World meat industry news

The authorities have formed a new list of requirements that must be met when concluding transactions involving the withdrawal of foreigners from Russian business, Vedomosti reported, citing a July 7 decision by a subcommittee of the government commission on foreign investment control. There are ten items on the list, the newspaper writes, but many of them are already in effect. Among the new requirements is a ban on entering into a buyback option for a period of more than two years. If such an agreement has already been signed, the former owner must pay the market price for the return of the business to him, and the economic benefit for the current owner will also be assessed.

According to the interlocutor of the newspaper, this is done in order to complicate the exit from the business: foreigners "should understand what they are losing." Also, a new condition was the obligation to place up to 20% of the shares of the acquired public joint-stock company on the stock exchange, regardless of the format in which the transaction is carried out (for example, a foreign company joins the existing business of the new owner). This requirement will only apply to new transactions, the source said. It is necessary to start the listing procedure within a year after the conclusion of the transaction, and complete the listing within three years, follows from the decision of the subcommittee. In addition, the requirement to list will apply even if the PJSC is liquidated or loses its public status as a result of the transaction. Funds from the sale of assets cannot be withdrawn abroad to owners from unfriendly countries.

Last December, RBC wrote that a special commission of the Ministry of Finance relies on a number of criteria when issuing permission for the alienation of assets by foreigners, including the sale of an asset at a discount of at least 50% of the cost determined in the course of an independent assessment, and installment payment for the buyer for one or two years or payment of a voluntary contribution to the federal budget in the amount of at least 10% of the transaction amount.

In mid-June, the Financial Times reported that Moscow was preparing measures to give the state priority to buy the assets of "disobedient" Western companies about to exit the market at "bargain prices." The newspaper also wrote about the obligation to place 20% of the assets on the stock market. Prior to this, the head of the Central Bank, Elvira Nabiullina, said that she was in favor of the mandatory placement on the stock exchange of shares of a company leaving Russia when buying it from a non-resident, which “will provide some variety of tools for investors.” This proposal was supported by the Ministry of Finance.

Presidential spokesman Dmitry Peskov told the FT at the time that Western investors and companies were “more than welcome” in Russia, but some of them had completely stopped paying salaries or simply left the market with heavy losses. “If a company does not fulfill its obligations, then, of course, it goes into the category of dysfunctional ones. We say goodbye to these companies. And what we will do with their assets after that is our business,” he said.