"Clear criteria are better than no criteria" - comments by Alyona Kucher for RBC
In an article for RBC KKMP Managing Partner Alyona Kucher, has commented on the introduction by the Subcommission of the Ministry of Finance of criteria for "voluntary" contributions to the state budget following the sale of assets by foreign investors.

Alyona Kucher: "The existence of clearly defined criteria is, in my view, a preferable option in the current situation… If the state has an absolute discretion with no requirement to follow any set criteria, then this necessarily puts the investor in a much more difficult position."

In practice, she continues, there was already an unspoken requirement that assets be sold at no more that 50% discount of their market value, and thus the new criteria do not change the status quo. In addition, due to the current restriction on the payment of dividends to non-residents, foreign investors leaving Russia often sell the company with significant accumulated income, which is otherwise virtually impossible to withdraw, she adds.

The full article is available here.

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