Foreign businesses that want to get out of Russia can either receive fast-track bankruptcy protection or turn their operations over to local managers, the country’s First Deputy Prime Minister Andrei Belousov said Friday (March 4).
Dozens of multinational firms have suspended operations in Russia amid sanctions imposed on the country because of its invasion of Ukraine.
As reported by Reuters, the Russian bankruptcy plan will “will support the employment and social well-being of citizens so that bonafide entrepreneurs can ensure the effective functioning of business,” said Belousov, noting that companies could also just choose to remain in Russia.
Read more: US Imposes Fresh Sanctions on 8 Russian Oligarchs, Officials
The news came one day after the U.S. imposed new sanctions on Russia, this time aimed at eight of the country’s oligarchs, including mining and metal billionaire Alisher Usmanov, who the White House called a close ally to Russian President Vladimir Putin.
Also targeted were Kremlin spokesman Dmitry Peskov; Nikolay Tokarev, chief executive of energy giant Transneft; and Boris and Arkady Rotenberg.
Sanctions have also been levied against Putin himself, as well as several banks in the country, all done in retaliation for the invasion of Ukraine, which began last week.
“We want (Putin) to feel the squeeze, we want the people around him to feel the squeeze,” White House spokeswoman Jen Psaki told reporters on Thursday.
A number of Russian companies have been moving to open bank accounts with Chinese state banks in order to avoid the sanctions, which China opposes, PYMNTS reported.
Read more: Russian Companies Scramble to Open Chinese Bank Accounts
An official at a Chinese state bank in Moscow said earlier this week that 200 to 300 companies had been asked about opening an account.
It’s not clear how wide ranging the demand was among Russian businesses for new accounts, though the official said many companies already do business with the bank.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More