Russia rolls out fast-track bankruptcy for foreign firms as companies scramble to exit
Foreign firms looking to withdraw from Russia will receive fast-tracked bankruptcy protections or be able to temporarily hand over stewardship to local managers, under measures designed to ease the flood of firms looking to sever ties with Russia.
Russian First Deputy Prime Minister Andrei Belousov said today the fast-track bankruptcy plan “will support the employment and social well-being of citizens so that bona fide entrepreneurs can ensure the effective functioning of business.”
Firms also had the option of simply staying in Russia, Belousov added,
It comes after a flood of firms have looked to divest and exit their Russian operations after western nations slapped sanctions on Russian in punishment for its invasion of Ukraine.
Energy giants BP and Shell both committed to dumping their investments and exiting the country entirely this week, with BP taking a predicted $25bn hit in selling its 19.75 per cent stake in oil giant Rosneft.
A sell-off frenzy prompted the London Stock Exchange to suspend trading of 27 firms before trading yesterday in order to maintain “orderly markets”.
Russia’s central bank shuttered the Moscow exchange this week to prevent investors exiting Russian investments en masse.