenue it should generate. While the aim is to secure more predictable funding from these disposals, observers note that any reform would also influence the ownership landscape and the appetite of foreign investors to operate in the Russian market.
The talks involve potential changes to how much foreign asset disposals contribute to the budget, with some sources signaling a substantial uplift yet no formal target announced. The discussions are still at an early stage, and no binding figures or timelines have been published by the subcommittee. Observers emphasize that the focus is on creating a larger, more predictable stream of revenue, while regulators weigh the broader economic and legal implications for corporate disposals in Russia.
Yuri Nikolaev, head of the Nikolaev and Partners bar association, confirmed that there was discussion about revising the methodology used to approve transactions involving foreign enterprises, but a final decision had not been made. Legal practitioners expect that any changes would require careful alignment with existing norms and a clear transitional path to minimize disruption for international investors and domestic market players alike.
In 2023, the Russian budget collected about 54 billion rubles from the sale of enterprises owned by foreign entities, reflecting a revenue stream that began rising in December 2022 after authorities introduced a commission to vet and approve such transactions. The Finance Ministry had previously dismissed reports about difficulties faced by foreigners selling businesses in Russia, indicating that the regulatory framework remains under review rather than undergoing abrupt shifts. This backdrop underscores the ongoing debate among policymakers about how to balance revenue objectives with market stability and investor sentiment.