Foreign investors withdraw $ 36 billion from Russia

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Foreign investors have sold about 200 business properties in Russia.

Investors withdrew tens of billions of dollars from Russia.

According to data from the Central Bank of Russia, it is estimated that foreign investors withdrew $36 billion from the country, after selling business assets here between March 2022 and March 2023.

This figure is equivalent to foreign direct investment (FDI) in Russia in 2021 – the time before the war in Ukraine broke out.

According to the World Investment Report 2022 of the United Nations Conference on Trade and Development (UNCTAD), FDI inflows into Russia in 2021 will be 38.2 billion USD.

By the end of March 2023, about 200 asset sales transactions have been completed. About 20% are large, with assets over $100 million.

In terms of economic scale, the impact from foreign investors selling branches in Russia is not large.

The Kremlin now plans to introduce a cap of $1 billion a month from June, applying it to the amount of foreign currency that can be purchased for Western asset transfers.

McDonald’s, Starbucks or Ford Motor, have closed in Russia. Upcoming names are Volkswagen, UniCredit and Raiffeisen Bank International.

According to the rules, companies that want to leave Russia will have to get permission from the government and have to sell assets at a 50% discount.

In 2022, the value of assets sold by foreign companies is about 15-20 billion USD.

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