Author: Azizur Rahman 2 March 2022
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.
Aziz Rahman is Senior Partner at Rahman Ravelli and its founder. His ability to coordinate national, international and multi-agency defences has led to success in some of the most significant corporate crime cases of this century and top rankings in international legal guides. He is recognised worldwide as one of the most capable legal experts regarding top-level, high-value commercial and financial disputes.