To Russia With Cash
Holiday reminder: Wall Street Breakfast won’t be published tomorrow, with markets closed for Good Friday.
Russia is working on a legal framework for foreign companies to re-enter the country, amid hopes that Western sanctions will eventually be lifted. While companies are exploring options to return and carrying out due diligence, many are wary of making concrete plans till a permanent Russia-Ukraine peace deal is reached.
Conditions apply: Russia’s finance ministry has been drafting a legal framework for foreign companies seeking to return to the country, which will reportedly include requirements for localizing some production and agreeing to technology transfers. To maintain their competitive advantage, Russian businesses would also be given a say on international companies returning to certain sectors.
Many companies sold their Russian subsidiaries after Moscow’s full-scale invasion of Ukraine in 2022. The deals included buyback clauses, which would enable them to reclaim the assets at a cheaper price. “All new investors who want to come to Russia will receive the most favorable working conditions,” Anatoly Aksakov, head of the financial markets parliamentary committee, told Bloomberg. But companies that exited Russia will have to pay full market prices to reclaim the assets they sold, he added.
Gearing up: Italian heating systems maker Ariston is set to resume operations in Russia after it was given back control of its local unit, which had been placed under the temporary control of Gazprom. South Korea’s LG Electronics reportedly restarted operations at its plant near Moscow, while Hyundai (OTCPK:HYMTF) and Samsung (OTCPK:SSNLF) are said to be assessing the feasibility of operating in a post-war Russian market.
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