Exclusive: Moscow demands bigger discounts from foreign companies exiting Russia

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Western companies have lost more than $80 billion in Russia.

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.

The economy ministry and central bank also appraise businesses and may also make a "correction" to a price, it said. 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.

 

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