A view shows the headquarters of technology company Yandex in MoscowMOSCOW - 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.
Dutch brewer Heineken 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 already demands a 50% discount on all foreign deals after consultants selected by the Russian government have valued the business.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 Russian finance ministry said it does not force final sales prices to be cut, but it may adjust valuations during the sales process.
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.Another person, who works on M&A transactions and with foreign companies, said deals exceeding $100 million were at particular risk of being denied.
"Last year's exodus of foreigners is continuing, although there are slightly fewer deals," said Suren Gortsunyan, a partner and co-founder of law firm Rybalkin, Gortsunyan, Dyakin and Partners , which has advised on eight successful deals and plans to file for approvals in another five to six.