icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
14 Mar, 2022 14:32

Russia issues stern warning to departing firms

Businesses may be subject to forced bankruptcy measures within six months, Finance Ministry says
Russia issues stern warning to departing firms

Enterprises of foreign companies that have pulled out of Russia may be subjected to bankruptcy proceedings, according to Russian Finance Minister Anton Siluanov. He said on Monday that the insolvency procedure for such businesses could take from three to six months.

At the same time, the minister said, “Russia wants foreign companies to continue to operate in the country,” noting that their departure “is not beneficial to anyone.”

Earlier, the Ministry of Economic Development expressed hopes for the return of a significant part of foreign businesses to Russia. This should happen after the reconfiguration of logistics, the ministry said.

Meanwhile, President Vladimir Putin suggested last week to introduce external management and transfer of those enterprises “to those who want to work.” Putin also told the ministers Russia should ensure that the rights of foreign investors who chose to remain in the country were “reliably protected.”

A growing number of Western companies have suspended or ended operations in Russia after the United States and European countries imposed crippling economic sanctions against the country due to the war in Ukraine. Aside from political pressure, foreign businesses are facing supply chain issues, as Russia faces an export ban from some countries.

For more stories on economy & finance visit RT's business section