Moscow, Gatra.com – Allied efforts to isolate the Russian economy backfired. Companies that withdrew from Russia because of the Ukraine war were forced to sell their assets at low prices and pay large taxes to Moscow, as reported by the New York Times and quoted by Russia Today, Monday (18/12).
Within days of Russian troops entering Ukraine in February, a number of Western companies began to withdraw from the Russian market. Ukrainian activists and officials hunt down those who refuse to leave, and US and European Union sanctions prohibit exports of goods from and imports of raw materials to Russia.
Companies that sold their operations in Russia have lost a combined $103 billion, the New York Times reported on Sunday, citing financial reports. These companies have also handed over at least $1.25 billion in exit taxes to the Russian state, the paper added.
Since last March, Western companies wanting to sell their assets in Russia have had to get approval from Russian government commissions, which often work to ensure that local buyers get these assets at cheaper prices.
Citing minutes from a commission meeting, the Times claims that the commission rejected the sale of plants owned by Honeywell, an American electronics company, until the company agreed to sell them at a 50% discount. Since the start of this year, companies have been legally bound to sell their assets at a 50% discount.
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2023-12-18 05:15:52
#Boycotting #Economy #Russia #Profiting #International
