Moscow's Economic Pressures: Putin's New Exit Tax and Discount Measures

Overview of New Measures in Moscow

The economy of Russia is facing unprecedented challenges as businesses attempting to leave are grappling with increased costs imposed by the government. Reports indicate that companies seeking to exit are now required to accept a 60% discount on their sale value, which marks a sharp increase from the previous 50% discount.

The Burgeoning Exit Tax

Moreover, the exit tax has escalated to 35%, significantly up from the earlier 15%. This shift indicates a broader strategy employed by Moscow to discourage foreign firms from abandoning their operations in Russia.

Consequences for Foreign Companies

According to an analysis, foreign firms that have left since the Ukraine conflict began have accumulated losses exceeding $100 billion. The economic impacts of exiting firms are severe, with assets from major corporations like Shell and HSBC being sold at discounts nearing 90%.

Current State of Foreign Operations

• Over 1,000 international firms are reportedly reducing their presence in Russia.
• Despite the mass exodus, more than 1,700 foreign companies continue their operations amid rising tensions.