Residents buy assets from foreigners leaving Russia in installments
The Central Bank points out that foreign investors, subject to pressure from their governments, continue to withdraw from Russian assets, "however, the volume of relevant transactions on the scale of the economy is small." At the same time, the risks associated with the exit of foreign players from Russian assets are reduced thanks to the joint work of the Central Bank and the government, the regulator noted.
"Firstly, the potential negative impact of transactions on the foreign exchange market has been reduced. Settlements on large transactions approved by the subcommittee of the government commission for the control of foreign investment in the Russian Federation are carried out in installments, in equal payments, and the foreign currency necessary for settlements is purchased evenly (an approximate schedule is fixed in the decision)," the message says.
Secondly, approaches to the consideration of such transactions by the subcommittee are being improved, the Central Bank continued. Considerable attention is paid to business development plans by new owners who commit themselves to achieving key performance indicators for the acquired business. This contributes to the long-term development of the acquired enterprises, the preservation of jobs, technological and production potential of companies.
"Thirdly, the risks associated with an increase in the debt burden of buyers and acquired companies in connection with financing transactions for the purchase of assets from foreign investors through loans from Russian banks are currently assessed as moderate. Banks assign mainly I – II quality categories to such loans," the message says.
However, due to the uncertainty of business development prospects after the change of ownership, the corresponding risks may increase over time, the Central Bank noted, and therefore the Bank of Russia will continue to monitor them.