Rahman Ravelli explains the difficulties facing those looking to end their Russian investments

With increasing amounts of sanctions being placed on Russia, many of those who have invested in the country are looking to cut their ties with it.

The sanctions imposed after the invasion of Ukraine have made doing business in Russia increasingly difficult.

But, as Rahman Ravelli explained to the Financial Times’ FDI Intelligence, many will struggle to end their investment in Russia. The Russian government has said that it will temporarily stop foreign investors from selling their assets in the country. This, Rahman Ravelli said, has left those with Russian business interests restricted by both the sanctions and the Russian government’s response to them.

Rahman Ravelli, who are sanctions compliance experts, said: “It’s a double-edged issue. Russia is trying to stem the bleeding: it is going to make it really difficult for people who are looking to quickly exit out of Russian investments.

“Companies are likely to treat assets in Russia as frozen and illiquid, doing nothing with them for the time being.”

Rahman Ravelli added that such assets are likely be ring-fenced from other investments. They said that they expect there to be “a lengthy process of unwinding positions” held by foreign companies in Russia, especially those involved in joint ventures.

Rahman Ravelli's comments can be read on the Financial Times’ FDI Intelligence.